President Urges Independent Agencies Like CPSC to Join in Reg Review
On July 11, 2011, President Obama issued Executive Order 13579 and a memorandum to independent regulatory agencies urging them to comply with EO 13563 of January 2011 by producing their own plans to reassess and streamline existing regulations. The new EO also urges them to follow the cost-saving, burden-reducing principles outlined in the January EO for regulations going forward.
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(Among other things, EO 13563 directed each federal agency to develop a preliminary plan to periodically review its existing significant regulations to determine whether they should be modified, streamlined, expanded or repealed to make the agency’s regulatory program more effective and or less burdensome in achieving its regulatory objectives. The EO did not apply to the independent regulatory agencies. See ITT’s Online Archives or 01/19/11 news, 11011915, for BP summary of EO 13563.)
Independent Agencies Include CPSC, FTC, FERC, Etc.
For the purposes of the new EO, independent regulatory agencies has the meaning set out in 44 USC 3502(5)1 which includes the Consumer Product Safety Commission (CPSC), the Federal Trade Commission (FTC), the Federal Energy Regulatory Commission (FERC), etc.
They Should Analyze Existing Rules to Determine if Ineffective, Burdensome, Etc.
To facilitate the periodic review of existing significant regulations, the new EO states that independent regulatory agencies should consider how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned. Such retrospective analyses, including supporting data and evaluations, should be released online whenever possible.
Release Public Plan Within 120 Days on Retrospective Review
Within 120 days of the date of the order, each independent regulatory agency should develop and release to the public a plan, consistent with law and reflecting its resources and regulatory priorities and processes, under which the agency will periodically review its existing significant regulations to determine whether any such regulations should be modified, streamlined, expanded, or repealed so as to make the agency's regulatory program more effective or less burdensome in achieving the regulatory objectives.
Follow Cost-Savings, Burden-Reducing, Participation Principles of January EO
For new rulemakings, the independent agencies should also follow, to the extent permitted by law, the key cost-saving, burden-reducing principles outlined in the January EO. According to the new EO, as a matter of policy, wise regulatory decisions should be made only after consideration of their costs and benefits (both quantitative and qualitative).
In addition, to the extent permitted by law, independent regulatory agencies should also comply with the January EO’s general requirements concerning public participation, integration and innovation, flexible approaches, and science.
House Energy and Commerce Committee Welcomes Announcement
The House Energy and Commerce issued a press release stating that the “action is a welcome acknowledgement by the president that independent agencies like the FCC, FERC, and CPSC are indeed responsible for regulations that are harming our economic growth . . .”
144 USC 3502(5) states that the term “independent regulatory agency” means the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Product Safety Commission, the Federal Communications Commission, the Federal Deposit Insurance Corporation, the Federal Energy Regulatory Commission, the Federal Housing Finance Agency, the Federal Maritime Commission, the Federal Trade Commission, the Interstate Commerce Commission, the Mine Enforcement Safety and Health Review Commission, the National Labor Relations Board, the Nuclear Regulatory Commission, the Occupational Safety and Health Review Commission, the Postal Regulatory Commission, the Securities and Exchange Commission, and any other similar agency designated by statute as a Federal independent regulatory agency or commission.
(See ITT’s Online Archives or 06/02/11 news, 11060242, for BP summary of CPSC Commissioner Nord stating that CPSC was not participating in the Presidential regulatory reform effort.
See ITT’s Online Archives or 01/25/11 news, 11012547, for BP summary of the Chamber of Commerce urging the independent regulatory agencies to comply with EO 13563.)
White House blog on new EO directed at independent regulatory agencies, dated 07/11/11, available here.
Memorandum to independent regulatory agencies, dated 07/11/11, available here.
House Energy and Commerce Committee press release, dated 07/11/11, available here.
The Federal Register notice of EO 13579 is available here.