GAO-01-350R

United States General Accounting Office

Washington, DC 20548

B-287140

February 7, 2001

The Honorable James M. Jeffords

Chairman

The Honorable Edward M. Kennedy

Ranking Member

Committee on Health, Education, Labor, and Pensions

United States Senate

The Honorable John Boehner

Chairman

The Honorable George Miller

Ranking Minority Member

Committee on Education and the Workforce

House of Representatives

Subject: Department of Labor, Occupational Safety and Health Administration:

Safety Standards for Steel Erection

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a

major rule promulgated by the Department of Labor, Occupational Safety and Health

Administration (OSHA), entitled “Safety Standards for Steel Erection” (RIN: 1218-

AA65). We received the rule on January 23, 2001. It was published in the Federal

Register as a final rule on January 18, 2001. 66 Fed. Reg. 5196.

The final rule revises the construction industry safety standards that regulate steel

erection. The final rule enhances protections provided to workers engaged in steel

erection and updates the general provisions that address steel erection.

Enclosed is our assessment of OSHA’s compliance with the procedural steps

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.

Our review indicates that OSHA complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers,

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO

evaluation work relating to the subject matter of the rule is Cindy Fagnoni, Managing
Page 2 GAO-01-350R

Director, Education, Workforce, and Income Security. Ms. Fagnoni can be reached

at (202) 512-7215.

signed

Kathleen E. Wannisky

Managing Associate General Counsel

Enclosure

cc: Mr. Russell B. Swanson

Director, Directorate of Construction

Occupational Safety and Health

 Administration

Department of Labor
GAO-01-350R

ENCLOSURE

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE

ISSUED BY THE

DEPARTMENT OF LABOR,

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

ENTITLED

"SAFETY STANDARDS FOR STEEL ERECTION"

(RIN: 1218-AA65)

(i) Cost-benefit analysis

OSHA developed an economic analysis of the final rule that includes a discussion of

the costs and benefits of the rule. OSHA projects that full compliance with the final

standard will, after deducting costs incurred to achieve compliance with the existing

standard, result in net annualized costs of $78.4 million.

OSHA anticipates that the final rule will significantly reduce the number of accidents

and fatalities in the steel erection industry. OSHA believes that the final standard

will prevent an additional 22 fatalities and 838 injuries, which would not have been

prevented even with full compliance with the current standard.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605,

607, and 609

OSHA performed a Final Regulatory Flexibility Analysis in connection with the final

rule which complies with the requirements of the Act. It describes the size and

number of small entities impacted by the final rule and discusses the alternatives

considered to reduce the economic impact on small entities, such as minimizing

recordkeeping. OSHA concluded that a phase-in compliance for small entities would

not significantly reduce the economic burden and would unnecessarily delay the

protection of workers.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform

Act of 1995, 2 U.S.C. §§ 1532-1535

The final rule does not impose either an intergovernmental or private sector

mandate, as defined in title II, of more than $100 million in any one year.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

The final rule was issued using the notice and comment procedures contained at

5 U.S.C. 553. On August 13, 1998, OSHA issued a Notice of Proposed Rulemaking in

the Federal Register. 63 Fed. Reg. 43452. OSHA received 367 comments, including
Page 2 GAO-01-350R

testimony and documentary evidence in response, and an additional 55 requests to

testify at a public hearing on December 1, 1998. These comments and the

recommendations of the Steel Erection Negotiated Rulemaking Advisory Committee,

which met over an 18-month period, are discussed in the preamble to the final rule.

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520

The final rule contains information collections that have been approved by the Office

of Management and Budget under OMB Control No. 1218-0237.

Statutory authorization for the rule

The final rule is promulgated pursuant to the authority contained in sections 4, 6, and

8 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 653, 655, and 657);

section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 333);

Secretary of Labor’s Order No. 6-96 (62 Fed. Reg. 111), and 29 C.F.R. part 1911.

Executive Order No. 12866

The final rule was reviewed by the Office of Management and Budget and was found

to be an “economically significant” regulatory action under the order.

Executive Order No. 13132 (Federalism)

OSHA has determined that the final rule does not have federalism implications under

the order.