Regulatory Improvement Act of 2000

Summary: Requires that, when the Director of the Office of Management and Budget has designated a rule as a major rule, or when an agency has published an interim final major rule, such agency shall: (1) promptly prepare and place in the rule making file an initial regulatory impact analysis; (2) publish in the Federal Register a summary of such analysis; and (3) give interested parties the same opportunity to comment as if the initial regulatory impact analysis had been issued with the notice of proposed rule making. Requires an agency publishing a final major rule to prepare and place in the rule making file a final regulatory impact analysis which shall reflect any changes made to the proposed rule or its cost-benefit analysis or risk assessment, as well as agency consideration of comments from interested parties as provided above.
Mandates a comparative risk study by the Director of the extent and severity of significant risks to human health, safety, or the environment. Requires the President to periodically report to Congress recommending legislation to reduce such risks.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Regulatory Improvement Act of 
2000''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Effective regulatory programs provide important 
        benefits to the public, including protecting the environment, 
        worker safety, and public health. Regulatory programs also 
        impose significant costs on individuals, businesses, and State, 
        local, and tribal governments.
            (2) Improving the ability of Federal agencies to use 
        scientific and economic analysis in developing regulations 
        should yield more effective protections while minimizing costs.
            (3) Cost-benefit analysis and risk assessment are useful 
        tools to better inform agencies in developing regulations, 
        though such analyses do not replace good judgment and values.
            (4) The evaluation of costs and benefits should involve all 
        relevant information, expressed in comparable terms.
            (5) Cost-benefit analysis and risk assessment should be 
        presented with a clear statement of the analytical assumptions 
        and uncertainties, including an explanation of what is known 
        and not known and what the implications of alternative 
        assumptions might be.
            (6) The public has a right to know about the costs and 
        benefits of regulations, the risks addressed, the risks 
        reduced, and the quality of scientific and economic analysis 
        used to support decisions. Such knowledge will promote the 
        quality, integrity, responsiveness, and acceptability of agency 
        actions.
            (7) The Administrator of the Office of Information and 
        Regulatory Affairs should oversee regulatory activities to 
        raise the quality and consistency of cost-benefit analysis and 
        risk assessment among all agencies.
            (8) The Federal Government should develop a better 
        understanding of the strengths and weaknesses of cost-benefit 
        analysis and risk assessment and conduct the research needed to 
        improve these analytical tools.

SEC. 3. REGULATORY IMPACT ANALYSIS.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended by adding at the end the following:

              ``SUBCHAPTER II--REGULATORY IMPACT ANALYSIS

``Sec. 621. Definitions
    ``For purposes of this subchapter the definitions under section 551 
shall apply and--
            ``(1) the term `benefit' means a reasonably identifiable 
        favorable effect, which may include social, health, safety, 
        environmental, and economic effects;
            ``(2) the term `cost' means a reasonably identifiable 
        adverse effect, which may include social, health, safety, 
        environmental, and economic, effects;
            ``(3) the term `cost-benefit analysis' means a comparison 
        of the costs and benefits, quantified to the extent possible, 
        that are expected to result from the implementation of a rule;
            ``(4) the term `Director' means the Director of the Office 
        of Management and Budget, acting through the Administrator of 
        the Office of Information and Regulatory Affairs;
            ``(5) the term `major rule' means a rule that--
                    ``(A) may have an effect on the economy of $100 
                million or more;
                    ``(B) may adversely affect, in a material way, the 
                economy, a sector of the economy, productivity, 
                competition, jobs, the environment, public health or 
                safety, or State, local, or tribal governments, or 
                communities; or
                    ``(C) is so designated by the Director not later 
                than 30 days after the close of the comment period for 
                a rule or the publication of a direct final rule, such 
                designation being published, together with a succinct 
                statement of the basis for the designation, within 30 
                days after the date of the designation.
            ``(6) the term `quantified' means measured and expressed in 
        numerical and, as necessary, comparable terms.
            ``(7) the term `regulatory impact analysis' means--
                    ``(A) a cost-benefit analysis of a rule;
                    ``(B) cost-benefit analyses of a reasonable number 
                of alternative rules reflecting the range of options 
                that would comply with the statute granting rule making 
                authority, including where feasible rules that--
                            ``(i) require no government action;
                            ``(ii) utilize only voluntary or 
                        educational programs;
                            ``(iii) provide flexibility for small 
                        entities as defined in section 601(6); and
                            ``(iv) use market-based mechanisms, 
                        results-oriented performance-based standards, 
                        or other options that promote flexibility for 
                        regulated persons and for State, local, or 
                        tribal governments delegated authority to 
                        administer a Federal program; and
                    ``(C) if the primary purpose of the rule is to 
                address health, safety, or environmental risks--
                            ``(i) a risk assessment of the proposed 
                        rule; and
                            ``(ii) an evaluation of any substitution 
                        risk relating to the proposed rule;
            ``(8) the term `risk assessment' means the systematic, 
        objective process of organizing hazard and exposure 
        information, based on a careful analysis of the weight of the 
        scientific evidence, to estimate the potential for specific 
        harm to an exposed population or resource, including, to the 
        extent feasible, a characterization of the distribution of risk 
        as well as an analysis of uncertainties, variabilities, 
        conflicting information, inferences, and assumptions and 
        includes--
                    ``(A) an identification of the hazard addressed by 
                the rule, including data on the harm addressed by the 
                rule and the conditions that produce it;
                    ``(B) an identification of the populations or 
                natural resources that are subject to the hazard 
                addressed by the rule;
                    ``(C) an assessment of the quantitative relation 
                between the amount of exposure to the agent or activity 
                addressed by the rule and the extent of the harms 
                addressed by the rule;
                    ``(D) an assessment of exposure, including a 
                description of the nature and size of the populations 
                or resources exposed to an agent or activity addressed 
                by the rule and the magnitude and duration of their 
                exposure;
                    ``(E) an integration of the information from 
                subparagraphs (A) through (D) to determine the 
                reasonable likelihood that a population or resource 
                will experience the harms addressed by the rule; and
                    ``(F) a description of the major uncertainties in 
                each component of the risk assessment and their 
                influence on the results of the risk assessment; and
            ``(9) the term `substitution risk' means an identifiable 
        risk of harm to health, safety, or the environment expected to 
        result from the implementation of a rule.
``Sec. 622. Regulatory impact analysis
    ``(a)(1) When an agency publishes a notice of proposed rule making 
for a major rule, the agency shall--
            ``(A) prepare and place in the rule making file an initial 
        regulatory impact analysis; and
            ``(B) include a summary of such analysis in the notice of 
        proposed rule making.
    ``(2) When the Director has designated a rule a major rule under 
section 621(5)(C) or when the agency has published an interim final 
major rule, the agency shall--
            ``(A) promptly prepare and place in the rule making file an 
        initial regulatory impact analysis for the rule;
            ``(B) publish in the Federal Register a summary of such 
        analysis; and
            ``(C) give interested parties the same opportunity to 
        comment under section 553 as if the initial regulatory impact 
        analysis had been issued with the notice of proposed rule 
        making.
    ``(b) When the agency publishes a final major rule, or at the 
conclusion of the comment period required by subsection (a)(2)(C), the 
agency shall prepare and place in the rule making file a final 
regulatory impact analysis which shall address each of the requirements 
of the initial regulatory impact analysis required by subsection 
(a)(1)(A) or (a)(2)(A) revised to reflect--
            ``(1) any material changes made to the proposed rule by the 
        agency after publication of the notice of proposed rule making;
            ``(2) any material changes made to the cost-benefit 
        analysis or risk assessment; and
            ``(3) agency consideration of significant comments received 
        regarding the proposed rule and the initial regulatory impact 
        analysis.''.

SEC. 4. RISK BASED PRIORITIES STUDY.

    (a) Study.--Not later than 1 year after the date of enactment of 
this Act, the Director of the Office of Management and Budget, in 
consultation with the Director of the Office of Science and Technology 
Policy, shall enter into a contract with an accredited scientific 
institution to conduct a study that provides--
            (1) a systematic comparison of the extent and severity of 
        significant risks to human health, safety, or the environment 
(hereafter referred to as a comparative risk analysis);
            (2) a study of methodologies for using comparative risk 
        analysis to compare dissimilar risks to human health, safety, 
        or the environment, including development of a common basis to 
        assist comparative risk analysis related to both carcinogens 
        and noncarcinogens; and
            (3) recommendations on the use of comparative risk analysis 
        in setting priorities for the reduction of risks to human 
        health, safety, or the environment.
    (b) The Director shall ensure that the study required under 
subsection (a) is--
            (1) conducted through an open process providing 
        opportunities for public comment and participation; and
            (2) not later than 3 years after the date of enactment of 
        this Act, completed and submitted to Congress and the 
        President.
    (c) Not later than 4 years after the date of enactment of this Act, 
each relevant agency shall, as appropriate, use the results of the 
study required under subsection (a) to inform the agency in the 
preparation of the agency's annual budget and strategic plan and 
performance plan under section 306 of title 5, United States Code, and 
sections 1115, 1116, 1117, 1118, and 1119 of title 31, United States 
Code.
    (d) Not later than 5 years after the date of enactment of this Act, 
and periodically thereafter, the President shall submit a report to 
Congress recommending legislative changes to assist in setting 
priorities to more effectively and efficiently reduce risks to human 
health, safety, or the environment.

SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Subchapter Heading.--Chapter 6 of title 5, United States Code, 
is amended by inserting before section 601 the following:

         ``SUBCHAPTER I--ANALYSIS OF REGULATORY FLEXIBILITY''.

    (b) Table of Sections.--The table of sections for chapter 6 of 
title 5, United States Code, is amended--
            (1) by inserting before the reference to section 601 the 
        following:

         ``SUBCHAPTER I--ANALYSIS OF REGULATORY FLEXIBILITY'';

and
            (2) by adding at the end the following:

              ``SUBCHAPTER II--REGULATORY IMPACT ANALYSIS

``621. Definitions.
``622. Regulatory impact analysis.''.
    (c) Conforming Amendments.--Subchapter I of chapter 6 of title 5, 
United States Code, is amended by striking ``this chapter'' each place 
it occurs and inserting ``this subchapter''.

SEC. 6. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act shall take 
effect 180 days after the date of enactment of this Act, but shall not 
apply to any agency rule for which a notice of proposed rule making is 
published on or before 60 days before the date of enactment of this 
Act.