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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 343 Reported in Senate (RS)]

                                                       Calendar No. 118

104th CONGRESS

  1st Session

                                 S. 343

                          [Report No. 104-89]

                          [Report No. 104-90]

_______________________________________________________________________

                                 A BILL

       To reform the regulatory process, and for other purposes.

_______________________________________________________________________

                 May 26 (legislative day, May 15), 1995

        Reported with an amendment in the nature of a substitute

                 May 26 (legislative day, May 15), 1995

        Reported with an amendment in the nature of a substitute
                                                       Calendar No. 118
104th CONGRESS
  1st Session
                                 S. 343

                          [Report No. 104-89]

                          [Report No. 104-90]

       To reform the regulatory process, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             February 2 (legislative day, January 30), 1995

   Mr. Dole (for himself, Mr. Nickles, Mr. Bond, Mrs. Hutchison, Mr. 
    Murkowski, Mr. Lott, Mr. Cochran, Mr. Hatch, Mr. Domenici, Mrs. 
Kassebaum, Mr. Coats, Mr. Abraham, Mr. Inhofe, Mr. Smith, Mr. Santorum, 
Mr. Thompson, Mr. Warner, Mr. Kyl, Mr. Thomas, Mr. Gramm, Mr. Mack, Mr. 
Gregg, Mr. Shelby, Mr. Stevens, Mr. Helms, Mr. Faircloth, Mr. Grassley, 
 Mr. Kempthorne, Mr. Simpson, and Mr. Frist) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

             February 3 (legislative day, January 30), 1995

    Ordered referred jointly to the Committees on the Judiciary and 
                          Governmental Affairs

                 May 26 (legislative day, May 15), 1995

Reported by Mr. Roth, from the Committee on Governmental Affairs, with 
               an amendment in the nature of a substitute
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                 May 26 (legislative day, May 15), 1995

 And on behalf of Mr. Hatch, from the Committee on the Judiciary, with 
               an amendment in the nature of a substitute
[Omit the part enclosed in bold brackets and insert the part printed in 
                              bold italic]

_______________________________________________________________________

                                 A BILL

 
       To reform the regulatory process, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Comprehensive Regulatory 
Reform Act of 1995''.</DELETED>

<DELETED>SEC. 2. ANALYSIS OF AGENCY PROPOSALS.</DELETED>

<DELETED>    (a) In General.--Chapter 6 of title 5, United States Code, 
is amended by adding at the end the following:</DELETED>
    <DELETED>``SUBCHAPTER II--ANALYSIS OF AGENCY PROPOSALS</DELETED>

<DELETED>``Sec. 621. Definitions</DELETED>
<DELETED>    ``For purposes of this subchapter and subchapter III of 
this chapter--</DELETED>
        <DELETED>    ``(1) the term `agency' has the same meaning as in 
        section 551(1) of this title;</DELETED>
        <DELETED>    ``(2) the term `person' has the same meaning as in 
        section 551(2) of this title;</DELETED>
        <DELETED>    ``(3) the term `rule' has the same meaning as in 
        section 551(4) of this title;</DELETED>
        <DELETED>    ``(4)(A) the term `major rule' means--</DELETED>
                <DELETED>    ``(i) a rule or a group of closely related 
                rules that the agency proposing the rule or the 
                President reasonably determines is likely to have a 
                gross annual effect on the economy of $50,000,000 or 
                more in reasonably quantifiable increased direct and 
                indirect costs, or has a significant impact on a sector 
                of the economy; or</DELETED>
                <DELETED>    ``(ii) a rule or a group of closely 
                related rules that is otherwise designated a major rule 
                by the agency proposing the rule, or by the President 
                on the ground that the rule is likely to result in--
                </DELETED>
                        <DELETED>    ``(I) a substantial increase in 
                        costs or prices for wage earners, consumers, 
                        individual industries, nonprofit organizations, 
                        Federal, State, or local government agencies, 
                        or geographic regions; or</DELETED>
                        <DELETED>    ``(II) significant adverse effects 
                        on competition, employment, investment, 
                        productivity, innovation, the environment, 
                        public health or safety, or the ability of 
                        enterprises whose principal places of business 
                        are in the United States to compete in domestic 
                        or export markets;</DELETED>
        <DELETED>    ``(B) the term `major rule' does not include--
        </DELETED>
                <DELETED>    ``(i) a rule that involves the internal 
                revenue laws of the United States; or</DELETED>
                <DELETED>    ``(ii) a rule that authorizes the 
                introduction into commerce, or recognizes the 
                marketable status, of a product;</DELETED>
        <DELETED>    ``(5) the term `benefit' means the reasonably 
        identifiable significant benefits, including social and 
        economic benefits, that are expected to result directly or 
        indirectly from implementation of a rule or an alternative to a 
        rule;</DELETED>
        <DELETED>    ``(6) the term `cost' means the reasonably 
        identifiable significant costs and adverse effects, including 
        social and economic costs, reduced consumer choice, 
        substitution effects, and impeded technological advancement, 
        that are expected to result directly or indirectly from 
        implementation of, or compliance with, a rule or an alternative 
        to a rule; and</DELETED>
        <DELETED>    ``(7) the term `market-based mechanism' means a 
        regulatory program that--</DELETED>
                <DELETED>    ``(A) imposes legal accountability for the 
                achievement of an explicit regulatory objective on each 
                regulated person;</DELETED>
                <DELETED>    ``(B) affords maximum flexibility to each 
                regulated person in complying with mandatory regulatory 
                objectives, which flexibility shall, where feasible and 
                appropriate, include, but not be limited to, the 
                opportunity to transfer to, or receive from, other 
                persons, including for cash or other legal 
                consideration, increments of compliance responsibility 
                established by the program; and</DELETED>
                <DELETED>    ``(C) permits regulated persons to respond 
                automatically to changes in general economic conditions 
                and in economic circumstances directly pertinent to the 
                regulatory program without affecting the achievement of 
                the program's explicit regulatory mandates.</DELETED>
<DELETED>``Sec. 622. Rulemaking cost-benefit analysis</DELETED>
<DELETED>    ``(a)(1) Prior to publishing notice of a proposed 
rulemaking for any rule (or, in the case of a notice of a proposed 
rulemaking that has been published on or before the date of enactment 
of this subchapter, not later than 30 days after such date of 
enactment), each agency shall determine whether the rule is or is not a 
major rule within the meaning of section 621(4)(A)(i) and, if it is 
not, whether it should be designated a major rule under section 
621(4)(A)(ii). For the purpose of any such determination or 
designation, a group of closely related rules shall be considered as 
one rule.</DELETED>
<DELETED>    ``(2) Each notice of proposed rulemaking shall include a 
succinct statement and explanation of the agency's determination under 
paragraph (1).</DELETED>
<DELETED>    ``(b)(1) If an agency has determined that a rule is not a 
major rule within the meaning of section 621(4)(A)(i) and has not 
designated the rule a major rule within the meaning of section 
621(4)(A)(ii), the President may, as appropriate, determine that the 
rule is a major rule or designate the rule a major rule not later than 
30 days after the publication of the notice of proposed rulemaking for 
the rule (or, in the case of a notice of proposed rulemaking that has 
been published on or before the date of enactment of this subchapter, 
not later than 60 days after such date of enactment).</DELETED>
<DELETED>    ``(2) Such determination or designation shall be published 
in the Federal Register, together with a succinct statement of the 
basis for the determination or designation.</DELETED>
<DELETED>    ``(c)(1)(A) When the agency publishes a notice of proposed 
rulemaking for a major rule, the agency shall issue and place in the 
rulemaking record a draft cost-benefit analysis, and shall include a 
summary of such analysis in the notice of proposed 
rulemaking.</DELETED>
<DELETED>    ``(B)(i) When the President has published a determination 
or designation that a rule is a major rule after the publication of the 
notice of proposed rulemaking for the rule, the agency shall promptly 
issue and place in the rulemaking file a draft cost-benefit analysis 
for the rule and shall publish in the Federal Register a summary of 
such analysis.</DELETED>
<DELETED>    ``(ii) Following the issuance of a draft cost-benefit 
analysis under clause (i), the agency shall give interested persons an 
opportunity to comment pursuant to section 553 of this title in the 
same manner as if the draft cost-benefit analysis had been issued with 
the notice of proposed rulemaking.</DELETED>
<DELETED>    ``(2) Each draft cost-benefit analysis shall contain--
</DELETED>
        <DELETED>    ``(A) an analysis of the benefit of the proposed 
        rule, and an explanation of how the agency anticipates each 
        benefit will be achieved by the proposed rule;</DELETED>
        <DELETED>    ``(B) an analysis of the costs of the proposed 
        rule, and an explanation of how the agency anticipates each 
        such cost will result from the proposed rule;</DELETED>
        <DELETED>    ``(C) an identification (including an analysis of 
        the costs and benefits) of reasonable alternatives for 
        achieving the identified benefits of the proposed rule, 
        including alternatives that--</DELETED>
                <DELETED>    ``(i) require no Government 
                action;</DELETED>
                <DELETED>    ``(ii) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and</DELETED>
                <DELETED>    ``(iii) employ performance or other 
                market-based standards that permit the greatest 
                flexibility in achieving the identified benefits of the 
                proposed rule and that comply with the requirements of 
                subparagraph (D);</DELETED>
        <DELETED>    ``(D) an assessment of the feasibility of 
        establishing a regulatory program that operates through the 
        application of market-based mechanisms;</DELETED>
        <DELETED>    ``(E) in any case in which the proposed rule is 
        based on one or more scientific evaluations or information or 
        is subject to the risk assessment requirements of subchapter 
        III, a description of actions undertaken by the agency to 
        verify the quality, reliability, and relevance of such 
        scientific evaluations or scientific information in accordance 
        with the risk assessment requirements of subchapter 
        III;</DELETED>
        <DELETED>    ``(F) an assessment of the aggregate effect of the 
        rule on small businesses with fewer than 100 employees, 
        including an assessment of the net employment effect of the 
        rule; and</DELETED>
        <DELETED>    ``(G) an analysis of whether the identified 
        benefits of the proposed rule are likely to exceed the 
        identified costs of the proposed rule, and an analysis of 
        whether the proposed rule will provide greater net benefits to 
        society than any of the alternatives to the proposed rule, 
        including alternatives identified in accordance with 
        subparagraph (C).</DELETED>
<DELETED>    ``(d)(1) When the agency publishes a final major rule, the 
agency shall also issue and place in the rulemaking record a final 
cost-benefit analysis, and shall include a summary of the analysis in 
the statement of basis and purpose.</DELETED>
<DELETED>    ``(2) Each final cost-benefit analysis shall contain--
</DELETED>
        <DELETED>    ``(A) a description and comparison of the benefits 
        and costs of the rule and of the reasonable alternatives to the 
        rule described in the rulemaking, including the market-based 
        mechanisms identified pursuant to subsection (c)(2)(D); 
        and</DELETED>
        <DELETED>    ``(B) an analysis, based upon the rulemaking 
        record considered as a whole, of--</DELETED>
                <DELETED>    ``(i) whether the benefits of the rule 
                outweigh the costs of the rule; and</DELETED>
                <DELETED>    ``(ii) whether the rule will provide 
                greater net benefits to society than any of the 
                alternatives described in the rulemaking, including the 
                market-based incentives identified pursuant to 
                subsection (c)(2)(D).</DELETED>
<DELETED>    ``(e)(1)(A) The description of the benefits and costs of a 
proposed and a final rule required under this section shall include, to 
the extent feasible, a quantification or numerical estimate of the 
quantifiable benefits and costs. Such quantification or numerical 
estimate shall be made in the most appropriate unit of measurement, 
using comparable assumptions, including time periods, and shall specify 
the ranges of predictions and shall explain the margins of error 
involved in the quantification methods and in the estimates used. An 
agency shall describe the nature and extent of the nonquantifiable 
benefits and costs of a final rule pursuant to this section in as 
precise and succinct a manner as possible.</DELETED>
<DELETED>    ``(B) Where practicable, the description of the benefits 
and costs of a proposed and final rule required under this section 
shall describe such benefits and costs on an industry by industry 
basis.</DELETED>
<DELETED>    ``(2)(A) In evaluating and comparing costs and benefits 
and in evaluating the risk assessment information developed pursuant to 
subchapter III, the agency shall not rely on cost, benefit, or risk 
assessment information that is not accompanied by data, analysis, or 
other supporting materials that would enable the agency and other 
persons interested in the rulemaking to assess the accuracy, 
reliability, and uncertainty factors applicable to such 
information.</DELETED>
<DELETED>    ``(B) The agency evaluations of the relationships of the 
benefits of a proposed and final rule to its costs shall be clearly 
articulated in accordance with this section.</DELETED>
<DELETED>``Sec. 623. Decisional criteria</DELETED>
<DELETED>    ``(a) No final rule subject to this subchapter shall be 
promulgated unless the agency finds that--</DELETED>
        <DELETED>    ``(1) the potential benefits to society from the 
        rule outweigh the potential costs of the rule to society, as 
        determined by the analysis required by section 622(d)(2)(B); 
        and</DELETED>
        <DELETED>    ``(2) the rule will provide greater net benefits 
        to society than any of the reasonable alternatives identified 
        pursuant to section 622(c)(2)(C), including the market-based 
        mechanisms identified pursuant to section 
        622(c)(2)(D).</DELETED>
<DELETED>    ``(b) The requirements of this section shall supplement 
the decisional criteria for rulemaking otherwise applicable under the 
statute granting the rulemaking authority, except when such statute 
contains explicit textual language prohibiting the consideration of the 
criteria set forth in this section. Where the agency finds that 
consideration of the criteria set forth in this section is prohibited 
by explicit statutory language, the agency shall transmit its finding 
to Congress, along with the final cost-benefit analysis required by 
section 622(d)(2)(B).</DELETED>
<DELETED>``Sec. 624. Judicial review</DELETED>
<DELETED>    ``(a) Compliance or noncompliance by an agency with the 
provisions of this subchapter shall be subject to judicial review in 
accordance with this section.</DELETED>
<DELETED>    ``(b)(1) Each of the following shall be subject to 
judicial review:</DELETED>
        <DELETED>    ``(A) A determination by an agency or by the 
        President that a rule is or is not a major rule within the 
        meaning of section 621(4).</DELETED>
        <DELETED>    ``(B) A designation by an agency or by the 
        President of a rule as a major rule.</DELETED>
        <DELETED>    ``(C) A decision by an agency or by the President 
        not to designate a rule a major rule.</DELETED>
<DELETED>    ``(2) A determination by an agency or by the President 
that a rule is not a major rule within the meaning of section 621(4), 
or the decision by an agency or by the President not to designate a 
rule a major rule, shall be set aside by a reviewing court only upon a 
showing of clear and convincing evidence that the determination or 
decision not to designate is erroneous in light of the information 
available to the agency at the time the determination or decision not 
to designate was made.</DELETED>
<DELETED>    ``(3) An action to review a determination that a rule is 
not a major rule or to review a decision not to designate shall be 
filed not later than 30 days after the date of publication of such 
determination or failure to designate.</DELETED>
<DELETED>    ``(c) If a court of the United States finds that a rule 
should have been reviewed pursuant to this subchapter, such rule shall 
have no force or effect until such time as the requirements of this 
subchapter are met.</DELETED>
<DELETED>    ``(d) Each court with jurisdiction to review final agency 
action under the statute granting the agency authority to conduct the 
rulemaking shall have jurisdiction to review findings by any agency 
under this subchapter and shall set aside agency action that fails to 
satisfy the decisional criteria of section 623. The court shall apply 
the same standards of judicial review that apply to the review of 
agency findings under the statute granting the agency authority to 
conduct the rulemaking.</DELETED>
<DELETED>``Sec. 625. Petition for cost-benefit analysis</DELETED>
<DELETED>    ``(a)(1) Any person subject to a major rule may petition 
the relevant agency or the President to perform a cost-benefit analysis 
under this subchapter for the major rule, including a major rule in 
effect on the date of enactment of this subchapter for which a cost-
benefit analysis pursuant to such subchapter has not been performed, 
regardless of whether a cost-benefit analysis was previously performed 
to meet requirements imposed before the date of enactment of this 
subchapter.</DELETED>
<DELETED>    ``(2) The petition shall identify with reasonable 
specificity the major rule to be reviewed.</DELETED>
<DELETED>    ``(3) The agency or the President shall grant the petition 
if the petition shows that there is a reasonable likelihood that the 
costs of the major rule outweigh the benefits, or that reasonable 
questions exist as to whether the rule provides greater net benefits to 
society than any reasonable alternative to the rule that may be more 
clearly resolved through examination pursuant to this subchapter and 
subchapter III.</DELETED>
<DELETED>    ``(4) A decision to grant or deny a petition under this 
subsection shall be made not later than 180 days after submittal. A 
decision to deny a petition shall be subject to judicial review 
immediately upon denial as final agency action under the statute 
granting the agency authority to conduct the rulemaking.</DELETED>
<DELETED>    ``(b) For each major rule for which a petition has been 
granted under subsection (a), the agency shall conduct a cost-benefit 
analysis in accordance with this subchapter, and shall determine 
whether the rule satisfies the decisional criteria set forth in section 
623. If the rule does not satisfy the decisional criteria, then the 
agency shall take immediate action to either revoke or amend the rule 
to conform the rule to the requirements of this subchapter and the 
decisional criteria under section 623.</DELETED>
<DELETED>    ``(c) For purposes of this section, the term `major rule' 
means any major rule or portion thereof.</DELETED>
<DELETED>    ``(d)(1) Any person may petition the relevant agency to 
withdraw, as contrary to this subchapter, any agency guidance or 
general statement of policy that would be a major rule if the guidance 
or general statement of policy had been adopted as a rule.</DELETED>
<DELETED>    ``(2) The petition shall identify with reasonable 
specificity why the guidance or general statement of policy would be 
major if adopted as a rule.</DELETED>
<DELETED>    ``(3) The agency shall grant the petition if the petition 
shows that there is a reasonable likelihood that the guidance or 
general statement of policy would be major if adopted as a 
rule.</DELETED>
<DELETED>    ``(4) A decision to grant or deny a petition under this 
subsection shall be made not later than 180 days after the petition is 
submitted. If the agency fails to act by such date, the petition shall 
be deemed to have been granted. A decision to deny a petition shall be 
subject to judicial review immediately upon denial as final agency 
action under the statute under which the agency has issued the guidance 
or general statement of policy.</DELETED>
<DELETED>    ``(e) For each petition granted under subsection (d), the 
agency shall be prohibited from enforcing against any person the 
regulatory standards or criteria contained in such guidance or policy 
unless included in a rule proposed and promulgated in accordance with 
this subchapter.</DELETED>
<DELETED>``Sec. 626. Effective date of final regulations</DELETED>
<DELETED>    ``(a)(1) Beginning on the date of enactment of this 
section, all deadlines in statutes that require agencies to propose or 
promulgate any rule subject to this subchapter are suspended until such 
time as the requirements of this subchapter are satisfied.</DELETED>
<DELETED>    ``(2) Beginning on the date of enactment of this section, 
the jurisdiction of any court of the United States to enforce any 
deadline that would require an agency to propose or promulgate a rule 
subject to subchapter II of chapter 5 of title 5, United States Code 
(as added by this section), is suspended until such time as the 
requirements of this subchapter are satisfied.</DELETED>
<DELETED>    ``(3) In any case in which the failure to promulgate a 
rule by a deadline would create an obligation to regulate through 
individual adjudications, the obligation to conduct individual 
adjudications shall be suspended to allow the requirements of this 
subchapter to be satisfied.</DELETED>
<DELETED>    ``(b)(1) Before a major rule takes effect as a final rule, 
the agency promulgating such rule shall submit to the Congress a copy 
of such rule and a report containing a concise general statement 
relating to the rule, including a complete copy of the cost-benefit 
analysis, and the proposed effective date of the rule.</DELETED>
<DELETED>    ``(2) A major rule relating to a report submitted under 
paragraph (1) shall take effect as a final rule, the latest of--
</DELETED>
        <DELETED>    ``(A) the later of the date occurring 45 days 
        after the date on which--</DELETED>
                <DELETED>    ``(i) the Congress receives the report 
                submitted under paragraph (1); or</DELETED>
                <DELETED>    ``(ii) the rule is published in the 
                Federal Register;</DELETED>
        <DELETED>    ``(B) if the Congress passes a joint resolution of 
        disapproval described under subsection (h) relating to the 
        rule, and the President signs a veto of such resolution, the 
        earlier date--</DELETED>
                <DELETED>    ``(i) on which either House of Congress 
                votes and fails to override the veto of the President; 
                or</DELETED>
                <DELETED>    ``(ii) occurring 30 session days after the 
                date on which the Congress received the veto and 
                objections of the President; or</DELETED>
        <DELETED>    ``(C) the date the rule would have otherwise taken 
        effect, if not for this section (unless a joint resolution of 
        disapproval under subsection (h) is enacted).</DELETED>
<DELETED>    ``(c) A rule shall not take effect as a final rule if the 
Congress passes a joint resolution of disapproval described under 
subsection (h).</DELETED>
<DELETED>    ``(d)(1) Notwithstanding any other provision of this 
section (except subject to paragraph (3)), a rule that would not take 
effect by reason of this section may take effect if the President makes 
a determination under paragraph (2) and submits written notice of such 
determination to the Congress.</DELETED>
<DELETED>    ``(2) Paragraph (1) applies to a determination made by the 
President by Executive order that the rule should take effect because 
such rule is--</DELETED>
        <DELETED>    ``(A) necessary because of an imminent threat to 
        health or safety or other emergency;</DELETED>
        <DELETED>    ``(B) necessary for the enforcement of criminal 
        laws; or</DELETED>
        <DELETED>    ``(C) necessary for national security.</DELETED>
<DELETED>    ``(3) An exercise by the President of the authority under 
this subsection shall have no effect on the procedures under subsection 
(h) or the effect of a joint resolution of disapproval under this 
section.</DELETED>
<DELETED>    ``(4) This subsection and an Executive order issued by the 
President under this subsection shall not be subject to judicial review 
by a court of the United States.</DELETED>
<DELETED>    ``(e)(1) Subsection (h) shall apply to any rule that is 
published in the Federal Register (as a rule that shall take effect as 
a final rule) during the period beginning on the date occurring 60 days 
before the date the Congress adjourns sine die through the date on 
which the succeeding Congress first convenes.</DELETED>
<DELETED>    ``(2) For purposes of subsection (h), a rule described 
under paragraph (1) shall be treated as though such rule were published 
in the Federal Register (as a rule that shall take effect as a final 
rule) on the date the succeeding Congress first convenes.</DELETED>
<DELETED>    ``(3) During the period between the date the Congress 
adjourns sine die through the date on which the succeeding Congress 
first convenes, a rule described under paragraph (1) shall take effect 
as a final rule as otherwise provided by law.</DELETED>
<DELETED>    ``(f) Any rule that takes effect and later is made of no 
force or effect by the enactment of a joint resolution under subsection 
(h) shall be treated as though such rule had never taken 
effect.</DELETED>
<DELETED>    ``(g) If the Congress does not enact a joint resolution of 
disapproval under subsection (h), no court or agency may infer any 
intent of the Congress from any action or inaction of the Congress with 
regard to such rule, related statute, or joint resolution of 
disapproval.</DELETED>
<DELETED>    ``(h)(1) For purposes of this subsection, the term `joint 
resolution' means only a joint resolution introduced after the date on 
which the report referred to in subsection (b) is received by Congress 
the matter after the resolving clause of which is as follows: `That 
Congress disapproves the rule submitted by the XXXX relating to XXXX, 
and such rule shall have no force or effect. (The blank spaces being 
appropriately filled in.)'.</DELETED>
<DELETED>    ``(2)(A) A resolution described in paragraph (1) shall be 
referred to the committees in each House of Congress with jurisdiction. 
Such a resolution shall not be reported before the eighth day after its 
submission or publication date.</DELETED>
<DELETED>    ``(B) For purposes of this subsection the term `submission 
or publication date' means the later of the date on which--</DELETED>
        <DELETED>    ``(i) the Congress receives the report submitted 
        under subsection (b)(1); or</DELETED>
        <DELETED>    ``(ii) the rule is published in the Federal 
        Register.</DELETED>
<DELETED>    ``(3) If the committee to which a resolution described in 
paragraph (1) is referred has not reported such resolution (or an 
identical resolution) at the end of 20 calendar days after its 
submission or publication date, such committee may be discharged by the 
Majority Leader of the Senate or the Majority Leader of the House of 
Representatives, as the case may be, from further consideration of such 
resolution and such resolution shall be placed on the appropriate 
calendar of the House involved.</DELETED>
<DELETED>    ``(4)(A) When the committee to which a resolution is 
referred has reported, or when a committee is discharged (under 
paragraph (3)) from further consideration of, a resolution described in 
paragraph (1), it shall at any time thereafter be in order (even though 
a previous motion to the same effect has been disagreed to) for any 
Member of the respective House to move to proceed to the consideration 
of the resolution, and all points of order against the resolution (and 
against consideration of the resolution) shall be waived. The motion 
shall be highly privileged in the House of Representatives and shall be 
privileged in the Senate and shall not be debatable. The motion shall 
not subject to amendment, or to a motion to postpone, or to a motion to 
proceed to the consideration of other business. A motion to reconsider 
the vote by which the motion is agreed to or disagreed to shall not be 
in order. If a motion to proceed to the consideration of the resolution 
is agreed to, the resolution shall remain the unfinished business of 
the respective House until disposed of.</DELETED>
<DELETED>    ``(B) Debate on the resolution, and on all debatable 
motions and appeals in connection therewith, shall be limited to not 
more than 10 hours, which shall be divided equally between those 
favoring and those opposing the resolution. A motion further to limit 
debate shall be in order and shall not be debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the resolution shall not be in 
order. A motion to reconsider the vote by which the resolution is 
agreed to or disagreed to shall not be in order.</DELETED>
<DELETED>    ``(C) Immediately following the conclusion of the debate 
on a resolution described in paragraph (1), and a single quorum call at 
the conclusion of the debate if requested in accordance with the rules 
of the appropriate House, the vote on final passage of the resolution 
shall occur.</DELETED>
<DELETED>    ``(D) Appeals from the decisions of the Chair relating to 
the application of the rules of the Senate or the House of 
Representatives, as the case may be, to the procedure relating to a 
resolution described in paragraph (1) shall be decided without 
debate.</DELETED>
<DELETED>    ``(5) If, before the passage by one House of a resolution 
of that House described in paragraph (1), that House receives from the 
other House a resolution described in paragraph (1), then the following 
procedures shall apply:</DELETED>
        <DELETED>    ``(A) The resolution of the other House shall not 
        be referred to a committee.</DELETED>
        <DELETED>    ``(B) With respect to a resolution described in 
        paragraph (1) of the House receiving the resolution--</DELETED>
                <DELETED>    ``(i) the procedure in that House shall be 
                the same as if no resolution had been received from the 
                other House; but</DELETED>
                <DELETED>    ``(ii) the vote on final passage shall be 
                on the resolution of the other House.</DELETED>
<DELETED>    ``(6) This subsection is enacted by Congress--</DELETED>
        <DELETED>    ``(A) as an exercise of the rulemaking power of 
        the Senate and House of Representatives, respectively, and as 
        such it is deemed to be a part of the rules of each House, 
        respectively, but applicable only with respect to the procedure 
        to be followed in that House in the case of a resolution 
        described in paragraph (1), and it supersedes other rules only 
        to the extent that it is inconsistent with such rules; 
        and</DELETED>
        <DELETED>    ``(B) with full recognition of the constitutional 
        right of either House to change the rules (so far as relating 
        to the procedure of that House) at any time, in the same 
        manner, and to the same extent as in the case of any other rule 
        of that House.</DELETED>
<DELETED>``Sec. 627. Unauthorized rulemakings</DELETED>
<DELETED>    ``(a) Notwithstanding any other provision of law, 
beginning on July 1, 1995, any rule that expands Federal power or 
jurisdiction beyond the level of regulatory action needed to satisfy 
statutory requirements shall be prohibited.</DELETED>
<DELETED>    ``(b) Nothing in this section shall be construed to 
prevent any agency from promulgating a rule that repeals, narrows, or 
streamlines a rule, regulation, or administrative process, or from 
issuing or promulgating a rule providing for tax relief or 
clarification or reducing regulatory burdens.</DELETED>
<DELETED>``Sec. 628. Standard for review of agency interpretations of 
              an enabling statute</DELETED>
<DELETED>    ``(a) In reviewing a final agency action under section 706 
of this title, or under a statute that provides for review of a final 
agency action, the reviewing court shall affirm the agency's 
interpretation of the statute granting authority to promulgate the rule 
if, applying traditional principles of statutory construction, the 
reviewing court finds that the interpretation is clearly the 
interpretation of the statute intended by Congress.</DELETED>
<DELETED>    ``(b) If the reviewing court, applying traditional 
principles of statutory construction, finds that an interpretation 
other than the interpretation applied by the agency is clearly the 
interpretation of the statute intended by Congress, the reviewing court 
shall find that the agency's interpretation is erroneous and contrary 
to law.</DELETED>
<DELETED>    ``(c)(1) If the reviewing court, applying established 
principles of statutory construction, finds that the statute gives the 
agency discretion to choose from among a range of permissible statutory 
constructions, the reviewing court shall affirm the agency's 
interpretation where the record on review establishes that--</DELETED>
        <DELETED>    ``(A) the agency has correctly identified the 
        range of permissible statutory constructions;</DELETED>
        <DELETED>    ``(B) the interpretation chosen is one that is 
        within that range; and</DELETED>
        <DELETED>    ``(C) the agency has engaged in reasoned 
        decisionmaking in determining that the interpretation, rather 
        than other permissible constructions of the statute, is the one 
        that maximizes net benefits to society.</DELETED>
<DELETED>    ``(2) If an agency's interpretation of a statute cannot be 
affirmed under paragraph (1), the reviewing court shall find that the 
agency's interpretation is arbitrary and capricious.</DELETED>
        <DELETED>``SUBCHAPTER IV--EXECUTIVE OVERSIGHT</DELETED>

<DELETED>``Sec. 651. Procedures</DELETED>
<DELETED>    ``The President shall--</DELETED>
        <DELETED>    ``(1) establish procedures for agency compliance 
        with subchapters II and III; and</DELETED>
        <DELETED>    ``(2) monitor, review, and ensure agency 
        implementation of such procedures.</DELETED>
<DELETED>``Sec. 652. Promulgation and adoption</DELETED>
<DELETED>    ``(a) Procedures established pursuant to section 651 shall 
only be implemented after opportunity for public comment. Any such 
procedures shall be consistent with the prompt completion of rulemaking 
proceedings.</DELETED>
<DELETED>    ``(b)(1) If procedures established pursuant to section 651 
include review of preliminary or final regulatory analyses to ensure 
that they comply with subchapters II and III, the time for any such 
review of a preliminary regulatory analysis shall not exceed 30 days 
following the receipt of the analysis by the President or by an officer 
to whom the authority granted under section 651 has been delegated 
pursuant to section 653.</DELETED>
<DELETED>    ``(2) The time for review of a final regulatory analysis 
shall not exceed 30 days following the receipt of the analysis by the 
President or such officer.</DELETED>
<DELETED>    ``(3)(A) The times for each such review may be extended 
for good cause by the President or such officer for an additional 30 
days.</DELETED>
<DELETED>    ``(B) Notice of any such extension, together with a 
succinct statement of the reasons therefor, shall be inserted in the 
rulemaking file.</DELETED>
<DELETED>``Sec. 653. Delegation of authority</DELETED>
<DELETED>    ``(a) The President may delegate the authority granted by 
this subchapter to the Vice President or to an officer within the 
Executive Office of the President whose appointment has been subject to 
the advice and consent of the Senate.</DELETED>
<DELETED>    ``(b)(1) Notice of any delegation, or any revocation or 
modification thereof, shall be published in the Federal 
Register.</DELETED>
<DELETED>    ``(2) Any notice with respect to a delegation to the Vice 
President shall contain a statement by the Vice President that the Vice 
President will make every reasonable effort to respond to congressional 
inquiries concerning the exercise of the authority delegated under this 
section.</DELETED>
<DELETED>``Sec. 654. Applicability</DELETED>
<DELETED>    ``The authority granted under this subchapter shall not 
apply to rules issued by the Nuclear Regulatory Commission.</DELETED>
<DELETED>``Sec. 655. Judicial review</DELETED>
<DELETED>    ``The exercise of the authority granted under this 
subchapter by the President or by an officer to whom such authority has 
been delegated under section 653 shall not be subject to judicial 
review in any manner under this chapter.''.</DELETED>
<DELETED>    (b) Judicial Review of Regulatory Flexibility Analysis.--
</DELETED>
        <DELETED>    (1) Amendment.--Section 611 of title 5, United 
        States Code, is amended to read as follows:</DELETED>
<DELETED>``Sec. 611. Judicial review</DELETED>
<DELETED>    ``(a)(1) Except as provided in paragraph (2), not later 
than 1 year after the effective date of a final rule with respect to 
which an agency--</DELETED>
        <DELETED>    ``(A) certified, pursuant to section 605(b), that 
        such rule would not have a significant economic impact on a 
        substantial number of small entities; or</DELETED>
        <DELETED>    ``(B) prepared final regulatory flexibility 
        analysis pursuant to section 604,</DELETED>
<DELETED>an affected small entity may petition for the judicial review 
of such certification or analysis in accordance with this subsection. A 
court having jurisdiction to review such rule for compliance with 
section 553 of this title or under any other provision of law shall 
have jurisdiction to review such certification or analysis.</DELETED>
<DELETED>    ``(2)(A) Except as provided in subparagraph (B), in the 
case of a provision of law that requires that an action challenging a 
final agency regulation be commenced before the expiration of the 1-
year period provided in paragraph (1), such lesser period shall apply 
to a petition for the judicial review under this subsection.</DELETED>
<DELETED>    ``(B) In a case in which an agency delays the issuance of 
a final regulatory flexibility analysis pursuant to section 608(b), a 
petition for judicial review under this subsection shall be filed not 
later than--</DELETED>
        <DELETED>    ``(i) 1 year; or</DELETED>
        <DELETED>    ``(ii) in a case in which a provision of law 
        requires that an action challenging a final agency regulation 
        be commenced before the expiration of the 1-year period 
        provided in paragraph (1), the number of days specified in such 
        provision of law,</DELETED>
<DELETED>after the date the analysis is made available to the 
public.</DELETED>
<DELETED>    ``(3) For purposes of this subsection, the term `affected 
small entity' means a small entity that is or will be adversely 
affected by the final rule.</DELETED>
<DELETED>    ``(4) Nothing in this subsection shall be construed to 
affect the authority of any court to stay the effective date of any 
rule or provision thereof under any other provision of law.</DELETED>
<DELETED>    ``(5)(A) In a case in which an agency certifies that such 
rule would not have a significant economic impact on a substantial 
number of small entities, the court may order the agency to prepare a 
final regulatory flexibility analysis pursuant to section 604 if the 
court determines, on the basis of the rulemaking record, that the 
certification was arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.</DELETED>
<DELETED>    ``(B) In a case in which the agency prepared a final 
regulatory flexibility analysis, the court may order the agency to take 
corrective action consistent with section 604 if the court determines, 
on the basis of the rulemaking record, that the final regulatory 
flexibility analysis was prepared by the agency without complying with 
section 604.</DELETED>
<DELETED>    ``(6) If, by the end of the 90-day period beginning on the 
date of the order of the court pursuant to paragraph (5) (or such 
longer period as the court may provide), the agency fails, as 
appropriate--</DELETED>
        <DELETED>    ``(A) to prepare the analysis required by section 
        604; or</DELETED>
        <DELETED>    ``(B) to take corrective action consistent with 
        section 604 of this title,</DELETED>
<DELETED>the court may stay the rule or grant such other relief as it 
deems appropriate.</DELETED>
<DELETED>    ``(7) In making any determination or granting any relief 
authorized by this subsection, the court shall take due account of the 
rule of prejudicial error.</DELETED>
<DELETED>    ``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(5)) shall constitute 
part of the whole record of agency action in connection with such 
review.</DELETED>
<DELETED>    ``(c) Nothing in this section bars judicial review of any 
other impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.</DELETED>
        <DELETED>    (2) Effective date.--The amendment made by 
        paragraph (1) shall take effect on the date of enactment of 
        this Act, except that the judicial review authorized by section 
        611(a) of title 5, United States Code (as added by subsection 
        (a)), shall apply only to final agency rules issued after the 
        date of enactment of this Act.</DELETED>
<DELETED>    (c) Presidential Authority.--Nothing in this Act shall 
limit the exercise by the President of the authority and responsibility 
that the President otherwise possesses under the Constitution and other 
laws of the United States with respect to regulatory policies, 
procedures, and programs of departments, agencies, and 
offices.</DELETED>
<DELETED>    (d) Technical and Conforming Amendments.--(1) Part I of 
title 5, United States Code, is amended by striking out the chapter 
heading and table of sections for chapter 6 and inserting in lieu 
thereof the following:</DELETED>
  <DELETED>``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS</DELETED>
              <DELETED>``SUBCHAPTER I--REGULATORY ANALYSIS

<DELETED>``Sec.
<DELETED>``601.  Definitions.
<DELETED>``602.  Regulatory agenda.
<DELETED>``603.  Initial regulatory flexibility analysis.
<DELETED>``604.  Final regulatory flexibility analysis.
<DELETED>``605.  Avoidance of duplicative or unnecessary analyses.
<DELETED>``606.  Effect on other law.
<DELETED>``607.  Preparation of analyses.
<DELETED>``608.  Procedure for waiver or delay of completion.
<DELETED>``609.  Procedures for gathering comments.
<DELETED>``610.  Periodic review of rules.
<DELETED>``611.  Judicial review.
<DELETED>``612.  Reports and intervention rights.
         <DELETED>``SUBCHAPTER II--ANALYSIS OF AGENCY PROPOSALS

<DELETED>``621.  Definitions.
<DELETED>``622.  Rulemaking cost-benefit analysis.
<DELETED>``623.  Decisional criteria.
<DELETED>``624.  Judicial review.
<DELETED>``625.  Petition for cost-benefit analysis.
<DELETED>``626.  Effective date of final regulations.
<DELETED>``627.  Unauthorized rulemakings.
<DELETED>``628.  Standard for review of agency interpretations of an 
                            enabling statute.
              <DELETED>``SUBCHAPTER III--RISK ASSESSMENTS

<DELETED>``631.  Definitions.
<DELETED>``632.  Applicability.
<DELETED>``633.  Rule of construction.
<DELETED>``634.  Requirement to prepare risk assessments.
<DELETED>``635.  Principles for risk assessment.
<DELETED>``636.  Principles for risk characterization and 
                            communication.
<DELETED>``637.  Regulations; plan for assessing new information.
<DELETED>``638.  Decisional criteria.
<DELETED>``639.  Regulatory priorities.
<DELETED>``640.  Establishment of program.
             <DELETED>``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

<DELETED>``651.  Procedures.
<DELETED>``652.  Promulgation and adoption.
<DELETED>``653.  Delegation of authority.
<DELETED>``654.  Applicability.
<DELETED>``655.  Judicial review.''.
<DELETED>    (2) Chapter 6 of title 5, United States Code, is amended 
by inserting immediately before section 601, the following subchapter 
heading:</DELETED>

       <DELETED>``SUBCHAPTER I--REGULATORY ANALYSIS''.</DELETED>
[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``Comprehensive Regulatory Reform Act 
of 1995''.

[SEC. 2. DEFINITIONS.

    [Section 551 of title 5, United States Code, is amended--
            [(1) in paragraph (13), by striking out ``; and'' and 
        inserting in lieu thereof a semicolon;
            [(2) in paragraph (14), by striking out the period and 
        inserting in lieu thereof ``; and''; and
            [(3) by adding at the end thereof the following new 
        paragraph:
            [``(15) `Director' means the Director of the Office of 
        Management and Budget.''.

[SEC. 3. ANALYSIS OF AGENCY RULES.

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

               [``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

[``Sec. 621. Definitions
    [``For purposes of this subchapter the definitions under section 
551 shall apply and--
            [``(1) the term `benefit' means the reasonably identifiable 
        significant favorable effects, including social, environmental 
        and economic benefits, that are expected to result directly or 
        indirectly from implementation of a rule or an alternative to a 
        rule;
            [``(2) the term `cost' means the reasonably identifiable 
        significant adverse effects, including social, environmental, 
        and economic costs that are expected to result directly or 
        indirectly from implementation of, or compliance with, a rule 
        or an alternative to a rule;
            [``(3) the term `cost-benefit analysis' means an evaluation 
        of the costs and benefits of a rule, quantified to the extent 
        feasible and appropriate and otherwise qualitatively described, 
        that is prepared in accordance with the requirements of this 
        subchapter at the level of detail appropriate and practicable 
        for reasoned decisionmaking on the matter involved, taking into 
        consideration the significance and complexity of the decision 
        and any need for expedition;
            [``(4)(A) the term `major rule' means--
                    [``(i) a rule or a group of closely related rules 
                that the agency proposing the rule, the Director, or a 
                designee of the President reasonably determines is 
                likely to have a gross annual effect on the economy of 
                $100,000,000 or more in reasonably quantifiable direct 
                and indirect costs; or
                    [``(ii) a rule or a group of closely related rules 
                that is otherwise determined to be a major rule by the 
                agency proposing the rule, the Director, or a designee 
                of the President on the ground that the rule is likely 
                to result in--
                            [``(I) a substantial increase in costs or 
                        prices for wage earners, consumers, individual 
                        industries, nonprofit organizations, Federal, 
                        State, local, or tribal government agencies, or 
                        geographic regions;
                            [``(II) significant adverse effects on 
                        wages, economic growth, investment, 
                        productivity, innovation, the environment, 
                        public health or safety, or the ability of 
                        enterprises whose principal places of business 
                        are in the United States to compete in domestic 
                        or export markets;
                            [``(III) a serious inconsistency or 
                        interference with an action taken or planned by 
                        another agency;
                            [``(IV) the material alteration of the 
                        budgetary impact of entitlements, grants, user 
                        fees, or loan programs, or the rights and 
                        obligations of recipients thereof; or
                            [``(V) a significant impact on a sector of 
                        the economy, or disproportionate costs to a 
                        class of persons and relatively severe 
                        economic, social, and environmental 
                        consequences for the class; and
            [``(B) the term `major rule' shall not include--
                    [``(i) a rule that involves the internal revenue 
                laws of the United States;
                    [``(ii) a rule or agency action that authorizes the 
                introduction into, or removal from, commerce, or 
                recognizes the marketable status, of a product; or
                    [``(iii) a rule exempt from notice and public 
                comment procedure under section 553 of this title;
            [``(5) the term `market-based mechanism' means a regulatory 
        program that--
                    [``(A) imposes legal accountability for the 
                achievement of an explicit regulatory objective, 
                including the reduction of environmental pollutants or 
                of risks to human health, safety, or the environment, 
                on each regulated person;
                    [``(B) affords maximum flexibility to each 
                regulated person in complying with mandatory regulatory 
                objectives, and such flexibility shall, where feasible 
                and appropriate, include the opportunity to transfer 
                to, or receive from, other persons, including for cash 
                or other legal consideration, increments of compliance 
                responsibility established by the program; and
                    [``(C) permits regulated persons to respond at 
                their own discretion in an automatic manner, consistent 
                with subparagraph (B), to changes in general economic 
                conditions and in economic circumstances directly 
                pertinent to the regulatory program without affecting 
                the achievement of the program's explicit regulatory 
                mandates under subparagraph (A);
            [``(6) the term `performance standard' means a requirement 
        that imposes legal accountability for the achievement of an 
        explicit regulatory objective, such as the reduction of 
        environmental pollutants or of risks to human health, safety, 
        or the environment, on each regulated person;
            [``(7) the term `risk assessment' has the same meaning as 
        such term is defined under section 632(5); and
            [``(8) the term `rule' has the same meaning as in section 
        551(4) of this title, and shall not include--
                    [``(A) a rule of particular applicability that 
                approves or prescribes for the future rates, wages, 
                prices, services, corporate or financial structures, 
                reorganizations, mergers, acquisitions, accounting 
                practices, or disclosures bearing on any of the 
                foregoing;
                    [``(B) a rule relating to monetary policy proposed 
                or promulgated by the Board of Governors of the Federal 
                Reserve System or by the Federal Open Market Committee;
                    [``(C) a rule relating to the safety or soundness 
                of federally insured depository institutions or any 
                affiliate of such an institution (as defined in section 
                2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 
                1841(k)); credit unions; the Federal Home Loan Banks; 
                government-sponsored housing enterprises; a Farm Credit 
                System Institution; foreign banks, and their branches, 
                agencies, commercial lending companies or 
                representative offices that operate in the United 
                States and any affiliate of such foreign banks (as 
                those terms are defined in the International Banking 
                Act of 1978 (12 U.S.C. 3101)); or a rule relating to 
                the payments system or the protection of deposit 
                insurance funds or Farm Credit Insurance Fund; or
                    [``(D) a rule issued by the Federal Election 
                Commission or a rule issued by the Federal 
                Communications Commission pursuant to sections 
                312(a)(7) and 315 of the Communications Act of 1934.
[``Sec. 622. Rulemaking cost-benefit analysis
    [``(a) Before publishing notice of a proposed rulemaking for any 
rule (or, in the case of a notice of a proposed rulemaking that has 
been published on or before the effective date of this subchapter, no 
later than 30 days after such date), each agency shall determine 
whether the rule is or is not a major rule within the meaning of 
section 621(4)(A)(i) and, if it is not, determine whether it is a major 
rule under section 621(4)(A)(ii). For the purpose of any such 
determination, a group of closely related rules shall be considered as 
one rule.
    [``(b)(1) If an agency has determined that a rule is not a major 
rule, the Director or a designee of the President may, as appropriate, 
determine that the rule is a major rule no later than 30 days after the 
publication of the notice of proposed rulemaking for the rule (or, in 
the case of a notice of proposed rulemaking that has been published on 
or before the effective date of this subchapter, no later than 60 days 
after such date).
    [``(2) Such determination shall be published in the Federal 
Register, together with a succinct statement of the basis for the 
determination.
    [``(c)(1)(A) When the agency publishes a notice of proposed 
rulemaking for a major rule, the agency shall issue and place in the 
rulemaking file an initial cost-benefit analysis, and shall include a 
summary of such analysis in the notice of proposed rulemaking.
    [``(B)(i) When the Director or a designee of the President has 
published a determination that a rule is a major rule after the 
publication of the notice of proposed rulemaking for the rule, the 
agency shall promptly issue and place in the rulemaking file an initial 
cost-benefit analysis for the rule and shall publish in the Federal 
Register a summary of such analysis.
    [``(ii) Following the issuance of an initial cost-benefit analysis 
under clause (i), the agency shall give interested persons an 
opportunity to comment pursuant to section 553 in the same manner as if 
the draft cost-benefit analysis had been issued with the notice of 
proposed rulemaking.
    [``(2) Each initial cost-benefit analysis shall contain--
            [``(A) an analysis of the benefits of the proposed rule, 
        including any benefits that cannot be quantified, and an 
        explanation of how the agency anticipates that such benefits 
        will be achieved by the proposed rule, including a description 
        of the persons or classes of persons likely to receive such 
        benefits;
            [``(B) an analysis of the costs of the proposed rule, 
        including any costs that cannot be quantified, and an 
        explanation of how the agency anticipates that such costs will 
        result from the proposed rule, including a description of the 
        persons or classes of persons likely to bear such costs;
            [``(C) an identification (including an analysis of costs 
        and benefits) of an appropriate number of reasonable 
        alternatives allowed under the statute granting the rulemaking 
        authority for achieving the identified benefits of the proposed 
        rule, including alternatives that--
                    [``(i) require no government action;
                    [``(ii) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and
                    [``(iii) employ voluntary programs, performance 
                standards, or market-based mechanisms that permit 
                greater flexibility in achieving the identified 
                benefits of the proposed rule and that comply with the 
                requirements of subparagraph (D);
            [``(D) an assessment of the feasibility of establishing a 
        regulatory program that operates through the application of 
        market-based mechanisms;
            [``(E) an explanation of the extent to which the proposed 
        rule--
                    [``(i) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and
                    [``(ii) employs voluntary programs, performance 
                standards, or market-based mechanisms that permit 
                greater flexibility in achieving the identified 
                benefits of the proposed rule;
            [``(F) a description of the quality, reliability, and 
        relevance of scientific or economic evaluations or information 
        in accordance with the cost-benefit analysis and risk 
        assessment requirements of this chapter;
            [``(G) if not expressly or implicitly inconsistent with the 
        statute under which the agency is proposing the rule, an 
        explanation of the extent to which the identified benefits of 
        the proposed rule justify the identified costs of the proposed 
        rule, and an explanation of how the proposed rule is likely to 
        substantially achieve the rulemaking objectives in a more cost-
        effective manner than the alternatives to the proposed rule, 
        including alternatives identified in accordance with 
        subparagraph (C); and
            [``(H) if a major rule subject to subchapter III addresses 
        risks to human health, safety, or the environment--
                    [``(i) a risk assessment in accordance with this 
                chapter; and
                    [``(ii) for each such proposed or final rule, an 
                assessment of incremental risk reduction or other 
                benefits associated with each significant regulatory 
                alternative considered by the agency in connection with 
                the rule or proposed rule.
    [``(d)(1) When the agency publishes a final major rule, the agency 
shall also issue and place in the rulemaking file a final cost-benefit 
analysis, and shall include a summary of the analysis in the statement 
of basis and purpose.
    [``(2) Each final cost-benefit analysis shall contain--
            [``(A) a description and comparison of the benefits and 
        costs of the rule and of the reasonable alternatives to the 
        rule described in the rulemaking, including the market-based 
        mechanisms identified under subsection (c)(2)(C)(iii); and
            [``(B) if not expressly or implicitly inconsistent with the 
        statute under which the agency is acting, a reasonable 
        determination, based upon the rulemaking file considered as a 
        whole, whether--
                    [``(i) the benefits of the rule justify the costs 
                of the rule; and
                    [``(ii) the rule will achieve the rulemaking 
                objectives in a more cost-effective manner than the 
                alternatives described in the rulemaking, including the 
                market-based mechanisms identified under subsection 
                (c)(2)(C)(iii).
    [``(e)(1) The analysis of the benefits and costs of a proposed and 
a final rule required under this section shall include, to the extent 
feasible, a quantification or numerical estimate of the quantifiable 
benefits and costs. Such quantification or numerical estimate shall be 
made in the most appropriate units of measurement, using comparable 
assumptions, including time periods, shall specify the ranges of 
predictions, and shall explain the margins of error involved in the 
quantification methods and in the estimates used. An agency shall 
describe the nature and extent of the nonquantifiable benefits and 
costs of a final rule pursuant to this section in as precise and 
succinct a manner as possible. An agency shall not be required to make 
such evaluation primarily on a mathematical or numerical basis.
    [``(2)(A) In evaluating and comparing costs and benefits and in 
evaluating the risk assessment information developed under subchapter 
III, the agency shall not rely on cost, benefit, or risk assessment 
information that is not accompanied by data, analysis, or other 
supporting materials that would enable the agency and other persons 
interested in the rulemaking to assess the accuracy, reliability, and 
uncertainty factors applicable to such information.
    [``(B) The agency evaluations of the relationships of the benefits 
of a proposed and final rule to its costs shall be clearly articulated 
in accordance with this section.
    [``(f) As part of the promulgation of each major rule that 
addresses risks to human health, safety, or the environment, the head 
of the agency or the President shall make a determination that--
            [``(1) the risk assessment and the analysis under 
        subsection (c)(2)(H) are based on a scientific evaluation of 
        the risk addressed by the major rule and that the conclusions 
        of such evaluation are supported by the available information; 
        and
            [``(2) the regulatory alternative chosen will reduce risk 
        in a cost-effective and, to the extent feasible, flexible 
        manner, taking into consideration any of the alternatives 
        identified under subsection (c)(2) (C) and (D).
    [``(g) The preparation of the initial or final cost-benefit 
analysis required by this section shall only be performed under the 
direction of an officer or employee of the agency. The preceding 
sentence shall not preclude a person outside the agency from gathering 
data or information to be used by the agency in preparing any such 
cost-benefit analysis or from providing an explanation sufficient to 
permit the agency to analyze such data or information. If any such data 
or information is gathered or explained by a person outside the agency, 
the agency shall specifically identify in the initial or final cost-
benefit analysis the data or information gathered or explained and the 
person who gathered or explained it, and shall describe the arrangement 
by which the information was procured by the agency, including the 
total amount of funds expended for such procurement.
    [``(h) The requirements of this subchapter shall not alter the 
criteria for rulemaking otherwise applicable under other statutes.
[``Sec. 623. Judicial review
    [``(a) Compliance or noncompliance by an agency with the provisions 
of this subchapter and subchapter III shall not be subject to judicial 
review except in connection with review of a final agency rule and 
according to the provisions of this section.
    [``(b) Any determination by a designee of the President or the 
Director that a rule is, or is not, a major rule shall not be subject 
to judicial review in any manner.
    [``(c) The determination by an agency that a rule is, or is not, a 
major rule under section 621(4)(A)(i) shall be set aside by a reviewing 
court only upon a clear and convincing showing that the determination 
is erroneous in light of the information available to the agency at the 
time the agency made the determination. Any determination by an agency 
that a rule is, or is not, a major rule under section 621(4)(A)(ii) 
shall not be subject to judicial review in any manner.
    [``(d) If the cost-benefit analysis or risk assessment required 
under this chapter has been wholly omitted for any major rule, a court 
shall vacate the rule and remand the case for further consideration. If 
an analysis or assessment has been performed, the court shall not 
review to determine whether the analysis or assessment conformed to the 
particular requirements of this chapter.
    [``(e) Any cost-benefit analysis or risk assessment prepared under 
this chapter shall not be subject to judicial consideration separate or 
apart from review of the agency action to which it relates. When an 
action for judicial review of an agency action is instituted, any 
regulatory analysis for such agency action shall constitute part of the 
whole administrative record of agency action for the purpose of 
judicial review of the agency action, and shall, to the extent 
relevant, be considered by a court in determining the legality of the 
agency action.
[``Sec. 624. Deadlines for rulemaking
    [``(a) All deadlines in statutes that require agencies to propose 
or promulgate any rule subject to section 622 or subchapter III during 
the 2-year period beginning on the effective date of this section shall 
be suspended until the earlier of--
            [``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            [``(2) the date occurring 6 months after the date of the 
        applicable deadline.
    [``(b) All deadlines imposed by any court of the United States that 
would require an agency to propose or promulgate a rule subject to 
section 622 or subchapter III during the 2-year period beginning on the 
effective date of this section shall be suspended until the earlier 
of--
            [``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            [``(2) the date occurring 6 months after the date of the 
        applicable deadline.
    [``(c) In any case in which the failure to promulgate a rule by a 
deadline occurring during the 2-year period beginning on the effective 
date of this section would create an obligation to regulate through 
individual adjudications, the deadline shall be suspended until the 
earlier of--
            [``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            [``(2) the date occurring 6 months after the date of the 
        applicable deadline.
[``Sec. 625. Agency review of rules
    [``(a)(1)(A) No later than 9 months after the effective date of 
this section, each agency shall prepare and publish in the Federal 
Register a proposed schedule for the review, in accordance with this 
section, of--
            [``(i) each rule of the agency that is in effect on such 
        effective date and which, if adopted on such effective date, 
        would be a major rule; and
            [``(ii) each rule of the agency in effect on the effective 
        date of this section (in addition to the rules described in 
        clause (i)) that the agency has selected for review.
    [``(B) Each proposed schedule required under subparagraph (A) shall 
be developed in consultation with--
            [``(i) the Administrator of the Office of Information and 
        Regulatory Affairs; and
            [``(ii) the classes of persons affected by the rules, 
        including members from the regulated industries, small 
        businesses, State and local governments, and organizations 
        representing the interested public.
    [``(C) Each proposed schedule required under subparagraph (A) shall 
establish priorities for the review of rules that, in the joint 
determination of the Administrator of the Office of Information and 
Regulatory Affairs and the agency, most likely can be amended or 
eliminated to--
            [``(i) provide the same or greater benefits at 
        substantially lower costs;
            [``(ii) achieve substantially greater benefits at the same 
        or lower costs; or
            [``(iii) replace command-and-control regulatory 
        requirements with market mechanisms or performance standards 
        that achieve substantially equivalent benefits at lower costs 
        or with greater flexibility.
    [``(D) Each proposed schedule required by subparagraph (A) shall 
include--
            [``(i) a brief explanation of the reasons the agency 
        considers each rule on the schedule to be a major rule, or the 
        reasons why the agency selected the rule for review;
            [``(ii) a date set by the agency, in accordance with 
        subsection (b), for the completion of the review of each such 
        rule; and
            [``(iii) a statement that the agency requests comments from 
        the public on the proposed schedule.
    [``(E) The agency shall set a date to initiate review of each rule 
on the schedule in a manner that will ensure the simultaneous review of 
related items and that will achieve a reasonable distribution of 
reviews over the period of time covered by the schedule.
    [``(2) No later than 90 days before publishing in the Federal 
Register the proposed schedule required under paragraph (1), each 
agency shall make the proposed schedule available to the Director or a 
designee of the President. The President or that officer may select for 
review in accordance with this section any additional rule.
    [``(3) No later than 1 year after the effective date of this 
section, each agency shall publish in the Federal Register a final 
schedule for the review of the rules referred to in paragraphs (1) and 
(2). Each agency shall publish with the final schedule the response of 
the agency to comments received concerning the proposed schedule.
    [``(b)(1) Except as explicitly provided otherwise by statute, the 
agency shall, pursuant to subsections (c) through (e), review--
            [``(A) each rule on the schedule promulgated pursuant to 
        subsection (a);
            [``(B) each major rule promulgated, amended, or otherwise 
        continued by an agency after the effective date of this 
        section; and
            [``(C) each rule promulgated after the effective date of 
        this section that the President or the officer designated by 
        the President selects for review pursuant to subsection (a)(2).
    [``(2) Except as provided pursuant to subsection (f), the review of 
a rule required by this section shall be completed no later than the 
later of--
            [``(A) 10 years after the effective date of this section; 
        or
            [``(B) 10 years after the date on which the rule is--
                    [``(i) promulgated; or
                    [``(ii) amended or continued under this section.
    [``(c) An agency shall publish in the Federal Register a notice of 
its proposed action under this section with respect to a rule being 
reviewed. The notice shall include--
            [``(1) an identification of the specific statutory 
        authority under which the rule was promulgated and an 
        explanation of whether the agency's interpretation of the 
        statute is expressly required by the current text of that 
        statute or, if not, whether it is within the range of 
        permissible interpretations of the statute;
            [``(2) an analysis of the benefits and costs of the rule 
        during the period in which it has been in effect;
            [``(3) an explanation of the proposed agency action with 
        respect to the rule, including action to repeal or amend the 
        rule to resolve inconsistencies or conflicts with any other 
        obligation or requirement established by any Federal statute, 
        rule, or other agency statement, interpretation, or action that 
        has the force of law; and
            [``(4) a statement that the agency seeks proposals from the 
        public for modifications or alternatives to the rule which may 
        accomplish the objectives of the rule in a more effective or 
        less burdensome manner.
    [``(d) If an agency proposes to repeal or amend a rule under review 
pursuant to this section, the agency shall, after issuing the notice 
required by subsection (c), comply with the provisions of this chapter, 
chapter 5, and any other applicable law. The requirements of such 
provisions and related requirements shall apply to the same extent and 
in the same manner as in the case of a proposed agency action to repeal 
or amend a rule that is not taken pursuant to the review required by 
this section.
    [``(e) If an agency proposes to continue without amendment a rule 
under review pursuant to this section, the agency shall--
            [``(1) give interested persons no less than 60 days after 
        the publication of the notice required by subsection (c) to 
        comment on the proposed continuation; and
            [``(2) publish in the Federal Register notice of the 
        continuation of such rule.
    [``(f) Any agency, which for good cause finds that compliance with 
this section with respect to a particular rule during the period 
provided in subsection (b) of this section is contrary to an important 
public interest may request the President, or the officer designated by 
the President pursuant to subsection (a)(2), to establish a period 
longer than 10 years for the completion of the review of such rule. The 
President or that officer may extend the period for review of a rule to 
a total period of no more than 15 years. Such extension shall be 
published in the Federal Register with an explanation of the reasons 
therefor.
    [``(g) If the agency fails to comply with the requirements of 
subsection (b)(2), the rule for which rulemaking proceedings have not 
been completed shall cease to be enforceable against any person.
    [``(h) Nothing in this section shall relieve any agency from its 
obligation to respond to a petition to issue, amend, or repeal a rule, 
for an interpretation regarding the meaning of a rule, or for a 
variance or exemption from the terms of a rule, submitted pursuant to 
any other provision of law.
[``Sec. 626. Public participation and accountability
    [``In order to maximize accountability for, and public 
participation in, the development and review of regulatory actions each 
agency shall, consistent with chapter 5 and other applicable law, 
provide the public with opportunities for meaningful participation in 
the development of regulatory actions, including--
            [``(1) seeking the involvement, where practicable and 
        appropriate, of those who are intended to benefit from and 
        those who are expected to be burdened by any regulatory action;
            [``(2) providing in any proposed or final rulemaking notice 
        published in the Federal Register--
                    [``(A) a certification of compliance with the 
                requirements of this chapter, or an explanation why 
                such certification cannot be made;
                    [``(B) a summary of any regulatory analysis 
                required under this chapter, or under any other legal 
                requirement, and notice of the availability of the 
                regulatory analysis;
                    [``(C) a certification that the rule will produce 
                benefits that will justify the cost to the Government 
                and to the public of implementation of, and compliance 
                with, the rule, or an explanation why such 
                certification cannot be made; and
                    [``(D) a summary of the results of any regulatory 
                review and the agency's response to such review, 
                including an explanation of any significant changes 
                made to such regulatory action as a consequence of 
                regulatory review;
            [``(3) identifying, upon request, a regulatory action and 
        the date upon which such action was submitted to the designated 
        officer to whom authority was delegated under section 644 for 
        review;
            [``(4) disclosure to the public, consistent with section 
        634(3), of any information created or collected in performing a 
        regulatory analysis required under this chapter, or under any 
        other legal requirement; and
            [``(5) placing in the appropriate rulemaking record all 
        written communications received from the Director, other 
        designated officer, or other individual or entity relating to 
        regulatory review.
                  [``SUBCHAPTER III--RISK ASSESSMENTS

[``Sec. 631. Findings and purposes
    [``(a) The Congress finds that:
            [``(1) Environmental, health, and safety regulations have 
        lead to dramatic improvements in the environment and have 
        significantly reduced risks to human health; except--
                    [``(A) many regulations have been more costly and 
                less effective than necessary; and
                    [``(B) too often, regulatory priorities have not 
                been based upon a realistic consideration of risk, risk 
                reduction opportunities, and costs.
            [``(2) The public and private resources available to 
        address health, safety, and environmental risks are not 
        unlimited. Those resources should be allocated to address the 
        greatest needs in the most cost-effective manner and to ensure 
        that the incremental costs of regulatory options are reasonably 
        related to the incremental benefits.
            [``(3) To provide more cost-effective protection to human 
        health, safety, and the environment, regulatory priorities 
        should be supported by realistic and plausible scientific risk 
        assessments and risk management choices that are grounded in 
        cost-benefit principles.
            [``(4) Risk assessment has proved to be a useful 
        decisionmaking tool, except--
                    [``(A) improvements are needed in both the quality 
                of assessments and the characterization and 
                communication of findings;
                    [``(B) scientific and other data must be better 
                collected, organized, and evaluated; and
                    [``(C) the critical information resulting from a 
                risk assessment must be effectively communicated in an 
                objective and unbiased manner to decision makers, and 
                from decision makers to the public.
            [``(5) The public stakeholders should be involved in the 
        decisionmaking process for regulating risks. The public has the 
        right to know about the risks addressed by regulation, the 
        amount of risk reduced, the quality of the science used to 
        support decisions, and the cost of implementing and complying 
        with regulations. Such knowledge will allow for public scrutiny 
        and will promote the quality, integrity, and responsiveness of 
        agency decisions.
    [``(b) The purposes of this subchapter are to--
            [``(1) present the public and executive branch with the 
        most realistic and plausible information concerning the nature 
        and magnitude of health, safety, and environmental risks to 
        promote sound regulatory decisions and public education;
            [``(2) provide for full consideration and discussion of 
        relevant data and potential methodologies;
            [``(3) require explanation of significant choices in the 
        risk assessment process that will allow for better public 
        understanding; and
            [``(4) improve consistency within the executive branch in 
        preparing risk assessments and risk characterizations.
[``Sec. 632. Definitions
    [``For purposes of this subchapter, the definitions under sections 
551 and 621 shall apply and:
            [``(1) The term `covered agency' means each of the 
        following:
                    [``(A) The Environmental Protection Agency.
                    [``(B) The Department of Labor.
                    [``(C) The Department of Transportation.
                    [``(D) The Food and Drug Administration.
                    [``(E) The Department of Energy.
                    [``(F) The Department of the Interior.
                    [``(G) The Department of Agriculture.
                    [``(H) The Consumer Product Safety Commission.
                    [``(I) The National Oceanic and Atmospheric 
                Administration.
                    [``(J) The United States Army Corps of Engineers.
                    [``(K) The Nuclear Regulatory Commission.
                    [``(L) Any other Federal agency considered a 
                covered agency under section 633(b).
            [``(2) The term `emergency' means a situation that is 
        immediately impending and extraordinary in nature, demanding 
        attention due to a condition, circumstance or practice 
        reasonably expected to cause death, serious illness or severe 
        injury to humans, or substantial endangerment to private 
        property or the environment if no action is taken.
            [``(3) The term `estimates of risk' means numerical 
        representations of the potential magnitude of harm to 
        populations or the probability of harm to individuals, 
        including, as appropriate, those derived by considering the 
        range and distribution of estimates of dose-response (potency) 
        and exposure, including appropriate statistical representation 
        of the range and most likely exposure levels, and the 
        identification of the populations or subpopulations addressed. 
        When appropriate and practicable, a description of any 
        populations or subpopulations that are likely to experience 
        exposures at the upper end of the distribution should be 
        included.
            [``(4) The term `hazard identification' means 
        identification of a substance, activity, or condition as 
        potentially causing harm to human health, safety, or the 
        environment.
            [``(5) The term `risk assessment' means--
                    [``(A) identifying, quantifying to the extent 
                feasible and appropriate, and characterizing hazards 
                and exposures to those hazards in order to provide 
                structured information on the nature of threats to 
                human health, safety, or the environment; and
                    [``(B) the document containing the explanation of 
                how the assessment process has been applied to an 
                individual substance, activity, or condition.
            [``(6) The term `risk characterization' means the 
        integration, synthesis, and organization of hazard 
        identification, dose-response and exposure information that 
        addresses the needs of decision makers and interested parties. 
        The term includes both the process and specific outputs, 
        including--
                    [``(A) the element of a risk assessment that 
                involves presentation of the degree of risk in any 
                regulatory proposal or decision, report to Congress, or 
                other document that is made available to the public; 
                and
                    [``(B) discussions of uncertainties, conflicting 
                data, estimates of risk, extrapolations, inferences, 
                and opinions.
            [``(7) The term `screening analysis' means an analysis that 
        arrives at a qualitative estimate or a bounding estimate of 
        risk that permits the risk manager to accept or reject some 
        management options, or permits establishing priorities for 
        agency action. Such term includes an assessment performed by a 
        regulated party and submitted to an agency under a regulatory 
        requirement.
            [``(8) The term `substitution risk' means a reasonably 
        likely increased risk to human health, safety, or the 
        environment from a regulatory option designed to decrease other 
        risks.
[``Sec. 633. Applicability
    [``(a) Except as provided in subsection (c), this subchapter shall 
apply to all risk assessments and risk characterizations prepared by, 
or on behalf of, or prepared by others and adopted by any covered 
agency in connection with a major rule addressing health, safety, and 
environmental risks.
    [``(b)(1) No later than 18 months after the effective date of this 
section, the President, acting through the Director of the Office of 
Management and Budget, shall determine whether other Federal agencies 
should be considered covered agencies for the purposes of this 
subchapter. Such determination, with respect to a particular Federal 
agency, shall be based on the impact of risk assessment documents and 
risk characterization documents on--
            [``(A) regulatory programs administered by that agency; and
            [``(B) the communication of risk information by that agency 
        to the public.
    [``(2) If the President makes a determination under paragraph (1), 
the provisions of this subchapter shall apply to any affected agency 
beginning on a date set by the President. Such date may be no later 
than 6 months after the date of such determination.
    [``(c)(1) This subchapter shall not apply to risk assessments or 
risk characterizations performed with respect to--
            [``(A) an emergency determined by the head of an agency;
            [``(B) a health, safety, or environmental inspection or 
        individual facility permitting action; or
            [``(C) a screening analysis.
    [``(2) This subchapter shall not apply to any food, drug, or other 
product label, or to any risk characterization appearing on any such 
label.
[``Sec. 634. Savings provisions
    [``Nothing in this subchapter shall be construed to--
            [``(1) modify any statutory standard or requirement 
        designed to protect human health, safety, or the environment;
            [``(2) preclude the consideration of any data or the 
        calculation of any estimate to more fully describe risk or 
        provide examples of scientific uncertainty or variability; or
            [``(3) require the disclosure of any trade secret or other 
        confidential information.
[``Sec. 635. Principles for risk assessment
    [``(a) The head of each covered agency shall ensure that risk 
assessments and all of the components of such assessments--
            [``(1) provide for a systematic means to structure 
        information useful to decision makers;
            [``(2) provide, to the maximum extent practicable, that 
        policy-driven default assumptions be used only in the absence 
        of relevant available information;
            [``(3) promote involvement from all stakeholders;
            [``(4) provide an opportunity for public input throughout 
        the regulatory process; and
            [``(5) are designed so that the degree of specificity and 
        rigor employed is commensurate with the consequences of the 
        decision to be made.
    [``(b) A risk assessment shall, to the maximum extent practicable, 
clearly delineate hazard identification from dose-response and exposure 
assessment and make clear the relationship between the level of risk 
and the level of exposure to a hazard.
[``Sec. 636. Principles for risk characterization
    [``In characterizing risk in any risk assessment document, 
regulatory proposal, or decision, each covered agency shall include in 
the risk characterization, as appropriate, each of the following:
            [``(1)(A) A description of the exposure scenarios used, the 
        natural resources or subpopulations being exposed, and the 
        likelihood of those exposure scenarios.
            [``(B) When a risk assessment involves a choice of any 
        significant assumption, inference, or model, the covered agency 
        or instrumentality preparing the risk assessment shall--
                    [``(i) identify the assumptions, inferences, and 
                models that materially affect the outcome;
                    [``(ii) explain the basis for any choices;
                    [``(iii) identify any policy decisions or policy-
                based default assumptions;
                    [``(iv) indicate the extent to which any 
                significant model has been validated by, or conflicts 
                with, empirical data; and
                    [``(v) describe the impact of alternative choices 
                of assumptions, default options or mathematical models.
            [``(C) The major sources of uncertainties in the hazard 
        identification, dose-response and exposure assessment phases of 
        the risk assessment.
            [``(D) To the extent feasible, the range and distribution 
        of exposures and risks derived from the risk assessment should 
        be included as a component of the risk characterization.
            [``(2) When a covered agency provides a risk assessment or 
        risk characterization for a proposed or final regulatory 
        action, such assessment or characterization shall include a 
        statement of any significant substitution risks, when 
        information on such risks has been made available to the 
        agency.
[``Sec. 637. Peer review
    [``(a) The head of each covered agency shall develop a systematic 
program for independent and external peer review required under 
subsection (b). Such program shall be applicable throughout each 
covered agency and--
            [``(1) shall provide for the creation of peer review panels 
        that--
                    [``(A) consist of members with expertise relevant 
                to the sciences involved in regulatory decisions and 
                who are independent of the covered agency; and
                    [``(B) are broadly representative and balanced and, 
                to the extent relevant and appropriate, may include 
                persons affiliated with Federal, State, local, or 
                tribal governments, small businesses, other 
                representatives of industry, universities, agriculture, 
                labor consumers, conservation organizations, or other 
                public interest groups and organizations;
            [``(2) shall not exclude any person with substantial and 
        relevant expertise as a panel member on the basis that such 
        person represents an entity that may have a potential interest 
        in the outcome, if such interest is fully disclosed to the 
        agency, and in the case of a regulatory decision affecting a 
        single entity, no peer reviewer representing such entity may be 
        included on the panel;
            [``(3) shall provide for a timely completed peer review, 
        meeting agency deadlines, that contains a balanced presentation 
        of all considerations, including minority reports and an agency 
        response to all significant peer review comments; and
            [``(4) shall provide adequate protections for confidential 
        business information and trade secrets, including requiring 
        panel members to enter into confidentiality agreements.
    [``(b)(1)(A) Except as provided under subparagraph (B), each 
covered agency shall provide for peer review in accordance with this 
section of any risk assessment or cost-benefit analysis that forms the 
basis of any major rule that addresses risks to the environment, 
health, or safety.
    [``(B) Subparagraph (A) shall not apply to a rule or other action 
taken by an agency to authorize or approve any individual substance or 
product.
    [``(2) The Director of the Office of Management and Budget may 
order that peer review be provided for any risk assessment or cost-
benefit analysis that is likely to have a significant impact on public 
policy decisions or would establish an important precedent.
    [``(c) Each peer review under this section shall include a report 
to the Federal agency concerned with respect to the scientific and 
technical merit of data and methods used for the risk assessments or 
cost-benefit analyses.
    [``(d) The head of the covered agency shall provide a written 
response to all significant peer review comments.
    [``(e) All peer review comments or conclusions and the agency's 
responses shall be made available to the public and shall be made part 
of the administrative record for purposes of judicial review of any 
final agency action.
    [``(f) No peer review shall be required under this section for any 
data, method, document, or assessment, or any component thereof, which 
has been previously subjected to peer review.
[``Sec. 638. Guidelines, plan for assessing new information, and report
    [``(a)(1)(A) As soon as practicable and scientifically feasible, 
each covered agency shall adopt, after notification and opportunity for 
public comment, guidelines to implement the risk assessment and risk 
characterization principles under sections 635 and 636, as well as the 
cost-benefit analysis requirements under section 622, and shall provide 
a format for summarizing risk assessment results.
    [``(B) No later than 12 months after the effective date of this 
section, the head of each covered agency shall issue a report on the 
status of such guidelines to the Congress.
    [``(2) The guidelines under paragraph (1) shall--
            [``(A) include guidance on use of specific technical 
        methodologies and standards for acceptable quality of specific 
        kinds of data;
            [``(B) address important decisional factors for the risk 
        assessment, risk characterization, and cost-benefit analysis at 
        issue; and
            [``(C) provide procedures for the refinement and 
        replacement of policy-based default assumptions.
    [``(b) The guidelines, plan and report under this section shall be 
developed after notice and opportunity for public comment, and after 
consultation with representatives of appropriate State agencies and 
local governments, and such other departments and agencies, 
organizations, or persons as may be advisable.
    [``(c) The President shall review the guidelines published under 
this section at least every 4 years.
    [``(d) The development, issuance, and publication of risk 
assessment and risk characterization guidelines under this section 
shall not be subject to judicial review.
[``Sec. 639. Research and training in risk assessment
    [``(a) The head of each covered agency shall regularly and 
systematically evaluate risk assessment research and training needs of 
the agency, including, where relevant and appropriate, the following:
            [``(1) Research to reduce generic data gaps, to address 
        modelling needs (including improved model sensitivity), and to 
        validate default options, particularly those common to multiple 
        risk assessments.
            [``(2) Research leading to improvement of methods to 
        quantify and communicate uncertainty and variability among 
        individuals, species, populations, and, in the case of 
        ecological risk assessment, ecological communities.
            [``(3) Emerging and future areas of research, including 
        research on comparative risk analysis, exposure to multiple 
        chemicals and other stressors, noncancer endpoints, biological 
        markers of exposure and effect, mechanisms of action in both 
        mammalian and nonmammalian species, dynamics and probabilities 
        of physiological and ecosystem exposures, and prediction of 
        ecosystem-level responses.
            [``(4) Long-term needs to adequately train individuals in 
        risk assessment and risk assessment application. Evaluations 
        under this paragraph shall include an estimate of the resources 
        needed to provide necessary training.
    [``(b) The head of each covered agency shall develop a strategy and 
schedule for carrying out research and training to meet the needs 
identified in subsection (a).
[``Sec. 640. Interagency coordination
    [``(a) To promote the conduct, application, and practice of risk 
assessment in a consistent manner and to identify risk assessment data 
and research needs common to more than 1 Federal agency, the Director 
of the Office of Management and Budget, in consultation with the Office 
of Science and Technology Policy, shall--
            [``(1) periodically survey the manner in which each Federal 
        agency involved in risk assessment is conducting such risk 
        assessment to determine the scope and adequacy of risk 
        assessment practices in use by the Federal Government;
            [``(2) provide advice and recommendations to the President 
        and Congress based on the surveys conducted and determinations 
        made under paragraph (1);
            [``(3) establish appropriate interagency mechanisms to 
        promote--
                    [``(A) coordination among Federal agencies 
                conducting risk assessment with respect to the conduct, 
                application, and practice of risk assessment; and
                    [``(B) the use of state-of-the-art risk assessment 
                practices throughout the Federal Government;
            [``(4) establish appropriate mechanisms between Federal and 
        State agencies to communicate state-of-the-art risk assessment 
        practices; and
            [``(5) periodically convene meetings with State government 
        representatives and Federal and other leaders to assess the 
        effectiveness of Federal and State cooperation in the 
        development and application of risk assessment.
    [``(b) The President shall appoint National Peer Review Panels to 
review every 3 years the risk assessment practices of each covered 
agency for programs designed to protect human health, safety, or the 
environment. The Panels shall submit a report to the President and the 
Congress at least every 3 years containing the results of such review.
[``Sec. 640a. Plan for review of risk assessments
    [``(a) No later than 18 months after the effective date of this 
section, the head of each covered agency shall publish a plan to review 
and revise any risk assessment published before the expiration of such 
18-month period if the covered agency determines that significant new 
information or methodologies are available that could significantly 
alter the results of the prior risk assessment.
    [``(b) A plan under subsection (a) shall--
            [``(1) provide procedures for receiving and considering new 
        information and risk assessments from the public; and
            [``(2) set priorities and criteria for review and revision 
        of risk assessments based on such factors as the agency head 
        considers appropriate.
[``Sec. 640b. Judicial review
    [``The provisions of section 623 relating to judicial review shall 
apply to this subchapter.
[``Sec. 640c. Deadlines for rulemaking
    [``The provisions of section 624 relating to deadlines for 
rulemaking shall apply to this subchapter.
                 [``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

[``Sec. 641. Definition
    [``For purposes of this subchapter, the definitions under sections 
551 and 621 shall apply.
[``Sec. 642. Procedures
    [``The Director or other designated officer to whom authority is 
delegated under section 644 shall--
            [``(1) establish procedures for agency compliance with this 
        chapter; and
            [``(2) monitor, review, and ensure agency implementation of 
        such procedures.
[``Sec. 643. Promulgation and adoption
    [``(a) Procedures established pursuant to section 642 shall only be 
implemented after opportunity for public comment. Any such procedures 
shall be consistent with the prompt completion of rulemaking 
proceedings.
    [``(b)(1) If procedures established pursuant to section 642 include 
review of any initial or final analyses of a rule required under this 
chapter, the time for any such review of any initial analysis shall not 
exceed 60 days following the receipt of the analysis by the Director, a 
designee of the President, or by an officer to whom the authority 
granted under section 642 has been delegated pursuant to section 644.
    [``(2) The time for review of any final analysis required under 
this chapter shall not exceed 60 days following the receipt of the 
analysis by the Director, a designee of the President, or such officer.
    [``(3)(A) The times for each such review may be extended for good 
cause by the President or such officer for an additional 30 days.
    [``(B) Notice of any such extension, together with a succinct 
statement of the reasons therefor, shall be inserted in the rulemaking 
file.
[``Sec. 644. Delegation of authority
    [``(a) The President shall delegate the authority granted by this 
subchapter to the Director or to another officer within the Executive 
Office of the President whose appointment has been subject to the 
advice and consent of the Senate.
    [``(b) Notice of any delegation, or any revocation or modification 
thereof shall be published in the Federal Register.
[``Sec. 645. Public disclosure of information
    [``The Director or other designated officer to whom authority is 
delegated under section 644, in carrying out the provisions of section 
642, shall establish procedures (covering all employees of the Director 
or other designated officer) to provide public and agency access to 
information concerning regulatory review actions, including--
            [``(1) disclosure to the public on an ongoing basis of 
        information regarding the status of regulatory actions 
        undergoing review;
            [``(2) disclosure to the public, no later than publication 
        of, or other substantive notice to the public concerning a 
        regulatory action, of--
                    [``(A) all written communications, regardless of 
                form or format, including drafts of all proposals and 
                associated analyses, between the Director or other 
                designated officer and the regulatory agency;
                    [``(B) all written communications, regardless of 
                form or format, between the Director or other 
                designated officer and any person not employed by the 
                executive branch of the Federal Government relating to 
                the substance of a regulatory action;
                    [``(C) a record of all oral communications relating 
                to the substance of a regulatory action between the 
                Director or other designated officer and any person not 
                employed by the executive branch of the Federal 
                Government; and
                    [``(D) a written explanation of any review action 
                and the date of such action; and
            [``(3) disclosure to the regulatory agency, on a timely 
        basis, of--
                    [``(A) all written communications between the 
                Director or other designated officer and any person who 
                is not employed by the executive branch of the Federal 
                Government;
                    [``(B) a record of all oral communications, and an 
                invitation to participate in meetings, relating to the 
                substance of a regulatory action between the Director 
                or other designated officer and any person not employed 
                by the executive branch of the Federal Government; and
                    [``(C) a written explanation of any review action 
                taken concerning an agency regulatory action.
[``Sec. 646. Judicial review
    [``The exercise of the authority granted under this subchapter by 
the Director, the President, or by an officer to whom such authority 
has been delegated under section 644 shall not be subject to judicial 
review in any manner.''.
    [(b) Regulatory Flexibility Analysis.--
            [(1) In general.--Section 611 of title 5, United States 
        Code, is amended to read as follows:
[``Sec. 611. Judicial review
    [``(a)(1) Except as provided in paragraph (2), no later than 1 year 
after the effective date of a final rule with respect to which an 
agency--
            [``(A) certified, pursuant to section 605(b), that such 
        rule would not have a significant economic impact on a 
        substantial number of small entities; or
            [``(B) prepared a final regulatory flexibility analysis 
        pursuant to section 604,
an affected small entity may petition for the judicial review of such 
certification or analysis in accordance with this subsection. A court 
having jurisdiction to review such rule for compliance with section 553 
of this title or under any other provision of law shall have 
jurisdiction to review such certification or analysis.
    [``(2)(A) Except as provided in subparagraph (B), in the case of a 
provision of law that requires that an action challenging a final 
agency regulation be commenced before the expiration of the 1-year 
period provided in paragraph (1), such lesser period shall apply to a 
petition for the judicial review under this subsection.
    [``(B) In a case in which an agency delays the issuance of a final 
regulatory flexibility analysis pursuant to section 608(b), a petition 
for judicial review under this subsection shall be filed no later 
than--
            [``(i) 1 year; or
            [``(ii) in a case in which a provision of law requires that 
        an action challenging a final agency regulation be commenced 
        before the expiration of the 1-year period provided in 
        paragraph (1), the number of days specified in such provision 
        of law,
after the date the analysis is made available to the public.
    [``(3) For purposes of this subsection, the term `affected small 
entity' means a small entity that is or will be adversely affected by 
the final rule.
    [``(4) Nothing in this subsection shall be construed to affect the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law.
    [``(5)(A) In a case in which an agency certifies that such rule 
would not have a significant economic impact on a substantial number of 
small entities, the court may order the agency to prepare a final 
regulatory flexibility analysis pursuant to section 604 if the court 
determines, on the basis of the rulemaking record, that the 
certification was arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.
    [``(B) In a case in which the agency prepared a final regulatory 
flexibility analysis, the court may order the agency to take corrective 
action consistent with section 604 if the court determines, on the 
basis of the rulemaking record, that the final regulatory flexibility 
analysis was prepared by the agency without complying with section 604.
    [``(6) If, by the end of the 90-day period beginning on the date of 
the order of the court pursuant to paragraph (5) (or such longer period 
as the court may provide), the agency fails, as appropriate--
            [``(A) to prepare the analysis required by section 604; or
            [``(B) to take corrective action consistent with section 
        604 of this title,
the court may stay the rule or grant such other relief as it deems 
appropriate.
    [``(7) In making any determination or granting any relief 
authorized by this subsection, the court shall take due account of the 
rule of prejudicial error.
    [``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(5)) shall constitute 
part of the whole record of agency action in connection with such 
review.
    [``(c) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.
            [(2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the effective date of this Act, except 
        that the judicial review authorized by section 611(a) of title 
        5, United States Code (as added by subsection (a)), shall apply 
        only to final agency rules issued after such effective date.
    [(c) Presidential Authority.--Nothing in this Act shall limit the 
exercise by the President of the authority and responsibility that the 
President otherwise possesses under the Constitution and other laws of 
the United States with respect to regulatory policies, procedures, and 
programs of departments, agencies, and offices.
    [(d) Technical and Conforming Amendments.--
            [(1) Part I of title 5, United States Code, is amended by 
        striking out the chapter heading and table of sections for 
        chapter 6 and inserting in lieu thereof the following:
           [``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS
                  [``SUBCHAPTER I--REGULATORY ANALYSIS

[``Sec.
[``601. Definitions.
[``602. Regulatory agenda.
[``603. Initial regulatory flexibility analysis.
[``604. Final regulatory flexibility analysis.
[``605. Avoidance of duplicative or unnecessary analyses.
[``606. Effect on other law.
[``607. Preparation of analysis.
[``608. Procedure for waiver or delay of completion.
[``609. Procedures for gathering comments.
[``610. Periodic review of rules.
[``611. Judicial review.
[``612. Reports and intervention rights.

               [``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

[``621. Definitions.
[``622. Rulemaking cost-benefit analysis.
[``623. Judicial review.
[``624. Deadlines for rulemaking.
[``625. Agency review of rules.
[``626. Public participation and accountability.

                  [``SUBCHAPTER III--RISK ASSESSMENTS

[``631. Findings and purposes.
[``632. Definitions.
[``633. Applicability.
[``634. Savings provisions.
[``635. Principles for risk assessment.
[``636. Principles for risk characterization.
[``637. Peer review.
[``638. Guidelines, plan for assessing new information, and report.
[``639. Research and training in risk assessment.
[``640. Interagency coordination.
[``640a. Plan for review of risk assessments.
[``640b. Judicial review.
[``640c. Deadlines for rulemaking.

                 [``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

[``641. Definition.
[``642. Procedures.
[``643. Promulgation and adoption.
[``644. Delegation of authority.
[``645. Public disclosure of information.
[``646. Judicial review.''.
            [(2) Chapter 6 of title 5, United States Code, is amended 
        by inserting immediately before section 601, the following 
        subchapter heading:

                [``SUBCHAPTER I--REGULATORY ANALYSIS''.
[SEC. 4. CONGRESSIONAL REVIEW.

    [(a) In General.--Part I of title 5, United States Code, is amended 
by inserting after chapter 7 the following new chapter:

        [``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

[``Sec. 801. Congressional review of agency rulemaking
    [``(a) For purposes of this chapter, the term--
            [``(1) `major rule' means a major rule as defined under 
        section 621(4) of this title and as determined under section 
        622 of this title; and
            [``(2) `rule' (except in reference to a rule of the Senate 
        or House of Representatives) is a reference to a major rule.
    [``(b)(1) Upon the promulgation of a final major rule, the agency 
promulgating such rule shall submit to the Congress a copy of the rule, 
the statement of basis and purpose for the rule, and the proposed 
effective date of the rule.
    [``(2) A rule submitted under paragraph (1) shall not take effect 
as a final rule before the latest of the following:
            [``(A) The later of the date occurring 45 days after the 
        date on which--
                    [``(i) the Congress receives the rule submitted 
                under paragraph (1); or
                    [``(ii) the rule is published in the Federal 
                Register.
            [``(B) If the Congress passes a joint resolution of 
        disapproval described under subsection (i) relating to the 
        rule, and the President signs a veto of such resolution, the 
        earlier date--
                    [``(i) on which either House of Congress votes and 
                fails to override the veto of the President; or
                    [``(ii) occurring 30 session days after the date on 
                which the Congress received the veto and objections of 
                the President.
            [``(C) The date the rule would have otherwise taken effect, 
        if not for this section (unless a joint resolution of 
        disapproval under subsection (i) is approved).
    [``(c) A major rule shall not take effect as a final rule if the 
Congress passes a joint resolution of disapproval described under 
subsection (i), which is signed by the President or is vetoed and 
overridden by the Congress.
    [``(d)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (2)), a major rule that would not take 
effect by reason of this section may take effect if the President makes 
a determination and submits written notice of such determination to the 
Congress that the major rule should take effect because such major rule 
is--
            [``(A) necessary because of an imminent threat to health or 
        safety, or other emergency;
            [``(B) necessary for the enforcement of criminal laws; or
            [``(C) necessary for national security.
    [``(2) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under subsection (i) 
or the effect of a joint resolution of disapproval under this section.
    [``(e)(1) Subsection (i) shall apply to any major rule that is 
promulgated as a final rule during the period beginning on the date 
occurring 60 days before the date the Congress adjourns sine die 
through the date on which the succeeding Congress first convenes.
    [``(2) For purposes of subsection (i), a major rule described under 
paragraph (1) shall be treated as though such rule were published in 
the Federal Register (as a rule that shall take effect as a final rule) 
on the date the succeeding Congress first convenes.
    [``(3) During the period between the date the Congress adjourns 
sine die through the date on which the succeeding Congress first 
convenes, a rule described under paragraph (1) shall take effect as a 
final rule as otherwise provided by law.
    [``(f) Any rule that takes effect and later is made of no force or 
effect by the enactment of a joint resolution under subsection (i) 
shall be treated as though such rule had never taken effect.
    [``(g) If the Congress does not enact a joint resolution of 
disapproval under subsection (i), no court or agency may infer any 
intent of the Congress from any action or inaction of the Congress with 
regard to such major rule, related statute, or joint resolution of 
disapproval.
    [``(h) If the agency fails to comply with the requirements of 
subsection (b) for any rule, the rule shall cease to be enforceable 
against any person.
    [``(i)(1) For purposes of this subsection, the term `joint 
resolution' means only a joint resolution introduced after the date on 
which the rule referred to in subsection (b) is received by Congress 
the matter after the resolving clause of which is as follows: `That 
Congress disapproves the rule submitted by the ____________ relating to 
______________, and such rule shall have no force or effect.' (The 
blank spaces being appropriately filled in.)
    [``(2)(A) In the Senate, a resolution described in paragraph (1) 
shall be referred to the committees with jurisdiction. Such a 
resolution shall not be reported before the eighth day after its 
submission or publication date.
    [``(B) For purposes of this subsection, the term `submission or 
publication date' means the later of the date on which--
            [``(i) the Congress receives the rule submitted under 
        subsection (b)(1); or
            [``(ii) the rule is published in the Federal Register.
    [``(3) In the Senate, if the committee to which a resolution 
described in paragraph (1) is referred has not reported such resolution 
(or an identical resolution) at the end of 20 calendar days after its 
submission or publication date, such committee may be discharged on a 
petition approved by 30 Senators from further consideration of such 
resolution and such resolution shall be placed on the Senate calendar.
    [``(4)(A) In the Senate, when the committee to which a resolution 
is referred has reported, or when a committee is discharged (under 
paragraph (3)) from further consideration of, a resolution described in 
paragraph (1), it shall at any time thereafter be in order (even though 
a previous motion to the same effect has been disagreed to) for any 
Senator to move to proceed to the consideration of the resolution, and 
all points of order against the resolution (and against consideration 
of the resolution) shall be waived. The motion shall be privileged in 
the Senate and shall not be debatable. The motion shall not be subject 
to amendment, or to a motion to postpone, or to a motion to proceed to 
the consideration of other business. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in order. If 
a motion to proceed to the consideration of the resolution is agreed 
to, the resolution shall remain the unfinished business of the Senate 
until disposed of.
    [``(B) In the Senate, debate on the resolution, and on all 
debatable motions and appeals in connection therewith, shall be limited 
to not more than 10 hours, which shall be divided equally between those 
favoring and those opposing the resolution. A motion further to limit 
debate shall be in order and shall not be debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the resolution shall not be in 
order. A motion to reconsider the vote by which the resolution is 
agreed to or disagreed to shall not be in order.
    [``(C) In the Senate, immediately following the conclusion of the 
debate on a resolution described in paragraph (1), and a single quorum 
call at the conclusion of the debate if requested in accordance with 
the Senate rules, the vote on final passage of the resolution shall 
occur.
    [``(D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
resolution described in paragraph (1) shall be decided without debate.
    [``(5) If, before the passage in the Senate of a resolution 
described in paragraph (1), the Senate receives from the House of 
Representatives a resolution described in paragraph (1), then the 
following procedures shall apply:
            [``(A) The resolution of the House of Representatives shall 
        not be referred to a committee.
            [``(B) With respect to a resolution described in paragraph 
        (1) of the Senate--
                    [``(i) the procedure in the Senate shall be the 
                same as if no resolution had been received from the 
                other House; but
                    [``(ii) the vote on final passage shall be on the 
                resolution of the other House.
    [``(6) This subsection is enacted by Congress--
            [``(A) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed to be a part of the rules of each House, respectively, 
        but applicable only with respect to the procedure to be 
        followed in that House in the case of a resolution described in 
        paragraph (1), and it supersedes other rules only to the extent 
        that it is inconsistent with such rules; and
            [``(B) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    [``(j) No requirements under this chapter shall be subject to 
judicial review in any manner.''.
    [(b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 5, United States Code, is amended by inserting after 
the item relating to chapter 7 the following:

``8. Congressional Review of Agency Rulemaking..............     801''.
[SEC. 5. STUDIES AND REPORTS.

    [(a) Risk Assessments.--The Administrative Conference of the United 
States shall--
            [(1) develop and carry out an ongoing study of the 
        operation of the risk assessment requirements of subchapter III 
        of chapter 6 of title 5, United States Code (as added by 
        section 3 of this Act); and
            [(2) submit an annual report to the Congress on the 
        findings of the study.
    [(b) Administrative Procedure Act.--No later than December 31, 
1996, the Administrative Conference of the United States shall--
            [(1) carry out a study of the operation of chapters 5 and 6 
        of title 5, United States Code (commonly referred to as the 
        Administrative Procedure Act), as amended by section 3 of this 
        Act; and
            [(2) submit a report to the Congress on the findings of the 
        study, including proposals for revision, if any.

[SEC. 6. RISK-BASED PRIORITIES.

    [(a) Purposes.--The purposes of this section are to--
            [(1) encourage Federal agencies engaged in regulating risks 
        to human health, safety, and the environment to achieve the 
        greatest risk reduction at the least cost practical;
            [(2) promote the coordination of policies and programs to 
        reduce risks to human health, safety, and the environment; and
            [(3) promote open communication among Federal agencies, the 
        public, the President, and Congress regarding environmental, 
        health, and safety risks, and the prevention and management of 
        those risks.
    [(b) Definitions.--For the purposes of this section:
            [(1) Comparative risk analysis.--The term ``comparative 
        risk analysis'' means a process to systematically estimate, 
        compare, and rank the size and severity of risks to provide a 
        common basis for evaluating strategies for reducing or 
        preventing those risks.
            [(2) Covered agency.--The term ``covered agency'' means 
        each of the following:
                    [(A) The Environmental Protection Agency.
                    [(B) The Department of Labor.
                    [(C) The Department of Transportation.
                    [(D) The Food and Drug Administration.
                    [(E) The Department of Energy.
                    [(F) The Department of the Interior.
                    [(G) The Department of Agriculture.
                    [(H) The Consumer Product Safety Commission.
                    [(I) The National Oceanic and Atmospheric 
                Administration.
                    [(J) The United States Army Corps of Engineers.
                    [(K) The Nuclear Regulatory Commission.
            [(3) Effect.--The term ``effect'' means a deleterious 
        change in the condition of--
                    [(A) a human or other living thing (including 
                death, cancer, or other chronic illness, decreased 
                reproductive capacity, or disfigurement); or
                    [(B) an inanimate thing important to human welfare 
                (including destruction, degeneration, the loss of 
                intended function, and increased costs for 
                maintenance).
            [(4) Irreversibility.--The term ``irreversibility'' means 
        the extent to which a return to conditions before the 
        occurrence of an effect are either very slow or will never 
        occur.
            [(5) Likelihood.--The term ``likelihood'' means the 
        estimated probability that an effect will occur.
            [(6) Magnitude.--The term ``magnitude'' means the number of 
        individuals or the quantity of ecological resources or other 
        resources that contribute to human welfare that are affected by 
        exposure to a stressor.
            [(7) Seriousness.--The term ``seriousness'' means the 
        intensity of effect, the likelihood, the irreversibility, and 
        the magnitude.
    [(c) Department and Agency Program Goals.--
            [(1) Setting priorities.--In exercising authority under 
        applicable laws protecting human health, safety, or the 
        environment, the head of each covered agency should set 
        priorities and use the resources available under those laws to 
        address those risks to human health, safety, and the 
        environment that--
                    [(A) the covered agency determines to be the most 
                serious; and
                    [(B) can be addressed in a cost-effective manner, 
                with the goal of achieving the greatest overall net 
                reduction in risks with the public and private sector 
                resources expended.
            [(2) Determining the most serious risks.--In identifying 
        the greatest risks under paragraph (1) of this subsection, each 
        covered agency shall consider, at a minimum--
                    [(A) the likelihood, irreversibility, and severity 
                of the effect; and
                    [(B) the number and classes of individuals 
                potentially affected, and shall explicitly take into 
                account the results of the comparative risk analysis 
                conducted under subsection (d) of this section.
            [(3) OMB review.--The covered agency's determinations of 
        the most serious risks for purposes of setting priorities shall 
        be reviewed and approved by the Director of the Office of 
        Management and Budget before submission of the covered agency's 
        annual budget requests to Congress.
            [(4) Incorporating risk-based priorities into budget and 
        planning.--The head of each covered agency shall incorporate 
        the priorities identified under paragraph (1) into the agency 
        budget, strategic planning, regulatory agenda, enforcement, and 
        research activities. When submitting its budget request to 
        Congress and when announcing its regulatory agenda in the 
        Federal Register, each covered agency shall identify the risks 
        that the covered agency head has determined are the most 
        serious and can be addressed in a cost-effective manner under 
        paragraph (1), the basis for that determination, and explicitly 
        identify how the covered agency's requested budget and 
        regulatory agenda reflect those priorities.
            [(5) Effective date.--This subsection shall take effect 12 
        months after the date of enactment of this Act.
    [(d) Comparative Risk Analysis.--
            [(1) Requirement.--(A)(i) No later than 6 months after the 
        effective date of this Act, the Director of the Office of 
        Management and Budget shall enter into appropriate arrangements 
        with an accredited scientific body--
                    [(I) to conduct a study of the methodologies for 
                using comparative risk to rank dissimilar human health, 
                safety, and environmental risks; and
                    [(II) to conduct a comparative risk analysis.
            [(ii) The comparative risk analysis shall compare and rank, 
        to the extent feasible, human health, safety, and environmental 
        risks potentially regulated across the spectrum of programs 
        administered by all covered agencies.
            [(B) The Director shall consult with the Office of Science 
        and Technology Policy regarding the scope of the study and the 
        conduct of the comparative risk analysis.
            [(2) Criteria.--In arranging for the comparative risk 
        analysis referred to in paragraph (1) of this subsection, the 
        Director shall ensure that--
                    [(A) the scope and specificity of the analysis are 
                sufficient to provide the President and agency heads 
                guidance in allocating resources across agencies and 
                among programs in agencies to achieve the greatest 
                degree of risk prevention and reduction for the public 
                and private resources expended;
                    [(B) the analysis is conducted through an open 
                process, by individuals with relevant expertise, 
                including toxicologists, biologists, engineers and 
                experts in medicine, industrial hygiene and 
                environmental effects;
                    [(C) the analysis is conducted, to the extent 
                feasible, consistent with the risk assessment and risk 
                characterization principles in sections 635 and 636 of 
                this title;
                    [(D) the methodologies and principal scientific 
                determinations made in the analysis are subjected to 
                independent and external peer review consistent with 
                section 637, and the conclusions of the peer review are 
                made publicly available as part of the final report 
                required under subsection (e);
                    [(E) there is an opportunity for public comment on 
                the results before making them final; and
                    [(F) the results are presented in a manner that 
                distinguishes between the scientific conclusions and 
                any policy or value judgments embodied in the 
                comparisons.
            [(3) Completion and review.--No later than 3 years after 
        the effective date of this Act, the comparative risk analysis 
        required under paragraph (1) shall be completed. The 
        comparative risk analysis shall be reviewed and revised at 
        least every 5 years thereafter for a minimum of 15 years 
        following the release of the first analysis. The Director shall 
        arrange for such review and revision with an accredited 
        scientific body in the same manner as provided under paragraphs 
        (1) and (2).
            [(4) Study.--The study of methodologies provided under 
        paragraph (1) shall be conducted as part of the first 
        comparative risk analysis and shall be completed no later than 
        180 days after the completion of that analysis. The goal of the 
        study shall be to develop and rigorously test methods of 
        comparative risk analysis. The study shall have sufficient 
        scope and breadth to test approaches for improving comparative 
        risk analysis and its use in setting priorities for human 
        health, safety, and environmental risk prevention and 
        reduction.
            [(5) Technical guidance.--No later than 180 days after the 
        effective date of this Act, the Director, in collaboration with 
        other heads of covered agencies shall enter into a contract 
        with the National Research Council to provide technical 
        guidance to agencies on approaches to using comparative risk 
        analysis in setting human health, safety, and environmental 
        priorities to assist agencies in complying with subsection (c) 
        of this section.
    [(e) Reports and Recommendations to Congress and the President.--No 
later than 24 months after the effective date of this Act, each covered 
agency shall submit a report to Congress and the President--
            [(1) detailing how the agency has complied with subsection 
        (c) and describing the reasons for any departure from the 
        requirement to establish priorities to achieve the greatest 
        overall net reduction in risk;
            [(2) recommending--
                    [(A) modification, repeal, or enactment of laws to 
                reform, eliminate, or enhance programs or mandates 
                relating to human health, safety, or the environment; 
                and
                    [(B) modification or elimination of statutorily or 
                judicially mandated deadlines,
        that would assist the covered agency to set priorities in 
        activities to address the risks to human health, safety, or the 
        environment in a manner consistent with the requirements of 
        subsection (c)(1);
            [(3) evaluating the categories of policy and value 
        judgments used in risk assessment, risk characterization, or 
        cost-benefit analysis; and
            [(4) discussing risk assessment research and training 
        needs, and the agency's strategy and schedule for meeting those 
        needs.
    [(f) Savings Provision and Judicial Review.--
            [(1) In general.--Nothing in this section shall be 
        construed to modify any statutory standard or requirement 
        designed to protect human health, safety, or the environment.
            [(2) Judicial review.--Compliance or noncompliance by an 
        agency with the provisions of this section shall not be subject 
        to judicial review.
            [(3) Agency analysis.--Any analysis prepared under this 
        section shall not be subject to judicial consideration separate 
        or apart from the requirement, rule, program, or law to which 
        it relates. When an action for judicial review of a covered 
        agency action is instituted, any analysis for, or relating to, 
        the action shall constitute part of the whole record of agency 
        action for the purpose of judicial review of the action and 
        shall, to the extent relevant, be considered by a court in 
        determining the legality of the covered agency action.
[SEC. 7. REGULATORY ACCOUNTING.

    [(a) Definitions.--For purposes of this section, the following 
definitions apply:
            [(1) Agency.--The term ``agency'' means any executive 
        department, military department, Government corporation, 
        Government controlled corporation, or other establishment in 
        the executive branch of the Government (including the Executive 
        Office of the President), or any independent regulatory agency, 
        but shall not include--
                    [(A) the General Accounting Office;
                    [(B) the Federal Election Commission;
                    [(C) the governments of the District of Columbia 
                and of the territories and possessions of the United 
                States, and their various subdivisions; or
                    [(D) government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities.
            [(2) Regulation.--The term ``regulation'' means an agency 
        statement of general applicability and future effect designed 
        to implement, interpret, or prescribe law or policy or 
        describing the procedures or practice requirements of an 
        agency. The term shall not include--
                    [(A) administrative actions governed by sections 
                556 and 557 of title 5, United States Code;
                    [(B) regulations issued with respect to a military 
                or foreign affairs function of the United States; or
                    [(C) regulations related to agency organization, 
                management, or personnel.
    [(b) Accounting Statement.--
            [(1) In general.--(A) The President shall be responsible 
        for implementing and administering the requirements of this 
        section.
            [(B) Every 2 years, no later than June of the second year, 
        the President shall prepare and submit to Congress an 
        accounting statement that estimates the annual costs of Federal 
        regulatory programs and corresponding benefits in accordance 
        with this subsection.
            [(2) Years covered by accounting statement.--Each 
        accounting statement shall cover, at a minimum, the 5 fiscal 
        years beginning on October 1 of the year in which the report is 
        submitted and may cover any fiscal year preceding such fiscal 
        years for purpose of revising previous estimates.
            [(3) Timing and procedures.--(A) The President shall 
        provide notice and opportunity for comment for each accounting 
        statement. The President may delegate to an agency the 
        requirement to provide notice and opportunity to comment for 
        the portion of the accounting statement relating to that 
        agency.
            [(B) The President shall propose the first accounting 
        statement under this subsection no later than 2 years after the 
        effective date of this Act and shall issue the first accounting 
        statement in final form no later than 3 years after such 
        effective date. Such statement shall cover, at a minimum, each 
        of the fiscal years beginning after the effective date of this 
        Act.
            [(4) Content of accounting statement.--(A) Each accounting 
        statement shall contain estimates of costs and benefits with 
        respect to each fiscal year covered by the statement in 
        accordance with this paragraph. For each such fiscal year for 
        which estimates were made in a previous accounting statement, 
        the statement shall revise those estimates and state the 
        reasons for the revisions.
            [(B)(i) An accounting statement shall estimate the costs of 
        Federal regulatory programs by setting forth, for each year 
        covered by the statement--
                    [(I) the annual expenditure of national economic 
                resources for each regulatory program; and
                    [(II) such other quantitative and qualitative 
                measures of costs as the President considers 
                appropriate.
            [(ii) For purposes of the estimate of costs in the 
        accounting statement, national economic resources shall 
        include, and shall be listed under, at least the following 
        categories:
                    [(I) Private sector costs.
                    [(II) Federal sector costs.
                    [(III) State and local government costs.
            [(C) An accounting statement shall estimate the benefits of 
        Federal regulatory programs by setting forth, for each year 
        covered by the statement, such quantitative and qualitative 
        measures of benefits as the President considers appropriate. 
        Any estimates of benefits concerning reduction in human health, 
        safety, or environmental risks shall present the most plausible 
        level of risk practical, along with a statement of the 
        reasonable degree of scientific certainty.
    [(c) Associated Report to Congress.--
            [(1) In general.--At the same time as the President submits 
        an accounting statement under subsection (b), the President, 
        acting through the Director of the Office of Management and 
        Budget, shall submit to Congress a report associated with the 
        accounting statement (hereinafter referred to as an 
        ``associated report''). The associated report shall contain, in 
        accordance with this subsection--
                    [(A) analyses of impacts; and
                    [(B) recommendations for reform.
            [(2) Analyses of impacts.--The President shall include in 
        the associated report the following:
                    [(A) The cumulative impact on the economy of 
                Federal regulatory programs covered in the accounting 
                statement. Factors to be considered in such report 
                shall include impacts on the following:
                            [(i) The ability of State and local 
                        governments to provide essential services, 
                        including police, fire protection, and 
                        education.
                            [(ii) Small business.
                            [(iii) Productivity.
                            [(iv) Wages.
                            [(v) Economic growth.
                            [(vi) Technological innovation.
                            [(vii) Consumer prices for goods and 
                        services.
                            [(viii) Such other factors considered 
                        appropriate by the President.
                    [(B) A summary of any independent analyses of 
                impacts prepared by persons commenting during the 
                comment period on the accounting statement.
            [(3) Recommendations for reform.--The President shall 
        include in the associated report the following:
                    [(A) A summary of recommendations of the President 
                for reform or elimination of any Federal regulatory 
                program or program element that does not represent 
                sound use of national economic resources or otherwise 
                is inefficient.
                    [(B) A summary of any recommendations for such 
                reform or elimination of Federal regulatory programs or 
                program elements prepared by persons commenting during 
                the comment period on the accounting statement.
    [(d) Guidance From Office of Management and Budget.--The Director 
of the Office of Management and Budget shall, in consultation with the 
Council of Economic Advisers and the agencies, develop guidance for the 
agencies--
            [(1) to standardize measures of costs and benefits in 
        accounting statements prepared pursuant to this section and 
        section 3 of this Act, including--
                    [(A) detailed guidance on estimating the costs and 
                benefits of major rules; and
                    [(B) general guidance on estimating the costs and 
                benefits of all other rules that do not meet the 
                thresholds for major rules; and
            [(2) to standardize the format of the accounting 
        statements.
    [(e) Recommendations From Congressional Budget Office.--After each 
accounting statement and associated report submitted to Congress, the 
Director of the Congressional Budget Office shall make recommendations 
to the President--
            [(1) for improving accounting statements prepared pursuant 
        to this section, including recommendations on level of detail 
        and accuracy; and
            [(2) for improving associated reports prepared pursuant to 
        this section, including recommendations on the quality of 
        analysis.
    [(f) Judicial Review.--No requirements under this section shall be 
subject to judicial review in any manner.

[SEC. 8. EFFECTIVE DATE.

    [Except as otherwise provided in this Act, this Act shall take 
effect 180 days after the date of the enactment of this Act.]
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive Regulatory Reform Act 
of 1995''.

SEC. 2. DEFINITIONS.

    Section 551 of title 5, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``this subchapter'' and inserting ``this chapter and chapters 
        6, 7, and 8'';
            (2) in paragraph (13), by striking ``and'';
            (3) in paragraph (14), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(15) `Director' means the Director of the Office of 
        Management and Budget.''.

SEC. 3. RULEMAKING.

    Section 553 of title 5, United States Code, is amended to read as 
follows:
``Sec. 553. Rulemaking
    ``(a) This section applies to every rulemaking, according to the 
provisions thereof, except to the extent that there is involved--
            ``(1) a matter pertaining to a military or foreign affairs 
        function of the United States;
            ``(2) a matter relating to the management and personnel 
        practices of an agency;
            ``(3) an interpretive rule, general statement of policy, 
        guidance, or rule of agency organization, procedure, or 
        practice that is not generally applicable and does not alter or 
        create rights or obligations of persons outside the agency; or
            ``(4) a rule relating to the acquisition, management, or 
        disposal by an agency of real or personal property, or of 
        services, that is promulgated in compliance with criteria and 
        procedures established by the Administrator of General 
        Services.
    ``(b)(1) General notice of proposed rulemaking shall be published 
in the Federal Register, unless all persons subject thereto are named 
and either personally served or otherwise have actual notice of the 
proposed rulemaking in accordance with law. Each notice of proposed 
rulemaking shall include--
            ``(A) a statement of the time, place, and nature of public 
        rulemaking proceedings;
            ``(B) a succinct explanation of the need for and specific 
        objectives of the proposed rule, including an explanation of 
        the agency's determination of whether or not the rule is a 
        major rule within the meaning of section 621(4);
            ``(C) an explanation of the specific statutory 
        interpretation under which a rule is proposed, including an 
        explanation of--
                    ``(i) whether the interpretation is expressly 
                required by the text of the statute; or
                    ``(ii) if the interpretation is not expressly 
                required by the text of the statute, an explanation 
                that the interpretation is within the range of 
                permissible interpretations of the statute as 
                identified by the agency, and an explanation why the 
                interpretation selected by the agency is the agency's 
                preferred interpretation;
            ``(D) the proposed provisions of the rule;
            ``(E) a summary of any initial analysis of the proposed 
        rule required to be prepared or issued pursuant to chapter 6;
            ``(F) a statement that the agency seeks proposals from the 
        public and from State and local governments for alternative 
        methods to accomplish the objectives of the rulemaking that are 
        more effective or less burdensome than the approach used in the 
        proposed rule;
            ``(G) a description of any data, methodologies, reports, 
        studies, scientific evaluations, or other similar information 
        available to the agency for the rulemaking, including an 
        identification of each author or source of such information and 
        the purposes for which the agency plans to rely on such 
        information; and
            ``(H) a statement specifying where the file of the 
        rulemaking proceeding maintained pursuant to subsection (f) may 
        be inspected and how copies of the items in the file may be 
        obtained.
    ``(2) Except when notice or hearing is required by statute, a final 
rule may be adopted and may become effective without prior compliance 
with this subsection and subsections (c) and (f) if--
            ``(A) the agency for good cause finds that providing notice 
        and public procedure thereon before the rule becomes effective 
        is contrary to an important public interest or is unnecessary 
        due to the insignificant impact of the rule;
            ``(B) the agency publishes the rule in the Federal Register 
        with such finding and a succinct explanation of the reasons 
        therefor; and
            ``(C) the agency complies with this subsection and 
        subsections (c) and (f) to the maximum extent feasible prior to 
        the promulgation of the final rule, and fully complies with 
        such provisions as soon as reasonably practicable after the 
        promulgation of the rule.
    ``(3) Whenever the provisions of a final rule that an agency plans 
to adopt are so different from the provisions of the proposed rule that 
the original notice of proposed rulemaking did not fairly apprise the 
public of the issues ultimately to be resolved in the rulemaking or of 
the substance of the rule, the agency shall publish in the Federal 
Register a notice of the final rule the agency plans to adopt, together 
with the information relevant to such rule that is required by the 
applicable provisions of this section and that has not previously been 
published in the Federal Register. The agency shall allow a reasonable 
period for comment on such final rule.
    ``(c)(1) After providing the notice required by this section, the 
agency shall give interested persons not less than 60 days to 
participate in the rulemaking through the submission of written data, 
views, or arguments.
    ``(2)(A) To collect relevant information, and to identify and 
elicit full and representative public comment on the significant issues 
of a particular rulemaking, the agency may use such other procedures as 
the agency determines are appropriate, including--
            ``(i) the publication of an advance notice of proposed 
        rulemaking;
            ``(ii) the provision of notice, in forms which are more 
        direct than notice published in the Federal Register, to 
        persons who would be substantially affected by the proposed 
        rule, but who are unlikely to receive notice of the proposed 
        rulemaking through the Federal Register;
            ``(iii) the provision of opportunities for oral 
        presentation of data, views, information, or rebuttal arguments 
        at informal public hearings, which may be held in the District 
        of Columbia and other locations;
            ``(iv) the provision of summaries, explanatory materials, 
        or other technical information in response to public inquiries 
        concerning the issues involved in the rulemaking; and
            ``(v) the adoption or modification of agency procedural 
        rules to reduce the cost or complexity of participation in a 
        rulemaking.
    ``(B) The decision of an agency to use or not to use such other 
procedures in a rulemaking pursuant to this paragraph shall not be 
subject to judicial review.
    ``(3) To ensure an orderly and expeditious proceeding, an agency 
may establish reasonable procedures to regulate the course of informal 
public hearings under paragraphs (1) and (2), including the designation 
of representatives to make oral presentations or engage in direct or 
cross-examination on behalf of several parties with a common interest 
in a rulemaking. Transcripts shall be made of all such public hearings.
    ``(4) An agency shall publish any final rule it adopts in the 
Federal Register, together with a concise statement of the basis and 
purpose of the rule and a statement of when the rule may become 
effective. The statement of basis and purpose shall include--
            ``(A) an explanation of the need for, objectives of, and 
        specific statutory authority for, the rule;
            ``(B) a discussion of, and response to, any significant 
        factual or legal issues raised by the comments on the proposed 
        rule prior to its promulgation, including a description of the 
        reasonable alternatives to the rule proposed by the agency and 
        by interested persons, and the reasons why each such 
        alternative was rejected;
            ``(C)(i) an explanation of whether the specific statutory 
        interpretation upon which the rule is based is expressly 
        required by the text of the statute; or
            ``(ii) if the specific statutory interpretation upon which 
        the rule is based is not expressly required by the text of the 
        statute, an explanation that the interpretation is within the 
        range of permissible interpretations of the statute as 
        identified by the agency, and why the agency has rejected other 
        interpretations proposed in comments to the agency;
            ``(D) an explanation of how the factual conclusions upon 
        which the rule is based are substantially supported in the 
        rulemaking file maintained pursuant to subsection (f); and
            ``(E) a summary of any final analysis of the rule required 
        to be prepared or issued pursuant to chapter 6.
    ``(5) The provisions of sections 556 and 557 shall apply in lieu of 
this subsection in the case of rules that are required by statute to be 
made on the record after opportunity for an agency hearing.
    ``(d) An agency shall publish the final rule in the Federal 
Register not less than 60 days before the effective date of such rule. 
An agency may make a rule effective in less than 60 days after 
publication in the Federal Register if the rule grants or recognizes an 
exemption, relieves a restriction, or if the agency for good cause 
finds that such a delay in the effective date would be contrary to an 
important public interest and publishes such finding and an explanation 
of the reasons therefor, with the final rule.
    ``(e)(1) Each agency shall give an interested person the right to 
petition for the issuance, amendment, or repeal of a rule.
    ``(2) Each person subject to a major rule may petition--
            ``(A) for the issuance, amendment, or repeal of such rule;
            ``(B) for the amendment or repeal of an interpretive rule 
        or general statement of policy or guidance;
            ``(C) for an interpretation regarding the meaning of the 
        rule, interpretive rule, general statement of policy, or 
        guidance; and
            ``(D) for a variance or exemption from the terms of the 
        rule.
    ``(3)(A) Any person subject to a rule, interpretive rule, general 
statement of policy, or guidance may petition an agency for the 
amendment or repeal of any rule, interpretive rule, general statement 
of policy, or guidance.
    ``(B) If such petition presents a reasonable likelihood that, 
considering its future impact, the rule, interpretive rule, general 
statement of policy, or guidance is, or has the effect of, a major rule 
within the meaning of section 621(4), and its amendment or repeal is 
required to satisfy the decisional criteria of section 624, the agency 
shall grant the petition and shall, within one year, conduct a cost-
benefit analysis under chapter 6.
    ``(C) If, considering its future impact, the rule, interpretive 
rule, general statement of policy, or guidance does not satisfy the 
requirements of chapter 6, including the decisional criteria set forth 
in section 624, the agency shall take immediate action either to revoke 
or to amend the rule, interpretive rule, general statement of policy, 
or guidance to conform it to the requirements of chapter 6, including 
the decisional criteria in section 624.
    ``(4) The agency shall grant or deny a petition made pursuant to 
this subsection, and give written notice of its determination to the 
petitioner, with reasonable promptness, but in no event later than 180 
days after the petition was received by the agency. The written notice 
of the agency's determination shall include an explanation of the 
determination and a response to each factual and legal claim that forms 
the basis of the petition. A decision to deny a petition shall be 
subject to judicial review immediately upon denial, as final agency 
action under the statute granting the agency authority to carry out its 
action.
    ``(5) Following a decision to grant or deny a petition to conduct a 
cost-benefit analysis for a rule, interpretive rule, general statement 
of policy, or guidance under this subsection, no further petition for 
such rule, interpretive rule, general statement of policy, or guidance, 
submitted by the same person, shall be considered by any agency unless 
such petition is based on a change in a fact, circumstance, or 
provision of law underlying or otherwise related to the rule, 
interpretive rule, general statement of policy, or guidance occurring 
since the initial petition was granted or denied, that warrants the 
amendment or repeal of the rule, interpretive rule, general statement 
of policy, or guidance.
    ``(f)(1) The agency shall maintain a file for each rulemaking 
proceeding conducted pursuant to this section and shall maintain a 
current index to such file. The file and the material excluded from the 
file pursuant to paragraph (4) shall constitute the rulemaking record 
for purposes of judicial review. Except as provided in paragraph (4), 
the file shall be made available to the public beginning on the date on 
which the agency makes an initial publication concerning the rule.
    ``(2) The rulemaking file shall include--
            ``(A) the notice of proposed rulemaking, any supplement to, 
        or modification or revision of, such notice, and any advance 
        notice of proposed rulemaking;
            ``(B) copies of all written comments received on the 
        proposed rule;
            ``(C) a transcript of any public hearing conducted on the 
        rulemaking;
            ``(D) copies, or an identification of the place at which 
        copies may be obtained, of all material described by the agency 
        pursuant to subsection (b)(1)(G) and of other factual and 
        methodological material not described by the agency pursuant to 
        such subsection that pertains directly to the rulemaking and 
        that was available to the agency in connection with the 
        rulemaking, or that was submitted to or prepared by or for the 
        agency in connection with the rulemaking; and
            ``(E) any statement, description, analysis, or any other 
        material that the agency is required to prepare or issue in 
        connection with the rulemaking, including any analysis prepared 
        or issued pursuant to chapter 6.
    ``(3) The agency shall place the materials described in paragraph 
(2) in the file as soon as practicable after such materials become 
available to the agency.
    ``(4) The file required by paragraph (1) need not include any 
material that need not be made available to the public under section 
552(b)(4) if the agency includes in such file a statement that notes 
the existence of such material and the basis upon which the material is 
exempt from public disclosure under such section. The agency may not 
substantially rely on any such material in formulating a rule unless it 
makes the substance of such material available for adequate comment by 
interested persons. The agency may use summaries, aggregations of data, 
or other appropriate mechanisms to protect the confidentiality of such 
material to the maximum extent possible.
    ``(5) No court shall hold unlawful or set aside an agency rule 
because of a violation of this subsection unless the court finds that 
such violation has precluded fair public consideration of a material 
issue of the rulemaking taken as a whole. Judicial review of compliance 
or noncompliance with this subsection shall be limited to review of 
action or inaction on the part of an agency.
    ``(g) Notwithstanding any other provision of law, this section 
shall apply to and supplement the procedures governing rulemaking under 
statutes that are not generally subject to this section.
    ``(h) Nothing in this section authorizes the use of appropriated 
funds available to any agency to pay the attorney's fees or other 
expenses of persons participating or intervening in agency 
proceedings.''.

SEC. 4. ANALYSIS OF AGENCY RULES.

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

``Sec. 621. Definitions
    ``For purposes of this subchapter--
            ``(1) the term `benefit' means the reasonably identifiable 
        significant incremental benefits, including social and economic 
        benefits, that are expected to result directly or indirectly 
        from implementation of a rule or an alternative to a rule;
            ``(2) the term `cost' means the reasonably identifiable 
        significant incremental costs and adverse effects, including 
        social and economic costs, reduced consumer choice, 
        substitution effects, and impeded technological advancement, 
        that are expected to result directly or indirectly from 
        implementation of, or compliance with, a rule or an alternative 
        to a rule;
            ``(3) the term `cost-benefit analysis' means an evaluation 
        of the costs and benefits of a rule, quantified to the extent 
        feasible and appropriate and otherwise qualitatively described, 
        that is prepared in accordance with the requirements of this 
        subchapter at the level of detail appropriate and practicable 
        for reasoned decisionmaking on the matter involved, taking into 
        consideration the significance and complexity of the decision 
        and any need for expedition;
            ``(4)(A) the term `major rule' means--
                    ``(i) a rule or a group of closely related rules 
                that the agency proposing the rule, the Director, or a 
                designee of the President reasonably determines is 
                likely to have a gross annual effect on the economy of 
                $50,000,000 or more in reasonably quantifiable 
                increased direct and indirect costs, or has a 
                significant impact on a sector of the economy; or
                    ``(ii) a rule or a group of closely related rules 
                that is otherwise designated a major rule by the agency 
                proposing the rule, the Director, or a designee of the 
                President on the ground that the rule is likely to 
                result in--
                            ``(I) a substantial increase in costs or 
                        prices for wage earners, consumers, individual 
                        industries, nonprofit organizations, Federal, 
                        State, or local government agencies, or 
                        geographic regions;
                            ``(II) significant adverse effects on 
                        competition, employment, investment, 
                        productivity, innovation, health, safety, or 
                        the environment, or the ability of enterprises 
                        whose principal places of business are in the 
                        United States to compete in domestic or export 
                        markets;
                            ``(III) a serious inconsistency or 
                        interference with an action taken or planned by 
                        another agency;
                            ``(IV) the material alteration of the 
                        budgetary impact of entitlements, grants,
                         user fees, or loan programs, or the rights and 
obligations of recipients thereof; or
                            ``(V) disproportionate costs to a class of 
                        persons within the regulated sector, and 
                        relatively severe economic consequences for the 
                        class;
            ``(B) the term `major rule' does not include--
                    ``(i) a rule that involves the internal revenue 
                laws of the United States; or
                    ``(ii) a rule or agency action that authorizes the 
                introduction into, or removal from, commerce, or 
                recognizes the marketable status, of a product;
            ``(5) the term `market-based mechanism' means a regulatory 
        program that--
                    ``(A) imposes legal accountability for the 
                achievement of an explicit regulatory objective on each 
                regulated person;
                    ``(B) affords maximum flexibility to each regulated 
                person in complying with mandatory regulatory 
                objectives, which flexibility shall, where feasible and 
                appropriate, include, but not be limited to, the 
                opportunity to transfer to, or receive from, other 
                persons, including for cash or other legal 
                consideration, increments of compliance responsibility 
                established by the program; and
                    ``(C) permits regulated persons to respond freely 
                to changes in general economic conditions and in 
                economic circumstances directly pertinent to the 
                regulatory program without affecting the achievement of 
                the program's explicit regulatory mandates;
            ``(6) the term `performance-based standards' means 
        requirements, expressed in terms of outcomes or goals rather 
        than mandatory means of achieving outcomes or goals, that 
        permit the regulated entity discretion to determine how best to 
        meet specific requirements in particular circumstances;
            ``(7) the term `reasonable alternatives' means the range of 
        regulatory options that the agency has discretion to consider 
        under the text of the statute granting rulemaking authority, 
        interpreted, to the maximum extent possible, to embrace the 
        broadest range of options that satisfy the decisional criteria 
        of section 624(b); and
            ``(8) the term `rule' has the same meaning as in section 
        551(4), and--
                    ``(A) includes any statement of general 
                applicability that alters or creates rights or 
                obligations of persons outside the agency; and
                    ``(B) does not include--
                            ``(i) a rule of particular applicability 
                        that approves or prescribes the future rates, 
                        wages, prices, services, corporate or financial 
                        structures, reorganizations, mergers, 
                        acquisitions, accounting practices, or 
                        disclosures bearing on any of the foregoing;
                            ``(ii) a rule relating to monetary policy 
                        or to the safety or soundness of Federally 
                        insured depository institutions or any 
                        affiliate of such an institution (as defined in 
                        section 2(k) of the Bank Holding Company Act of 
                        1956), credit unions, Federal Home Loan Banks, 
                        government sponsored housing enterprises, farm 
                        credit institutions, foreign banks that operate 
                        in the United States and their affiliates, 
                        branches, agencies, commercial lending 
                        companies, or representative offices, (as those 
                        terms are defined in section 1 of the 
                        International Banking Act of 1978); or
                            ``(iii) a rule relating to the payment 
                        system or the protection of deposit insurance 
                        funds or the farm credit insurance fund.
``Sec. 622. Rulemaking cost-benefit analysis
    ``(a) Prior to publishing notice of a proposed rulemaking for any 
rule (or, in the case of a notice of a proposed rulemaking that has 
been published on or before the date of enactment of this subchapter, 
not later than 30 days after such date of enactment), each agency shall 
determine whether the rule is or is not a major rule within the meaning 
of section 621(4)(A)(i) and, if it is not, whether it should be 
designated a major rule under section 621(4)(A)(ii). For the purpose of 
any such determination or designation, a group of closely related rules 
shall be considered as one rule.
    ``(b)(1) If an agency has determined that a rule is not a major 
rule within the meaning of section 621(4)(A)(i) and has not designated 
the rule a major rule within the meaning of section 621(4)(A)(ii), the 
Director or a designee of the President may, as appropriate, determine 
that the rule is a major rule or designate the rule a major rule not 
later than 30 days after the publication of the notice of proposed 
rulemaking for the rule (or, in the case of a notice of proposed 
rulemaking that has been published on or before the date of enactment 
of this subchapter, not later than 60 days after such date of 
enactment).
    ``(2) Such determination or designation shall be published in the 
Federal Register, together with a succinct statement of the basis for 
the determination or designation.
    ``(c)(1)(A) When the agency publishes a notice of proposed 
rulemaking for a major rule, the agency shall issue and place in the 
rulemaking file an initial cost-benefit analysis, and shall include a 
summary of such analysis in the notice of proposed rulemaking.
    ``(B)(i) When the Director or a designee of the President has 
published a determination or designation that a rule is a major rule 
after the publication of the notice of proposed rulemaking for the 
rule, the agency shall promptly issue and place in the rulemaking file 
an initial cost-benefit analysis for the rule and shall publish in the 
Federal Register a summary of such analysis.
    ``(ii) Following the issuance of an initial cost-benefit analysis 
under clause (i), the agency shall give interested persons an 
opportunity to comment in the same manner as if the initial cost-
benefit analysis had been issued with the notice of proposed 
rulemaking.
    ``(2) Each initial cost-benefit analysis shall contain--
            ``(A) an analysis of the benefits of the proposed rule, and 
        an explanation of how the agency anticipates each benefit will 
        be achieved by the proposed rule, including a description of 
        the persons or classes of persons likely to receive such 
        benefits;
            ``(B) an analysis of the costs of the proposed rule, and an 
        explanation of how the agency anticipates each such cost will 
        result from the proposed rule, including a description of the 
        persons or groups of persons likely to bear such costs;
            ``(C) an identification (including an analysis of the costs 
        and benefits) of reasonable alternatives that the agency has 
        discretion to adopt under the decisional criteria of the 
        statute granting the rulemaking authority, as supplemented by 
        the decisional criteria in section 624, for achieving 
        identified benefits, including, where appropriate, alternatives 
        that--
                    ``(i) require no government action;
                    ``(ii) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and
                    ``(iii) employ voluntary or performance-based 
                standards, market-based mechanisms, or other flexible 
                regulatory alternatives that permit the greatest 
                flexibility in achieving the identified benefits of the 
                proposed rule;
            ``(D) an assessment of the feasibility of establishing a 
        regulatory program that operates through the application of 
        voluntary programs, voluntary consensus standards, performance-
        based standards, market-based mechanisms, or other flexible 
        regulatory alternatives;
            ``(E) in any case in which the proposed rule is based on 
        one or more scientific evaluations, scientific information, or 
        a risk assessment, or is subject to the risk assessment 
        requirements of subchapter III, a description of the actions 
        undertaken by the agency to verify the quality, reliability, 
        and relevance of such scientific evaluations or scientific 
        information in accordance with the requirements of subchapter 
        III;
            ``(F) an analysis, to the extent practicable, of the effect 
        of the rule on--
                    ``(i) the cumulative burden of compliance with the 
                rule and other existing regulations on persons 
                complying with it; and
                    ``(ii) the net effect on small businesses with 
                fewer than 100 employees, including employment in such 
                businesses;
            ``(G) an analysis of whether the identified benefits of the 
        proposed rule justify the identified costs of the proposed 
        rule, and an analysis of whether the proposed rule will achieve 
        greater net benefits or, where applicable, lower net costs, 
        than any of the alternatives to the proposed rule, including 
        alternatives identified in accordance with subparagraphs (C) 
        and (D).
    ``(d)(1) When the agency publishes a final major rule, the agency 
shall also issue and place in the rulemaking file a final cost-benefit 
analysis, and shall include a summary of the analysis in the statement 
of basis and purpose.
    ``(2) Each final cost-benefit analysis shall contain--
            ``(A) a description and comparison of the benefits and 
        costs of the rule and of the reasonable alternatives to the 
        rule described in the rulemaking, including the flexible 
        regulatory alternatives identified pursuant to subsection 
        (c)(2) (C) and (D); and
            ``(B) an analysis, based upon the rulemaking record 
        considered as a whole, of--
                    ``(i) whether the benefits of the rule justify the 
                costs of the rule; and
                    ``(ii) whether the rule will achieve greater net 
                benefits or, where section 624(c) applies, lower net 
                costs, than any of the reasonable alternatives that the 
                agency has discretion to adopt under the decisional 
                criteria of the statute granting the rulemaking 
                authority, as supplemented by the decisional criteria 
                in section 624, for achieving identified benefits, 
                including, where appropriate, alternatives referred to 
                in subsection (c)(2) (C) and (D).
    ``(e)(1)(A) The analysis of the benefits and costs of a proposed 
and a final rule required under this section shall include, to the 
extent feasible, a quantification or numerical estimate of the 
quantifiable benefits and costs. Such quantification or numerical 
estimate shall be made in the most appropriate unit of measurement, 
using comparable assumptions, including time periods, shall specify the 
ranges of predictions, and shall explain the margins of error involved 
in the quantification methods and in the estimates used. An agency 
shall describe the nature and extent of the nonquantifiable benefits 
and costs of a final rule pursuant to this section in as precise and 
succinct a manner as possible. An agency shall not be required to make 
such evaluation primarily on a mathematical or numerical basis.
    ``(B) Where practicable and appropriate, the description of the 
benefits and costs of a proposed and final rule required under this 
section shall describe such benefits and costs on an industry by 
industry basis.
    ``(2)(A) In evaluating and comparing costs and benefits and in 
evaluating the risk assessment information developed pursuant to 
subchapter III, the agency shall not rely on cost, benefit, or risk 
assessment information that is not accompanied by relevant information 
that would enable the agency and other persons interested in the 
rulemaking to assess the accuracy, reliability, and uncertainty factors 
applicable to such information.
    ``(B) The agency evaluations of the relationships of the benefits 
of a proposed and final rule to its costs shall be clearly articulated 
in accordance with this section.
    ``(f) The preparation of the initial or final cost-benefit analysis 
required by this section shall only be performed by an officer or 
employee of the agency. The preceding sentence shall not preclude a 
person outside the agency from gathering data or information to be used 
by the agency in preparing any such cost-benefit analysis or from 
providing an explanation sufficient to permit the agency to analyze 
such data or information. If any such data or information is gathered 
or explained by a person outside the agency, the agency shall 
specifically identify in the initial or final cost-benefit analysis the 
data or information gathered or explained and the person who gathered 
or explained it, and shall describe the arrangement by which the 
information was procured by the agency, including the total amount of 
funds expended for such procurement.
``Sec. 623. Petition for cost-benefit analysis
    ``(a)(1) Any person subject to a major rule may petition the 
relevant agency, the Director, or a designee of the President to 
perform a cost-benefit analysis under this subchapter for the major 
rule, including a major rule in effect on the date of enactment of this 
subchapter for which a cost-benefit analysis pursuant to such 
subchapter has not been performed, regardless of whether a cost-benefit 
analysis was previously performed to meet requirements imposed before 
the date of enactment of this subchapter.
    ``(2) The petition shall identify with reasonable specificity the 
major rule to be reviewed and the amendment or repeal requested.
    ``(3) The agency, the Director, or a designee of the President 
shall grant the petition if the petition shows that there is a 
reasonable likelihood that, considering the future impact of the rule--
            ``(A) the rule is a major rule; and
            ``(B) the proposed amendment or repeal of the rule is 
        required to satisfy the decisional criteria of section 624.
    ``(4) A decision to grant, or final agency action to deny, a 
petition under this subsection shall be made not later than 180 days 
after submittal.
    ``(5) Following a decision to grant or deny a petition to conduct a 
cost-benefit analysis for a rule under this subsection, no further 
petition for such rule, submitted by the same person, shall be 
considered by any agency, the Director, or a designee of the President, 
unless such petition is based on a change in a fact, circumstance, or 
provision of law underlying or otherwise related to the rule occurring 
since the initial petition was granted or denied, that warrants the 
amendment or repeal of the rule.
    ``(b) Not later than 1 year after the date on which a petition has 
been granted for a major rule under subsection (a), the agency shall 
conduct a cost-benefit analysis in accordance with this subchapter, and 
shall propose amendments to, or repeal of, the rule if required by the 
decisional criteria set forth in section 624.
    ``(c) For purposes of this section, the term `major rule' means any 
major rule or portion thereof.
    ``(d)(1) Any person may petition the relevant agency to withdraw, 
as contrary to this subchapter, any agency interpretive rule, guidance, 
or general statement of policy that would have the effect of a major 
rule if the interpretive rule, guidance, or general statement of policy 
had been adopted as a rule.
    ``(2) The petition shall identify with reasonable specificity why 
the interpretive rule, guidance, or general statement of policy would 
have the effect of a major rule if adopted as a rule.
    ``(3) The agency shall grant the petition if the petition shows 
that there is a reasonable likelihood that the guidance or general 
statement of policy would have the effect of a major rule if adopted as 
a rule.
    ``(4) A decision to grant, or final agency action to deny, a 
petition under this subsection shall be made not later than 180 days 
after the petition is submitted.
    ``(e) For each interpretative rule, guidance, or general statement 
of policy for which a petition has been granted under subsection (d), 
the agency shall--
            ``(1) immediately withdraw the interpretive rule, guidance, 
        or general statement of policy; or
            ``(2) within one year, propose a rule in compliance with 
        this subchapter incorporating, with such modifications as the 
        agency considers appropriate, the regulatory standards or 
        criteria contained in such interpretive rule, general statement 
        of policy, or guidance.
    ``(f) Upon withdrawing an interpretive rule, guidance, or general 
statement of policy, or where such interpretive rule, guidance, or 
general statement of policy is not withdrawn and a final rule is not 
promulgated within 2 years of granting a petition under subsection (d), 
the agency shall be prohibited from enforcing against any person the 
regulatory standards or criteria contained in such interpretive rule, 
guidance, or general statement of policy, unless and until they are 
included in a rule promulgated in accordance with this subchapter.
    ``(g)(1) Any person subject to a major rule may petition the 
relevant agency to modify or waive the specific requirements of the 
major rule and to authorize such person to demonstrate compliance 
through alternative means not otherwise permitted by the major rule. 
The petition shall identify with reasonable specificity the 
requirements for which the waiver is sought and the alternative means 
of compliance being proposed.
    ``(2) The agency shall grant the petition if the petition shows 
that there is a reasonable likelihood that the proposed alternative 
means of compliance would achieve the specific benefits of the major 
rule with an equivalent or greater level of protection of health, 
safety, and the environment than would be provided by the major rule, 
and would not impose an undue burden on the agency that would be 
responsible for enforcing such alternative means of compliance.
    ``(3) Following a decision to grant or deny a petition under this 
subsection, no further petition for such rule, submitted by the same 
person, shall be considered by any agency unless such petition is based 
on a change in a fact, circumstance, or provision of law underlying or 
otherwise related to the rule occurring since the initial petition was 
granted or denied, that warrants the granting of such further petition.
``Sec. 624. Decisional criteria
    ``(a) The requirements of this section shall supplement any other 
decisional criteria otherwise provided by law.
    ``(b) Subject to subsection (c), no final rule subject to this 
subchapter shall be promulgated unless the agency finds that--
            ``(1) the potential benefits from the rule justify the 
        potential costs of the rule; and
            ``(2) the rule will produce the most cost-effective result 
        of any of the reasonable alternatives that the agency has 
        discretion to adopt under the
         decisional criteria of the statute granting the rulemaking 
authority.
    ``(c) If a statute requires or permits that a rule be promulgated 
and that rule cannot, applying the express decisional criteria in the 
statute, satisfy the criteria provided in subsection (b), the agency 
shall not promulgate the rule unless the rule imposes--
            ``(1) lower costs than any of the reasonable alternatives; 
        or
            ``(2) the least costs taking into account benefits that the 
        agency has discretion to adopt under the decisional criteria of 
        the statute granting the rulemaking authority.
    ``(d) If an agency promulgates a rule that is subject to subsection 
(c), the agency shall prepare a written explanation of why the agency 
was required to promulgate a rule with potential costs that were not 
justified by the potential benefits and shall transmit that explanation 
along with the final cost-benefit analysis to Congress when the final 
rule is promulgated.
``Sec. 625. Judicial review
    ``(a) Each court with jurisdiction to review final agency action 
under the statute granting the agency authority to conduct the 
rulemaking shall have jurisdiction to review final agency action under 
this subchapter.
    ``(b)(1) Any cost-benefit analysis of, or risk assessment 
concerning, a rule shall constitute part of the whole rulemaking record 
of agency action for the purpose of judicial review and shall be 
considered by a court in determining the legality of the agency action, 
but only to the extent that it relates to the agency's decisional 
responsibilities under section 624 or the statute granting the agency 
authority to take the agency action.
    ``(2) No analysis required by this subchapter shall be subject to 
judicial review separate or apart from judicial review of the agency 
action to which it relates.
    ``(3) The court shall apply the same standards of judicial review 
that govern the review of agency findings under the statute granting 
the agency authority to take the action.
    ``(4) The court shall set aside agency action that fails to satisfy 
the decisional criteria of section 624, applying the applicable 
judicial review standards.
``Sec. 626. Deadlines for rulemaking
    ``(a) Beginning on the date of enactment of this section, all 
deadlines in statutes that require agencies to propose or promulgate 
any rule subject to this subchapter shall be suspended until such time 
as the requirements of this subchapter are satisfied.
    ``(b) Beginning on the date of enactment of this section, the 
jurisdiction of any court of the United States to enforce any deadline 
that would require an agency to propose or promulgate a rule subject to 
this chapter shall be suspended until such time as the requirements of 
this subchapter are satisfied.
    ``(c) In any case in which the failure to promulgate a rule by a 
deadline would create an obligation to regulate through individual 
adjudications by another deadline, the deadline for such regulation 
shall be suspended to allow the requirements of this subchapter to be 
satisfied.
``Sec. 627. Agency review of rules
    ``(a)(1)(A) Not later than 9 months after the date of enactment of 
this section, each agency shall prepare and publish in the Federal 
Register a proposed schedule for the review, in accordance with this 
section, of--
            ``(i) each rule of the agency that is in effect on such 
        effective date and which, considering its future impact, would 
        be a major rule under this subchapter;
            ``(ii) each rule of the agency that is inconsistent or 
        incompatible with, or duplicative of, any other obligation or 
        requirement established by any Federal statute, rule, or other 
        agency statement, interpretation, or action that has the force 
        of law; and
            ``(iii) each rule of the agency in effect on the date of 
        enactment of this section (in addition to the rules described 
        in clauses (i) and (ii)) that the agency has selected for 
        review.
    ``(B) Each proposed schedule required by subparagraph (A) shall 
include--
            ``(i) a brief explanation of the reasons the agency 
        considers each rule on the schedule to be a major rule under 
        section 621(4)(A), or the reasons why the agency selected the 
        rule for review;
            ``(ii) a date set by the agency, in accordance with 
        subsection (b)(1), for the completion of the review of each 
        such rule; and
            ``(iii) a statement that the agency requests comments from 
        the public on the proposed schedule.
    ``(C) The agency shall set a date to initiate review of each rule 
on the schedule in a manner that will ensure the simultaneous review of 
related items and that will achieve a reasonable distribution of 
reviews over the period of time covered by the schedule.
    ``(2) Not later than 90 days before publishing in the Federal 
Register the proposed schedule required under paragraph (1), each 
agency shall make the proposed schedule available to the Director or a 
designee of the President, or to the Vice President or other officer to 
whom oversight authority has been delegated under section 643. The 
President or that officer may select for review in accordance with this 
section any additional rule.
    ``(3) Not later than 1 year after the date of enactment of this 
section, each agency shall publish in the Federal Register a final 
schedule for the review of the rules referred to in paragraphs (1) and 
(2). Each agency shall publish with the final schedule the response of 
the agency to comments received concerning the proposed schedule.
    ``(b)(1) Except as explicitly provided otherwise by statute, the 
agency shall, pursuant to subsections (c) through (e), review--
            ``(A) each rule on the schedule promulgated pursuant to 
        subsection (a);
            ``(B) each major rule under section 621(4) promulgated, 
        amended, or otherwise renewed by an agency after the date of 
        the enactment of this section; and
            ``(C) each rule promulgated after the date of enactment of 
        this section that the President or the officer designated by 
        the President selects for review pursuant to subsection (a)(2).
    ``(2) Except as provided in subsection (f)--
            ``(A) in the case of a regulation that takes effect after 
        the date of enactment of this section, the regulation shall 
        terminate on the date that is 5 years after the date on which 
        the regulation takes effect, unless the review required by this 
        section has been completed by the date that is 5 years after 
        the date on which the regulation takes effect; and
            ``(B) in the case of a regulation in effect on the date of 
        enactment of this section, the regulation shall terminate on 
        the date that is 7 years after the date of enactment of the 
        Regulatory Reform Act of 1995, unless the review required by 
        this section has been completed by the date that is 7 years 
        after the date of enactment of the Regulatory Reform Act of 
        1995.
    ``(c) An agency shall publish in the Federal Register a notice of 
its proposed action under this section with respect to a rule being 
reviewed. The notice shall include--
            ``(1) an identification of the specific statutory authority 
        under which the rule was promulgated and an explanation of 
        whether the agency's interpretation of the statute is expressly 
        required by the current text of that statute or, if not, an 
        explanation that the interpretation is within the range of 
        permissible interpretations of the statute as identified by the 
        agency, and an explanation why the interpretation selected by 
        the agency is the agency's preferred interpretation;
            ``(2) an analysis of the benefits and costs of the rule 
        during the period in which it has been in effect;
            ``(3) an explanation of the proposed agency action with 
        respect to the rule, including action to repeal or amend the 
        rule to resolve inconsistencies or conflicts with any other 
        obligation or requirement established by any Federal statute, 
        rule, or other agency statement, interpretation, or action that 
        has the force of law; and
            ``(4) a statement that the agency seeks proposals from the 
        public for modifications or alternatives to the rule which may 
        accomplish the objectives of the rule in a more effective or 
        less burdensome manner.
    ``(d) If an agency proposes to repeal or amend a rule under review 
pursuant to this section, the agency shall, after issuing the notice 
required by subsection (c), comply with the provisions of this chapter, 
chapter 5, and any other applicable law. The requirements of such 
provisions and related requirements shall apply to the same extent and 
in the same manner as in the case of a proposed agency action to repeal 
or amend a rule that is not taken pursuant to the review required by 
this section.
    ``(e) If an agency proposes to renew without amendment a rule under 
review pursuant to this section, the agency shall--
            ``(1) give interested persons not less than 60 days after 
        the publication of the notice required by subsection (c) to 
        comment on the proposed renewal; and
            ``(2) publish in the Federal Register notice of the renewal 
        of such rule, an explanation of the continued need for the 
        rule, and, if the renewed rule is a major rule under section 
        621(4), an explanation of how the rule complies with section 
        624.
    ``(f) Any agency, which for good cause finds that compliance with 
this section with respect to a particular rule during the period 
provided in subsection (b) is contrary to an important public interest, 
may request the President, or an officer designated by the President, 
to establish a period longer than 5 years, in the case of a regulation 
that takes effect after the date of enactment of this section, or 7 
years, in the case of a regulation in effect on the date of enactment 
of this section, for the completion of the review of such rule. The 
President or that officer may extend the period for review of a rule to 
a total period of not more than 10 years. Such extension shall be 
published in the Federal Register with an explanation of the reasons 
therefor.
    ``(g) In any case in which an agency has not completed the review 
of a rule within the period prescribed by subsection (b) or (f) of this 
section, the agency shall immediately publish in the Federal Register a 
notice proposing to issue the rule under subsection (c), and shall 
complete proceedings pursuant to subsection (d) or (e) not later than 
180 days after the date on which the review was required to be 
completed under subsection (b) or (f).
    ``(h) Nothing in this section shall relieve any agency from its 
obligation to respond to a petition to issue, amend, or repeal a rule, 
for an interpretation regarding the meaning of a rule, or for a 
variance or exemption from the terms of a rule, submitted pursuant to 
any other provision of law.
``Sec. 628. Special rule
    ``Notwithstanding any other provision of the Comprehensive 
Regulatory Reform Act of 1995, or the amendments made by such Act, for 
purposes of this subchapter and subchapter IV, the head of each 
appropriate Federal banking agency (as defined in section 3(q) of the 
Federal Deposit Insurance Act), the National Credit Union 
Administration, the Federal Housing Finance Board, the Office of 
Federal Housing Enterprise Oversight, and the Farm Credit 
Administration, shall have authority with respect to such agency that 
otherwise would be provided under such subchapters to the Director, a 
designee of the President, Vice President, or any officer designated or 
delegated with authority under such subchapters.
                   ``SUBCHAPTER III--RISK ASSESSMENTS

``Sec. 631. Definitions
    ``For purposes of this subchapter--
            ``(1) the term `benefit' has the meaning given such term in 
        section 621(1);
            ``(2) the term `best estimate' means an estimate that, to 
        the extent feasible and scientifically appropriate, is based 
        on--
                    ``(A) central estimates of risk using the most 
                plausible and realistic assumptions;
                    ``(B) an approach that combines multiple estimates 
                based on different scenarios and weighs the probability 
                of each scenario; and
                    ``(C) any other methodology designed to provide the 
                most plausible and realistic level of risk, given the 
                current scientific information available to the agency 
                concerned;
            ``(3) the term `cost' has the meaning given such term in 
        section 621(2);
            ``(4) the term `cost-benefit analysis' has the meaning 
        given such term in section 621(3);
            ``(5) the term `emergency' means an actual, immediate, and 
        substantial endangerment to health, safety, or the human 
        environment;
            ``(6) the term `hazard identification' means identification 
        of a substance, activity, or condition that may cause to 
        health, safety, or the environment based on empirical data, 
        measurements, or testing showing that it has caused significant 
        adverse effects at some levels of dose or exposure combined 
        degree of toxicity and actual exposure, or other risk the 
        hazards pose for individuals, populations, or natural 
        resources; and
            ``(7) the term `major cleanup plan' means any proposed or 
        final environmental cleanup plan for a facility, or Federal 
        guidelines for the issuance of any such plan, the expected 
        costs, expenses, and damages of which are likely to exceed, in 
        the aggregate, $10,000,000, including a corrective action 
        requirement under the Solid Waste Disposal Act (notwithstanding 
        section 4(b)(1)(C) of such Act, but only to the extent of such 
        requirement), a removal or remedial action under the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980, and any other environmental restoration 
        or damage assessment carried out by, on behalf of, or as 
        required or ordered by, an agency or Federal court, or pursuant 
        to the authority of a Federal statute with respect to any 
        substance;
            ``(8) the term `major rule' has the meaning given such term 
        in section 621(4);
            ``(9) the term `negative data' means data that fail to show 
        that a given substance or activity induces an adverse effect 
        under certain conditions;
            ``(10) the term `risk assessment' means--
                    ``(A) the process of identifying hazards, and of 
                quantifying (to the maximum extent practicable) or 
                describing the combined degree of toxicity and actual 
                exposure, or other risk the hazards pose for 
                individuals, populations, or natural resources; and
                    ``(B) the document containing the explanation of 
                how the assessment process has been applied to an 
                individual substance, activity, or condition;
            ``(11) the term `risk characterization'--
                    ``(A) means the element of a risk assessment that 
                involves presentation of the degree of risk to 
                individuals and populations expected to be protected, 
                as presented in any regulatory proposal or decision, 
                report to Congress, or other document that is made 
                available to the public; and
                    ``(B) may include discussions of uncertainties, 
                conflicting data, estimates, extrapolations, 
                inferences, and opinions, as appropriate;
            ``(12) the term `rule' has the meaning given such term in 
        section 621(7); and
            ``(13) the term `substitution risk' means a potential 
        increased risk to health, safety, or the environment resulting 
        from market substitutions, a reduced standard of living, or a 
        regulatory alternative designed to decrease other risks.
``Sec. 632. Applicability
    ``(a) Except as provided in subsection (b), this subchapter shall 
apply to all risk assessments and risk characterizations prepared by, 
or on behalf of, or prepared by others and adopted by, any agency in 
connection with health, safety, and environmental risks.
    ``(b)(1) This subchapter shall not apply to risk assessments or 
risk characterizations performed with respect to--
            ``(A) a situation that the head of the agency finds to be 
        an emergency;
            ``(B) a rule or agency action that authorizes the 
        introduction into or removal from commerce, or initiation of 
        manufacture, of a substance, mixture, or product, or recognizes 
        the marketable status of a product;
            ``(C) a health, safety, or environmental inspection, 
        compliance or enforcement action, or individual facility 
        permitting action; or
            ``(D) a screening analysis clearly identified as such.
    ``(2)(A) An analysis shall not be treated as a screening analysis 
for the purposes of paragraph (1)(D) if the result of the analysis is 
used--
            ``(i) as the basis for imposing a restriction on a 
        previously authorized substance, product, or activity after its 
        initial introduction into manufacture or commerce; or
            ``(ii) to characterize a finding of risk from a substance 
        or activity in any agency document or other communication made 
        available to the public, the media, or Congress.
    ``(B) Among the analyses that may be treated as a screening 
analyses for the purposes of paragraph (1)(D) are product 
registrations, reregistrations, tolerance settings, and reviews of 
premanufacture notices under the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136 et seq.) and the Toxic Substances Control 
Act (15 U.S.C. 2601 et seq.).
    ``(3) This subchapter shall not apply to any food, drug, or other 
product label or to any risk characterization appearing on any such 
label.
``Sec. 633. Principles for risk assessment
    ``(a)(1) The head of each agency shall apply the principles set 
forth in subsection (b) when preparing any risk assessment for a major 
rule to ensure that the risk assessment and all of its components--
            ``(A) distinguish scientific findings and best estimates of 
        risk from other considerations;
            ``(B) are, to the maximum extent practicable, 
        scientifically objective, plausible, and realistic, and 
        inclusive of all relevant data;
            ``(C) rely, to the extent available and practicable, on 
        scientific findings; and
            ``(D) use situation- or decision-specific information to 
        the maximum extent practicable.
    ``(2) An agency shall not be required to repeat discussions or 
explanations required under this section in each risk assessment 
document if there is an unambiguous reference to the relevant 
discussion or explanation in another reasonably available agency 
document that was prepared in accordance with this subchapter.
    ``(b) The principles to be applied when preparing risk assessments 
are as follows:
            ``(1)(A) When assessing human health risks, a risk 
        assessment shall consider and discuss both the most important 
        laboratory and epidemiological data, including negative data, 
        and summarize the remaining data that finds, or fails to find, 
        a correlation between a health risk and a substance or 
        activity.
            ``(B) When conflicts among such data appear to exist, or 
        when animal data are used as a basis to assess human health, 
        the assessment shall include a discussion of possible 
        reconciliation of conflicting information. Greatest emphasis 
        shall be placed on data that indicates the biological basis of 
        the resulting harm in humans. Animal data shall be reviewed 
        with regard to relevancy to humans.
            ``(2) When a risk assessment involves a choice of any 
        significant assumption (including the use of safety factors and 
        default assumptions), inference, or model, the agencies or 
        instrumentality preparing the assessment shall--
                    ``(A) present a representative description and 
                explicit explanation of plausible and alternative 
                similar assumptions, inferences, or models (including 
                the assumptions incorporated into the model) and the 
                sensitivity of the conclusions to them;
                    ``(B) give preference to the model, assumption, 
                input parameter that represents the most plausible or 
                realistic inference from supporting scientific 
                information;
                    ``(C) identify any science policy or value 
                judgments and employ those judgments only where the 
                policy determination has been approved by the head of 
                the agency, after notice and opportunity for public 
                involvement, as appropriate for the circumstance under 
                consideration;
                    ``(D) describe any model used in the risk-
                assessment and make explicit the assumptions 
                incorporated into the model; and
                    ``(E) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data.
            ``(3) Risk assessments that provide a quantification or 
        numerical output shall be calculated using the best estimate 
        for each input parameter and shall use, as available, 
        probabilistic descriptions of the uncertainty and variability 
        associated with each input parameter.
            ``(4) A risk assessment shall clearly separate hazard 
        identification from risk characterization and make clear the 
        relationship between the level of risk and the level of 
        exposure to a potential hazard.
            ``(5) A risk assessment shall be prepared at the level of 
        detail appropriate and practicable for reasoned decisionmaking 
        on the matter involved, taking into consideration the 
        significance and complexity of the decision and any need for 
        expedition.
            ``(6) Where relevant, practicable, and appropriate, data 
        shall be developed consistent with standards for the 
        development of test data promulgated pursuant to section 4 of 
        the Toxic Substances Control Act, and standards for data 
        requirements promulgated pursuant to section 3 of the Federal 
        Insecticide, Fungicide, and Rodenticide Act.
    ``(c)(1) The head of each agency shall promote early involvement by 
all stakeholders in the development of risk assessments that may 
support or affect agency rules, guidance, and other significant 
actions, by publishing as part of its semiannual regulatory agenda, 
required under section 602--
            ``(A) a list of risk assessments and supporting 
        assessments, including hazard, dose or exposure assessments, 
        under preparation or planned by the agency;
            ``(B) a brief summary of relevant issues addressed or to be 
        addressed by each listed risk assessment or supporting 
        assessment;
            ``(C) an approximate schedule for completing each listed 
        risk assessment and supporting assessment;
            ``(D) an identification of potential rules, guidance, or 
        other agency actions supported or affected by each listed risk 
        assessment and supporting assessment; and
            ``(E) the name, address, and telephone number of an agency 
        official knowledgeable about each listed risk assessment and 
        supporting assessment.
    ``(2)(A) The head of each agency shall provide an opportunity for 
meaningful public participation and comment on any risk assessment 
throughout the regulatory process commensurate with the consequences of 
the decision to be made.
    ``(B) In cases where the risk assessment will support a major rule, 
the agency shall publish, at the earliest opportunity in the process, 
an advanced notice of relevant risk assessment related information that 
includes, at a minimum, an identification of--
            ``(i) all relevant hazard, dose, exposure, and other risk 
        related documents that the agency plans to consider;
            ``(ii) all risk related guidance that the agency considers 
        relevant;
            ``(iii) all hazard, dose, exposure, and other risk 
        assumptions on which the agency plans to relay and the bases 
        therefor; and
            ``(iv) all data and information deficiencies that could 
        affect agency decisionmaking.
    ``(d)(1) No agency shall automatically incorporate or adopt any 
recommendation or classification made by an entity described in 
paragraph (2) concerning the health effects or value of a substance 
without an opportunity for notice and comment. Any risk assessment or 
risk characterization document adopted by an agency on the basis of 
such a recommendation or classification shall comply with this title.
    ``(2) An entity referred to in paragraph (1) includes--
            ``(A) any foreign government and its agencies;
            ``(B) the United Nations or any of its subsidiary 
        organizations;
            ``(C) any international governmental body or standards-
        making organization; and
            ``(D) any other organization or private entity without that 
        does not have a place of business located in the United States 
        or its territories.
``Sec. 634. Principles for risk characterization and communication
    ``In characterizing risk in any risk assessment document, 
regulatory proposal or decision, report to Congress, or other document 
relating in each case to a major rule that is made available to the 
public, each agency characterizing the risk shall comply with each of 
the following:
            ``(1) The head of the agency shall describe the exposure 
        scenarios used in any risk assessment, and, to the extent 
        feasible, provide an estimate of the size of the corresponding 
        population or natural resource at risk and the likelihood of 
        such exposure scenarios.
            ``(2) If a numerical estimate of risk is provided, the head 
        of the agency, to the extent feasible and scientifically 
        appropriate, shall provide--
                    ``(A) the range and distribution of exposures 
                derived from exposure scenarios used in a risk 
                assessment, including, where appropriate, central and 
                high-end estimates, but always including a best 
                estimate of the risk to the general population;
                    ``(B) the range and distribution of risk estimates, 
                including best estimates and, where quantitative 
                estimates of the range of distribution of risk 
                estimates are not possible, a list of qualitative 
                factors influencing the range of possible risks; and
                    ``(C) a statement of the major sources of 
                uncertainties in the hazard identification, dose-
                response, and exposure assessment phases of risk 
                assessment and their influence on the results of the 
                assessment.
            ``(3) To the extent feasible, the head of the agency shall 
        provide a statement that places the nature and magnitude of 
        individual and population risks to human health in context.
            ``(4) When a Federal agency provides a risk assessment or 
        risk characterization for a proposed or final regulatory 
        action, such assessment or characterization shall include a 
        statement of any significant substitution risks to human health 
        identified by the agency or contained in information provided 
        to the agency by a commentator.
            ``(5) An agency shall present a summary in connection with 
        the presentation of the agency's risk assessment or the 
        regulation if--
                    ``(A) the agency provides a public comment period 
                with respect to a risk assessment or regulation;
                    ``(B) a commentator provides a risk assessment, and 
                a summary of results of such risk assessment; and
                    ``(C) such risk assessment is reasonably consistent 
                with the principles and the guidance provided under 
                this subtitle.
``Sec. 635. Requirement to prepare assessment
    ``(a) Except as provided in section 632 and in addition to any 
requirements applicable under subchapter II, the head of each agency 
shall prepare--
            ``(1) for each major rule relating to health, safety, or 
        the environment, and for each major cleanup plan, that is 
        proposed by the agency after the date of enactment of this 
        subchapter, is pending on the date of enactment of this 
        subchapter, or is subject to a granted petition for review 
        pursuant to section 553(e) or 623, a risk assessment in 
        accordance with this subchapter;
            ``(2) for each such proposed or final plan, and each 
        reasonable alternative within the statutory authority of the 
        agency taking action, a cost-benefit analysis equivalent to 
        that which would be required under subchapter II if subchapter 
        II were applicable; and
            ``(3) for each such proposed or final plan, quantified to 
        the extent feasible, a comparison of any health, safety, or 
        environmental risks addressed by the regulatory alternatives to 
        other relevant risks chosen by the head of the agency, 
        including at least 3 other risks regulated by the agency and to 
        at least 3 other risks with which the public is familiar.
    ``(b) A major cleanup plan is subject to this subchapter if--
            ``(1) construction has not commenced on a significant 
        portion of the work required by the plan; or
            ``(2) if construction has commenced on a significant 
        portion of the work required by the plan, unless--
                    ``(A) it is more cost-effective to complete 
                construction of the work than to apply the provisions 
                of this subchapter; or
                    ``(B) the application of the provisions of this 
                subchapter, including any delays caused thereby, will 
                result in an actual and immediate risk to human health 
                or welfare.
    ``(c) A risk assessment prepared pursuant to this subchapter shall 
be a component of and used to develop any cost-benefit analysis 
required by this subchapter or subchapter II, and shall, along with any 
cost-benefit analysis required by this subchapter, be made part of the 
administrative record for judicial review of any final agency action.
``Sec. 636. Requirements for assessments
    ``(a) The head of the agency, subject to review by the Director or 
a designee of the President, shall make a determination that, 
notwithstanding any other provision of law--
            ``(1) for each major rule and major cleanup plan subject to 
        this subchapter, the risk assessment required under section 635 
        is based on a scientific, plausible, and realistic evaluation, 
        reflecting reasonable exposure scenarios, of the risk addressed 
        by the major rule and is supported by the best available 
        scientific data, as determined by a peer review panel in 
        accordance with section 640; and
            ``(2) for each major cleanup plan subject to this 
        subchapter, the plan has benefits that justify its costs and 
        that there is no alternative that is allowed by the statute 
        under which the plan is promulgated that would provide greater 
        net benefits or that would achieve an equivalent reduction in 
        risk in a more cost-effective and flexible manner.
    ``(b) Notwithstanding any other provision of law, no agency shall 
prohibit or refuse to approve a substance or product on the basis of 
safety where the substance or product presents a negligible or 
insignificant human risk under the intended conditions of use.
    ``(c) Notwithstanding any other provision of law, issuance of a 
record of decision or a final permit condition or administrative order 
containing a major cleanup plan, or denial of, or completion of agency 
review pursuant to, a petition for review of a major cleanup plan under 
section 637(c), shall constitute final agency action subject to 
judicial review at the time this action is taken.
``Sec. 637. Regulations; plan for assessing new information
    ``(a)(1) Not later than 1 year after the date of enactment of this 
subchapter, the Director or a designee of the President shall--
            ``(A) issue a final regulation that has been subject to 
        notice and comment under section 553 that directs agencies to 
        implement the risk assessment and risk characterization 
        principles set forth in sections 633 and 634; and
            ``(B) provide a format for summarizing risk assessment 
        results.
    ``(2) The regulation under paragraph (1) shall be sufficiently 
specific to ensure that risk assessments are conducted consistently by 
the various agencies.
    ``(b) Review of a risk assessment or any entry (or the evaluation 
underlying the entry) on an agency-developed database (including, but 
not limited to, the Integrated Risk Information System), shall be 
conducted by the head of the agency on the written petition of a person 
showing a reasonable likelihood that--
            ``(1) the risk assessment or entry is inconsistent with the 
        principles set forth in sections 633 and 634;
            ``(2) the risk assessment or entry contains different 
        results than if it had been properly conducted under sections 
        633 and 634;
            ``(3) the risk assessment or entry is inconsistent with a 
        rule issued under subsection (a); or
            ``(4) the risk assessment or entry does not take into 
        account material significant new scientific data or scientific 
        understanding.
    ``(c) Review of a risk assessment, a cost-benefit analysis, or 
both, for a major cleanup plan shall be conducted by the head of the 
agency on the written petition of a person showing a reasonable 
likelihood that--
            ``(1) the risk assessment warrants revision under any of 
        the criteria set forth in subsection (b); or
            ``(2) the cost-benefit analysis warrants revision under any 
        of the criteria set forth in section 624.
    ``(d)(1) Not later than 90 days after receiving a petition under 
subsection (b), the head of the agency shall respond to the petition by 
agreeing or declining to review the risk entry, the cost-benefit 
analysis, or both, referred to in the petition, and shall state the 
basis for the decision.
    ``(2) If the head of the agency agrees to review the petition, the 
agency shall complete its review not later than 180 days after the 
decision made under paragraph (1), unless the Director agrees in 
writing with an agency determination that an extension is necessary in 
view of limitations on agency resources. Prior to completion of the 
agency review, the agency's written conclusions concerning the review 
shall be subjected to peer review pursuant to section 640.
    ``(3) A risk assessment review completed pursuant to a petition may 
be the basis for initiating a petition pursuant to any other provision 
of law.
    ``(4) Following a decision to grant or deny a petition under 
subsection (b) or (c), no further petition for such risk assessment, 
entry, or cost-benefit analysis, submitted by the same person, shall be 
considered by any agency unless such petition is based on a change in a 
fact, circumstance, or provision of law underlying or otherwise related 
to the matters covered by the initial petition, occurring since the 
initial petition was granted or denied, that warrants the granting of 
such further petition.
    ``(e) The regulations under this section shall be developed after 
notice and opportunity for public comment, and after consultation with 
representatives of appropriate State agencies and local governments, 
and such other departments, agencies, offices, organizations, or 
persons as may be advisable.
    ``(f) At least every 4 years, the Director or a designee of the 
President shall review, and when appropriate, revise, the regulations 
published under this section.
``Sec. 638. Rule of construction
    ``Nothing in this subchapter shall be construed to--
            ``(1) preclude the consideration of any data or the 
        calculation of any estimate to more fully describe risk or 
        provide examples of scientific uncertainty or variability; or
            ``(2) require the disclosure of any trade secret or other 
        confidential information.
``Sec. 639. Regulatory priorities
    ``(a)(1) Not later than 180 days after the date of enactment of 
this section, the Director of the Office of Management and Budget, in 
consultation with the Office of Science and Technology Policy, shall 
enter into appropriate arrangements with an accredited scientific body 
to--
            ``(A) conduct a study of the methodologies for using 
        comparative risk to rank dissimilar health, safety, and 
        environmental risks; and
            ``(B) to conduct a comparative risk analysis in accordance 
        with paragraph (2).
    ``(2) The study of the methodologies under paragraph (1)(A) shall 
be conducted as part of the first comparative risk analysis under 
paragraph (1)(B). The study shall--
            ``(A) seek to develop and rigorously test methods of 
        comparative risk analysis;
            ``(B) have sufficient scope and breadth to test approaches 
        for improving comparative risk analysis and its use in setting 
        priorities for health, safety, and environmental risk 
        prevention and reduction; and
            ``(C) review and evaluate the experience of States that 
        have conducted comparative risk analyses.
    ``(3)(A) The comparative risk analysis under paragraph (1)(B) shall 
compare and rank, to the extent feasible, health, safety, and 
environmental risks potentially regulated across the spectrum of 
programs relating to health, safety, and the environment administered 
by the departments, agencies, and instrumentalities of the Federal 
Government.
    ``(B) In carrying out the comparative risk analysis under this 
paragraph, the Director shall ensure that--
            ``(i) the scope and specificity of the analysis are 
        sufficient to provide the President and the heads of agencies 
        guidance in allocating resources across agencies and among 
        programs in agencies to achieve the greatest degree of risk 
        prevention and reduction for the public and private resources 
        expended;
            ``(ii) the analysis is conducted through an open process, 
        by individuals with relevant expertise, including, as 
        appropriate--
                    ``(I) toxicologists;
                    ``(II) biologists;
                    ``(III) engineers; and
                    ``(IV) experts in the fields of medicine, 
                industrial hygiene, and environmental effects;
            ``(iii) the analysis is conducted, to the extent feasible, 
        consistent with the risk assessment and risk characterization 
        principles described in sections 633 and 634;
            ``(iv) the methodologies and principal scientific 
        determinations made in the analysis are subjected to peer 
        review under section 640 and the conclusions of the peer review 
        are made publicly available as part of the final report;
            ``(v) there is an opportunity for public comments on the 
        results of the analysis prior to making them final; and
            ``(vi) the results of the analysis are presented in a 
        manner that distinguishes between the scientific conclusions 
        and any policy or value judgments embodied in the comparisons.
    ``(4) The comparative risk analysis shall be completed, and a 
report submitted to Congress not later than 3 years after the date of 
enactment of this section. The analysis shall be reviewed and revised 
not less often than every 5 years thereafter for a minimum of 15 years 
following the release of the initial analysis.
    ``(b) Not later than 180 days after the date of enactment of this 
section, the Director of the Office of Management and Budget, in 
collaboration with the head of each Federal agency, shall enter into a 
contract with the National Research Council to provide technical 
guidance to the agencies on approaches to using comparative risk 
analysis in setting health, safety, and environmental priorities to 
assist the agencies in complying with subsection (c).
    ``(c)(1) In exercising authority under any laws protecting health, 
safety, or the environment, the head of an agency shall prioritize the 
use of the resources available under such laws to address the risks to 
health, safety, and the environment that--
            ``(A) the agency determines are the most serious; and
            ``(B) can be addressed in a cost-effective manner, with the 
        goal of achieving the greatest overall net reduction in risks 
        with the public and private sector resources to be expended.
    ``(2) In identifying the sources of the most serious risks under 
paragraph (1), the head of the agency shall consider, at a minimum--
            ``(A) the plausible likelihood and severity of the effect; 
        and
            ``(B) the plausible number and groups of individuals 
        potentially affected.
    ``(3) The head of the agency shall incorporate the priorities 
identified in paragraph (1) into the budget, strategic planning, and 
research activities of the agency by, in the agency's annual budget 
request to Congress--
            ``(A) identifying which risks the agency has determined are 
        the most serious and can be addressed in a cost-effective 
        manner under paragraph (1), and the basis for that 
        determination;
            ``(B) explicitly identifying how the agency's requested 
        funds will be used to address those risks;
            ``(C) identifying any statutory, regulatory, or 
        administrative obstacles to allocating agency resources in 
        accordance with the priorities established under paragraph (1); 
        and
            ``(D) explicitly considering the requirements of paragraph 
        (1) when preparing the agency's regulatory agenda or other 
        strategic plan, and providing an explanation of how the agenda 
        or plan reflects those requirements and the comparative risk 
        analysis when publishing any such agenda or strategic plan.
    ``(4) In March of each year, the head of each agency shall submit 
to Congress specific recommendations for repealing or modifying laws 
that would better enable the agency to prioritize its activities to 
address the risks to health, safety, and the environment that are the 
most serious and can be addressed in a cost-effective manner consistent 
with the requirements of paragraph (1).
``Sec. 640. Establishment of program
    ``(a) The Director of the Office of Science and Technology or the 
Director, as appropriate, shall develop a systematic program for the 
peer review of work products covered by subsection (c), which program 
shall be used, in as uniform a manner as is practicable, across the 
agencies.
    ``(b) The program under subsection (a)--
            ``(1) shall provide for the creation of peer review panels 
        consisting of independent and external experts who are broadly 
        representative and balanced to the extent feasible;
            ``(2) shall not exclude peer reviewers merely because they 
        represent entities that may have a potential interest in the 
        outcome, if that interest is fully disclosed;
            ``(3) shall exclude experts who were associated with the 
        generation of the specific work product either directly by 
        substantial contribution to its development, or indirectly by 
        consultation and development of the specific product;
            ``(4) shall provide for differing levels of peer review 
        depending on the significance or complexity of the issue or the 
        need for expedition;
            ``(5) shall contain balanced presentations of all 
        considerations, including minority reports and an agency 
        response to all significant peer review comments; and
            ``(6) shall provide an opportunity for interested parties 
        to submit issues for consideration by peer review panels.
    ``(c) Matters requiring peer review shall include--
            ``(1) risk assessments and cost-benefit analyses for major 
        rules;
            ``(2) quantitative estimates of risk or hazard that are 
        used in making regulatory determinations, including all entries 
        into the Integrated Risk Information System;
            ``(3) risk assessment and risk characterization regulations 
        and cost-benefit guidelines; and
            ``(4) any other significant or technical work product, as 
        designated by the head of each agency, the Director of the 
        Office of Science and Technology, or the Director.
    ``(d) All underlying data shall be submitted to peer reviewers, 
except to the extent necessary to protect confidential business 
information and trade secrets. To ensure such protections, the head of 
the agency may require that peer reviewers enter into confidentiality 
agreements.
    ``(e) The peer review and the agency's responses shall be made 
available to the public for comment and the final peer review and the 
agency's responses shall be made part of the administrative record for 
purposes of judicial review.
    ``(f) The proceedings of peer review panels under this section 
shall be subject to the applicable provisions of the Federal Advisory 
Committee Act.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``Sec. 641. Procedures
    ``(a) The Director or a designee of the President shall--
            ``(1) establish procedures for agency compliance with this 
        chapter; and
            ``(2) monitor, review, and ensure agency implementation of 
        such procedures.
    ``(b) Not later than 12 months after the date of enactment of this 
subchapter the Office of Management and Budget shall issue regulations 
to assist agencies in preparing the cost-benefit analyses required by 
this subchapter. The regulations shall--
            ``(1) ensure that cost and benefit evaluations are 
        consistent with this subchapter and, to the extent feasible, 
        represent realistic and plausible estimates;
            ``(2) be adopted following public notice and adequate 
        opportunity for comment; and
            ``(3) be used consistently by all agencies covered by this 
        subchapter.
``Sec. 642. Promulgation and adoption
    ``(a) Procedures established pursuant to section 641 shall only be 
implemented after opportunity for public comment. Any such procedures 
shall be consistent with the prompt completion of rulemaking 
proceedings.
    ``(b)(1) If procedures established pursuant to section 641 include 
review of any initial or final analyses of a rule required under 
chapter 6, the time for any such review of any initial analysis shall 
not exceed 30 days following the receipt of the analysis by the 
Director, a designee of the President, or by an officer to whom the 
authority granted under section 641 has been delegated pursuant to 
section 643.
    ``(2) The time for review of any final analysis required under 
chapter 6 shall not exceed 30 days following the receipt of the 
analysis by the Director, a designee of the President, or such officer.
    ``(3)(A) The times for each such review may be extended for good 
cause by the President or such officer for an additional 30 days.
    ``(B) Notice of any such extension, together with a succinct 
statement of the reasons therefor, shall be inserted in the rulemaking 
file.
``Sec. 643. Delegation of authority
    ``(a) The President may delegate the authority granted by this 
subchapter to the Vice President or to an officer within the Executive 
Office of the President whose appointment has been subject to the 
advice and consent of the Senate.
    ``(b)(1) Notice of any delegation, or any revocation or 
modification thereof shall be published in the Federal Register.
    ``(2) Any notice with respect to a delegation to the Vice President 
shall contain a statement by the Vice President that the Vice President 
will make every reasonable effort to respond to congressional inquiries 
concerning the exercise of the authority delegated under this section.
``Sec. 644. Judicial review
    ``The exercise of the authority granted under this subchapter by 
the Director, the President, or by an officer to whom such authority 
has been delegated under section 643 shall not be subject to judicial 
review in any manner under this chapter.''.
    (b) Regulatory Flexibility Analysis.--
            (1) Judicial review.--Section 611 of title 5, United States 
        Code, is amended to read as follows:
``Sec. 611. Judicial review
    ``(a)(1) Except as provided in paragraph (2), not later than 2 
years after the effective date of a final rule with respect to which an 
agency--
            ``(A) certified, pursuant to section 605(b), that such rule 
        would not have a significant economic impact on a substantial 
        number of small entities;
            ``(B) prepared a final regulatory flexibility analysis 
        pursuant to section 604; or
            ``(C) did not prepare an initial regulatory flexibility 
        analysis pursuant to section 603 or a final regulatory 
        flexibility analysis pursuant to section 604 except as 
        permitted by sections 605 and 608,
an affected small entity may petition for the judicial review of such 
certification, analysis, or lack of analysis, in accordance with this 
subsection. A court having jurisdiction to review such rule for 
compliance with section 553 or under any other provision of law shall 
have jurisdiction to review such certification or analysis.
    ``(2)(A) Notwithstanding any other provision of law, an affected 
small entity shall have 2 years to challenge such certification, 
analysis or lack of analysis.
    ``(B) If an agency delays the issuance of a final regulatory 
flexibility analysis pursuant to section 608(b), a petition for 
judicial review under this subsection shall be filed not later than 2 
years after the date the analysis is made available to the public.
    ``(3) For purposes of this subsection, the term `affected small 
entity' means a small entity that is or will be adversely affected by 
the final rule.
    ``(4) Nothing in this subsection shall be construed to affect the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law.
    ``(5)(A) Notwithstanding section 605, if the court determines, on 
the basis of the rulemaking record, that there is substantial evidence 
to conclude that the rule would have a significant economic impact on a 
substantial number of small entities, the court shall order the agency 
to prepare a final regulatory flexibility analysis pursuant to section 
604.
    ``(B) If the agency prepared a final regulatory flexibility 
analysis, the court may order the agency to take corrective action 
consistent with section 604 if the court determines, on the basis of 
the rulemaking record, that the final regulatory flexibility analysis 
was prepared by the agency without complying with section 604.
    ``(6) The court may stay the rule or grant such other relief as it 
deems appropriate if, by the end of the 90-day period beginning on the 
date of the order of the court pursuant to paragraph (5) (or such 
longer period as the court may provide), the agency fails, as 
appropriate--
            ``(A) to prepare the analysis required by section 604; or
            ``(B) to take corrective action consistent with section 
        604.
    ``(7) In making any determination or granting any relief authorized 
by this subsection, the court shall take due account of the rule of 
prejudicial error.
    ``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(5)) shall constitute 
part of the whole record of agency action in connection with such 
review.
    ``(c) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act, except 
        that the judicial review authorized by section 611(a) of title 
        5, United States Code (as added by subsection (a)), shall apply 
        only to final agency rules issued after the date of enactment 
        of this Act.
    (c) Presidential Authority.--Nothing in this Act shall limit the 
exercise by the President of the authority and responsibility that the 
President otherwise possesses under the Constitution and other laws of 
the United States with respect to regulatory policies, procedures, and 
programs of departments, agencies, and offices.
    (d) Technical and Conforming Amendments.--
            (1) Chapter analysis.--Part I of title 5, United States 
        Code, is amended by striking out the chapter heading and table 
        of sections for chapter 6 and inserting in lieu thereof the 
        following:

           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS
                  ``SUBCHAPTER I--REGULATORY ANALYSIS

``Sec.
``601. Definitions.
``602. Regulatory agenda.
``603. Initial regulatory flexibility analysis.
``604. Final regulatory flexibility analysis.
``605. Avoidance of duplicative or unnecessary analyses.
``606. Effect on other law.
``607. Preparation of analysis.
``608. Procedure for waiver or delay of completion.
``609. Procedures for gathering comments.
``610. Periodic review of rules.
``611. Judicial review.
``612. Reports and intervention rights.
               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

``621. Definitions.
``622. Rulemaking cost-benefit analysis.
``623. Petition for cost-benefit analysis.
``624. Decisional criteria.
``625. Judicial review.
``626. Deadlines for rulemaking.
``627. Agency review of rules.
``628. Special rule.
                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Definitions.
``632. Applicability.
``633. Principles for risk assessment.
``634. Principles for risk characterization and communication.
``635. Requirement to prepare risk assessment.
``636. Requirements for assessments.
``637. Regulations; plan for assessing new information.
``638. Rule of construction.
``639. Regulatory priorities.
``640. Establishment of program.
                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Procedures.
``642. Promulgation and adoption.
``643. Delegation of authority.
``644. Judicial review.''.
            (2) Subchapter heading.--Chapter 6 of title 5, United 
        States Code, is amended by inserting immediately before section 
        601, the following subchapter heading:

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

SEC. 5. JUDICIAL REVIEW.

    (a) Scope of Review.--Section 706 of title 5, United States Code, 
is amended to read as follows:
``Sec. 706. Scope of review
    ``(a) To the extent necessary to reach a decision and when 
presented, the reviewing court shall decide all relevant questions of 
law, interpret constitutional and statutory provisions, and determine 
the meaning or applicability of the terms of an agency action. The 
reviewing court shall--
            ``(1) compel agency action unlawfully withheld or 
        unreasonably delayed; and
            ``(2) hold unlawful and set aside agency action, findings 
        and conclusions found to be--
                    ``(A) arbitrary, capricious, an abuse of 
                discretion, or otherwise not in accordance with law;
                    ``(B) contrary to constitutional right, power, 
                privilege, or immunity;
                    ``(C) in excess of statutory jurisdiction, 
                authority, or limitations, or short of statutory right;
                    ``(D) without observance of procedure required by 
                law;
                    ``(E) unsupported by substantial evidence in a 
                proceeding subject to sections 556 and 557 or otherwise 
                reviewed on the record of an agency hearing provided by 
                statute;
                    ``(F) without substantial support in the rulemaking 
                file, viewed as a whole, for the asserted or necessary 
                factual basis, as distinguished from the policy or 
                legal basis, of a rule adopted in a proceeding subject 
                to section 553; or
                    ``(G) unwarranted by the facts to the extent that 
                the facts are subject to trial de novo by the reviewing 
                court.
    ``(b) In making the foregoing determinations, the court shall 
review the whole record or those parts of it cited by a party, and due 
account shall be taken of the rule of prejudicial error.
    ``(c) In reviewing an agency interpretation of a statute governing 
the authority for an agency action, including agency action taken 
pursuant to a statute that provides for review of final agency action, 
the reviewing court shall--
            ``(1) hold erroneous and unlawful--
                    ``(A) an agency interpretation that is other than 
                the interpretation of the statute clearly intended by 
                Congress; or
                    ``(B) an agency interpretation that is outside the 
                range of permissible interpretations of the statute; 
                and
            ``(2) hold arbitrary, capricious, or an abuse of 
        discretion--
                    ``(A) an agency action as to which the agency--
                            ``(i) has improperly classified an 
                        interpretation as being within or outside the 
                        range of permissible interpretations; or
                            ``(ii) has not explained in a reasoned 
                        analysis why it selected the interpretation and 
                        why it rejected other permissible 
                        interpretations of the statute; or
                    ``(B) in the case of agency action subject to 
                chapter 6, an interpretation that does not give the 
                agency the broadest discretion to develop rules that 
                will satisfy the decisional criteria of section 624.
    ``(d) Notwithstanding any other provision of law, the provisions of 
this subsection shall apply to, and supplement, the requirements 
contained in any statute for the review of final agency action which is 
not otherwise subject to this subsection.''.
    (b) Court of Federal Claims.--
            (1) In general.--Section 1491(a) of title 28, United States 
        Code, is amended--
                    (A) in paragraph (1), by amending the first 
                sentence to read as follows: ``The United States Court 
                of Federal Claims shall have jurisdiction to render 
                judgment upon any claim against the United States for 
                monetary relief founded either upon the Constitution or 
                any Act of Congress or any regulation or action of an 
                agency, or upon any expressed or implied contract with 
                the United States, in cases not sounding in tort, or 
                for invalidation of any Act of Congress or any 
                regulation of an executive department that adversely 
                affects private property rights in violation of the 
                fifth amendment of the United States Constitution.'';
                    (B) in paragraph (2), by inserting before the first 
                sentence the following: ``In any case within its 
                jurisdiction, the Court of Federal Claims shall have 
                the power to grant injunctive and declaratory relief 
                when appropriate.''; and
                    (C) by adding at the end the following new 
                paragraphs:
    ``(4) In cases otherwise within its jurisdiction, the Court of 
Federal Claims shall also have ancillary jurisdiction, concurrent with 
the courts designated in section 1346(b), to render judgment upon any 
related tort claim authorized under section 2674.
    ``(5) In proceedings within the jurisdiction of the Court of 
Federal Claims which constitute judicial review of agency action 
(rather than de novo proceedings), the provisions of section 706 of 
title 5 shall apply.''.
            (2) Pendency of claims in other courts.--Section 1500 of 
        title 28, United States Code, is repealed.
    (c) Judicial Proceedings.--
            (1) Consent decrees.--Chapter 7 of title 5, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 707. Consent decrees
    ``In interpreting any consent decree in effect on or after the date 
of enactment of this section that imposes on an agency an obligation to 
initiate, continue, or complete rulemaking proceedings, the court shall 
not enforce the decree in a way that divests the agency of discretion 
granted to it by the Congress or the Constitution to respond to 
changing circumstances, make policy or managerial choices, or protect 
the rights of third parties.''.
            (2) Affirmative defense.--Chapter 7 of title 5, United 
        States Code, is further amended by adding at the end the 
        following new section:
``Sec. 708. Affirmative defense
    ``Notwithstanding any other provision of law, it shall be an 
affirmative defense in any enforcement action brought by an agency that 
the regulated person or entity is complying with a rule, regulation, 
adjudication, directive, or order of such agency or any other agency 
that is inconsistent, incompatible, contradictory, or otherwise cannot 
be reconciled with the agency rule, regulation, adjudication, 
directive, or order being enforced.''.
            (3) Agency interpretations in civil and criminal actions.--
                    (A) In general.--Chapter 7 of title 5, United 
                States Code, is further amended by adding at the end 
                the following new section:
``Sec. 709. Agency interpretations in civil and criminal actions
    ``(a)(1) No civil or criminal penalty shall be imposed in any 
action brought in a Federal court, including an action pending on the 
date of enactment of this section, for the alleged violation of a rule, 
if the defendant, prior to the alleged violation--
            ``(A) reasonably determined, based upon a description, 
        explanation, or interpretation of the rule contained in the 
        rule's statement of basis and purpose, that the defendant was 
        in compliance with, exempt from, or otherwise not subject to, 
        the requirements of the rule; or
            ``(B) was informed by the agency that promulgated the rule, 
        or by a State authority to which had been delegated the 
        responsibility for ensuring compliance with the rule, that the 
        defendant was in compliance with, exempt from, or otherwise not 
        subject to, the requirements of the rule.
    ``(2) In determining, for purposes of paragraph (1)(A), whether a 
defendant reasonably relied upon a description, explanation, or 
interpretation of the rule contained in the rule's statement of basis 
and purpose, the court shall not give deference to any subsequent 
agency description, explanation, or interpretation of the rule relied 
on by the agency in the action that had not been published in the 
Federal Register or otherwise directly and specifically communicated to 
the defendant by the agency, or by a State authority to which had been 
delegated the responsibility for ensuring compliance with the rule, 
prior to the alleged violation.
    ``(b)(1) In a civil or criminal action in Federal court to redress 
an alleged violation of a rule, including an action pending on the date 
of enactment of this section, if the court determines that the rule in 
question is ambiguous, the court shall not give deference to an agency 
interpretation of the rule if the defendant relied upon an 
interpretation of the rule to the effect that the defendant was in 
compliance with or was exempt or otherwise not subject to the 
requirement of the rule, and the court determines that such 
determination is reasonable.
    ``(2) Without regard to whether the defendant relied upon an 
interpretation that the court determines is reasonable under paragraph 
(1), if the court determines that the rule failed to give the defendant 
fair warning of the conduct that the rule prohibits or requires, no 
civil or criminal penalty shall be imposed.
    ``(c)(1) No agency action shall be taken, or any action or other 
proceeding maintained, seeking the retroactive application of a 
requirement against any person that is based upon--
            ``(A) an interpretation of a statute, rule, guidance, 
        agency statement of policy, or license requirement or 
        condition; or
            ``(B) a determination of fact,
if such interpretation or determination is different from a prior 
interpretation or determination by the agency or by a State or local 
government exercising authority delegated or approved by the agency, 
and if such person relied upon the prior interpretation or 
determination.
    ``(2) This subsection shall take effect on the date of enactment of 
the Comprehensive Regulatory Reform Act of 1995 and shall apply to any 
matter for which a final unappealable judicial order has not been 
issued.
    ``(d) This section shall apply to the review by a Federal court of 
any order of an agency assessing civil administrative penalties.''.
                    (B) Unpublished agency guidance.--Section 552(a)(1) 
                of title 5, United States Code, is amended by inserting 
                at the end the following new sentence: ``In an action 
                brought in a Federal court seeking a civil or criminal 
                penalty for the alleged violation of a rule, including 
                actions pending on the date of enactment of this 
                sentence, no consideration shall be given to any 
                interpretive rule, general statement of policy, or 
                other agency guidance of general or specific 
                applicability, relied upon by the agency in the action, 
                that had not been published in the Federal Register or 
                otherwise directly and specifically communicated to the 
                defendant by the agency, or by a State authority to 
                which had been delegated the responsibility for 
                ensuring compliance with the rule, prior to the alleged 
                violation.''.
            (4) Technical amendment.--The analysis for chapter 7 of 
        title 5, United States Code, is amended by adding at the end 
        the following new items:

``707. Consent decrees.
``708. Affirmative defense.
``709. Agency interpretations in civil and criminal actions.''.
SEC. 6. CONGRESSIONAL REVIEW.

    (a) In General.--Title 5, United States Code, is amended by 
inserting immediately after chapter 7 the following new chapter:
         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

``Sec. 801. Congressional review of agency rulemaking
    ``(a)(1) Before a rule takes effect as a final rule, the agency 
promulgating such rule shall submit to the Congress a report containing 
a copy of the rule, the notice of proposed rulemaking, and the 
statement of basis and purpose for the rule, including a complete copy 
of any analysis required under chapter 6, and the proposed effective 
date of the rule. In the case of a rule that is not a major rule within 
the meaning of section 621(4), summary of the rulemaking proceedings 
shall be submitted.
    ``(2) A rule relating to a report submitted under paragraph (1) 
shall take effect as a final rule, the latest of the following:
            ``(A) The later of the date occurring 45 days after the 
        date on which--
                    ``(i) the Congress receives the report submitted 
                under paragraph (1); or
                    ``(ii) the rule is published in the Federal 
                Register.
            ``(B) If the Congress passes a joint resolution of 
        disapproval described under subsection (g) relating to the 
        rule, and the President signs a veto of such resolution, the 
        earlier date--
                    ``(i) on which either House of Congress votes and 
                fails to override the veto of the President; or
                    ``(ii) occurring 30 session days after the date on 
                which the Congress received the veto and objections of 
                the President.
            ``(C) The date the rule would have otherwise taken effect, 
        if not for this section (unless a joint resolution of 
        disapproval under subsection (g) is approved).
    ``(b) A rule shall not take effect as a final rule if the Congress 
passes a joint resolution of disapproval described under subsection 
(g), which is signed by the President or is vetoed and overridden by 
the Congress.
    ``(c)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a rule that would not take effect by 
reason of this section may take effect if the President makes a 
determination under paragraph (2) and submits written notice of such 
determination to the Congress.
    ``(2) Paragraph (1) applies to a determination made by the 
President by Executive order that the rule should take effect because 
such rule is--
            ``(A) necessary because of an imminent threat to health or 
        safety or other emergency;
            ``(B) necessary for the enforcement of criminal laws; or
            ``(C) necessary for national security.
    ``(3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under subsection (g) 
or the effect of a joint resolution of disapproval under this section.
    ``(4) This subsection and an Executive order issued by the 
President under paragraph (2) shall not be subject to judicial review 
by a court of the United States.
    ``(d)(1) Subsection (g) shall apply to any rule that is published 
in the Federal Register (as a rule that shall take effect as a final 
rule) during the period beginning on the date occurring 60 days before 
the date the Congress adjourns sine die through the date on which the 
succeeding Congress first convenes.
    ``(2) For purposes of subsection (g), a rule described under 
paragraph (1) shall be treated as though such rule were published in 
the Federal Register (as a rule that shall take effect as a final rule) 
on the date the succeeding Congress first convenes.
    ``(3) During the period between the date the Congress adjourns sine 
die through the date on which the succeeding Congress first convenes, a 
rule described under paragraph (1) shall take effect as a final rule as 
otherwise provided by law.
    ``(e) Any rule that takes effect and later is made of no force or 
effect by the enactment of a joint resolution under subsection (g) 
shall be treated as though such rule had never taken effect.
    ``(f) If the Congress does not enact a joint resolution of 
disapproval under subsection (g), no court or agency may infer any 
intent of the Congress from any action or inaction of the Congress with 
regard to such rule, related statute, or joint resolution of 
disapproval.
    ``(g)(1) For purposes of this subsection, the term `joint 
resolution' means only a joint resolution introduced after the date on 
which the report referred to in subsection (a) is received by Congress 
the matter after the resolving clause of which is as follows: `That 
Congress disapproves the rule submitted by the ____________ relating to 
______________, and such rule shall have no force or effect.' (The 
blank spaces being appropriately filled in.)
    ``(2)(A) A resolution described in paragraph (1) shall be referred 
to the committees in each House of Congress with jurisdiction. Such a 
resolution shall not be reported before the eighth day after its 
submission or publication date.
    ``(B) For purposes of this subsection the term `submission or 
publication date' means the later of the date on which--
            ``(i) the Congress receives the report submitted under 
        subsection (a)(1); or
            ``(ii) the rule is published in the Federal Register.
    ``(3) If the committee to which a resolution described in paragraph 
(1) is referred has not reported such resolution (or an identical 
resolution) at the end of 20 calendar days after its submission or 
publication date, such committee may be discharged by the Majority 
Leader of the Senate or the Majority Leader of the House of 
Representatives, as the case may be, from further consideration of such 
resolution and such resolution shall be placed on the appropriate 
calendar of the House involved.
    ``(4)(A) When the committee to which a resolution is referred has 
reported, or when a committee is discharged (under paragraph (3)) from 
further consideration of, a resolution described in paragraph (1), it 
shall at any time thereafter be in order (even though a previous motion 
to the same effect has been disagreed to) for any Member of the 
respective House to move to proceed to the consideration of the 
resolution, and all points of order against the resolution (and against 
consideration of the resolution) shall be waived. The motion shall be 
highly privileged in the House of Representatives and shall be 
privileged in the Senate and shall not be debatable. The motion shall 
not be subject to amendment, or to a motion to postpone, or to a motion 
to proceed to the consideration of other business. A motion to 
reconsider the vote by which the motion is agreed to or disagreed to 
shall not be in order. If a motion to proceed to the consideration of 
the resolution is agreed to, the resolution shall remain the unfinished 
business of the respective House until disposed of.
    ``(B) Debate on the resolution, and on all debatable motions and 
appeals in connection therewith, shall be limited to not more than 10 
hours, which shall be divided equally between those favoring and those 
opposing the resolution. A motion further to limit debate shall be in 
order and shall not be debatable. An amendment to, or a motion to 
postpone, or a motion to proceed to the consideration of other 
business, or a motion to recommit the resolution shall not be in order. 
A motion to reconsider the vote by which the resolution is agreed to or 
disagreed to shall not be in order.
    ``(C) Immediately following the conclusion of the debate on a 
resolution described in paragraph (1), and a single quorum call at the 
conclusion of the debate if requested in accordance with the rules of 
the appropriate House, the vote on final passage of the resolution 
shall occur.
    ``(D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of Representatives, 
as the case may be, to the procedure relating to a resolution described 
in paragraph (1) shall be decided without debate.
    ``(5) If, before the passage by one House of a resolution of that 
House described in paragraph (1), that House receives from the other 
House a resolution described in paragraph (1), then the following 
procedures shall apply:
            ``(A) The resolution of the other House shall not be 
        referred to a committee.
            ``(B) With respect to a resolution described in paragraph 
        (1) of the House receiving the resolution--
                    ``(i) the procedure in that House shall be the same 
                as if no resolution had been received from the other 
                House; but
                    ``(ii) the vote on final passage shall be on the 
                resolution of the other House.
    ``(6) This subsection is enacted by Congress--
            ``(A) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed to be a part of the rules of each House, respectively, 
        but applicable only with respect to the procedure to be 
        followed in that House in the case of a resolution described in 
        paragraph (1), and it supersedes other rules only to the extent 
        that it is inconsistent with such rules; and
            ``(B) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    ``(h) This section shall not apply to rules that concern monetary 
policy proposed or implemented by the Board of Governors of the Federal 
Reserve System or the Federal Open Market Committee.''.
    (b) Technical Amendment.--The table of chapters for part I of title 
5, United States Code, is amended by inserting immediately after the 
item relating to chapter 7 the following:

``8. Congressional Review of Agency Rulemaking..............     801''.
SEC. 7. ACCOUNTING.

    (a) Definitions.--For purposes of this section, the following 
definitions apply:
            (1) Regulation.--The term ``regulation'' means an agency 
        statement of general applicability and future effect designed 
        to implement, interpret, or prescribe law or policy or 
        describing the procedures or practice requirements of an 
        agency. The term shall not include--
                    (A) administrative actions governed by sections 556 
                and 557 of title 5, United States Code;
                    (B) regulations issued with respect to a military 
                or foreign affairs function of the United States; or
                    (C) regulations related to agency organization, 
                management, or personnel.
            (2) Agency.--The term ``agency'' means any executive 
        department, military department, Government corporation, 
        Government controlled corporation, or other establishment in 
        the executive branch of the Government (including the Executive 
        Office of the President), or any independent regulatory agency, 
        but shall not include--
                    (A) the General Accounting Office;
                    (B) the Federal Election Commission;
                    (C) the governments of the District of Columbia and 
                of the territories and possessions of the United 
                States, and their various subdivisions; or
                    (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities.
    (b) Accounting Statement.--
            (1) In general.--(A) The President shall be responsible for 
        implementing and administering the requirements of this 
        section.
            (B) Every 2 years, not later than June of the second year, 
        the President shall prepare and submit to Congress an 
        accounting statement that estimates the costs of Federal 
        regulatory programs and corresponding benefits in accordance 
        with this subsection.
            (2) Years covered by accounting statement.--Each accounting 
        statement shall cover, at a minimum, the 5 fiscal years 
        beginning on October 1 of the year in which the report is 
        submitted and may cover any fiscal year preceding such fiscal 
        years for purpose of revising previous estimates.
            (3) Timing and procedures.--(A) The President shall provide 
        notice and opportunity for comment for each accounting 
        statement. The President may delegate to an agency the 
        requirement to provide notice and opportunity to comment for 
        the portion of the accounting statement relating to that 
        agency.
            (B) The President shall propose the first accounting 
        statement under this subsection not later than 2 years after 
        the date of the enactment of this Act and shall issue the first 
        accounting statement in final form not later than 3 years after 
        the date of the enactment of this Act. Such statement shall 
        cover, at a minimum, each of the 8 fiscal years beginning after 
        the date of the enactment of this Act.
            (4) Content of accounting statement.--(A) Each accounting 
        statement shall contain estimates of costs and benefits with 
        respect to each fiscal year covered by the statement in 
        accordance with this paragraph. For each such fiscal year for 
        which estimates were made in a previous accounting statement, 
        the statement shall revise those estimates and state the 
        reasons for the revisions.
            (B)(i) An accounting statement shall estimate the costs of 
        Federal regulatory programs by setting forth, for each year 
        covered by the statement--
                    (I) the annual expenditure of national economic 
                resources for the regulatory program; and
                    (II) such other quantitative and qualitative 
                measures of costs as the President considers 
                appropriate.
            (ii) For purposes of the estimate of costs in the 
        accounting statement, national economic resources shall 
        include, and shall be listed under, at least the following 
        categories:
                    (I) Private sector costs.
                    (II) Federal sector administrative costs.
                    (III) Federal sector compliance costs.
                    (IV) State and local government administrative 
                costs.
                    (V) State and local government compliance costs.
                    (VI) Indirect costs, including opportunity costs.
            (C) An accounting statement shall estimate the benefits of 
        Federal regulatory programs by setting forth, for each year 
        covered by the statement, such quantitative and qualitative 
        measures of benefits as the President considers appropriate. 
        Any estimates of benefits concerning reduction in health, 
        safety, or environmental risks shall present the most plausible 
        level of risk practical, along with a statement of the 
        reasonable degree of scientific certainty.
    (c) Associated Report to Congress.--
            (1) In general.--At the same time as the President submits 
        an accounting statement under subsection (b), the President, 
        acting through the Director of the Office of Management and 
        Budget, shall submit to Congress a report associated with the 
        accounting statement (hereinafter referred to as an 
        ``associated report''). The associated report shall contain, in 
        accordance with this subsection--
                    (A) analyses of impacts; and
                    (B) recommendations for reform.
            (2) Analyses of impacts.--The President shall include in 
        the associated report the following:
                    (A) Analyses prepared by the President of the 
                cumulative impact of Federal regulatory programs 
                covered in the accounting statement on the following:
                            (i) The ability of State and local 
                        governments to provide essential services, 
                        including police, fire protection, and 
                        education.
                            (ii) Small business.
                            (iii) Productivity.
                            (iv) Wages.
                            (v) Economic growth.
                            (vi) Technological innovation.
                            (vii) Consumer prices for goods and 
                        services.
                            (viii) Such other factors considered 
                        appropriate by the President.
                    (B) A summary of any independent analyses of 
                impacts prepared by persons commenting during the 
                comment period on the accounting statement.
            (3) Recommendations for reform.--The President shall 
        include in the associated report the following:
                    (A) A summary of recommendations of the President 
                for reform or elimination of any Federal regulatory 
                program or program element that does not represent 
                sound use of national economic resources or otherwise 
                is inefficient.
                    (B) A summary of any recommendations for such 
                reform or elimination of Federal regulatory programs or 
                program elements prepared by persons commenting during 
                the comment period on the accounting statement.
    (d) Guidance From Office of Management and Budget.--The Director of 
the Office of Management and Budget shall, in consultation with the 
Council of Economic Advisers, provide guidance to agencies--
            (1) to standardize measures of costs and benefits in 
        accounting statements prepared pursuant to sections 3 and 7 of 
        this Act, including--
                    (A) detailed guidance on estimating the costs and 
                benefits of major rules; and
                    (B) general guidance on estimating the costs and 
                benefits of all other rules that do not meet the 
                thresholds for major rules; and
            (2) to standardize the format of the accounting statements.
    (e) Recommendations From Congressional Budget Office.--After each 
accounting statement and associated report submitted to Congress, the 
Director of the Congressional Budget Office shall make recommendations 
to the President--
            (1) for improving accounting statements prepared pursuant 
        to this section, including recommendations on level of detail 
        and accuracy; and
            (2) for improving associated reports prepared pursuant to 
        this section, including recommendations on the quality of 
        analysis.

SEC. 8. STUDIES AND REPORTS.

    (a) Risk Assessments.--The Administrative Conference of the United 
States shall--
            (1) develop and carry out an ongoing study of the operation 
        of the risk assessment requirements of subchapter III of 
        chapter 6 of title 5, United States Code (as added by section 4 
        of this Act); and
            (2) submit an annual report to the Congress on the findings 
        of the study.
    (b) Administrative Procedure Act.--Not later than December 31, 
1996, the Administrative Conference of the United States shall--
            (1) carry out a study of the operation of the 
        Administrative Procedure Act (as amended by section 3 of this 
        Act); and
            (2) submit a report to the Congress on the findings of the 
        study, including proposals for revision, if any.
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