Risk Analysis Research and Demonstration Act of 1981

Risk Analysis Research and Demonstration Act of 1981 - Directs the President to establish and direct, through the Office of Science and Technology Policy, a coordinated program for the improvement and use of risk analysis within Federal agencies through research, interagency coordination, and the development of comparative risk strategies. Requires the United States Regulatory Council to submit to Congress a plan which: (1) reviews the extent, type, and quality of risk analysis presently being carried out within, by, and outside Federal agencies; (2) recommends specific areas for emphasis for research and funding; (3) recommends a coordinating mechanism to transmit and share research results among Federal agencies and other institutions; (4) plans for prototypical risk analysis demonstrations; and (5) recommends methods of increasing public awareness.

Requires specified Federal agencies to recommend to the Council research that should be done by such agencies. Directs the National Science Foundation to recommend a program of research to strengthen the basic and applied sciences required to support Federal agencies in utilizing risk analysis methods, including improved data gathering methods. Directs the Chairman of the Council to coordinate such recommended research programs.

Requires specified Federal agencies to undertake a prototypical risk analysis study: (1) utilizing new developments when available; (2) comparing the risk of alternative courses of action; (3) delineating scientific from policy judgments; (4) identifying limits placed on the analysis due to relevant organizational and statutory constraints; and (5) highlighting the importance of tradeoffs.

Directs the Chairman to transmit a report to Congress summarizing the risk analysis being carried out and making recommendations for future research and legislative changes.

Authorizes appropriations.