I
106TH CONGRESS
1ST SESSION
H. R. 3311
To provide for analysis of major rules, to promote the public’s right to
know the costs and benefits of major rules, and to increase the account-
ability and quality of Government.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 10, 1999
Mr. GEKAS introduced the following bill; which was referred to the Committee
on the Judiciary, and in addition to the Committee on Commerce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To provide for analysis of major rules, to promote the
public’s right to know the costs and benefits of major
rules, and to increase the accountability and quality of
Government.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Regulatory Improve-
ment Act of 2000’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Effective regulatory programs provide im-
portant benefits to the public, including protecting
the environment, worker safety, and public health.
Regulatory programs also impose significant costs
on individuals, businesses, and State, local, and trib-
al governments.
(2) Improving the ability of Federal agencies to
use scientific and economic analysis in developing
regulations should yield more effective protections
while minimizing costs.
(3) Cost-benefit analysis and risk assessment
are useful tools to better inform agencies in devel-
oping regulations, though such analyses do not re-
place good judgment and values.
(4) The evaluation of costs and benefits should
involve all relevant information, expressed in com-
parable terms.
(5) Cost-benefit analysis and risk assessment
should be presented with a clear statement of the
analytical assumptions and uncertainties, including
an explanation of what is known and not known and
what the implications of alternative assumptions
might be.
(6) The public has a right to know about the
costs and benefits of regulations, the risks ad-
dressed, the risks reduced, and the quality of sci-
entific and economic analysis used to support deci-
sions. Such knowledge will promote the quality, in-
tegrity, responsiveness, and acceptability of agency
actions.
(7) The Administrator of the Office of Informa-
tion and Regulatory Affairs should oversee regu-
latory activities to raise the quality and consistency
of cost-benefit analysis and risk assessment among
all agencies.
(8) The Federal Government should develop a
better understanding of the strengths and weak-
nesses of cost-benefit analysis and risk assessment
and conduct the research needed to improve these
analytical tools.
SEC. 3. REGULATORY IMPACT ANALYSIS.
(a) IN GENERAL.—Chapter 6 of title 5, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘SUBCHAPTER II—REGULATORY IMPACT
ANALYSIS
‘‘§ 621. Definitions
‘‘For purposes of this subchapter the definitions
under section 551 shall apply and—
‘‘(1) the term ‘benefit’ means a reasonably
identifiable favorable effect, which may include so-
cial, health, safety, environmental, and economic ef-
fects;
‘‘(2) the term ‘cost’ means a reasonably identi-
fiable adverse effect, which may include social,
health, safety, environmental, and economic, effects;
‘‘(3) the term ‘cost-benefit analysis’ means a
comparison of the costs and benefits, quantified to
the extent possible, that are expected to result from
the implementation of a rule;
‘‘(4) the term ‘Director’ means the Director of
the Office of Management and Budget, acting
through the Administrator of the Office of Informa-
tion and Regulatory Affairs;
‘‘(5) the term ‘major rule’ means a rule that—
‘‘(A) may have an effect on the economy of
$100 million or more;
‘‘(B) may adversely affect, in a material
way, the economy, a sector of the economy, pro-
ductivity, competition, jobs, the environment,
public health or safety, or State, local, or tribal
governments, or communities; or
‘‘(C) is so designated by the Director not
later than 30 days after the close of the com-
ment period for a rule or the publication of a
direct final rule, such designation being pub-
lished, together with a succinct statement of the
basis for the designation, within 30 days after
the date of the designation.
‘‘(6) the term ‘quantified’ means measured and
expressed in numerical and, as necessary, com-
parable terms.
‘‘(7) the term ‘regulatory impact analysis’
means—
‘‘(A) a cost-benefit analysis of a rule;
‘‘(B) cost-benefit analyses of a reasonable
number of alternative rules reflecting the range
of options that would comply with the statute
granting rule making authority, including where
feasible rules that—
‘‘(i) require no government action;
‘‘(ii) utilize only voluntary or edu-
cational programs;
‘‘(iii) provide flexibility for small enti-
ties as defined in section 601(6); and
‘‘(iv) use market-based mechanisms,
results-oriented performance-based stand-
ards, or other options that promote flexi-
bility for regulated persons and for State,
local, or tribal governments delegated au-
thority to administer a Federal program;
and
‘‘(C) if the primary purpose of the rule is
to address health, safety, or environmental
risks—
‘‘(i) a risk assessment of the proposed
rule; and
‘‘(ii) an evaluation of any substitution
risk relating to the proposed rule;
‘‘(8) the term ‘risk assessment’ means the sys-
tematic, objective process of organizing hazard and
exposure information, based on a careful analysis of
the weight of the scientific evidence, to estimate the
potential for specific harm to an exposed population
or resource, including, to the extent feasible, a char-
acterization of the distribution of risk as well as an
analysis of uncertainties, variabilities, conflicting in-
formation, 
inferences, 
and 
assumptions 
and
includes—
‘‘(A) an identification of the hazard ad-
dressed by the rule, including data on the harm
addressed by the rule and the conditions that
produce it;
‘‘(B) an identification of the populations or
natural resources that are subject to the hazard
addressed by the rule;
‘‘(C) an assessment of the quantitative re-
lation between the amount of exposure to the
agent or activity addressed by the rule and the
extent of the harms addressed by the rule;
‘‘(D) an assessment of exposure, including
a description of the nature and size of the pop-
ulations or resources exposed to an agent or ac-
tivity addressed by the rule and the magnitude
and duration of their exposure;
‘‘(E) an integration of the information
from subparagraphs (A) through (D) to deter-
mine the reasonable likelihood that a population
or resource will experience the harms addressed
by the rule; and
‘‘(F) a description of the major uncertain-
ties in each component of the risk assessment
and their influence on the results of the risk as-
sessment; and
‘‘(9) the term ‘substitution risk’ means an iden-
tifiable risk of harm to health, safety, or the envi-
ronment expected to result from the implementation
of a rule.
‘‘§ 622. Regulatory impact analysis
‘‘(a)(1) When an agency publishes a notice of pro-
posed rule making for a major rule, the agency shall—
‘‘(A) prepare and place in the rule making file
an initial regulatory impact analysis; and
‘‘(B) include a summary of such analysis in the
notice of proposed rule making.
‘‘(2) When the Director has designated a rule a major
rule under section 621(5)(C) or when the agency has pub-
lished an interim final major rule, the agency shall—
‘‘(A) promptly prepare and place in the rule
making file an initial regulatory impact analysis for
the rule;
‘‘(B) publish in the Federal Register a sum-
mary of such analysis; and
‘‘(C) give interested parties the same oppor-
tunity to comment under section 553 as if the initial
regulatory impact analysis had been issued with the
notice of proposed rule making.
‘‘(b) When the agency publishes a final major rule,
or at the conclusion of the comment period required by
subsection (a)(2)(C), the agency shall prepare and place
in the rule making file a final regulatory impact analysis
which shall address each of the requirements of the initial
regulatory impact analysis required by subsection
(a)(1)(A) or (a)(2)(A) revised to reflect—