The White House’s Office of Management and Budget (OMB) has released a draft report entitled “Draft Report to Congress on the Costs and Benefits of Federal Regulations,” which reviews the Administration’s position on the costs and benefits of federal regulations. The report estimates that federal regulations cost $520 to $620 billion annually, while producing benefits ranging from one-half to three times that amount. The report also indicates that the costs of environmental regulations are far more burdensome on the U.S. economy than regulations imposed by any other agency.
The draft report indicates that, from April 1, 1999, to September 30, 2001, the cost of complying with Environmental Protection Agency (EPA) regulations was approximately $12 billion, while the benefits were estimated to be anywhere from $23 to $43 billion. So-called “social rules,” such as health and safety regulations also were very costly.
OMB’s Office of Information and Regulatory Affairs (OIRA) is seeking public comment on all aspects of the draft report, and also is asking for public nominations for regulatory reform in three areas: (1) reforms that might increase net benefits to the public; (2) reforms that might ease undue regulatory and paperwork burdens on small businesses; and (3) reforms that might correct problematic agency "guidance" documents. Once it receives public comment, peer and interagency review, OMB will submit a final report to Congress.
The draft report includes information on six other major issues including:
· the 41 significant federal regulations OMB has cleared since September 11, addressing issues such as response to terrorist threats, homeland security, immigration control, airline safety, and assistance to businesses harmed by the resulting economic disaster
· OIRA’s overall approach for making the regulatory review process more open, transparent, analytically rigorous, and punctual
· the five pro-regulation “prompt” letters OIRA has issued covering such issues as lifesaving defibrillators, food labeling requirements, and environmental performance information
· the mandatory government-wide guidelines OIRA has released to improve the quality of information federal agencies disseminate to the public
· the regulatory reform activities now underway in developed countries, with a special focus on the European Union
· the estimated annual benefits and costs of major federal regulations cleared by OMB from April 1, 1995 to Sept. 30, 2001.
The draft report, which was released to the public on March 19, is available on the internet at http://www.whitehouse.gov/omb/inforeg/8stevensdraftmemoMarch18.pdf . OMB will accept public comments through May 20, 2002.
