The Regulatory Plan
Federal regulation is a fundamental instrument of national policy. It is one of the three major tools -- in addition to spending and taxing -- used to implement policy. It is used to advance numerous public objectives, including homeland security, environmental protection, educational quality, food safety, transportation safety, health care quality, equal employment opportunity, energy security, immigration control, and consumer protection. The Office of Management and Budget's (OMB) Office of Information and Regulatory Affairs (OIRA) is responsible for overseeing and coordinating the Federal Government's regulatory policies.
The Regulatory Plan is published as part of the fall edition of the Unified Agenda of Federal Regulatory and Deregulatory Actions, and serves as a statement of the Administration's regulatory and deregulatory policies and priorities. The purpose of the Plan is to make the regulatory process more accessible to the public and to ensure that the planning and coordination necessary for a well-functioning regulatory process occurs. The Plan identifies regulatory priorities and contains information about the most significant regulatory actions that agencies expect to undertake in the coming year. An accessible regulatory process enables citizen centered service, which is a vital part of the President's Management Agenda.
Federal Regulatory Policy
The Bush Administration supports Federal regulations that are sensible and based on sound science, economics, and the law. Accordingly, the Administration is striving for a regulatory process that adopts new rules when markets fail to serve the public interest, simplifies and modifies existing rules to make them more effective or less costly or less intrusive, and rescinds outmoded rules whose benefits do not justify their costs. In pursuing this agenda, OIRA has adopted an approach based on the principles of regulatory analysis and policy espoused in Executive Order 12866, signed by President Clinton in 1993.
Effective regulatory policy is not uniformly pro-regulation or anti-regulation. It begins with the authority granted under the law. Within the discretion available to the regulating agency by its statutory authority, agencies apply a number of principles articulated in Executive Order 12866 (as well as other orders, such as Executive Order 13211, "Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," signed May 18, 2001, 66 FR 28355), in order to design regulations that achieve their ends in the most efficient way. This means bringing to bear on the policy problem sound economic principles, the highest quality information, and the best possible science. This is not always an easy task, as sometimes economic and scientific information may point in very different directions, and therefore designing regulations does not mean just the rote application of quantified data to reach policy decisions. In making regulatory decisions, we expect agencies to consider not only benefit and cost items that can be quantified and expressed in monetary units, but also other attributes and factors that cannot be integrated readily in a benefit-cost framework, such as fairness and privacy. However, effective regulation is the result of the careful use of all available high-quality data, and the application of broad principles established by the President.
In pursuing this goal of establishing an effective, results-oriented regulatory system, the Bush Administration has increased the level of public involvement and transparency in its review and clearance of new and existing regulations. First, in 2002 OMB sought public comment on a major regulatory reform initiative. In response to this public solicitation, OMB received recommendations on 316 distinct rules, guidance documents, and paperwork requirements from over 1,700 commenters. In its review of the 316 nominations, OMB found that 109 of the reform ideas were already being addressed by agencies, and another 51 ideas were referred to independent agencies for their consideration. Of the 156 reform nominations that OMB determined were ripe for consideration by Cabinet-level agencies and the Environmental Protection Agency, agencies have decided to pursue 34 rules and 11 guidance documents for reform, are undecided about 26 rules and 4 guidance documents, and have decided not to pursue reform of 62 rules and 19 guidance documents at this time.
Second, OIRA has enhanced the transparency of OMB's regulatory review process to the public. OIRA's website now enables the public to find information on rules that are formally under review at OMB, have recently been cleared, or have been returned to agencies for reconsideration. OIRA has also increased the amount of information available on its website. In addition to information on meetings and correspondence, OIRA makes available communications from the OIRA Administrator to agencies, including "prompt letters," "return letters," and "post clearance letters," as well as the Administrator's memorandum to the President's Management Council (September 20, 2001) on presidential review of agency rulemaking by OIRA.
Third, the Bush Administration has moved aggressively to establish basic quality performance goals for all information disseminated by Federal agencies, including information disseminated in support of proposed and final regulations. The Federal agencies issued guidelines on October 1, 2002 under the Information Quality Law to ensure the "quality, objectivity, utility, and integrity" of all information disseminated by Federal agencies. Under these guidelines, Federal agencies are taking appropriate steps to incorporate the information quality performance standards into agency information dissemination practices, and developing pre-dissemination review procedures to substantiate the quality of information before it is disseminated. Under the agency information quality guidelines, "affected persons" can request that the agencies correct information if they believe that scientific, technical, economic, statistical or other information disseminated does not meet the agency and OMB standards. If the requestor is dissatisfied with the initial agency response to a correction request, an appeal opportunity is provided by the agencies. To date, agencies have received and responded to approximately 30 complaints that appear to be stimulated by the Information Quality Law. Although we are still in the early phases of implementation, agencies are aware that ensuring the high quality of government information disseminations is a high priority of the Administration.
As part of its efforts to improve the quality, objectivity, utility, and integrity of information disseminated by the Federal agencies, OMB recently issued a proposed bulletin to realize the benefits of meaningful peer review of the most important science disseminated by the Federal government regarding regulatory topics. Through the combination of ongoing agency commitment, public interaction with the agencies, and OMB oversight, the underlying information and resulting analyses that agencies rely upon in developing regulations can become even more effective and reliable.
Fourth, the Administration is currently increasing the impact of OMB's analytical perspective. The OIRA Administrator is using the "prompt letter" to agencies as a new way to suggest promising regulatory priorities, and highlight issues that may warrant regulatory attention. Though not meant to have legal authority, these prompt letters are designed to bring issues to the attention of agencies in a transparent manner that permits public scrutiny and debate. Prompt letters may highlight regulations that should be pursued, rescinded, revised, or further investigated. For example, OIRA's first set of prompts has suggested lifesaving opportunities at FDA, NHTSA, OSHA and EPA. In a letter to FDA, OIRA suggested that priority be given to completing a promising rulemaking (started in the previous Administration), to require that food labels report the trans-fatty acid content of foods. (Trans-fats are now recognized as a significant contributor to coronary heart disease.) FDA has now issued a final rule that will require the disclosure of trans-fat content in food labels. Similarly, OSHA has responded to an OIRA prompt letter by notifying each employer in the country of the lifesaving effects and cost-effectiveness of automatic defibrillators, a lifesaving technology designed to save lives during sudden cardiac arrest.
In addition to increasing the level of public involvement and transparency in its review of regulations, the Bush Administration has sought to enhance the role of analysis in the development of effective regulations. OIRA, for example, recently issued revised guidance to agencies on regulatory analysis1 Key features of the revised guidance include more emphasis on cost-effectiveness and more careful evaluation of qualitative and intangible values. OIRA was very interested in updating the guidance in light of these and other innovations now commonplace in the research community. The 2003 Regulatory Plan continues OIRA's effort to ensure coordination across Federal agencies in pursuing analytically sound regulatory policies.
The Administration's 2003 Regulatory Priorities
With regard to Federal regulation, the Bush Administration's objective is quality, not quantity. Those rules that are adopted promise to be more effective, less intrusive, and more cost-effective in achieving national objectives while demonstrating greater durability in the face of political and legal attack. The Regulatory Plan is integral to enhancing the quality of Federal regulations, and OMB seeks to ensure that the public is provided with the information needed to understand and comment on the Federal regulatory agenda. Accordingly, the 2003 Regulatory Plan highlights the following themes:
1. regulations that are related to the events of September 11, 2001;
2. regulations that are of particular concern to small businesses;
3. regulations that were among those nominated by the public as reform candidates last year (see OMB's 2003 Report to Congress on the Costs and Benefits of Federal Regulations); and
4. issues that have been the subject of an OIRA "prompt letter."
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1See Circular A-4, "Regulatory Analysis," published as part of OMB's 2003 Report to Congress on the Costs and Benefits of Federal Regulations. The report is available on OMB's website at: www.whitehouse.gov/omb/inforeg/2003_cost-ben_final_rpt.pdf
Specifically, the Administration's regulatory priorities can be grouped into five national policy objectives: (1) strengthening economic performance; (2) reducing barriers to the growth of small businesses; (3) improving public health and safety; (4) enhancing environmental protection; and (5) ensuring homeland security. The Administration is committed to pursuing regulatory actions that achieve each of these goals. Below are examples of regulatory priorities in the upcoming year that address each objective.
Strengthening Economic Performance
One of the Administration's primary goals is to strengthen the country's economic performance. Agencies across the Federal Government are actively pursuing this goal through regulatory changes.The Department of Housing and Urban Development is undertaking rulemakings on simplifying and improving the process of obtaining mortgages to reduce settlement costs to consumers. The rule simplifies the mortgage application process and allows a greater understanding of the upfront and long-term costs of a mortgage. The rule should strengthen market competition among mortgage providers and ultimately lower costs to consumers.
Similarly, the Department of Transportation will conclude a review of its Computer Reservations System Regulations. The Department regulates computer reservations systems owned by airlines or airline affiliates that are used by travel agencies. The current rules were designed to prevent the systems from unreasonably prejudicing the competitive position of other airlines and to ensure that travel agencies would provide accurate and unbiased information to the public. The Department is reexamining its rules to see whether they should be readopted and, if so, whether they should be changed in response to greater use of the Internet in airline reservations and ticketing and changes in the industry.
Reducing Barriers to the Growth of Small Business
This Administration has endeavored to encourage the growth of small businesses in our economy. As President George W. Bush has noted, "Wealth is created by Americans -- by creativity and enterprise and risk-taking. But government can create an environment where businesses and entrepreneurs and families can dream and flourish." To assist small businesses, the Small Business Administration (SBA) will work to decrease the complexity of small business size standards, thereby encouraging small businesses to participate in the Federal Government's small business programs. The SBA intends to reduce the number of different size standards levels. This restructuring will simplify the identification of small businesses and the use of size standards in Federal small business programs.
Improving Public Health and Safety
The Federal Government's role in improving public health and safety is broad in scope. The Administration's 2003 regulatory priorities include a Department of Labor rulemaking on child labor. This regulation will set forth the permissible industries and occupations in which 14- and 15-year-olds may be employed, and specify the number of hours in a day and in a week, and time periods within a day, that such minors may be employed.
The Department of Health and Human Services' Food and Drug Administration (FDA) will issue a rule on Reducing Medical Errors and Enhancing Patient Safety. An upcoming final rule will require human drug products to have a scannable bar code that will reduce medication errors.
Enhancing Environmental Protection
Environmental protection is an integral consideration in U.S. policies concerning natural resources, human health, economic growth, energy, transportation, agriculture, industry, and international trade. These factors are similarly considered in establishing environmental policy. The Administration is dedicated to enhancing environmental protection through smart regulations, based on the best scientific data available.
The Environmental Protection Agency (EPA) has proposed a rule to reduce the particulate matter and nitrogen oxide emissions from diesel-powered non-road vehicles and equipment. Non-road engines emit significant amounts of fine particles and nitrogen oxide emissions; these pollutants are associated with a variety of adverse health effects, ranging from lost work days and greater numbers of hospital admissions to premature mortality. The proposal will evaluate not only new emission control devices that would be required for new engines, but also the reductions in sulfur levels that are likely to be needed to enable the control systems to operate effectively. This comprehensive systems approach is similar to that taken for the heavy-duty diesel highway rule for trucks and buses that takes effect in the 2006-2007 timeframe. EPA plans to publish a final rule in spring 2004.
EPA has promulgated two companion rules designed to protect drinking water against the risks of both microbial pathogens and the disinfectants that are used to control them. The rules will enhance existing monitoring and treatment requirements to ensure that risks from disinfection byproducts, which have been linked to various adverse health effects, are minimized, without compromising the important protection they provide against pathogens.
Ensuring Homeland Security
In its continued efforts to prevent future security threats and provide relief for individuals affected by the tragedies of the September 11, 2001 terrorist attacks, the Federal Government is revisiting and establishing practices and procedures to strengthen homeland security. Several agencies, including the Departments of Justice, Transportation, Labor, Health and Human Services, Commerce, the Office of Personnel Management, Small Business Administration, and the Office of Management and Budget, issued new regulations. Furthermore, these agencies are working to coordinate their rulemaking activities with those from the Department of Homeland Security.
The Administration will continue to pursue regulatory actions necessary to ensure homeland security. The Department of Homeland Security will conclude work on a Trade Act regulation that will require the submission of arrival and departure manifests electronically in advance of an aircraft or vessel's arrival in or departure from the United States. The Department will also work on a regulation for the critical infrastructure program, which will determine the receipt, care, and storage procedures of critical infrastructure information voluntarily submitted by the public. The protection of critical infrastructure reduces the vulnerability of the United States to acts of terrorism. Furthermore, the Department will propose a rule which will provide critical incentives for the development and deployment of antiterrorism technologies.
Conclusion
Smarter regulatory policies, created through public participation, transparency, and cooperation across Federal agencies, seek to accomplish these five national objectives. Some of the following department or agency plans provide information on regulatory priorities in the context of these specific programs and initiatives. All agencies' plans are a reflection of the Administration's Federal Regulatory Policy objectives, which aim at implementing an effective and results-oriented regulatory system.