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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 291 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 291

To reform the regulatory process, to make Government more efficient and 
                   effective, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             January 27 (legislative day, January 10), 1995

   Mr. Roth introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
To reform the regulatory process, to make Government more efficient and 
                   effective, and for other purposes.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of Contents.
                TITLE I--REGULATORY ANALYSIS AND REVIEW

Sec. 101. Cost/benefit analysis of agency proposals; risk assessment; 
                            regulatory review
Sec. 102. Use of State or local requirements.
Sec. 103. Presidential authority.
                    TITLE II--RISK-BASED PRIORITIES

Sec. 201. Short title.
Sec. 202. Purposes.
Sec. 203. Definitions.
Sec. 204. Department and agency program goals.
Sec. 205. Comparative risk analysis.
Sec. 206. Reports and recommendations to Congress and the President.
Sec. 207. Savings provision and judicial review.
                    TITLE III--REGULATORY ACCOUNTING

Sec. 301. Short title.
Sec. 302. Accounting statement.
Sec. 303. Associated report to Congress.
Sec. 304. Guidance from Office of Management and Budget.
Sec. 305. Recommendations from Congressional Budget Office.
Sec. 306. Definitions.
   TITLE IV--MARKET INCENTIVES AND ECONOMICALLY EFFICIENT REGULATION

Sec. 401. Short title.
Sec. 402. Program design requirements.
Sec. 403. Agency assessment and OMB review.
Sec. 404. Definitions.

                TITLE I--REGULATORY ANALYSIS AND REVIEW

SEC. 101. COST/BENEFIT ANALYSIS OF AGENCY PROPOSALS; RISK ASSESSMENT; 
              REGULATORY REVIEW.

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

             ``Subchapter II--Analysis of Agency Proposals

``Sec. 621. Definitions
    ``For purposes of this subchapter and subchapter III of this 
chapter:
            ``(1) The term `agency' has the same meaning as in section 
        551(1) of this title.
            ``(2) The term `person' has the same meaning as in section 
        551(2) of this title.
            ``(3) The term `rule' has the same meaning as in section 
        551(4) of this title, except that such term does not include--
                    ``(A) a rule of particular applicability that 
                approves or prescribes for the future rates, wages, 
                prices, services, or allowances therefor, corporate or 
                financial structures, reorganizations, mergers or 
                acquisitions, or 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
                    ``(C) a rule issued by the Federal Election 
                Commission or a rule issued by the Federal 
                Communications Commission pursuant to sections 315 and 
                312(a)(7) of the Communications Act of 1934.
            ``(4) The term `major rule' means--
                    ``(A) a rule or a group of closely related rules 
                that the agency, the President, or the officer selected 
                under section 624 of this title reasonably determines 
                is likely to have an annual effect in the economy of 
                $100,000,000 or more in reasonably quantifiable direct 
                and indirect costs, or has a significant impact on a 
                subsector of the economy; and
                    ``(B) a rule or a group of closely related rules 
                that is otherwise designated a major rule by the agency 
                proposing the rule, or is so designated by the 
                President, or by the officer selected under section 624 
                of this title, 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; or
                            ``(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. For purposes of subparagraph 
                        (A) of this paragraph, the term `rule' does not 
                        mean--
                                    ``(I) a rule that involves the 
                                internal revenue laws of the United 
                                States;
                                    ``(II) a rule that authorizes the 
                                introduction into commerce or 
                                recognizes the marketable status of a 
                                product, pursuant to sections 408, 
                                409(c), and 706 of the Federal Food, 
                                Drug, and Cosmetic Act;
                                    ``(III) a rule exempt from notice 
                                and public procedure pursuant to 
                                section 553(a) of this title; or
                                    ``(IV) a rule relating to the 
                                viability, stability, asset powers, or 
                                categories of accounts of, or 
                                permissible interest rate ceilings 
                                applicable to, depository institutions 
                                the deposits or accounts of which are 
                                insured by the Federal Deposit 
                                Insurance Corporation, or the Share 
                                Insurance Fund of the National Credit 
                                Union Administration Board.
            ``(5) The term `benefit' means the reasonably identifiable 
        significant benefits and beneficial effects, including social 
        and economic benefits and effects, that are expected to result 
        directly or indirectly from implementation of a rule or an 
        alternative to a rule.
            ``(6) The term `cost' means the reasonably identifiable 
        significant costs and adverse effects, including economic and 
        social costs and effects, that are expected to result directly 
        or indirectly from implementation of a rule or an alternative 
        to a rule.
``Sec. 622. Regulatory cost/benefit analysis
    ``(a) Prior to publishing notice of proposed rulemaking for any 
rule, each agency shall determine whether the rule is or is not a major 
rule within the meaning of section 621(4)(A) of this title and, if it 
is not, whether it should be designated a major rule under section 
621(4)(B) of this title. For the purpose of any such determination or 
designation, a group of closely related rules shall be considered as 
one rule. Every notice of proposed rulemaking shall include a succinct 
statement and explanation of the agency's determination of whether or 
not the rule is a major rule within the meaning of section 621(4)(A) of 
this title and, if applicable, of its designation as a major rule under 
section 621(4)(B) of this title.
    ``(b) The President or the officer selected by the President under 
section 624 of this title may determine that a rule is a major rule 
within the meaning of section 621(4)(A) of this title or may designate 
a rule as a major rule under section 621(4)(B) of this title not later 
than thirty days after the publication of the notice of proposed 
rulemaking for that rule. Such determination or designation shall be 
published in the Federal Register, together with a succinct statement 
of the basis for the determination or designation. The President or the 
officer selected by the President under section 624 of this title may 
designate not more than seventy-five rules as major rules under section 
621(4)(B) of this title in any fiscal year.
    ``(c)(1) When the agency publishes a notice of proposed rulemaking 
for a major rule, the agency shall issue and place in the rulemaking 
file maintained under section 553(f) of this title a preliminary 
regulatory analysis and shall include in such notice of proposed 
rulemaking a summary of the analysis. When the President or the officer 
selected by the President under section 624 of this title has published 
a determination or designation that a rule is a major rule after the 
publication of the notice of proposed rulemaking for that rule, the 
agency shall promptly issue and place in the rulemaking file maintained 
under section 553(f) of this title a preliminary regulatory analysis 
for the rule and shall publish in the Federal Register a summary of 
such analysis. Following the issuance of a preliminary regulatory 
analysis under the preceding sentence, the agency shall give interested 
persons an opportunity to comment thereon pursuant to section 553 of 
this title in the same manner as if the preliminary regulatory analysis 
had been issued with the notice of proposed rulemaking.
    ``(2) Each preliminary regulatory analysis shall contain--
            ``(A) a succinct description of the benefit of the proposed 
        rule, including any beneficial effects that cannot be 
        quantified, and an explanation of how the agency anticipates 
        each benefit will be achieved by the proposed rule, including a 
        description of the persons, classes of persons, or particular 
        levels of Government likely to receive such benefits;
            ``(B) a succinct description of the costs of the proposed 
        rule, including any costs that cannot be quantified as well as 
        the cost-reduction effects of complying with the requirements 
        of title IV, and an explanation of how the agency anticipates 
        each such cost will result from the proposed rule, including a 
        description of the persons, classes of persons, or particular 
        levels of Government likely to incur such costs;
            ``(C) a succinct description of reasonable alternatives for 
        achieving the identified benefits of the proposed rule, 
        including alternatives that--
                    ``(i) require no Government action;
                    ``(ii) will accommodate differences between 
                geographic regions; and
                    ``(iii) employ performance or other marketbased 
                standards which permit the greatest flexibility in 
                achieving the identified benefits of the proposed rule 
                and which comply with the requirements of title IV;
            ``(D) in any case in which the proposed rule is based on 
        scientific evaluations or information, a description of action 
        undertaken by the agency to verify the quality, reliability, 
        and relevance of such scientific evaluations or scientific 
information in accordance with the requirements of title IV; and
            ``(E) where it is not expressly or by necessary implication 
        inconsistent with the provisions of the enabling statute 
        pursuant to which the agency is proposing the rule, an 
        explanation of how the identified benefits of the proposed rule 
        are likely to 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 title IV.
    ``(d)(1) When the agency publishes a final major rule, the agency 
shall also issue and place in the rulemaking file maintained under 
section 553(f) of this title a final regulatory analysis, and shall 
include a summary of the analysis in the statement of basis and purpose 
required by section 553(c)(6) of this title. Notwithstanding the 
preceding sentence, in any case in which an agency, under section 
553(b)(2) of this title, is not required to comply with subsections (b) 
through (f) of section 553 of this title prior to the adoption of a 
final rule, an agency is not required to comply with the preceding 
sentence prior to the adoption of the final rule but shall comply with 
such sentence when complying with section 553(b)(2)(C) of this title.
    ``(2) Each final regulatory 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 pursuant to title IV; and
            ``(B) where it is not expressly or by necessary implication 
        inconsistent with the provisions of the enabling statute 
        pursuant to which the agency is acting, a reasonable 
        determination, based upon the rulemaking file considered as a 
        whole, that the benefits of the rule justify the costs of the 
        rule, and that the rule will substantially achieve the 
        rulemaking objectives in a more cost-effective manner than the 
        alternatives described in the rulemaking, including the market-
        based incentives identified pursuant to title IV.
    ``(e)(1) An agency shall describe the nature and extent of the 
nonqualifiable benefits and costs of a proposed and a final rule 
pursuant to this section in as precise and succinct a manner as 
possible. The description of the benefits and costs of a proposed and a 
final rule required under this section shall include 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 and shall specify the ranges of 
predictions and explain the margins of error involved in the 
quantification methods and in the estimates used.
    ``(2) In evaluating and comparing costs and benefits, the agency 
shall not rely on cost or benefit information submitted by any person 
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 and reliability of such 
information. The agency evaluations of the relationships of the 
benefits of a proposed and final rule to its costs required by this 
section shall be clearly articulated in accordance with the provisions 
of this section. An agency is not required to make such evaluation 
primarily on a mathematical or numerical basis.
    ``(f) The preparation of the preliminary or final regulatory 
analysis required by this section shall only be performed by an officer 
or employee of the agency. The provisions of the preceding sentence do 
not preclude a person outside the agency from gathering data or 
information to be used by the agency in preparing any such regulatory 
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 preliminary or final 
regulatory 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.
    ``(g) The requirements of this section do 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 shall not be subject to judicial review except 
according to the provisions of this section.
    ``(b) Any determination by the President or by the officer selected 
under section 624 of this title that a rule is a major rule within the 
meaning of section 621(4)(A) of this title, and any designation by the 
President or the officer selected under section 624 of this title that 
a rule is a major rule under section 621(4)(B) of this title, or any 
failure to make such a designation, shall not be subject to judicial 
review in any manner.
    ``(c) The determination of an agency of whether a rule is or is not 
a major rule within the meaning of section 621(4)(A) of this title 
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 it made the 
determination. Any designation by an agency that a rule is a major rule 
under section 621(4)(B) of this title, or any failure to make such a 
designation, shall not be subject to judicial review.
    ``(d) Any regulatory analysis prepared under section 622 of this 
title shall not be subject to judicial consideration separate or apart 
from review of the rule to which it relates. When an action for 
judicial review of a rule is instituted, any regulatory analysis for 
such rule shall constitute part of the whole rulemaking record of 
agency action for the purpose of judicial review of the rule and shall, 
to the extent relevant, be considered by a court in determining the 
legality of the rule.
``Sec. 624. Executive oversight
    ``(a) The President shall have the authority to establish 
procedures for agency compliance with this title and titles II, III, 
and IV of this Act. The President shall have the authority to monitor, 
review, and ensure agency implementation of such procedures. The 
President shall report annually to the Congress on agency compliance or 
noncompliance with the requirements of this chapter.
    ``(b) Any procedures established pursuant to the authority granted 
under subsection (a) of this section shall be adopted after the public 
has been afforded an opportunity to comment thereon, and shall be 
consistent with the prompt completion of rulemaking proceedings. If 
such procedures include review of preliminary or final regulatory 
analyses to ensure that they comply with the procedures established 
pursuant to subsection (a), the time for any such review of a 
preliminary regulatory analysis shall not exceed thirty days following 
the receipt of that analysis by the President or by an officer to whom 
the authority granted under subsection (a) of this section has been 
delegated pursuant to subsection (c) of this section, and the time for 
such review of a final regulatory analysis shall not exceed thirty days 
following the receipt of that analysis by the President or such 
officer. The times for each such review may be extended for good cause 
by the President or such officer for an additional thirty days. Notice 
of any such extension, together with a succinct statement of the 
reasons therefor, shall be inserted in the rulemaking file.
    ``(c) The President may delegate the authority granted by this Act 
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. Any such 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 subsection. Notice of any such delegation, or any 
revocation or modification thereof, shall be published in the Federal 
Register.
    ``(d) The authority granted under subsection (a) of this section 
and title II shall not apply to rules issued by the Nuclear Regulatory 
Commission.
    ``(e) Any exercise of the authority granted under this section, or 
any failure to exercise such authority, by the President or by an 
officer to whom such authority has been delegated under subsection (c) 
of this section, shall not be subject to judicial review in any manner 
under this Act.

                   ``Subchapter III--Risk Assessments

``Sec. 631. Findings, purposes, and definitions
    ``(a) Findings.--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; however, many 
        regulations have been more costly and less effective than they 
        could have been; 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 and the environment, regulatory priorities should be 
        based upon realistic consideration of risk; the priority-
        setting process must include scientifically sound, objective, 
        and unbiased risk assessments and risk management choices that 
        are grounded in cost/benefit principles.
            ``(4) Risk assessment has proved to be a useful 
        decisionmaking tool; however, improvements are needed in both 
        the quality of assessments and the characterization and 
        communication of findings; scientific and other data must be 
        better collected, organized, and evaluated; most importantly, 
        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 must be fully 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. This knowledge will allow for public scrutiny 
        and will promote the quality, integrity, and responsiveness of 
        agency decisions.
    ``(b) Purposes.--The purposes of this subchapter are--
            ``(1) to present the public and executive branch with the 
        most scientifically objective and unbiased information 
        concerning the nature and magnitude of health, safety, and 
        environmental risks to promote sound regulatory decisions and 
        public education;
            ``(2) to provide for full consideration and discussion of 
        relevant data and potential methodologies;
            ``(3) to require explanation of significant choices in the 
        risk assessment process that will allow for better public 
        understanding; and
            ``(4) to improve consistency within the executive branch in 
        preparing risk assessments and risk characterizations.
    ``(c) Definitions.--For purposes of this subchapter:
            ``(1) Best estimate.--The term `best estimate' means an 
        estimate that, to the extent feasible and scientifically 
        appropriate, is based on one of the following:
                    ``(A) Central estimates of risk using the most 
                plausible assumptions.
                    ``(B) An approach that combines multiple estimates 
                based on different scenarios and weighs the probability 
                of each scenario.
                    ``(C) Any other methodology designed to provide the 
                most unbiased representation of the most plausible 
                level of risk, given the current scientific information 
                available to the Federal agency concerned.
            ``(2) Covered agency.--The term `covered agency' means each 
        of the following:
                    ``(A) The Environmental Protection Agency.
                    ``(B) The Department of Labor.
                    ``(C) The Food and Drug Administration.
                    ``(D) The Consumer Product Safety Commission.
                    ``(E) The Department of Transportation.
                    ``(F) The Department of Energy.
                    ``(G) The Department of Agriculture.
                    ``(H) The Department of the Interior.
                    ``(I) The Nuclear Regulatory Commission.
            ``(3) Emergency.--The term `emergency' means an imminent 
        and substantial endangerment to public health, safety, or the 
        environment.
            ``(4) Hazard identification.--The term `hazard 
        identification' means identification of a substance, activity, 
        or condition as potentially posing a risk to human health or 
        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 not 
        necessarily relevant to level of dose or exposure that are 
        normally expected to occur.
            ``(5) Risk assessment.--The term `risk assessment' means--
                    ``(A) the process of identifying hazards and 
                quantifying or describing the degree of toxicity, 
                exposure, or other risk they pose for 
exposed individuals, populations, or resources; and
                    ``(B) the document containing the explanation of 
                how the assessment process has been applied to an 
                individual substance, activity, or condition.
            ``(6) Risk characterization.--The term `risk 
        characterization' means--
                    ``(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) includes discussions of uncertainties, 
                conflicting data, estimates, extrapolations, 
                inferences, and opinions.
            ``(7) Substitution risk.--The term `substitution risk' 
        means a potential increased risk to human health, safety, or 
        the environment from a regulatory option designed to decrease 
        other risks.
``Sec. 632. Applicability
    ``(a) In General.--Except as otherwise provided in subsection (b), 
this title 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 health, safety, 
and environmental risks.
    ``(b) Exceptions.--
            ``(1) In general.--This title shall not apply to risk 
        assessments or risk characterizations performed with respect 
        to--
                    ``(A) a situation that the head of the agency 
                considers to be an emergency; or
                    ``(B) a screening analysis, including a screening 
                analysis for the purposes of product registration, 
                product reregistrations, or premanufacturing notices.
            ``(2) Treatment of analysis as screening analysis.--An 
        analysis shall not be treated as a screening analysis for the 
        purposes of paragraph (1)(B) if the result of the analysis is 
        used--
                    ``(A) as the basis for imposing a restriction on a 
                substance or activity; or
                    ``(B) to characterize a positive finding of risks 
                from a substance, product, or activity in any agency 
                document or other communication made available to the 
                general public, the media, or Congress.
            ``(3) Labels.--This title shall not apply to any food, 
        drug, or other product label or to any risk characterization 
        appearing on any such label.
``Sec. 633. Savings provisions
    ``Nothing in this title 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 secrets or other 
        confidential information.
``Sec. 634. Requirement to prepare risk assessments
    ``Except as provided in subsection 632(b), the President shall 
require that the head of each covered agency prepare for each major 
rule relating to human health, safety, or the environment that is 
proposed by the agency after the date of enactment of this title--
            ``(1) a risk assessment in accordance with this title; and
            ``(2) 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.
``Sec. 635. Principles for risk assessment
    ``(a) In General.--The head of each covered agency shall ensure 
that risk assessments and all of their components--
            ``(1) distinguish scientific findings and best estimates of 
        risk from other considerations;
            ``(2) are, to the maximum extent practicable, unbiased and 
        inclusive of all reliable information and employ default 
        assumptions only if situation-specific information is not 
        reasonably available;
            ``(3) rely on scientific findings of risk;
            ``(4) result in the most plausible and realistic estimates 
        feasible for the population, or, if only bounds can be 
        estimated reliably, describe the range encompassed; and
            ``(5) are tailored so that the degree of specificity and 
        rigor employed is commensurate with the consequences of the 
        decision to be made.
    ``(b) Hazard Identification and Risk Characterization.--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 hazard.
``Sec. 636. Principles for risk characterization and risk communication
    ``In characterizing risk in any risk assessment document, 
regulatory proposal or decision each covered agency shall include in 
the risk characterization each of the following:
            ``(1) Estimates of risk.--
                    ``(A) Subject.--A description of the populations or 
                natural resources that are the subject of the risk 
                characterization.
                    ``(B) Assumptions, inferences, and models.--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) present a representative list and 
                        explanation of plausible and alternative 
                        assumptions, inferences, or models;
                            ``(ii) explain the basis for any choices;
                            ``(iii) identify any subjective policy 
                        decisions or value judgments; and
                            ``(iv) indicate the extent to which any 
                        significant model has been validated by, or 
                        conflicts with, empirical data.
                    ``(C) Uncertainty.--The major uncertainties in the 
                risk assessment.
                    ``(D) Exposure scenarios.--Information about 
                exposure scenarios used, including the likelihood of 
                those scenarios.
                    ``(E) Risk range.--To the extent feasible, a range 
                of risk estimates, including central estimates, for 
                each exposure scenario.
                    ``(F) Scientific findings and policy decisions.--To 
                the extent feasible, each risk characterization should 
                distinguish between scientific findings and policy 
                decisions.
            ``(2) Substitution risks.--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 provided to the 
        agency.
            ``(3) Summaries of other risk estimates.--If--
                    ``(A) a covered agency provides a public comment 
                period with respect to a risk assessment or regulation;
                    ``(B) a commenter provides a risk assessment, and a 
                summary of results of such risk assessment; and
                    ``(C) such risk assessment is consistent with the 
                principles and the guidance provided under this 
                subtitle,
        the covered agency shall present such summary in connection 
        with its presentation of the risk assessment or regulation.
``Sec. 637. Guidelines, plan for assessing new information, and report
    ``(a) Guidelines.--
            ``(1) In general.--Within fifteen months after the date of 
        enactment of this title, each covered agency shall issue, after 
        notice and public comment, guidelines to implement the risk 
        assessment and risk characterization principles set forth in 
        sections 635 and 636 and shall provide a format for summarizing 
        risk assessment results.
            ``(2) Matters to be addressed.--The guidelines under 
        paragraph (1) shall--
                    ``(A) include guidance on utilization of specific 
                technical methodologies and standards for acceptable 
                quality of specific kinds of data; and
                    ``(B) address important decisional factors for the 
                risk assessment or risk characterization at issue, such 
                as criteria for scaling animal studies to assess risk 
                to human health; use of different types of dose-
                response models; thresholds; definitions, use, and 
                interpretations of the maximum tolerated dose; weighing 
                of evidence with respect to extrapolating human health 
                risks from sensitive species; evaluation of benign 
                tumors; and evaluation of differences in human health 
                endpoints, where relevant.
    ``(b) Plan.--
            ``(1) In general.--Within eighteen months after the date of 
        enactment of this title, the head of each covered agency shall 
        publish a plan to review and revise any risk assessment 
        published prior to the expiration of such eighteen-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.
            ``(2) Contents.--A plan under paragraph (1) shall--
                    ``(A) provide procedures for receiving and 
                considering new information and risk assessments from 
                the public; and
                    ``(B) set priorities for review and revision of 
                risk assessments based on such factors as the agency 
                head considers appropriate.
    ``(c) Report.--Within three years after the enactment of this 
title, each covered agency shall provide a report to the Congress 
evaluating the categories of policy and value judgments identified 
under subparagraph (B)(iii) of section 636(1).
    ``(d) Public Comment and Consultation.--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.
    ``(e) Review.--The President shall review the guidelines published 
under this section at least every four years.
    ``(f) Limitation on Judicial Review.--The development, issuance, 
and publication of risk assessment and risk characterization guidelines 
under this section shall not be subject to judicial review.
``Sec. 638. Risk management criteria
    ``For each major rule subject to this title, the head of the agency 
or the President shall make a determination that--
            ``(1) the risk assessment under section 634(1) and the 
        analysis under section 634(2) are based on a scientific 
        evaluation of the risk addressed by the major rule and are 
        supported by the best available scientific data; and
            ``(2) there is no regulatory alternative that is allowed by 
        the statute under which the regulation is promulgated that 
        would achieve an equivalent reduction in risk in a more cost-
effective and flexible manner.
``Sec. 639. Interagency coordination
    ``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 one Federal agency, the Director 
of 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 coordination among Federal agencies conducting risk 
        assessment with respect to the conduct, application, and 
        practice of risk assessment and to promote 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-State cooperation in the development 
        and application of risk assessment.

           ``Subchapter IV--Regulatory Priorities and Review

``Sec. 641. Review of agency rules
    ``(a)(1)(A) Not later than nine 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 which is in effect on such 
        effective date and which, if adopted on such effective date, 
        would be a major rule under section 621(4)(A) of this title, 
        and
            ``(ii) each rule of the agency in effect on such effective 
        date (in addition to the rules described in clause (i)) which 
        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 such a major rule 
        under section 621(a)(4)(A) of this title or of the reasons why 
        the agency selected the rule for review;
            ``(ii) a date set by the agency, in accordance with the 
        provisions of subsection (b)(1) of this section, 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 which will ensure the simultaneous review 
of related items and which will achieve a reasonable distribution of 
reviews over the period of time covered by the schedule.
    ``(2) At least ninety days before publishing in the Federal 
Register the proposed schedule required under paragraph (1), each 
agency shall make the proposed schedule available to the President, or 
to the Vice President or other officer to whom oversight authority has 
been delegated under section 624(b) of this title. The President or 
that officer may select for review in accordance with this section any 
additional rule that the President or such officer determines to be a 
major rule under section 621(4)(A) of this title.
    ``(3) Not later than one 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) of this subsection. Each agency shall publish with the final 
schedule the response of the agency to comments received concerning the 
proposed schedule.
    ``(b)(1) Except where explicitly provided otherwise by statute, the 
agency shall, pursuant to subsections (c) through (e) of this section, 
review--
            ``(A) each rule on the schedule promulgated pursuant to 
        subsection (a) of this section;
            ``(B) each major rule under section 621(4) of this title 
        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 which the President or the officer designated by 
        the President pursuant to subsection (a)(2) of this section 
        determines to be a major rule under section 621(4) of this 
        title.
Except where an extension has been granted pursuant to subsection (f) 
of this section, the review of a rule required by this section shall be 
completed within ten years after the effective date of this section or 
within ten years after the date on which the rule is promulgated, 
amended, or renewed, whichever is later.
    ``(2) A rule required to be reviewed under the preceding subsection 
on grounds that it is major need not be reviewed if the agency 
determines that such rule, if adopted at the time of the planned 
review, would not be major under the definition previously applied to 
it. When the agency makes such a determination, it shall publish a 
notice and explanation of the determination in the Federal Register.
    ``(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 a statement specifying 
        the agency's determination of whether the rule continues to 
        fulfill the intent of Congress in enacting that authority;
            ``(2) an assessment 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; 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, including alternatives developed in 
        accordance with the provisions of title IV of this bill.
    ``(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) of this section, comply with the provisions 
of this chapter and chapter 5 of this title or other applicable law. 
The requirements of such provisions and related requirements of law 
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 which is not taken 
pursuant to the review required by this section.
    ``(e) If an agency proposed to renew without amendment a rule under 
review pursuant to this section, the agency shall--
            ``(1) give interested persons not less than sixty days 
        after the publication of the notice required by subsection (c) 
        of this section to comment on the proposed renewal; and
            ``(2) publish in the Federal Register notice of the renewal 
        of such rule and an explanation of the continued need for the 
        rule, and, if the renewed rule is a major rule under section 
        621(4) of this title, include with such notice an explanation 
        of the reasonable determination of the agency that the rule 
        complies with the provisions of section 622(d)(2)(B) of this 
        title.
    ``(f)(1) Any agency, which for good cause finds compliance with 
this section with respect to a particular rule to be impracticable 
during the period provided in subsection (b) of this section, may 
request the President, or the officer designated by the President 
pursuant to subsection (a)(2) of this section, to establish a period 
longer than ten 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 not more than fifteen years. Such extension 
shall be published in the Federal Register with an explanation of the 
reasons therefor.
    ``(2) An agency may, with the concurrence of the President or the 
officer designated by the President pursuant to subsection (a)(2) of 
this section, or shall, at the direction of the President or that 
officer, alter the timing of review of rules under any schedule 
required by this section for the review of rules if an explanation of 
such alteration is published in the Federal Register at the time such 
alteration is made.
    ``(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 amend, repeal, or renew the rule under subsection 
(c) of this section, and shall complete proceedings pursuant to 
subsection (d) or (e) of this section within one hundred and eighty 
days of the date on which the review was required to be completed under 
subsection (b) or (f) of this section.
    ``(h)(1) Agency compliance or noncompliance with the provisions of 
subsection (a) of this section shall not be subject to judicial review 
in any manner.
    ``(2) Agency compliance or noncompliance with the provisions of 
subsections (b), (c), (e), (f) and (g) of this section shall be subject 
to judicial review only pursuant to section 706(a)(1) of this title.
    ``(i) 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 
section 553(e) of this title.
Sec. 642. Regulatory agenda and calendar
    ``(a) Each agency shall publish in the Federal Register in April 
and October of each year an agenda of the rules that the agency expects 
to propose, promulgate, renew, or repeal in the succeeding twelve 
months. For each such rule, the agenda shall contain, at a minimum, and 
in addition to any other information required by law--
            ``(1) a general description of the rule, including a 
        citation to the authority under which the action with respect 
        to the rule is to be taken, or a specific explanation of the 
        congressional intent to which the objectives of rule respond;
            ``(2) a statement of whether or not the rule is or is 
        expected to be a major rule;
            ``(3) an approximate schedule of the significant dates on 
        which the agency will take action relating to the rule, 
        including the dates for any notice of proposed rulemaking, 
        hearing, and final action on the rule;
            ``(4) the name, address, and telephone number of an agency 
        official responsible for answering questions from the public 
        concerning the rule;
            ``(5) a statement specifying whether each rule listed on 
        the previous agenda has been published as a proposed rule, has 
        been published as a final rule, has become effective, has been 
        repealed, or is pending in some other status; and
            ``(6) a cumulative summary of the status of the rules 
        listed on the previous agenda in accordance with clause (5) of 
        this subsection.
    ``(b) The President or an officer in the Executive Office of the 
President whose appointment has been subject to the advice and consent 
of the Senate shall publish in the Federal Register in May and November 
of each year a Calendar of Federal Regulations listing each of the 
major rules identified in the regulatory agendas published by agencies 
in the preceding month. Each rule listed in the calendar shall be 
accompanied by a summary of the information relating to the rule that 
appeared in the most recent regulatory agenda in which the rule was 
identified.
    ``(c) An agency may propose or promulgate a major rule that was not 
listed in the regulatory agenda required by subsection (a) of this 
section only if the agency publishes with the rule an explanation of 
the omission of the rule from such agenda and otherwise complies with 
this section with respect to that rule.
    ``(d) Any compliance or noncompliance by the agency with the 
provisions of this section shall not be subject to judicial review.
``Sec. 643. Establishment of deadlines
    ``(a)(1) Whenever any agency publishes a notice of proposed 
rulemaking pursuant to section 553 of this title, the agency shall 
include in such notice an announcement of the date by which it intends 
to complete final agency action on the rule.
    ``(2) If any agency announcement under this section indicates that 
the proceeding relating to such rule will require more than one year to 
complete, the agency shall also indicate in the announcement the date 
by which the agency intends to complete each major portion of that 
proceeding. In carrying out the requirements of this subsection, the 
agency shall select dates for completing agency action which will 
assure the most expeditious consideration of the rule which is 
possible, consistent with the interests of fairness and other agency 
priorities.
    ``(3) The requirements of this subsection shall not apply to any 
rule on which the agency intends to complete action within one hundred 
and twenty days after providing notice of the proposed action.
    ``(b) If an agency fails to complete action in a proceeding, or a 
major portion of the proceeding, by the date announced pursuant to 
subsection (a) of this section, or, in the case of a proceeding 
described in paragraph (3) of such subsection, if an agency fails to 
complete action within one hundred and twenty days after providing 
notice of such proposed action, and the expected delay in completing 
action will exceed thirty days, the agency shall promptly announce the 
new date by which the agency intends to complete action in such 
proceeding and new dates by which the agency intends to complete action 
on each major portion of the proceeding.
    ``(c) Compliance or noncompliance by an agency with the provisions 
of this section shall not be subject to judicial review except in 
accordance with subsection (d).
    ``(d) In determining whether to compel agency action unreasonably 
delayed pursuant to section 706(a)(1) of this title, the reviewing 
court shall consider, in addition to any other relevant factors, the 
extent to which the agency has failed to comply with this section.''.
    (b) Technical and Conforming Amendments.--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 analyses.
``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 PROPOSALS

``621. Definitions.
``622. Regulatory cost/benefit analysis.
``623. Judicial review.
``624. Executive oversight.
                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Findings, purposes, and definitions.
``632. Applicability.
``633. Savings provisions.
``634. Requirement to prepare risk assessments.
``635. Principles for risk assessment.
``636. Principles for risk characterization and risk communication.
``637. Guidelines, plan for assessing new information, and report.
``638. Risk management criteria.
``639. Interagency coordination.
           ``SUBCHAPTER IV--REGULATORY PRIORITIES AND REVIEW

``641. Review of agency rules.
``642. Regulatory agenda and calendar.
``643. Establishment of deadlines.''.

SEC. 102. USE OF STATE OR LOCAL REQUIREMENTS.

    (a) In General.--Subchapter II of chapter 5 of title 5, United 
States Code, is amended by adding at the end thereof the following new 
section:
``Sec. 560. Use of duplicative State or local requirements
    ``(a) Except as otherwise provided by law, the head of each Federal 
agency is authorized, in the administration of a Federal statute with 
respect to any State or locality, to adopt as a Federal rule a 
regulation of that State or local government or use as a Federal 
recordkeeping or reporting requirement or implementation procedure a 
recordkeeping or reporting requirement or implementation procedure of 
that State or locality if the head of the agency determines--
            ``(1) that such State or local government regulation, 
        implementation procedure, recordkeeping requirement, or 
        reporting requirement duplicates a Federal regulation, 
        procedure, recordkeeping requirement, or reporting requirement; 
        and
            ``(2) that such State or local government regulation, 
        implementation procedure, recordkeeping requirement, or 
        reporting requirement is substantively equivalent to or more 
        stringent than the Federal regulation, procedure, recordkeeping 
        requirement, or reporting requirement.
    ``(b) When the head of an agency determines to use a State or local 
recordkeeping or reporting requirement or implementation procedure, as 
a Federal recordkeeping or reporting requirement, or implementation 
procedure in that State or locality, the head of the agency shall 
prepare at a minimum, a written statement of the reasons for any 
determination made under subsection (a), and shall make such statement 
available to the public.
    ``(c) This section does not limit the authority or responsibility 
of the head of any agency to enforce Federal law.''.
    (b) Rulemaking.--Section 551 of title 5, United States Code, is 
amended by inserting the following between ``rule'' and the semicolon: 
``, or the adoption of a rule pursuant to section 561 of this title''.
    (c) Table of Sections.--The table of sections for chapter 5 of such 
title is amended by inserting after the item relating to section 559 
the following new item:

``560. Use of duplicative State or local requirements.''.

SEC. 103. PRESIDENTIAL AUTHORITY.

    Nothing in this Act (i) limits the exercise by the President of the 
authority and responsibility that he 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, or (ii) alters in any manner rulemaking authority vested 
by law in an agency to initiate or complete a rulemaking proceeding, or 
to issue, modify, or rescind a rule.

                    TITLE II--RISK-BASED PRIORITIES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Risk Reduction Priorities Act of 
1995''.

SEC. 202. PURPOSES.

    It is the purposes of this title 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.

SEC. 203. DEFINITIONS.

    For the purposes of this title:
            (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 Food and Drug Administration.
                    (D) The Consumer Product Safety Commission.
                    (E) The Department of Transportation.
                    (F) The Department of Energy.
                    (G) The Department of Agriculture.
                    (H) The Department of the Interior.
                    (I) The Nuclear Regulatory Commission.
            (3) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (4) Effect.--The term ``effect'' means a deleterious change 
        in the condition--
                    (A) of a human or other living thing (including 
                death, cancer, or other chronic illness, decreased 
                reproductive capacity, or disfigurement); or
                    (B) of an inanimate thing important to human 
                welfare (including destruction, degeneration, the loss 
                of intended function, and increased costs for 
                maintenance).
            (5) Irreversibility.--The term ``irreversibility'' means 
        the extent to which a return to conditions prior to the 
        occurrence of an effect are either very slow or will never 
        occur.
            (6) Likelihood.--The term ``likelihood'' means the 
        estimated probability that an effect will occur.
            (7) 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.
            (8) Seriousness.--The term ``seriousness'' means the 
        intensity of effect, the likelihood, the irreversibility, and 
        the magnitude.

SEC. 204. DEPARTMENT AND AGENCY PROGRAM GOALS.

    (a) Setting Priorities.--In exercising authority under applicable 
laws protecting human health, safety, or the environment, the head of 
each covered agency should strive to set priorities and to use the 
resources available under those laws to address those risks to human 
health, safety, and the environment that--
            (1) the covered agency determines to be the most serious; 
        and
            (2) 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.
    (b) Determining the Most Serious Risks.--In identifying the 
greatest risks under subsection (a) of this section, each covered 
agency shall consider, at a minimum--
            (1) the likelihood, irreversibility, and severity of the 
        effect; and
            (2) the number and groups of individuals potentially 
        affected, and shall explicitly take into account the results of 
        the comparative risk analysis conducted under section 205 of 
        this Act.
    (c) OMB Review.--The covered agency's determinations of the sources 
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 prior to submission of the covered agency's annual budget 
requests to Congress.
    (d) Incorporating Risk-Based Priorities Into Budget and Planning.--
The head of each covered agency shall incorporate the priorities 
identified in subsection (a) of this section into the agency budget, 
strategic planning, regulatory agenda, enforcement, and research 
activities by--
            (1) in the covered agency's annual budget request to 
        Congress--
                    (A) identifying which risks that the covered agency 
                head has determined are the most serious and can be 
                addressed in a cost-effective manner under subsection 
                (a) and the basis for that determination;
                    (B) explicitly identifying how the covered agency's 
                requested funds will be used to reduce those risks, 
                including the amount of funds requested to address each 
                of those risks; and
                    (C) identifying any statutory, regulatory, or 
                administrative obstacles to allocating agency resources 
                in accordance with the mandates of subsection (a);
            (2) explicitly considering the requirements of subsection 
        (a) and the results of the comparative risk analysis prepared 
        under section 205 of this title when preparing the covered 
agency's regulatory agenda or other covered agency strategic plan and 
explaining how the agenda or plan reflects those requirements and the 
comparative risk analysis when publishing any such agenda or strategic 
plan;
            (3) developing an annual enforcement strategic plan that 
        targets the priority risks identified under subsection (a); and
            (4) expressly considering the priority risks determined 
        under subsection (a) in selecting research activities.
    (e) Effective Date.--This section shall take effect twelve months 
from the date of enactment of this title.

SEC. 205. COMPARATIVE RISK ANALYSIS.

    (a) Requirement.--Within six months of the enactment of this title, 
the Director of the Office of Management and Budget shall enter into 
appropriate arrangements with an accredited scientific body--
            (1) to conduct a study of the methodologies for using 
        comparative risk to rank dissimilar human health, safety, and 
        environmental risks; and
            (2) to conduct a comparative risk analysis. 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.
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.
    (b) Criteria.--In arranging for the comparative risk analysis 
referred to in subsection (a), the Director shall ensure that--
            (1) 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;
            (2) the analysis is conducted through an open process, 
        which may include using panels of appropriate independent 
        experts and public stakeholders;
            (3) The methodologies and principal scientific 
        determinations made in the analysis are subjected to 
        independent and external peer review and that the conclusions 
        of the peer review are made publicly available as part of the 
        final report required by subsection (c);
            (4) there is an opportunity for public comment on the 
        results prior to making them final; and
            (5) the results are presented in a manner that 
        distinguishes between the scientific conclusions and any policy 
        or value judgments embodied in the comparisons.
    (c) Report.--The comparative risk analysis required by subsection 
(a) shall be completed and a report submitted to Congress and the 
President no later than three years following the enactment of this 
Act. The comparative risk analysis shall be reviewed and revised at 
least every five years thereafter for a minimum of fifteen 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 in subsections (a) and (b) above.
    (d) Study.--The study of methodologies provided in subsection (a) 
shall be conducted as part of the first comparative risk 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. As part of its analysis, 
the study shall review and evaluate the experience of the States that 
have conducted comparative risk analyses.
    (e) Report.--Within one hundred and eighty days after the 
completion of the study, the Director shall issue a report of the study 
to the Congress, along with results of a scientific peer review of the 
study.
    (f) Technical Guidance.--Not later than one hundred and eighty days 
after the enactment 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 section 204 of this title.

SEC. 206. REPORTS AND RECOMMENDATIONS TO CONGRESS AND THE PRESIDENT.

    (a) In General.--In addition to the statement submitted to Congress 
with each covered agency's annual budget request required under section 
204(d)(1) of this title, each covered agency shall submit a report to 
Congress and the President twenty-four months following the enactment 
of this legislation, and every twenty-four months thereafter--
            (1) detailing how the agency has complied with section 204;
            (2) describing the reasons for any departure from the 
        requirement to establish priorities to achieve the greatest 
        overall net reduction in risk; and
            (3) estimating the total public and private costs of 
        regulatory and voluntary risk reduction activities under 
        programs administered by the agency that year, a comparison of 
        that estimate with the previous year, and a projection for the 
        following year.
    (b) Recommendation.--In March of each year, the head of each 
covered agency shall submit to Congress specific recommendations for--
            (1) modifying, repealing, or enacting laws to reform, 
        eliminate, or enhance programs or mandates relating to human 
        health, safety, and the environment; and
            (2) modifying or eliminating statutorily or judicially 
        mandated deadlines,
that would assist the covered agency to set priorities in its 
activities to address the risks to human health, safety, and the 
environment that are the most serious and can be addressed in a cost-
effective manner consistent with the requirements of section 204(a).

SEC. 207. SAVINGS PROVISION AND JUDICIAL REVIEW.

    (1) In General.--Nothing in this title 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 title shall not be subject to judicial review.
    (3) Agency Analysis.--Any analysis prepared under this title 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.

                    TITLE III--REGULATORY ACCOUNTING

SEC. 301. SHORT TITLE

    This title may be cited as the ``Regulatory Accounting Act of 
1995''.

SEC. 302. ACCOUNTING STATEMENT

    (a) In General.--
            (1) Responsibility for implementation.--The President shall 
        be responsible for implementing and administering the 
        requirements of this title.
            (2) Accounting statement.--Every two 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 section.
    (b) Years Covered by Accounting Statement.--Each accounting 
statement shall cover, at a minimum, the five 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.
    (c) Timing and Procedures.--
            (1) Notice and comment.--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.
            (2) Deadlines for first statement.--The President shall 
        propose the first accounting statement under this section not 
        later than two years after the date of the enactment of this 
        Act and shall issue the first accounting statement in final 
        form not later than three years after the date of the enactment 
        of this Act. Such statement shall cover, at a minimum, each of 
        the eight fiscal years beginning after the date of the 
        enactment of this Act.
    (d) Content of Accounting Statement.--
            (1) In general.--Each accounting statement shall contain 
        estimates of costs and benefits with respect to each fiscal 
        year covered by the statement in accordance with this 
        subsection. 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.
            (2) Statement of costs.--
                    (A) In general.--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.
                    (B) National economic resources.--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.
            (3) Statement of corresponding benefits.--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.

SEC. 303. ASSOCIATED REPORT TO CONGRESS.

    (a) In General.--At the same time as the President submits an 
accounting statement under section 302, 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 section--
            (1) analyses of impacts; and
            (2) recommendations for reform.
    (b) Analyses of Impacts.--The President shall include in the 
associated report the following:
            (1) Analyses prepared by the President of the cumulative 
        impact of Federal regulatory programs covered in the accounting 
        statement on the following:
                    (A) The ability of State and local governments to 
                provide essential services, including police, fire 
                protection, and education.
                    (B) Small business.
                    (C) Productivity.
                    (D) Wages.
                    (E) Economic growth.
                    (F) Technological innovation.
                    (G) Consumer prices for goods and services.
                    (H) Such other factors considered appropriate by 
                the President.
            (2) A summary of any independent analyses of impacts 
        prepared by persons commenting during the comment period on the 
        accounting statement.
    (c) Recommendations for Reform.--The President shall include in the 
associated report the following:
            (1) 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.
            (2) 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.

SEC. 304. 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 titles I and III, 
        including--
                    (A) detailed guidance on estimating the costs and 
                benefits of major rules;
                    (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.

SEC. 305. 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 title, including recommendations on level of detail and 
        accuracy; and
            (2) for improving associated reports prepared pursuant to 
        this title, including recommendations on the quality of 
        analysis.

SEC. 306. DEFINITIONS.

    For purposes of this title, the following definitions apply:
            (1) The term ``Federal regulatory program'' means a program 
        carried out pursuant to a related group of Federal statutes and 
        regulations, as determined by the President.
            (2) 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 does 
        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.
            (3) 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 does 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.

   TITLE IV--MARKET INCENTIVES AND ECONOMICALLY EFFICIENT REGULATION

SEC. 401. SHORT TITLE.

    This title maybe cited as the ``Market Incentives Act of 1995''.

SEC. 402. PROGRAM DESIGN REQUIREMENTS.

    (a) In General.--To the maximum extent practicable, agencies shall 
ensure that major rules, especially, but not limited to, those that 
limit the emission of environmental pollutants or otherwise govern the 
use of natural resources, operate through the application of market-
based mechanisms.
    (b) Flexible Alternatives.--Where it is not practicable to rely on 
market-based mechanisms in designing regulatory programs, rules, or 
requirements, agencies shall ensure that major rules, to the maximum 
extent practicable, are comparable to market-based mechanisms with 
respect to (i) assuring the achievement of the regulatory objective, 
and (ii) affording flexibility to regulated persons.
    (c) Applicability.--Section 402 shall apply, to the extent 
feasible, to rules in effect on the date of enactment of this Act and 
rules that take effect after the date of enactment of this Act.

SEC. 403. AGENCY ASSESSMENT AND OMB REVIEW.

    (a) In General.--Each agency shall include an assessment of market-
based mechanisms in each proposed major rule. Each assessment shall 
demonstrate the extent to which the major rule complies with the 
requirements of section 402, or why section 402 is not applicable or 
appropriate.
    (b) OMB Review.--The Office of Management and Budget shall review, 
as part of its regulatory review and oversight function, the agency 
assessments and statements prepared in section 403(a). OMB shall 
determine whether such assessments are detailed, thorough, and 
otherwise in compliance with section 402.
    (c) Effective Date.--Section 403 shall take effect three months 
after the date of enactment of this Act.

SEC. 404. DEFINITIONS.

    For the purposes of this title:
            (1) 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 does 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) The term ``major rule'' means--
                    (A) a rule or a group of closely related rules that 
                the agency or the President reasonably determines is 
                likely to have an annual effect on the economy of 
                $100,000,000 or more in reasonably quantifiable direct 
                and indirect costs, or has a significant impact on a 
                subsector of the economy; and
                    (B) a rule or a group of closely related rules that 
                is otherwise designated a major rule by the agency 
                proposing the rule, or is so designated by 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; or
                            (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. For purposes of subparagraph (A) of 
this paragraph, the term ``rule'' does not mean--
            (I) a rule that involves the internal revenue laws of the 
        United States;
            (II) a rule that authorizes the introduction into commerce 
        or recognizes the marketable status of a product, pursuant to 
        sections 408, 409(c), and 706 of the Federal Food, Drug, and 
        Cosmetic Act;
            (III) a rule exempt from notice and public procedure 
        pursuant to section 553(a) of title 5, United States Code; or
            (IV) a rule relating to the viability, stability, asset 
        powers, or categories of accounts of, or permissible interest 
        rate ceilings applicable to, depository institutions the 
        deposits or accounts of which are insured by the Federal 
        Deposit Insurance Corporation, or the Share Insurance Fund of 
        the National Credit Union Administration Board.
            (3) The term ``market-based mechanism'' means a regulatory 
        requirement 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 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 
                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.
            (4) The term ``rule'' has the same meaning as in section 
        551(4) of title 5, United States Code, except that such term 
        does not include--
                    (A) a rule of particular applicability that 
                approves or prescribes for the future rates, wages, 
                prices, services, or allowances therefor, corporate or 
                financial structures, reorganizations, mergers or 
                acquisitions, or 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
                    (C) a rule issued by the Federal Election 
                Commission or a rule issued by the Federal 
                Communications Commission pursuant to sections 315 and 
                312(a)(7) of the Communications Act of 1934.
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