‘‘SEC. 202. REGULATORY IMPACT ANALYSES FOR CERTAIN 
RULES.’’; 
(2) by redesignating subsections (b) and (c) as 
subsections (d) and (e), respectively; 
(3) by striking subsection (a) and inserting the 
following: 
‘‘(a) DEFINITION.—In this section, the term ‘cost’ 
means the cost of compliance and any reasonably foresee-
able indirect costs, including revenues lost as a result of 
an agency rule subject to this section. 
‘‘(b) IN GENERAL.—Before promulgating any pro-
posed or final rule that may have an annual effect on the 
economy of $100,000,000 or more (adjusted for inflation), 
or that may result in the expenditure by State, local, and 
tribal governments, in the aggregate, of $100,000,000 or 
more (adjusted for inflation) in any 1 year, each agency 
shall prepare and publish in the Federal Register an initial 
and final regulatory impact analysis. The initial regulatory 
impact analysis shall accompany the agency’s notice of 
proposed rulemaking and shall be open to public comment. 
The final regulatory impact analysis shall accompany the 
final rule. 
‘‘(c) CONTENT.—The initial and final regulatory im-
pact analysis under subsection (b) shall include— 
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‘‘(1)(A) an analysis of the anticipated benefits 
and costs of the rule, which shall be quantified to 
the extent feasible; 
‘‘(B) an analysis of the benefits and costs of a 
reasonable number of regulatory alternatives within 
the range of the agency’s discretion under the stat-
ute authorizing the rule, including alternatives 
that— 
‘‘(i) require no action by the Federal Gov-
ernment; and 
‘‘(ii) use incentives and market-based 
means to encourage the desired behavior, pro-
vide information upon which choices can be 
made by the public, or employ other flexible 
regulatory options that permit the greatest 
flexibility in achieving the objectives of the stat-
utory provision authorizing the rule; and 
‘‘(C) an explanation that the rule meets the re-
quirements of section 205; 
‘‘(2) an assessment of the extent to which— 
‘‘(A) the costs to State, local, and tribal 
governments may be paid with Federal financial 
assistance (or otherwise paid for by the Federal 
Government); and 
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‘‘(B) there are available Federal resources 
to carry out the rule; 
‘‘(3) estimates of— 
‘‘(A) any disproportionate budgetary ef-
fects of the rule upon any particular regions of 
the Nation or particular State, local, or tribal 
governments, urban or rural or other types of 
communities, or particular segments of the pri-
vate sector; and 
‘‘(B) the effect of the rule on job creation 
or job loss, which shall be quantified to the ex-
tent feasible; and 
‘‘(4)(A) a description of the extent of the agen-
cy’s prior consultation with elected representatives 
(under section 204) of the affected State, local, and 
tribal governments; 
‘‘(B) a summary of the comments and concerns 
that were presented by State, local, or tribal govern-
ments either orally or in writing to the agency; and 
‘‘(C) a summary of the agency’s evaluation of 
those comments and concerns.’’; 
(4) in subsection (d) (as redesignated by para-
graph (2) of this subsection), by striking ‘‘subsection 
(a)’’ and inserting ‘‘subsection (b)’’; and 
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(5) in subsection (e) (as redesignated by para-
graph (2) of this subsection), by striking ‘‘subsection 
(a)’’ each place that term appears and inserting 
‘‘subsection (b)’’. 
SEC. 4. LEAST BURDENSOME OPTION OR EXPLANATION RE-
QUIRED. 
Section 205 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1535) is amended to read as follows: 
‘‘SEC. 205. LEAST BURDENSOME OPTION OR EXPLANATION 
REQUIRED. 
‘‘Before promulgating any proposed or final rule for 
which a regulatory impact analysis is required under sec-
tion 202, the agency shall— 
‘‘(1) identify and consider a reasonable number 
of regulatory alternatives within the range of the 
agency’s discretion under the statute authorizing the 
rule, including alternatives required under section 
202(c)(1)(B); and 
‘‘(2) from the alternatives described under 
paragraph (1), select the least costly, most cost-ef-
fective, or least burdensome alternative that achieves 
the objectives of the statute.’’. 
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SEC. 5. INCLUSION OF APPLICATION TO INDEPENDENT 
REGULATORY AGENCIES. 
(a) IN GENERAL.—Section 421(1) of the Congres-
sional Budget and Impoundment Control Act of 1974 (2 
U.S.C. 658(1)) is amended by striking ‘‘, but does not in-
clude independent regulatory agencies’’. 
(b) EXEMPTION FOR MONETARY POLICY.—The Un-
funded Mandates Reform Act of 1995 (2 U.S.C. 1501 et 
seq.) is amended by inserting after section 5 the following: 
‘‘SEC. 6. EXEMPTION FOR MONETARY POLICY. 
‘‘Nothing in title II, III, or IV shall apply to rules 
that concern monetary policy proposed or implemented by 
the Board of Governors of the Federal Reserve System 
or the Federal Open Market Committee.’’. 
SEC. 6. JUDICIAL REVIEW. 
Section 401 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1571) is amended to read as follows: 
‘‘SEC. 401. JUDICIAL REVIEW. 
‘‘(a) IN GENERAL.—For any rule subject to section 
202, a party aggrieved by final agency action is entitled 
to judicial review of an agency’s analysis under and com-
pliance with subsections (b) and (c)(1) of section 202 and 
section 205. The scope of review shall be governed by 
chapter 7 of title 5, United States Code. 
‘‘(b) JURISDICTION.—Each court having jurisdiction 
to review a rule subject to section 202 for compliance with 
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