II

104TH CONGRESS

1ST SESSION S. 343

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, and Mr. KYL) 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

A BILL

To reform the regulatory process, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Comprehensive Regu5 latory Reform Act of 1995’’.
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1 SEC. 2. ANALYSIS OF AGENCY PROPOSALS.

2 (a) IN GENERAL.—Chapter 6 of title 5, United

3 States Code, is amended by adding at the end the follow4 ing:

5 ‘‘SUBCHAPTER II—ANALYSIS OF AGENCY

6 PROPOSALS

7 ‘‘§ 621. Definitions

8 ‘‘For purposes of this subchapter and subchapter III

9 of this chapter—

10 ‘‘(1) the term ‘agency’ has the same meaning as

11 in section 551(1) of this title;

12 ‘‘(2) the term ‘person’ has the same meaning as

13 in section 551(2) of this title;

14 ‘‘(3) the term ‘rule’ has the same meaning as

15 in section 551(4) of this title;

16 ‘‘(4)(A) the term ‘major rule’ means—

17 ‘‘(i) a rule or a group of closely related

18 rules that the agency proposing the rule or the

19 President reasonably determines is likely to

20 have a gross annual effect on the economy of

21 $50,000,000 or more in reasonably quantifiable

22 increased direct and indirect costs, or has a sig23 nificant impact on a sector of the economy; or

24 ‘‘(ii) a rule or a group of closely related

25 rules that is otherwise designated a major rule

26 by the agency proposing the rule, or by the
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1 President on the ground that the rule is likely

2 to result in—

3 ‘‘(I) a substantial increase in costs or

4 prices for wage earners, consumers, indi5 vidual industries, nonprofit organizations,

6 Federal, State, or local government agen7 cies, or geographic regions; or

8 ‘‘(II) significant adverse effects on

9 competition, employment, investment, pro10 ductivity, innovation, the environment,

11 public health or safety, or the ability of en12 terprises whose principal places of business

13 are in the United States to compete in do14 mestic or export markets;

15 ‘‘(B) the term ‘major rule’ does not include—

16 ‘‘(i) a rule that involves the internal reve17 nue laws of the United States; or

18 ‘‘(ii) a rule that authorizes the introduction

19 into commerce, or recognizes the marketable

20 status, of a product;

21 ‘‘(5) the term ‘benefit’ means the reasonably

22 identifiable significant benefits, including social and

23 economic benefits, that are expected to result di24 rectly or indirectly from implementation of a rule or

25 an alternative to a rule;
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1 ‘‘(6) the term ‘cost’ means the reasonably iden2 tifiable significant costs and adverse effects, includ3 ing social and economic costs, reduced consumer

4 choice, substitution effects, and impeded techno5 logical advancement, that are expected to result di6 rectly or indirectly from implementation of, or com7 pliance with, a rule or an alternative to a rule; and

8 ‘‘(7) the term ‘market-based mechanism’ means

9 a regulatory program that—

10 ‘‘(A) imposes legal accountability for the

11 achievement of an explicit regulatory objective

12 on each regulated person;

13 ‘‘(B) affords maximum flexibility to each

14 regulated person in complying with mandatory

15 regulatory objectives, which flexibility shall,

16 where feasible and appropriate, include, but not

17 be limited to, the opportunity to transfer to, or

18 receive from, other persons, including for cash

19 or other legal consideration, increments of com20 pliance responsibility established by the pro21 gram; and

22 ‘‘(C) permits regulated persons to respond

23 automatically to changes in general economic

24 conditions and in economic circumstances di25 rectly pertinent to the regulatory program with-
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1 out affecting the achievement of the program’s

2 explicit regulatory mandates.

3 ‘‘§ 622. Rulemaking cost-benefit analysis

4 ‘‘(a)(1) Prior to publishing notice of a proposed rule5 making for any rule (or, in the case of a notice of a pro6 posed rulemaking that has been published on or before the

7 date of enactment of this subchapter, not later than 30

8 days after such date of enactment), each agency shall de9 termine whether the rule is or is not a major rule within

10 the meaning of section 621(4)(A)(i) and, if it is not,

11 whether it should be designated a major rule under section

12 621(4)(A)(ii). For the purpose of any such determination

13 or designation, a group of closely related rules shall be

14 considered as one rule.

15 ‘‘(2) Each notice of proposed rulemaking shall in16 clude a succinct statement and explanation of the agency’s

17 determination under paragraph (1).

18 ‘‘(b)(1) If an agency has determined that a rule is

19 not a major rule within the meaning of section

20 621(4)(A)(i) and has not designated the rule a major rule

21 within the meaning of section 621(4)(A)(ii), the President

22 may, as appropriate, determine that the rule is a major

23 rule or designate the rule a major rule not later than 30

24 days after the publication of the notice of proposed rule25 making for the rule (or, in the case of a notice of proposed
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1 rulemaking that has been published on or before the date

2 of enactment of this subchapter, not later than 60 days

3 after such date of enactment).

4 ‘‘(2) Such determination or designation shall be pub5 lished in the Federal Register, together with a succinct

6 statement of the basis for the determination or designa7 tion.

8 ‘‘(c)(1)(A) When the agency publishes a notice of pro9 posed rulemaking for a major rule, the agency shall issue

10 and place in the rulemaking record a draft cost-benefit

11 analysis, and shall include a summary of such analysis in

12 the notice of proposed rulemaking.

13 ‘‘(B)(i) When the President has published a deter14 mination or designation that a rule is a major rule after

15 the publication of the notice of proposed rulemaking for

16 the rule, the agency shall promptly issue and place in the

17 rulemaking file a draft cost-benefit analysis for the rule

18 and shall publish in the Federal Register a summary of

19 such analysis.

20 ‘‘(ii) Following the issuance of a draft cost-benefit

21 analysis under clause (i), the agency shall give interested

22 persons an opportunity to comment pursuant to section

23 553 of this title in the same manner as if the draft cost24 benefit analysis had been issued with the notice of pro25 posed rulemaking.
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1 ‘‘(2) Each draft cost-benefit analysis shall contain—

2 ‘‘(A) an analysis of the benefit of the proposed

3 rule, and an explanation of how the agency antici4 pates each benefit will be achieved by the proposed

5 rule;

6 ‘‘(B) an analysis of the costs of the proposed

7 rule, and an explanation of how the agency antici8 pates each such cost will result from the proposed

9 rule;

10 ‘‘(C) an identification (including an analysis of

11 the costs and benefits) of reasonable alternatives for

12 achieving the identified benefits of the proposed rule,

13 including alternatives that—

14 ‘‘(i) require no Government action;

15 ‘‘(ii) will accommodate differences among

16 geographic regions and among persons with dif17 fering levels of resources with which to comply;

18 and

19 ‘‘(iii) employ performance or other market20 based standards that permit the greatest flexi21 bility in achieving the identified benefits of the

22 proposed rule and that comply with the require23 ments of subparagraph (D);
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1 ‘‘(D) an assessment of the feasibility of estab2 lishing a regulatory program that operates through

3 the application of market-based mechanisms;

4 ‘‘(E) in any case in which the proposed rule is

5 based on one or more scientific evaluations or infor6 mation or is subject to the risk assessment require7 ments of subchapter III, a description of actions un8 dertaken by the agency to verify the quality, reliabil9 ity, and relevance of such scientific evaluations or

10 scientific information in accordance with the risk as11 sessment requirements of subchapter III;

12 ‘‘(F) an assessment of the aggregate effect of

13 the rule on small businesses with fewer than 100

14 employees, including an assessment of the net em15 ployment effect of the rule; and

16 ‘‘(G) an analysis of whether the identified bene17 fits of the proposed rule are likely to exceed the

18 identified costs of the proposed rule, and an analysis

19 of whether the proposed rule will provide greater net

20 benefits to society than any of the alternatives to the

21 proposed rule, including alternatives identified in ac22 cordance with subparagraph (C).

23 ‘‘(d)(1) When the agency publishes a final major rule,

24 the agency shall also issue and place in the rulemaking

25 record a final cost-benefit analysis, and shall include a
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1 summary of the analysis in the statement of basis and

2 purpose.

3 ‘‘(2) Each final cost-benefit analysis shall contain—

4 ‘‘(A) a description and comparison of the bene5 fits and costs of the rule and of the reasonable alter6 natives to the rule described in the rulemaking, in7 cluding the market-based mechanisms identified pur8 suant to subsection (c)(2)(D); and

9 ‘‘(B) an analysis, based upon the rulemaking

10 record considered as a whole, of—

11 ‘‘(i) whether the benefits of the rule out12 weigh the costs of the rule; and

13 ‘‘(ii) whether the rule will provide greater

14 net benefits to society than any of the alter15 natives described in the rulemaking, including

16 the market-based incentives identified pursuant

17 to subsection (c)(2)(D).

18 ‘‘(e)(1)(A) The description of the benefits and costs

19 of a proposed and a final rule required under this section

20 shall include, to the extent feasible, a quantification or nu21 merical estimate of the quantifiable benefits and costs.

22 Such quantification or numerical estimate shall be made

23 in the most appropriate unit of measurement, using com24 parable assumptions, including time periods, and shall

25 specify the ranges of predictions and shall explain the
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1 margins of error involved in the quantification methods

2 and in the estimates used. An agency shall describe the

3 nature and extent of the nonquantifiable benefits and

4 costs of a final rule pursuant to this section in as precise

5 and succinct a manner as possible.

6 ‘‘(B) Where practicable, the description of the bene7 fits and costs of a proposed and final rule required under

8 this section shall describe such benefits and costs on an

9 industry by industry basis.

10 ‘‘(2)(A) In evaluating and comparing costs and bene11 fits and in evaluating the risk assessment information de12 veloped pursuant to subchapter III, the agency shall not

13 rely on cost, benefit, or risk assessment information that

14 is not accompanied by data, analysis, or other supporting

15 materials that would enable the agency and other persons

16 interested in the rulemaking to assess the accuracy, reli17 ability, and uncertainty factors applicable to such informa18 tion.

19 ‘‘(B) The agency evaluations of the relationships of

20 the benefits of a proposed and final rule to its costs shall

21 be clearly articulated in accordance with this section.

22 ‘‘§ 623. Decisional criteria

23 ‘‘(a) No final rule subject to this subchapter shall be

24 promulgated unless the agency finds that—
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1 ‘‘(1) the potential benefits to society from the

2 rule outweigh the potential costs of the rule to soci3 ety, as determined by the analysis required by sec4 tion 622(d)(2)(B); and

5 ‘‘(2) the rule will provide greater net benefits to

6 society than any of the reasonable alternatives iden7 tified pursuant to section 622(c)(2)(C), including the

8 market-based mechanisms identified pursuant to sec9 tion 622(c)(2)(D).

10 ‘‘(b) The requirements of this section shall supple11 ment the decisional criteria for rulemaking otherwise ap12 plicable under the statute granting the rulemaking author13 ity, except when such statute contains explicit textual lan14 guage prohibiting the consideration of the criteria set

15 forth in this section. Where the agency finds that consider16 ation of the criteria set forth in this section is prohibited

17 by explicit statutory language, the agency shall transmit

18 its finding to Congress, along with the final cost-benefit

19 analysis required by section 622(d)(2)(B).

20 ‘‘§ 624. Judicial review

21 ‘‘(a) Compliance or noncompliance by an agency with

22 the provisions of this subchapter shall be subject to judi23 cial review in accordance with this section.

24 ‘‘(b)(1) Each of the following shall be subject to judi25 cial review:
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1 ‘‘(A) A determination by an agency or by the

2 President that a rule is or is not a major rule within

3 the meaning of section 621(4).

4 ‘‘(B) A designation by an agency or by the

5 President of a rule as a major rule.

6 ‘‘(C) A decision by an agency or by the Presi7 dent not to designate a rule a major rule.

8 ‘‘(2) A determination by an agency or by the Presi9 dent that a rule is not a major rule within the meaning

10 of section 621(4), or the decision by an agency or by the

11 President not to designate a rule a major rule, shall be

12 set aside by a reviewing court only upon a showing of clear

13 and convincing evidence that the determination or decision

14 not to designate is erroneous in light of the information

15 available to the agency at the time the determination or

16 decision not to designate was made.

17 ‘‘(3) An action to review a determination that a rule

18 is not a major rule or to review a decision not to designate

19 shall be filed not later than 30 days after the date of publi20 cation of such determination or failure to designate.

21 ‘‘(c) If a court of the United States finds that a rule

22 should have been reviewed pursuant to this subchapter,

23 such rule shall have no force or effect until such time as

24 the requirements of this subchapter are met.
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1 ‘‘(d) Each court with jurisdiction to review final agen2 cy action under the statute granting the agency authority

3 to conduct the rulemaking shall have jurisdiction to review

4 findings by any agency under this subchapter and shall

5 set aside agency action that fails to satisfy the decisional

6 criteria of section 623. The court shall apply the same

7 standards of judicial review that apply to the review of

8 agency findings under the statute granting the agency au9 thority to conduct the rulemaking.

10 ‘‘§ 625. Petition for cost-benefit analysis

11 ‘‘(a)(1) Any person subject to a major rule may peti12 tion the relevant agency or the President to perform a

13 cost-benefit analysis under this subchapter for the major

14 rule, including a major rule in effect on the date of enact15 ment of this subchapter for which a cost-benefit analysis

16 pursuant to such subchapter has not been performed, re17 gardless of whether a cost-benefit analysis was previously

18 performed to meet requirements imposed before the date

19 of enactment of this subchapter.

20 ‘‘(2) The petition shall identify with reasonable speci21 ficity the major rule to be reviewed.

22 ‘‘(3) The agency or the President shall grant the peti23 tion if the petition shows that there is a reasonable likeli24 hood that the costs of the major rule outweigh the bene25 fits, or that reasonable questions exist as to whether the
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1 rule provides greater net benefits to society than any rea2 sonable alternative to the rule that may be more clearly

3 resolved through examination pursuant to this subchapter

4 and subchapter III.

5 ‘‘(4) A decision to grant or deny a petition under this

6 subsection shall be made not later than 180 days after

7 submittal. A decision to deny a petition shall be subject

8 to judicial review immediately upon denial as final agency

9 action under the statute granting the agency authority to

10 conduct the rulemaking.

11 ‘‘(b) For each major rule for which a petition has

12 been granted under subsection (a), the agency shall con13 duct a cost-benefit analysis in accordance with this sub14 chapter, and shall determine whether the rule satisfies the

15 decisional criteria set forth in section 623. If the rule does

16 not satisfy the decisional criteria, then the agency shall

17 take immediate action to either revoke or amend the rule

18 to conform the rule to the requirements of this subchapter

19 and the decisional criteria under section 623.

20 ‘‘(c) For purposes of this section, the term ‘major

21 rule’ means any major rule or portion thereof.

22 ‘‘(d)(1) Any person may petition the relevant agency

23 to withdraw, as contrary to this subchapter, any agency

24 guidance or general statement of policy that would be a
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1 major rule if the guidance or general statement of policy

2 had been adopted as a rule.

3 ‘‘(2) The petition shall identify with reasonable speci4 ficity why the guidance or general statement of policy

5 would be major if adopted as a rule.

6 ‘‘(3) The agency shall grant the petition if the peti7 tion shows that there is a reasonable likelihood that the

8 guidance or general statement of policy would be major

9 if adopted as a rule.

10 ‘‘(4) A decision to grant or deny a petition under this

11 subsection shall be made not later than 180 days after

12 the petition is submitted. If the agency fails to act by such

13 date, the petition shall be deemed to have been granted.

14 A decision to deny a petition shall be subject to judicial

15 review immediately upon denial as final agency action

16 under the statute under which the agency has issued the

17 guidance or general statement of policy.

18 ‘‘(e) For each petition granted under subsection (d),

19 the agency shall be prohibited from enforcing against any

20 person the regulatory standards or criteria contained in

21 such guidance or policy unless included in a rule proposed

22 and promulgated in accordance with this subchapter.

23 ‘‘§ 626. Effective date of final regulations

24 ‘‘(a)(1) Beginning on the date of enactment of this

25 section, all deadlines in statutes that require agencies to
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1 propose or promulgate any rule subject to this subchapter

2 are suspended until such time as the requirements of this

3 subchapter are satisfied.

4 ‘‘(2) Beginning on the date of enactment of this sec5 tion, the jurisdiction of any court of the United States

6 to enforce any deadline that would require an agency to

7 propose or promulgate a rule subject to subchapter II of

8 chapter 5 of title 5, United States Code (as added by this

9 section), is suspended until such time as the requirements

10 of this subchapter are satisfied.

11 ‘‘(3) In any case in which the failure to promulgate

12 a rule by a deadline would create an obligation to regulate

13 through individual adjudications, the obligation to conduct

14 individual adjudications shall be suspended to allow the

15 requirements of this subchapter to be satisfied.

16 ‘‘(b)(1) Before a major rule takes effect as a final

17 rule, the agency promulgating such rule shall submit to

18 the Congress a copy of such rule and a report containing

19 a concise general statement relating to the rule, including

20 a complete copy of the cost-benefit analysis, and the pro21 posed effective date of the rule.

22 ‘‘(2) A major rule relating to a report submitted

23 under paragraph (1) shall take effect as a final rule, the

24 latest of—
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1 ‘‘(A) the later of the date occurring 45 days

2 after the date on which—

3 ‘‘(i) the Congress receives the report sub4 mitted under paragraph (1); or

5 ‘‘(ii) the rule is published in the Federal

6 Register;

7 ‘‘(B) if the Congress passes a joint resolution of

8 disapproval described under subsection (h) relating

9 to the rule, and the President signs a veto of such

10 resolution, the earlier date—

11 ‘‘(i) on which either House of Congress

12 votes and fails to override the veto of the Presi13 dent; or

14 ‘‘(ii) occurring 30 session days after the

15 date on which the Congress received the veto

16 and objections of the President; or

17 ‘‘(C) the date the rule would have otherwise

18 taken effect, if not for this section (unless a joint

19 resolution of disapproval under subsection (h) is en20 acted).

21 ‘‘(c) A rule shall not take effect as a final rule if the

22 Congress passes a joint resolution of disapproval described

23 under subsection (h).

24 ‘‘(d)(1) Notwithstanding any other provision of this

25 section (except subject to paragraph (3)), a rule that
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1 would not take effect by reason of this section may take

2 effect if the President makes a determination under para3 graph (2) and submits written notice of such determina4 tion to the Congress.

5 ‘‘(2) Paragraph (1) applies to a determination made

6 by the President by Executive order that the rule should

7 take effect because such rule is—

8 ‘‘(A) necessary because of an imminent threat

9 to health or safety or other emergency;

10 ‘‘(B) necessary for the enforcement of criminal

11 laws; or

12 ‘‘(C) necessary for national security.

13 ‘‘(3) An exercise by the President of the authority

14 under this subsection shall have no effect on the proce15 dures under subsection (h) or the effect of a joint resolu16 tion of disapproval under this section.

17 ‘‘(4) This subsection and an Executive order issued

18 by the President under this subsection shall not be subject

19 to judicial review by a court of the United States.

20 ‘‘(e)(1) Subsection (h) shall apply to any rule that

21 is published in the Federal Register (as a rule that shall

22 take effect as a final rule) during the period beginning

23 on the date occurring 60 days before the date the Con24 gress adjourns sine die through the date on which the suc25 ceeding Congress first convenes.
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1 ‘‘(2) For purposes of subsection (h), a rule described

2 under paragraph (1) shall be treated as though such rule

3 were published in the Federal Register (as a rule that shall

4 take effect as a final rule) on the date the succeeding Con5 gress first convenes.

6 ‘‘(3) During the period between the date the Congress

7 adjourns sine die through the date on which the succeed8 ing Congress first convenes, a rule described under para9 graph (1) shall take effect as a final rule as otherwise pro10 vided by law.

11 ‘‘(f) Any rule that takes effect and later is made of

12 no force or effect by the enactment of a joint resolution

13 under subsection (h) shall be treated as though such rule

14 had never taken effect.

15 ‘‘(g) If the Congress does not enact a joint resolution

16 of disapproval under subsection (h), no court or agency

17 may infer any intent of the Congress from any action or

18 inaction of the Congress with regard to such rule, related

19 statute, or joint resolution of disapproval.

20 ‘‘(h)(1) For purposes of this subsection, the term

21 ‘joint resolution’ means only a joint resolution introduced

22 after the date on which the report referred to in subsection

23 (b) is received by Congress the matter after the resolving

24 clause of which is as follows: ‘That Congress disapproves

25 the rule submitted by the llll relating to llll,
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1 and such rule shall have no force or effect. (The blank

2 spaces being appropriately filled in.)’.

3 ‘‘(2)(A) A resolution described in paragraph (1) shall

4 be referred to the committees in each House of Congress

5 with jurisdiction. Such a resolution shall not be reported

6 before the eighth day after its submission or publication

7 date.

8 ‘‘(B) For purposes of this subsection the term ‘sub9 mission or publication date’ means the later of the date

10 on which—

11 ‘‘(i) the Congress receives the report submitted

12 under subsection (b)(1); or

13 ‘‘(ii) the rule is published in the Federal Reg14 ister.

15 ‘‘(3) If the committee to which a resolution described

16 in paragraph (1) is referred has not reported such resolu17 tion (or an identical resolution) at the end of 20 calendar

18 days after its submission or publication date, such com19 mittee may be discharged by the Majority Leader of the

20 Senate or the Majority Leader of the House of Represent21 atives, as the case may be, from further consideration of

22 such resolution and such resolution shall be placed on the

23 appropriate calendar of the House involved.

24 ‘‘(4)(A) When the committee to which a resolution

25 is referred has reported, or when a committee is dis-
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1 charged (under paragraph (3)) from further consideration

2 of, a resolution described in paragraph (1), it shall at any

3 time thereafter be in order (even though a previous motion

4 to the same effect has been disagreed to) for any Member

5 of the respective House to move to proceed to the consider6 ation of the resolution, and all points of order against the

7 resolution (and against consideration of the resolution)

8 shall be waived. The motion shall be highly privileged in

9 the House of Representatives and shall be privileged in

10 the Senate and shall not be debatable. The motion shall

11 not subject to amendment, or to a motion to postpone,

12 or to a motion to proceed to the consideration of other

13 business. A motion to reconsider the vote by which the

14 motion is agreed to or disagreed to shall not be in order.

15 If a motion to proceed to the consideration of the resolu16 tion is agreed to, the resolution shall remain the unfin17 ished business of the respective House until disposed of.

18 ‘‘(B) Debate on the resolution, and on all debatable

19 motions and appeals in connection therewith, shall be lim20 ited to not more than 10 hours, which shall be divided

21 equally between those favoring and those opposing the res22 olution. A motion further to limit debate shall be in order

23 and shall not be debatable. An amendment to, or a motion

24 to postpone, or a motion to proceed to the consideration

25 of other business, or a motion to recommit the resolution
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1 shall not be in order. A motion to reconsider the vote by

2 which the resolution is agreed to or disagreed to shall not

3 be in order.

4 ‘‘(C) Immediately following the conclusion of the de5 bate on a resolution described in paragraph (1), and a sin6 gle quorum call at the conclusion of the debate if re7 quested in accordance with the rules of the appropriate

8 House, the vote on final passage of the resolution shall

9 occur.

10 ‘‘(D) Appeals from the decisions of the Chair relating

11 to the application of the rules of the Senate or the House

12 of Representatives, as the case may be, to the procedure

13 relating to a resolution described in paragraph (1) shall

14 be decided without debate.

15 ‘‘(5) If, before the passage by one House of a resolu16 tion of that House described in paragraph (1), that House

17 receives from the other House a resolution described in

18 paragraph (1), then the following procedures shall apply:

19 ‘‘(A) The resolution of the other House shall

20 not be referred to a committee.

21 ‘‘(B) With respect to a resolution described in

22 paragraph (1) of the House receiving the resolu23 tion—
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1 ‘‘(i) the procedure in that House shall be

2 the same as if no resolution had been received

3 from the other House; but

4 ‘‘(ii) the vote on final passage shall be on

5 the resolution of the other House.

6 ‘‘(6) This subsection is enacted by Congress—

7 ‘‘(A) as an exercise of the rulemaking power of

8 the Senate and House of Representatives, respec9 tively, and as such it is deemed to be a part of the

10 rules of each House, respectively, but applicable only

11 with respect to the procedure to be followed in that

12 House in the case of a resolution described in para13 graph (1), and it supersedes other rules only to the

14 extent that it is inconsistent with such rules; and

15 ‘‘(B) with full recognition of the constitutional

16 right of either House to change the rules (so far as

17 relating to the procedure of that House) at any time,

18 in the same manner, and to the same extent as in

19 the case of any other rule of that House.

20 ‘‘§ 627. Unauthorized rulemakings

21 ‘‘(a) Notwithstanding any other provision of law, be22 ginning on July 1, 1995, any rule that expands Federal

23 power or jurisdiction beyond the level of regulatory action

24 needed to satisfy statutory requirements shall be prohib25 ited.
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1 ‘‘(b) Nothing in this section shall be construed to pre2 vent any agency from promulgating a rule that repeals,

3 narrows, or streamlines a rule, regulation, or administra4 tive process, or from issuing or promulgating a rule pro5 viding for tax relief or clarification or reducing regulatory

6 burdens.

7 ‘‘§ 628. Standard for review of agency interpretations

8 of an enabling statute

9 ‘‘(a) In reviewing a final agency action under section

10 706 of this title, or under a statute that provides for re11 view of a final agency action, the reviewing court shall af12 firm the agency’s interpretation of the statute granting

13 authority to promulgate the rule if, applying traditional

14 principles of statutory construction, the reviewing court

15 finds that the interpretation is clearly the interpretation

16 of the statute intended by Congress.

17 ‘‘(b) If the reviewing court, applying traditional prin18 ciples of statutory construction, finds that an interpreta19 tion other than the interpretation applied by the agency

20 is clearly the interpretation of the statute intended by

21 Congress, the reviewing court shall find that the agency’s

22 interpretation is erroneous and contrary to law.

23 ‘‘(c)(1) If the reviewing court, applying established

24 principles of statutory construction, finds that the statute

25 gives the agency discretion to choose from among a range
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1 of permissible statutory constructions, the reviewing court

2 shall affirm the agency’s interpretation where the record

3 on review establishes that—

4 ‘‘(A) the agency has correctly identified the

5 range of permissible statutory constructions;

6 ‘‘(B) the interpretation chosen is one that is

7 within that range; and

8 ‘‘(C) the agency has engaged in reasoned deci9 sionmaking in determining that the interpretation,

10 rather than other permissible constructions of the

11 statute, is the one that maximizes net benefits to so12 ciety.

13 ‘‘(2) If an agency’s interpretation of a statute cannot

14 be affirmed under paragraph (1), the reviewing court shall

15 find that the agency’s interpretation is arbitrary and ca16 pricious.

17 ‘‘SUBCHAPTER IV—EXECUTIVE OVERSIGHT

18 ‘‘§ 651. Procedures

19 ‘‘The President shall—

20 ‘‘(1) establish procedures for agency compliance

21 with subchapters II and III; and

22 ‘‘(2) monitor, review, and ensure agency imple23 mentation of such procedures.
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1 ‘‘§ 652. Promulgation and adoption

2 ‘‘(a) Procedures established pursuant to section 651

3 shall only be implemented after opportunity for public

4 comment. Any such procedures shall be consistent with the

5 prompt completion of rulemaking proceedings.

6 ‘‘(b)(1) If procedures established pursuant to section

7 651 include review of preliminary or final regulatory anal8 yses to ensure that they comply with subchapters II and

9 III, the time for any such review of a preliminary regu10 latory analysis shall not exceed 30 days following the re11 ceipt of the analysis by the President or by an officer to

12 whom the authority granted under section 651 has been

13 delegated pursuant to section 653.

14 ‘‘(2) The time for review of a final regulatory analysis

15 shall not exceed 30 days following the receipt of the analy16 sis by the President or such officer.

17 ‘‘(3)(A) The times for each such review may be ex18 tended for good cause by the President or such officer for

19 an additional 30 days.

20 ‘‘(B) Notice of any such extension, together with a

21 succinct statement of the reasons therefor, shall be in22 serted in the rulemaking file.

23 ‘‘§ 653. Delegation of authority

24 ‘‘(a) The President may delegate the authority grant25 ed by this subchapter to the Vice President or to an officer

26 within the Executive Office of the President whose ap-
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1 pointment has been subject to the advice and consent of

2 the Senate.

3 ‘‘(b)(1) Notice of any delegation, or any revocation

4 or modification thereof, shall be published in the Federal

5 Register.

6 ‘‘(2) Any notice with respect to a delegation to the

7 Vice President shall contain a statement by the Vice Presi8 dent that the Vice President will make every reasonable

9 effort to respond to congressional inquiries concerning the

10 exercise of the authority delegated under this section.

11 ‘‘§ 654. Applicability

12 ‘‘The authority granted under this subchapter shall

13 not apply to rules issued by the Nuclear Regulatory Com14 mission.

15 ‘‘§ 655. Judicial review

16 ‘‘The exercise of the authority granted under this

17 subchapter by the President or by an officer to whom such

18 authority has been delegated under section 653 shall not

19 be subject to judicial review in any manner under this

20 chapter.’’.

21 (b) JUDICIAL REVIEW OF REGULATORY FLEXIBILITY

22 ANALYSIS.—

23 (1) AMENDMENT.—Section 611 of title 5, Unit24 ed States Code, is amended to read as follows:
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1 ‘‘§ 611. Judicial review

2 ‘‘(a)(1) Except as provided in paragraph (2), not

3 later than 1 year after the effective date of a final rule

4 with respect to which an agency—

5 ‘‘(A) certified, pursuant to section 605(b), that

6 such rule would not have a significant economic im7 pact on a substantial number of small entities; or

8 ‘‘(B) prepared final regulatory flexibility analy9 sis pursuant to section 604,

10 an affected small entity may petition for the judicial re11 view of such certification or analysis in accordance with

12 this subsection. A court having jurisdiction to review such

13 rule for compliance with section 553 of this title or under

14 any other provision of law shall have jurisdiction to review

15 such certification or analysis.

16 ‘‘(2)(A) Except as provided in subparagraph (B), in

17 the case of a provision of law that requires that an action

18 challenging a final agency regulation be commenced before

19 the expiration of the 1-year period provided in paragraph

20 (1), such lesser period shall apply to a petition for the

21 judicial review under this subsection.

22 ‘‘(B) In a case in which an agency delays the issuance

23 of a final regulatory flexibility analysis pursuant to section

24 608(b), a petition for judicial review under this subsection

25 shall be filed not later than—

26 ‘‘(i) 1 year; or
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1 ‘‘(ii) in a case in which a provision of law re2 quires that an action challenging a final agency reg3 ulation be commenced before the expiration of the 1-

4 year period provided in paragraph (1), the number

5 of days specified in such provision of law,

6 after the date the analysis is made available to the public.

7 ‘‘(3) For purposes of this subsection, the term ‘af8 fected small entity’ means a small entity that is or will

9 be adversely affected by the final rule.

10 ‘‘(4) Nothing in this subsection shall be construed to

11 affect the authority of any court to stay the effective date

12 of any rule or provision thereof under any other provision

13 of law.

14 ‘‘(5)(A) In a case in which an agency certifies that

15 such rule would not have a significant economic impact

16 on a substantial number of small entities, the court may

17 order the agency to prepare a final regulatory flexibility

18 analysis pursuant to section 604 if the court determines,

19 on the basis of the rulemaking record, that the certifi20 cation was arbitrary, capricious, an abuse of discretion,

21 or otherwise not in accordance with law.

22 ‘‘(B) In a case in which the agency prepared a final

23 regulatory flexibility analysis, the court may order the

24 agency to take corrective action consistent with section

25 604 if the court determines, on the basis of the rulemaking
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1 record, that the final regulatory flexibility analysis was

2 prepared by the agency without complying with section

3 604.

4 ‘‘(6) If, by the end of the 90-day period beginning

5 on the date of the order of the court pursuant to para6 graph (5) (or such longer period as the court may pro7 vide), the agency fails, as appropriate—

8 ‘‘(A) to prepare the analysis required by section

9 604; or

10 ‘‘(B) to take corrective action consistent with

11 section 604 of this title,

12 the court may stay the rule or grant such other relief as

13 it deems appropriate.

14 ‘‘(7) In making any determination or granting any

15 relief authorized by this subsection, the court shall take

16 due account of the rule of prejudicial error.

17 ‘‘(b) In an action for the judicial review of a rule,

18 any regulatory flexibility analysis for such rule (including

19 an analysis prepared or corrected pursuant to subsection

20 (a)(5)) shall constitute part of the whole record of agency

21 action in connection with such review.

22 ‘‘(c) Nothing in this section bars judicial review of

23 any other impact statement or similar analysis required

24 by any other law if judicial review of such statement or

25 analysis is otherwise provided by law.’’.
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1 (2) EFFECTIVE DATE.—The amendment made

2 by paragraph (1) shall take effect on the date of en3 actment of this Act, except that the judicial review

4 authorized by section 611(a) of title 5, United

5 States Code (as added by subsection (a)), shall apply

6 only to final agency rules issued after the date of en7 actment of this Act.

8 (c) PRESIDENTIAL AUTHORITY.—Nothing in this Act

9 shall limit the exercise by the President of the authority

10 and responsibility that the President otherwise possesses

11 under the Constitution and other laws of the United

12 States with respect to regulatory policies, procedures, and

13 programs of departments, agencies, and offices.

14 (d) TECHNICAL AND CONFORMING AMENDMENTS.—

15 (1) Part I of title 5, United States Code, is amended by

16 striking out the chapter heading and table of sections for

17 chapter 6 and inserting in lieu thereof the following:

18 ‘‘CHAPTER 6—THE ANALYSIS OF

19 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 analyses.

‘‘608. Procedure for waiver or delay of completion.

‘‘609. Procedures for gathering comments.

‘‘610. Periodic review of rules.

‘‘611. Judicial review.
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‘‘612. Reports and intervention rights.

‘‘SUBCHAPTER II—ANALYSIS OF AGENCY PROPOSALS

‘‘621. Definitions.

‘‘622. Rulemaking cost-benefit analysis.

‘‘623. Decisional criteria.

‘‘624. Judicial review.

‘‘625. Petition for cost-benefit analysis.

‘‘626. Effective date of final regulations.

‘‘627. Unauthorized rulemakings.

‘‘628. Standard for review of agency interpretations of an enabling statute.

‘‘SUBCHAPTER III—RISK ASSESSMENTS

‘‘631. Definitions.

‘‘632. Applicability.

‘‘633. Rule of construction.

‘‘634. Requirement to prepare risk assessments.

‘‘635. Principles for risk assessment.

‘‘636. Principles for risk characterization and communication.

‘‘637. Regulations; plan for assessing new information.

‘‘638. Decisional criteria.

‘‘639. Regulatory priorities.

‘‘640. Establishment of program.

‘‘SUBCHAPTER IV—EXECUTIVE OVERSIGHT

‘‘651. Procedures.

‘‘652. Promulgation and adoption.

‘‘653. Delegation of authority.

‘‘654. Applicability.

‘‘655. Judicial review.’’.

1 (2) Chapter 6 of title 5, United States Code, is

2 amended by inserting immediately before section 601, the

3 following subchapter heading:

4 ‘‘SUBCHAPTER I—REGULATORY ANALYSIS’’.

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