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





                                                       Calendar No. 117

104th CONGRESS

  1st Session

                                 S. 291

                          [Report No. 104-88]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                 May 25 (legislative day, May 15), 1995

                       Reported with an amendment





                                                       Calendar No. 117
104th CONGRESS
  1st Session
                                 S. 291

                          [Report No. 104-88]

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

                 May 25 (legislative day, May 15), 1995

                Reported by Mr. Roth, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Regulatory Reform Act of 
1995''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

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

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

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

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

<DELETED>Sec. 401. Short title.
<DELETED>Sec. 402. Program design requirements.
<DELETED>Sec. 403. Agency assessment and OMB review.
<DELETED>Sec. 404. Definitions.
       <DELETED>TITLE I--REGULATORY ANALYSIS AND REVIEW</DELETED>

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

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

    <DELETED>``Subchapter II--Analysis of Agency Proposals</DELETED>

<DELETED>``Sec. 621. Definitions</DELETED>
<DELETED>    ``For purposes of this subchapter and subchapter III of 
this chapter:</DELETED>
        <DELETED>    ``(1) The term `agency' has the same meaning as in 
        section 551(1) of this title.</DELETED>
        <DELETED>    ``(2) The term `person' has the same meaning as in 
        section 551(2) of this title.</DELETED>
        <DELETED>    ``(3) The term `rule' has the same meaning as in 
        section 551(4) of this title, except that such term does not 
        include--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) a rule relating to monetary policy 
                proposed or promulgated by the Board of Governors of 
                the Federal Reserve System; or</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) The term `major rule' means--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) a rule that involves 
                                the internal revenue laws of the United 
                                States;</DELETED>
                                <DELETED>    ``(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;</DELETED>
                                <DELETED>    ``(III) a rule exempt from 
                                notice and public procedure pursuant to 
                                section 553(a) of this title; 
                                or</DELETED>
                                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 622. Regulatory cost/benefit analysis</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Each preliminary regulatory analysis shall contain--
</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(C) a succinct description of reasonable 
        alternatives for achieving the identified benefits of the 
        proposed rule, including alternatives that--</DELETED>
                <DELETED>    ``(i) require no Government 
                action;</DELETED>
                <DELETED>    ``(ii) will accommodate differences 
                between geographic regions; and</DELETED>
                <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
         scientific evaluations or scientific information in accordance 
with the requirements of title IV; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Each final regulatory analysis shall contain--
</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
 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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(g) The requirements of this section do not alter the 
criteria for rulemaking otherwise applicable under other 
statutes.</DELETED>
<DELETED>``Sec. 623. Judicial review</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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</DELETED>
 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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 624. Executive oversight</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) The authority granted under subsection (a) of this 
section and title II shall not apply to rules issued by the Nuclear 
Regulatory Commission.</DELETED>
<DELETED>    ``(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.</DELETED>

         <DELETED>``Subchapter III--Risk Assessments</DELETED>

<DELETED>``Sec. 631. Findings, purposes, and definitions</DELETED>
<DELETED>    ``(a) Findings.--The Congress finds that:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Purposes.--The purposes of this subchapter are--
</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) to provide for full consideration and 
        discussion of relevant data and potential 
        methodologies;</DELETED>
        <DELETED>    ``(3) to require explanation of significant 
        choices in the risk assessment process that will allow for 
        better public understanding; and</DELETED>
        <DELETED>    ``(4) to improve consistency within the executive 
        branch in preparing risk assessments and risk 
        characterizations.</DELETED>
<DELETED>    ``(c) Definitions.--For purposes of this 
subchapter:</DELETED>
        <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(A) Central estimates of risk using the 
                most plausible assumptions.</DELETED>
                <DELETED>    ``(B) An approach that combines multiple 
                estimates based on different scenarios and weighs the 
                probability of each scenario.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Covered agency.--The term `covered agency' 
        means each of the following:</DELETED>
                <DELETED>    ``(A) The Environmental Protection 
                Agency.</DELETED>
                <DELETED>    ``(B) The Department of Labor.</DELETED>
                <DELETED>    ``(C) The Food and Drug 
                Administration.</DELETED>
                <DELETED>    ``(D) The Consumer Product Safety 
                Commission.</DELETED>
                <DELETED>    ``(E) The Department of 
                Transportation.</DELETED>
                <DELETED>    ``(F) The Department of Energy.</DELETED>
                <DELETED>    ``(G) The Department of 
                Agriculture.</DELETED>
                <DELETED>    ``(H) The Department of the 
                Interior.</DELETED>
                <DELETED>    ``(I) The Nuclear Regulatory 
                Commission.</DELETED>
        <DELETED>    ``(3) Emergency.--The term `emergency' means an 
        imminent and substantial endangerment to public health, safety, 
        or the environment.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(5) Risk assessment.--The term `risk assessment' 
        means--</DELETED>
                <DELETED>    ``(A) the process of identifying hazards 
                and quantifying or describing the degree of toxicity, 
                exposure, or other risk they pose for exposed</DELETED>
                 individuals, populations, or resources; and</DELETED>
                <DELETED>    ``(B) the document containing the 
                explanation of how the assessment process has been 
                applied to an individual substance, activity, or 
                condition.</DELETED>
        <DELETED>    ``(6) Risk characterization.--The term `risk 
        characterization' means--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) includes discussions of 
                uncertainties, conflicting data, estimates, 
                extrapolations, inferences, and opinions.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 632. Applicability</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Exceptions.--</DELETED>
        <DELETED>    ``(1) In general.--This title shall not apply to 
        risk assessments or risk characterizations performed with 
        respect to--</DELETED>
                <DELETED>    ``(A) a situation that the head of the 
                agency considers to be an emergency; or</DELETED>
                <DELETED>    ``(B) a screening analysis, including a 
                screening analysis for the purposes of product 
                registration, product reregistrations, or 
                premanufacturing notices.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) as the basis for imposing a 
                restriction on a substance or activity; or</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 633. Savings provisions</DELETED>
<DELETED>    ``Nothing in this title shall be construed to--</DELETED>
        <DELETED>    ``(1) modify any statutory standard or requirement 
        designed to protect human health, safety, or the 
        environment;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(3) require the disclosure of any trade secrets 
        or other confidential information.</DELETED>
<DELETED>``Sec. 634. Requirement to prepare risk assessments</DELETED>
<DELETED>    ``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--
</DELETED>
        <DELETED>    ``(1) a risk assessment in accordance with this 
        title; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 635. Principles for risk assessment</DELETED>
<DELETED>    ``(a) In General.--The head of each covered agency shall 
ensure that risk assessments and all of their components--</DELETED>
        <DELETED>    ``(1) distinguish scientific findings and best 
        estimates of risk from other considerations;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(3) rely on scientific findings of 
        risk;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(5) are tailored so that the degree of 
        specificity and rigor employed is commensurate with the 
        consequences of the decision to be made.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 636. Principles for risk characterization and risk 
              communication</DELETED>
<DELETED>    ``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:</DELETED>
        <DELETED>    ``(1) Estimates of risk.--</DELETED>
                <DELETED>    ``(A) Subject.--A description of the 
                populations or natural resources that are the subject 
                of the risk characterization.</DELETED>
                <DELETED>    ``(B) Assumptions, inferences, and 
                models.--When a risk assessment involves a choice of 
                any significant assumption,</DELETED>
                 inference, or model, the covered agency or 
instrumentality preparing the risk assessment shall--</DELETED>
                        <DELETED>    ``(i) present a representative 
                        list and explanation of plausible and 
                        alternative assumptions, inferences, or 
                        models;</DELETED>
                        <DELETED>    ``(ii) explain the basis for any 
                        choices;</DELETED>
                        <DELETED>    ``(iii) identify any subjective 
                        policy decisions or value judgments; 
                        and</DELETED>
                        <DELETED>    ``(iv) indicate the extent to 
                        which any significant model has been validated 
                        by, or conflicts with, empirical 
                        data.</DELETED>
                <DELETED>    ``(C) Uncertainty.--The major 
                uncertainties in the risk assessment.</DELETED>
                <DELETED>    ``(D) Exposure scenarios.--Information 
                about exposure scenarios used, including the likelihood 
                of those scenarios.</DELETED>
                <DELETED>    ``(E) Risk range.--To the extent feasible, 
                a range of risk estimates, including central estimates, 
                for each exposure scenario.</DELETED>
                <DELETED>    ``(F) Scientific findings and policy 
                decisions.--To the extent feasible, each risk 
                characterization should distinguish between scientific 
                findings and policy decisions.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Summaries of other risk estimates.--If--
        </DELETED>
                <DELETED>    ``(A) a covered agency provides a public 
                comment period with respect to a risk assessment or 
                regulation;</DELETED>
                <DELETED>    ``(B) a commenter provides a risk 
                assessment, and a summary of results of such risk 
                assessment; and</DELETED>
                <DELETED>    ``(C) such risk assessment is consistent 
                with the principles and the guidance provided under 
                this subtitle,</DELETED>
        <DELETED>the covered agency shall present such summary in 
        connection with its presentation of the risk assessment or 
        regulation.</DELETED>
<DELETED>``Sec. 637. Guidelines, plan for assessing new information, 
              and report</DELETED>
<DELETED>    ``(a) Guidelines.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Matters to be addressed.--The guidelines 
        under paragraph (1) shall--</DELETED>
                <DELETED>    ``(A) include guidance on utilization of 
                specific technical methodologies and standards for 
                acceptable quality of specific kinds of data; 
                and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Plan.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Contents.--A plan under paragraph (1) 
        shall--</DELETED>
                <DELETED>    ``(A) provide procedures for receiving and 
                considering new information and risk assessments from 
                the public; and</DELETED>
                <DELETED>    ``(B) set priorities for review and 
                revision of risk assessments based on such factors as 
                the agency head considers appropriate.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Review.--The President shall review the guidelines 
published under this section at least every four years.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 638. Risk management criteria</DELETED>
<DELETED>    ``For each major rule subject to this title, the head of 
the agency or the President shall make a determination that--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) there is no regulatory alternative that is 
        allowed by the statute under which the regulation is 
        promulgated that would</DELETED>
         achieve an equivalent reduction in risk in a more cost-
effective and flexible manner.</DELETED>
<DELETED>``Sec. 639. Interagency coordination</DELETED>
<DELETED>    ``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--
</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) provide advice and recommendations to the 
        President and Congress based on the surveys conducted and 
        determinations made under paragraph (1);</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(4) establish appropriate mechanisms between 
        Federal and State agencies to communicate state-of-the-art risk 
        assessment practices; and</DELETED>
        <DELETED>    ``(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.</DELETED>

  <DELETED>``Subchapter IV--Regulatory Priorities and Review</DELETED>

<DELETED>``Sec. 641. Review of agency rules</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(B) Each proposed schedule required by subparagraph (A) 
shall include--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(iii) a statement that the agency requests 
        comments from the public on the proposed schedule.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b)(1) Except where explicitly provided otherwise by 
statute, the agency shall, pursuant to subsections (c) through (e) of 
this section, review--</DELETED>
        <DELETED>    ``(A) each rule on the schedule promulgated 
        pursuant to subsection (a) of this section;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>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.</DELETED>
<DELETED>    ``(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</DELETED>
 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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) an assessment of the benefits and costs of 
        the rule during the period in which it has been in 
        effect;</DELETED>
        <DELETED>    ``(3) an explanation of the proposed agency action 
        with respect to the rule; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) If an agency proposed to renew without amendment a 
rule under review pursuant to this section, the agency shall--
</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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</DELETED>
 than fifteen years. Such extension shall be published in the Federal 
Register with an explanation of the reasons therefor.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>Sec. 642. Regulatory agenda and calendar</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) a statement of whether or not the rule is or 
        is expected to be a major rule;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(4) the name, address, and telephone number of 
        an agency official responsible for answering questions from the 
        public concerning the rule;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(6) a cumulative summary of the status of the 
        rules listed on the previous agenda in accordance with clause 
        (5) of this subsection.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Any compliance or noncompliance by the agency with 
the provisions of this section shall not be subject to judicial 
review.</DELETED>
<DELETED>``Sec. 643. Establishment of deadlines</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) If an agency fails to complete action in a 
proceeding, or a major portion of the proceeding, by the date 
announced</DELETED>
 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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>
       <DELETED>``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS

              <DELETED>``SUBCHAPTER I--REGULATORY ANALYSIS

<DELETED>``Sec.
<DELETED>``601. Definitions.
<DELETED>``602. Regulatory agenda.
<DELETED>``603. Initial regulatory flexibility analysis.
<DELETED>``604. Final regulatory flexibility analysis.
<DELETED>``605. Avoidance of duplicative or unnecessary analyses.
<DELETED>``606. Effect on other law.
<DELETED>``607. Preparation of analyses.
<DELETED>``608. Procedure for waiver or delay of completion.
<DELETED>``609. Procedures for gathering comments.
<DELETED>``610. Periodic review of rules.
<DELETED>``611. Judicial review.
<DELETED>``612. Reports and intervention rights.
         <DELETED>``SUBCHAPTER II--ANALYSIS OF AGENCY PROPOSALS

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

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

<DELETED>``641. Review of agency rules.
<DELETED>``642. Regulatory agenda and calendar.
<DELETED>``643. Establishment of deadlines.''.
<DELETED>SEC. 102. USE OF STATE OR LOCAL REQUIREMENTS.</DELETED>

<DELETED>    (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:</DELETED>
<DELETED>``Sec. 560. Use of duplicative State or local 
              requirements</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) This section does not limit the authority or 
responsibility of the head of any agency to enforce Federal 
law.''.</DELETED>
<DELETED>    (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''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``560. Use of duplicative State or local requirements.''.
<DELETED>SEC. 103. PRESIDENTIAL AUTHORITY.</DELETED>

<DELETED>    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.</DELETED>
           <DELETED>TITLE II--RISK-BASED PRIORITIES</DELETED>

<DELETED>SEC. 201. SHORT TITLE.</DELETED>

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

<DELETED>SEC. 202. PURPOSES.</DELETED>

<DELETED>    It is the purposes of this title to--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (2) promote the coordination of policies and 
        programs to reduce risks to human health, safety, and the 
        environment; and</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 203. DEFINITIONS.</DELETED>

<DELETED>    For the purposes of this title:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Covered agency.--The term ``covered agency'' 
        means each of the following:</DELETED>
                <DELETED>    (A) The Environmental Protection 
                Agency.</DELETED>
                <DELETED>    (B) The Department of Labor.</DELETED>
                <DELETED>    (C) The Food and Drug 
                Administration.</DELETED>
                <DELETED>    (D) The Consumer Product Safety 
                Commission.</DELETED>
                <DELETED>    (E) The Department of 
                Transportation.</DELETED>
                <DELETED>    (F) The Department of Energy.</DELETED>
                <DELETED>    (G) The Department of 
                Agriculture.</DELETED>
                <DELETED>    (H) The Department of the 
                Interior.</DELETED>
                <DELETED>    (I) The Nuclear Regulatory 
                Commission.</DELETED>
        <DELETED>    (3) Director.--The term ``Director'' means the 
        Director of the Office of Management and Budget.</DELETED>
        <DELETED>    (4) Effect.--The term ``effect'' means a 
        deleterious change in the condition--</DELETED>
                <DELETED>    (A) of a human or other living thing 
                (including death, cancer, or other chronic illness, 
                decreased reproductive capacity, or disfigurement); 
                or</DELETED>
                <DELETED>    (B) of an inanimate thing important to 
                human welfare (including destruction, degeneration, the 
                loss of intended function, and increased costs for 
                maintenance).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Likelihood.--The term ``likelihood'' means the 
        estimated probability that an effect will occur.</DELETED>
        <DELETED>    (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</DELETED>
         exposure to a stressor.</DELETED>
        <DELETED>    (8) Seriousness.--The term ``seriousness'' means 
        the intensity of effect, the likelihood, the irreversibility, 
        and the magnitude.</DELETED>

<DELETED>SEC. 204. DEPARTMENT AND AGENCY PROGRAM GOALS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) the covered agency determines to be the most 
        serious; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) the likelihood, irreversibility, and severity 
        of the effect; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) in the covered agency's annual budget request 
        to Congress--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) identifying any statutory, regulatory, 
                or administrative obstacles to allocating agency 
                resources in accordance with the mandates of subsection 
                (a);</DELETED>
        <DELETED>    (2) explicitly considering the requirements of 
        subsection (a) and the results of the comparative risk analysis 
        prepared under section 205 of this title when</DELETED>
         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;</DELETED>
        <DELETED>    (3) developing an annual enforcement strategic 
        plan that targets the priority risks identified under 
        subsection (a); and</DELETED>
        <DELETED>    (4) expressly considering the priority risks 
        determined under subsection (a) in selecting research 
        activities.</DELETED>
<DELETED>    (e) Effective Date.--This section shall take effect twelve 
months from the date of enactment of this title.</DELETED>

<DELETED>SEC. 205. COMPARATIVE RISK ANALYSIS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) to conduct a study of the methodologies for 
        using comparative risk to rank dissimilar human health, safety, 
        and environmental risks; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>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.</DELETED>
<DELETED>    (b) Criteria.--In arranging for the comparative risk 
analysis referred to in subsection (a), the Director shall ensure 
that--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (2) the analysis is conducted through an open 
        process, which may include using panels of appropriate 
        independent experts and public stakeholders;</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (4) there is an opportunity for public comment on 
        the results prior to making them final; and</DELETED>
        <DELETED>    (5) the results are presented in a manner that 
        distinguishes between the scientific conclusions and any policy 
        or value judgments embodied in the comparisons.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 206. REPORTS AND RECOMMENDATIONS TO CONGRESS AND THE 
              PRESIDENT.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) detailing how the agency has complied with 
        section 204;</DELETED>
        <DELETED>    (2) describing the reasons for any departure from 
        the requirement to establish priorities to achieve the greatest 
        overall net reduction in risk; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Recommendation.--In March of each year, the head of 
each covered agency shall submit to Congress specific recommendations 
for--</DELETED>
        <DELETED>    (1) modifying, repealing, or enacting laws to 
        reform, eliminate, or enhance programs or mandates relating to 
        human health, safety, and the environment; and</DELETED>
        <DELETED>    (2) modifying or eliminating statutorily or 
        judicially mandated deadlines,</DELETED>
<DELETED>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).</DELETED>

<DELETED>SEC. 207. SAVINGS PROVISION AND JUDICIAL REVIEW.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (2) Judicial Review.--Compliance or noncompliance by an 
agency with the provisions of this title shall not be subject to 
judicial review.</DELETED>
<DELETED>    (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.</DELETED>
          <DELETED>TITLE III--REGULATORY ACCOUNTING</DELETED>

<DELETED>SEC. 301. SHORT TITLE</DELETED>

<DELETED>    This title may be cited as the ``Regulatory Accounting Act 
of 1995''.</DELETED>

<DELETED>SEC. 302. ACCOUNTING STATEMENT</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Responsibility for implementation.--The 
        President shall be responsible for implementing and 
        administering the requirements of this title.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Timing and Procedures.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Content of Accounting Statement.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Statement of costs.--</DELETED>
                <DELETED>    (A) In general.--An accounting statement 
                shall estimate the costs of Federal regulatory programs 
                by setting forth, for each year covered by the 
                statement--</DELETED>
                        <DELETED>    (i) the annual expenditure of 
                        national economic resources for the regulatory 
                        program; and</DELETED>
                        <DELETED>    (ii) such other quantitative and 
                        qualitative measures of costs as the President 
                        considers appropriate.</DELETED>
                <DELETED>    (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:</DELETED>
                        <DELETED>    (i) Private sector 
                        costs.</DELETED>
                        <DELETED>    (ii) Federal sector administrative 
                        costs.</DELETED>
                        <DELETED>    (iii) Federal sector compliance 
                        costs.</DELETED>
                        <DELETED>    (iv) State and local government 
                        administrative costs.</DELETED>
                        <DELETED>    (v) State and local government 
                        compliance costs.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 303. ASSOCIATED REPORT TO CONGRESS.</DELETED>

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

<DELETED>SEC. 304. GUIDANCE FROM OFFICE OF MANAGEMENT AND 
              BUDGET.</DELETED>

<DELETED>    The Director of the Office of Management and Budget shall, 
in consultation with the Council of Economic Advisers, provide guidance 
to agencies--</DELETED>
        <DELETED>    (1) to standardize measures of costs and benefits 
        in accounting statements prepared pursuant to titles I and III, 
        including--</DELETED>
                <DELETED>    (A) detailed guidance on estimating the 
                costs and benefits of major rules;</DELETED>
                <DELETED>    (B) general guidance on estimating the 
                costs and benefits of all other rules that do not meet 
                the thresholds for major rules; and</DELETED>
        <DELETED>    (2) to standardize the format of the accounting 
        statements.</DELETED>

<DELETED>SEC. 305. RECOMMENDATIONS FROM CONGRESSIONAL BUDGET 
              OFFICE.</DELETED>

<DELETED>    After each accounting statement and associated report 
submitted to Congress, the Director of the Congressional Budget Office 
shall make recommendations to the President--</DELETED>
        <DELETED>    (1) for improving accounting statements prepared 
        pursuant to this title, including recommendations on level of 
        detail and accuracy; and</DELETED>
        <DELETED>    (2) for improving associated reports prepared 
        pursuant to this title, including recommendations on the 
        quality of analysis.</DELETED>

<DELETED>SEC. 306. DEFINITIONS.</DELETED>

<DELETED>    For purposes of this title, the following definitions 
apply:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) administrative actions governed by 
                sections 556 and 557 of title 5, United States 
                Code;</DELETED>
                <DELETED>    (B) regulations issued with respect to a 
                military or foreign affairs function of the United 
                States; or</DELETED>
                <DELETED>    (C) regulations related to agency 
                organization, management, or personnel.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the General Accounting 
                Office;</DELETED>
                <DELETED>    (B) the Federal Election 
                Commission;</DELETED>
                <DELETED>    (C) the governments of the District of 
                Columbia and of the territories and possessions of the 
                United States, and their various subdivisions; 
                or</DELETED>
                <DELETED>    (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities.</DELETED>

    <DELETED>TITLE IV--MARKET INCENTIVES AND ECONOMICALLY EFFICIENT 
                          REGULATION</DELETED>

<DELETED>SEC. 401. SHORT TITLE.</DELETED>

<DELETED>    This title maybe cited as the ``Market Incentives Act of 
1995''.</DELETED>

<DELETED>SEC. 402. PROGRAM DESIGN REQUIREMENTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>SEC. 403. AGENCY ASSESSMENT AND OMB REVIEW.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Effective Date.--Section 403 shall take effect three 
months after the date of enactment of this Act.</DELETED>

<DELETED>SEC. 404. DEFINITIONS.</DELETED>

<DELETED>    For the purposes of this title:</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the General Accounting 
                Office;</DELETED>
                <DELETED>    (B) the Federal Election 
                Commission;</DELETED>
                <DELETED>    (C) the governments of the District of 
                Columbia and of the territories and possessions of the 
                United States, and their various subdivisions; 
                or</DELETED>
                <DELETED>    (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities.</DELETED>
        <DELETED>    (2) The term ``major rule'' means--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (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.</DELETED>
                         For purposes of subparagraph (A) of this 
paragraph, the term ``rule'' does not mean--</DELETED>
        <DELETED>    (I) a rule that involves the internal revenue laws 
        of the United States;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (III) a rule exempt from notice and public 
        procedure pursuant to section 553(a) of title 5, United States 
        Code; or</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) The term ``market-based mechanism'' means a 
        regulatory requirement that:</DELETED>
                <DELETED>    (A) imposes legal accountability for the 
                achievement of an explicit regulatory objective on each 
                regulated person;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) a rule relating to monetary policy 
                proposed or promulgated by the Board of Governors of 
                the Federal Reserve System; or</DELETED>
                <DELETED>    (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.</DELETED>
SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

    Section 551 of title 5, United States Code, is amended--
            (1) in paragraph (13), by striking out ``; and'' and 
        inserting in lieu thereof a semicolon;
            (2) in paragraph (14), by striking out the period and 
        inserting in lieu thereof ``; and''; and
            (3) by adding at the end thereof the following new 
        paragraph:
            ``(15) `Director' means the Director of the Office of 
        Management and Budget.''.

SEC. 3. ANALYSIS OF AGENCY RULES.

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

``Sec. 621. Definitions
    ``For purposes of this subchapter the definitions under section 551 
shall apply and--
            ``(1) the term `benefit' means the reasonably identifiable 
        significant favorable effects, including social, environmental 
        and economic benefits, that are expected to result directly or 
        indirectly from implementation of a rule or an alternative to a 
        rule;
            ``(2) the term `cost' means the reasonably identifiable 
        significant adverse effects, including social, environmental, 
        and economic costs that are expected to result directly or 
        indirectly from implementation of, or compliance with, a rule 
        or an alternative to a rule;
            ``(3) the term `cost-benefit analysis' means an evaluation 
        of the costs and benefits of a rule, quantified to the extent 
        feasible and appropriate and otherwise qualitatively described, 
        that is prepared in accordance with the requirements of this 
        subchapter at the level of detail appropriate and practicable 
        for reasoned decisionmaking on the matter involved, taking into 
        consideration the significance and complexity of the decision 
        and any need for expedition;
            ``(4)(A) the term `major rule' means--
                    ``(i) a rule or a group of closely related rules 
                that the agency proposing the rule, the Director, or a 
                designee of the President reasonably determines is 
                likely to have a gross annual effect on the economy of 
                $100,000,000 or more in reasonably quantifiable direct 
                and indirect costs; or
                    ``(ii) a rule or a group of closely related rules 
                that is otherwise determined to be a major rule by the 
                agency proposing the rule, the Director, or a designee 
                of 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, local, or tribal government agencies, or 
                        geographic regions;
                            ``(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;
                            ``(III) a serious inconsistency or 
                        interference with an action taken or planned by 
                        another agency;
                            ``(IV) the material alteration of the 
                        budgetary impact of entitlements, grants, user 
                        fees, or loan programs, or the rights and 
                        obligations of recipients thereof; or
                            ``(V) a significant impact on a sector of 
                        the economy, or disproportionate costs to a 
                        class of persons and relatively severe 
                        economic, social, and environmental 
                        consequences for the class; and
            ``(B) the term `major rule' shall not include--
                    ``(i) a rule that involves the internal revenue 
                laws of the United States;
                    ``(ii) a rule or agency action that authorizes the 
                introduction into, or removal from, commerce, or 
                recognizes the marketable status, of a product; or
                    ``(iii) a rule exempt from notice and public 
                comment procedure under section 553 of this title;
            ``(5) the term `market-based mechanism' means a regulatory 
        program that--
                    ``(A) imposes legal accountability for the 
                achievement of an explicit regulatory objective, 
                including the reduction of environmental pollutants or 
                of risks to human health, safety, or the environment, 
                on each regulated person;
                    ``(B) affords maximum flexibility to each regulated 
                person in complying with mandatory regulatory 
                objectives, and such flexibility shall, where feasible 
                and appropriate, include 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 at their 
                own discretion in an automatic manner, consistent with 
                subparagraph (B), 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 under subparagraph (A);
            ``(6) the term `performance standard' means a requirement 
        that imposes legal accountability for the achievement of an 
        explicit regulatory objective, such as the reduction of 
        environmental pollutants or of risks to human health, safety, 
        or the environment, on each regulated person;
            ``(7) the term `risk assessment' has the same meaning as 
        such term is defined under section 632(5); and
            ``(8) the term `rule' has the same meaning as in section 
        551(4) of this title, and shall not include--
                    ``(A) a rule of particular applicability that 
                approves or prescribes for the future rates, wages, 
                prices, services, corporate or financial structures, 
                reorganizations, mergers, acquisitions, 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 by the Federal Open Market Committee;
                    ``(C) a rule relating to the safety or soundness of 
                federally insured depository institutions or any 
                affiliate of such an institution (as defined in section 
                2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 
                1841(k)); credit unions; the Federal Home Loan Banks; 
                government-sponsored housing enterprises; a Farm Credit 
                System Institution; foreign banks, and their branches, 
                agencies, commercial lending companies or 
                representative offices that operate in the United 
                States and any affiliate of such foreign banks (as 
                those terms are defined in the International Banking 
                Act of 1978 (12 U.S.C. 3101)); or a rule relating to 
                the payments system or the protection of deposit 
                insurance funds or Farm Credit Insurance Fund; or
                    ``(D) a rule issued by the Federal Election 
                Commission or a rule issued by the Federal 
                Communications Commission pursuant to sections 
                312(a)(7) and 315 of the Communications Act of 1934.
``Sec. 622. Rulemaking cost-benefit analysis
    ``(a) Before publishing notice of a proposed rulemaking for any 
rule (or, in the case of a notice of a proposed rulemaking that has 
been published on or before the effective date of this subchapter, no 
later than 30 days after such date), each agency shall determine 
whether the rule is or is not a major rule within the meaning of 
section 621(4)(A)(i) and, if it is not, determine whether it is a major 
rule under section 621(4)(A)(ii). For the purpose of any such 
determination, a group of closely related rules shall be considered as 
one rule.
    ``(b)(1) If an agency has determined that a rule is not a major 
rule, the Director or a designee of the President may, as appropriate, 
determine that the rule is a major rule no later than 30 days after the 
publication of the notice of proposed rulemaking for the rule (or, in 
the case of a notice of proposed rulemaking that has been published on 
or before the effective date of this subchapter, no later than 60 days 
after such date).
    ``(2) Such determination shall be published in the Federal 
Register, together with a succinct statement of the basis for the 
determination.
    ``(c)(1)(A) When the agency publishes a notice of proposed 
rulemaking for a major rule, the agency shall issue and place in the 
rulemaking file an initial cost-benefit analysis, and shall include a 
summary of such analysis in the notice of proposed rulemaking.
    ``(B)(i) When the Director or a designee of the President has 
published a determination that a rule is a major rule after the 
publication of the notice of proposed rulemaking for the rule, the 
agency shall promptly issue and place in the rulemaking file an initial 
cost-benefit analysis for the rule and shall publish in the Federal 
Register a summary of such analysis.
    ``(ii) Following the issuance of an initial cost-benefit analysis 
under clause (i), the agency shall give interested
 persons an opportunity to comment pursuant to section 553 in the same 
manner as if the draft cost-benefit analysis had been issued with the 
notice of proposed rulemaking.
    ``(2) Each initial cost-benefit analysis shall contain--
            ``(A) an analysis of the benefits of the proposed rule, 
        including any benefits that cannot be quantified, and an 
        explanation of how the agency anticipates that such benefits 
        will be achieved by the proposed rule, including a description 
        of the persons or classes of persons likely to receive such 
        benefits;
            ``(B) an analysis of the costs of the proposed rule, 
        including any costs that cannot be quantified, and an 
        explanation of how the agency anticipates that such costs will 
        result from the proposed rule, including a description of the 
        persons or classes of persons likely to bear such costs;
            ``(C) an identification (including an analysis of costs and 
        benefits) of an appropriate number of reasonable alternatives 
        allowed under the statute granting the rulemaking authority for 
        achieving the identified benefits of the proposed rule, 
        including alternatives that--
                    ``(i) require no government action;
                    ``(ii) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and
                    ``(iii) employ voluntary programs, performance 
                standards, or market-based mechanisms that permit 
                greater flexibility in achieving the identified 
                benefits of the proposed rule and that comply with the 
                requirements of subparagraph (D);
            ``(D) an assessment of the feasibility of establishing a 
        regulatory program that operates through the application of 
        market-based mechanisms;
            ``(E) an explanation of the extent to which the proposed 
        rule--
                    ``(i) will accommodate differences among geographic 
                regions and among persons with differing levels of 
                resources with which to comply; and
                    ``(ii) employs voluntary programs, performance 
                standards, or market-based mechanisms that permit 
                greater flexibility in achieving the identified 
                benefits of the proposed rule;
            ``(F) a description of the quality, reliability, and 
        relevance of scientific or economic evaluations or information 
        in accordance with the cost-benefit analysis and risk 
        assessment requirements of this chapter;
            ``(G) if not expressly or implicitly inconsistent with the 
        statute under which the agency is proposing the rule, an 
        explanation of the extent to which the identified benefits of 
        the proposed rule 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 
        subparagraph (C); and
            ``(H) if a major rule subject to subchapter III addresses 
        risks to human health, safety, or the environment--
                    ``(i) a risk assessment in accordance with this 
                chapter; and
                    ``(ii) 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.
    ``(d)(1) When the agency publishes a final major rule, the agency 
shall also issue and place in the rulemaking file a final cost-benefit 
analysis, and shall include a summary of the analysis in the statement 
of basis and purpose.
    ``(2) Each final cost-benefit 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 under subsection (c)(2)(C)(iii); and
            ``(B) if not expressly or implicitly inconsistent with the 
        statute under which the agency is acting, a reasonable 
        determination, based upon the rulemaking file considered as a 
        whole, whether--
                    ``(i) the benefits of the rule justify the costs of 
                the rule; and
                    ``(ii) the rule will achieve the rulemaking 
                objectives in a more cost-effective manner than the 
                alternatives described in the rulemaking, including the 
                market-based mechanisms identified under subsection 
                (c)(2)(C)(iii).
    ``(e)(1) The analysis of the benefits and costs of a proposed and a 
final rule required under this section shall include, to the extent 
feasible, a quantification or numerical estimate of the quantifiable 
benefits and costs. Such quantification or numerical estimate shall be 
made in the most appropriate units of measurement, using comparable 
assumptions, including time periods, shall specify the ranges of 
predictions, and shall explain the margins of error involved in the 
quantification methods and in the estimates used. An agency shall 
describe the nature and extent of the nonquantifiable benefits and 
costs of a final rule pursuant to this section in as precise and 
succinct a manner as possible. An agency shall not be required to make 
such evaluation primarily on a mathematical or numerical basis.
    ``(2)(A) In evaluating and comparing costs and benefits and in 
evaluating the risk assessment information developed under subchapter 
III, the agency shall not rely on cost, benefit, or risk assessment 
information 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, reliability, and 
uncertainty factors applicable to such information.
    ``(B) The agency evaluations of the relationships of the benefits 
of a proposed and final rule to its costs shall be clearly articulated 
in accordance with this section.
    ``(f) As part of the promulgation of each major rule that addresses 
risks to human health, safety, or the environment, the head of the 
agency or the President shall make a determination that--
            ``(1) the risk assessment and the analysis under subsection 
        (c)(2)(H) are based on a scientific evaluation of the risk 
        addressed by the major rule and that the conclusions of such 
        evaluation are supported by the available information; and
            ``(2) the regulatory alternative chosen will reduce risk in 
        a cost-effective and, to the extent feasible, flexible manner, 
        taking into consideration any of the alternatives identified 
        under subsection (c)(2) (C) and (D).
    ``(g) The preparation of the initial or final cost-benefit analysis 
required by this section shall only be performed under the direction of 
an officer or employee of the agency. The preceding sentence shall not 
preclude a person outside the agency from gathering data or information 
to be used by the agency in preparing any such cost-benefit 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 initial or final cost-benefit 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.
    ``(h) The requirements of this subchapter shall 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 and subchapter III shall not be subject to judicial 
review except in connection with review of a final agency rule and 
according to the provisions of this section.
    ``(b) Any determination by a designee of the President or the 
Director that a rule is, or is not, a major rule shall not be subject 
to judicial review in any manner.
    ``(c) The determination by an agency that a rule is, or is not, a 
major rule under section 621(4)(A)(i) 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 the agency made the determination. Any determination by an agency 
that a rule is, or is not, a major rule under section 621(4)(A)(ii) 
shall not be subject to judicial review in any manner.
    ``(d) If the cost-benefit analysis or risk assessment required 
under this chapter has been wholly omitted for any major rule, a court 
shall vacate the rule and remand the case for further consideration. If 
an analysis or assessment has been performed, the court shall not 
review to determine whether the analysis or assessment conformed to the 
particular requirements of this chapter.
    ``(e) Any cost-benefit analysis or risk assessment prepared under 
this chapter shall not be subject to judicial consideration separate or 
apart from review of the agency action to which it relates. When an 
action for judicial review of an agency action is instituted, any 
regulatory analysis for such agency action shall constitute part of the 
whole administrative record of agency action for the purpose of 
judicial review of the agency action, and shall, to the extent 
relevant, be considered by a court in determining the legality of the 
agency action.
``Sec. 624. Deadlines for rulemaking
    ``(a) All deadlines in statutes that require agencies to propose or 
promulgate any rule subject to section 622 or subchapter III during the 
2-year period beginning on the effective date of this section shall be 
suspended until the earlier of--
            ``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            ``(2) the date occurring 6 months after the date of the 
        applicable deadline.
    ``(b) All deadlines imposed by any court of the United States that 
would require an agency to propose or promulgate a rule subject to 
section 622 or subchapter III during the 2-year period beginning on the 
effective date of this section shall be suspended until the earlier 
of--
            ``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            ``(2) the date occurring 6 months after the date of the 
        applicable deadline.
    ``(c) In any case in which the failure to promulgate a rule by a 
deadline occurring during the 2-year period beginning on the effective 
date of this section would create an obligation to regulate through 
individual adjudications, the deadline shall be suspended until the 
earlier of--
            ``(1) the date on which the requirements of section 622 or 
        subchapter III are satisfied; or
            ``(2) the date occurring 6 months after the date of the 
        applicable deadline.
``Sec. 625. Agency review of rules
    ``(a)(1)(A) No later than 9 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 that is in effect on such 
        effective date and which, if adopted on such effective date, 
        would be a major rule; and
            ``(ii) each rule of the agency in effect on the effective 
        date of this section (in addition to the rules described in 
        clause (i)) that the agency has selected for review.
    ``(B) Each proposed schedule required under subparagraph (A) shall 
be developed in consultation with--
            ``(i) the Administrator of the Office of Information and 
        Regulatory Affairs; and
            ``(ii) the classes of persons affected by the rules, 
        including members from the regulated industries, small 
        businesses, State and local governments, and organizations 
        representing the interested public.
    ``(C) Each proposed schedule required under subparagraph (A) shall 
establish priorities for the review of rules that, in the joint 
determination of the Administrator of the Office of Information and 
Regulatory Affairs and the agency, most likely can be amended or 
eliminated to--
            ``(i) provide the same or greater benefits at substantially 
        lower costs;
            ``(ii) achieve substantially greater benefits at the same 
        or lower costs; or
            ``(iii) replace command-and-control regulatory requirements 
        with market mechanisms or performance standards that achieve 
        substantially equivalent benefits at lower costs or with 
        greater flexibility.
    ``(D) 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 a major rule, or the 
        reasons why the agency selected the rule for review;
            ``(ii) a date set by the agency, in accordance with 
        subsection (b), 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.
    ``(E) The agency shall set a date to initiate review of each rule 
on the schedule in a manner that will ensure the simultaneous review of 
related items and that will achieve a reasonable distribution of 
reviews over the period of time covered by the schedule.
    ``(2) No later than 90 days before publishing in the Federal 
Register the proposed schedule required under paragraph (1), each 
agency shall make the proposed schedule available to the Director or a 
designee of the President. The President or that officer may select for 
review in accordance with this section any additional rule.
    ``(3) No later than 1 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). Each agency shall publish with the final schedule the response of 
the agency to comments received concerning the proposed schedule.
    ``(b)(1) Except as explicitly provided otherwise by statute, the 
agency shall, pursuant to subsections (c) through (e), review--
            ``(A) each rule on the schedule promulgated pursuant to 
        subsection (a);
            ``(B) each major rule promulgated, amended, or otherwise 
        continued by an agency after the effective date of this 
        section; and
            ``(C) each rule promulgated after the effective date of 
        this section that the President or the officer designated by 
        the President selects for review pursuant to subsection (a)(2).
    ``(2) Except as provided pursuant to subsection (f), the review of 
a rule required by this section shall be completed no later than the 
later of--
            ``(A) 10 years after the effective date of this section; or
            ``(B) 10 years after the date on which the rule is--
                    ``(i) promulgated; or
                    ``(ii) amended or continued under this section.
    ``(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 an explanation of 
        whether the agency's interpretation of the statute is expressly 
        required by the current text of that statute or, if not, 
        whether it is within the range of permissible interpretations 
        of the statute;
            ``(2) an analysis 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, including action to repeal or amend the 
        rule to resolve inconsistencies or conflicts with any other 
        obligation or requirement established by any Federal statute, 
        rule, or other agency statement, interpretation, or action that 
        has the force of law; 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.
    ``(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), comply with the provisions of this chapter, 
chapter 5, and any other applicable law. The requirements of such 
provisions and related requirements 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 that is not taken pursuant to the review required by 
this section.
    ``(e) If an agency proposes to continue without amendment a rule 
under review pursuant to this section, the agency shall--
            ``(1) give interested persons no less than 60 days after 
        the publication of the notice required by subsection (c) to 
        comment on the proposed continuation; and
            ``(2) publish in the Federal Register notice of the 
        continuation of such rule.
    ``(f) Any agency, which for good cause finds that compliance with 
this section with respect to a particular rule during the period 
provided in subsection (b) of this section is contrary to an important 
public interest may request the President, or the officer designated by 
the President pursuant to subsection (a)(2), to establish a period 
longer than 10 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 no more than 15 years. Such extension shall be 
published in the Federal Register with an explanation of the reasons 
therefor.
    ``(g) If the agency fails to comply with the requirements of 
subsection (b)(2), the rule for which rulemaking
 proceedings have not been completed shall cease to be enforceable 
against any person.
    ``(h) 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 
any other provision of law.
``Sec. 626. Public participation and accountability
    ``In order to maximize accountability for, and public participation 
in, the development and review of regulatory actions each agency shall, 
consistent with chapter 5 and other applicable law, provide the public 
with opportunities for meaningful participation in the development of 
regulatory actions, including--
            ``(1) seeking the involvement, where practicable and 
        appropriate, of those who are intended to benefit from and 
        those who are expected to be burdened by any regulatory action;
            ``(2) providing in any proposed or final rulemaking notice 
        published in the Federal Register--
                    ``(A) a certification of compliance with the 
                requirements of this chapter, or an explanation why 
                such certification cannot be made;
                    ``(B) a summary of any regulatory analysis required 
                under this chapter, or under any other legal 
                requirement, and notice of the availability of the 
                regulatory analysis;
                    ``(C) a certification that the rule will produce 
                benefits that will justify the cost to the Government 
                and to the public of implementation of, and compliance 
                with, the rule, or an explanation why such 
                certification cannot be made; and
                    ``(D) a summary of the results of any regulatory 
                review and the agency's response to such review, 
                including an explanation of any significant changes 
                made to such regulatory action as a consequence of 
                regulatory review;
            ``(3) identifying, upon request, a regulatory action and 
        the date upon which such action was submitted to the designated 
        officer to whom authority was delegated under section 644 for 
        review;
            ``(4) disclosure to the public, consistent with section 
        634(3), of any information created or collected in performing a 
        regulatory analysis required under this chapter, or under any 
        other legal requirement; and
            ``(5) placing in the appropriate rulemaking record all 
        written communications received from the Director, other 
        designated officer, or other individual or entity relating to 
        regulatory review.
                   ``SUBCHAPTER III--RISK ASSESSMENTS

``Sec. 631. Findings and purposes
    ``(a) 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; except--
                    ``(A) many regulations have been more costly and 
                less effective than necessary; and
                    ``(B) 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, safety, and the environment, regulatory priorities 
        should be supported by realistic and plausible scientific risk 
        assessments and risk management choices that are grounded in 
        cost-benefit principles.
            ``(4) Risk assessment has proved to be a useful 
        decisionmaking tool, except--
                    ``(A) improvements are needed in both the quality 
                of assessments and the characterization and 
                communication of findings;
                    ``(B) scientific and other data must be better 
                collected, organized, and evaluated; and
                    ``(C) 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 should be 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. Such knowledge will allow for public scrutiny 
        and will promote the quality, integrity, and responsiveness of 
        agency decisions.
    ``(b) The purposes of this subchapter are to--
            ``(1) present the public and executive branch with the most 
        realistic and plausible information concerning the nature and 
        magnitude of health, safety, and environmental risks to promote 
        sound regulatory decisions and public education;
            ``(2) provide for full consideration and discussion of 
        relevant data and potential methodologies;
            ``(3) require explanation of significant choices in the 
        risk assessment process that will allow for better public 
        understanding; and
            ``(4) improve consistency within the executive branch in 
        preparing risk assessments and risk characterizations.
``Sec. 632. Definitions
    ``For purposes of this subchapter, the definitions under sections 
551 and 621 shall apply and:
            ``(1) The term `covered agency' means each of the 
        following:
                    ``(A) The Environmental Protection Agency.
                    ``(B) The Department of Labor.
                    ``(C) The Department of Transportation.
                    ``(D) The Food and Drug Administration.
                    ``(E) The Department of Energy.
                    ``(F) The Department of the Interior.
                    ``(G) The Department of Agriculture.
                    ``(H) The Consumer Product Safety Commission.
                    ``(I) The National Oceanic and Atmospheric 
                Administration.
                    ``(J) The United States Army Corps of Engineers.
                    ``(K) The Nuclear Regulatory Commission.
                    ``(L) Any other Federal agency considered a covered 
                agency under section 633(b).
            ``(2) The term `emergency' means a situation that is 
        immediately impending and extraordinary in nature, demanding 
        attention due to a condition, circumstance or practice 
        reasonably expected to cause death, serious illness or severe 
        injury to humans, or substantial endangerment to private 
        property or the environment if no action is taken.
            ``(3) The term `estimates of risk' means numerical 
        representations of the potential magnitude of harm to 
        populations or the probability of harm to individuals, 
        including, as appropriate, those derived by considering the 
        range and distribution of estimates of dose-response (potency) 
        and exposure, including appropriate statistical representation 
        of the range and most likely exposure levels, and the 
        identification of the populations or subpopulations addressed. 
        When appropriate and practicable, a description of any 
        populations or subpopulations that are likely to experience 
        exposures at the upper end of the distribution should be 
        included.
            ``(4) The term `hazard identification' means identification 
        of a substance, activity, or condition as potentially causing 
        harm to human health, safety, or the environment.
            ``(5) The term `risk assessment' means--
                    ``(A) identifying, quantifying to the extent 
                feasible and appropriate, and characterizing hazards 
                and exposures to those hazards in order to provide 
                structured information on the nature of threats to 
                human health, safety, or the environment; and
                    ``(B) the document containing the explanation of 
                how the assessment process has been applied to an 
                individual substance, activity, or condition.
            ``(6) The term `risk characterization' means the 
        integration, synthesis, and organization of hazard 
        identification, dose-response and exposure information that 
        addresses the needs of decision makers and interested parties. 
        The term includes both the process and specific outputs, 
        including--
                    ``(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) discussions of uncertainties, conflicting 
                data, estimates of risk, extrapolations, inferences, 
                and opinions.
            ``(7) The term `screening analysis' means an analysis that 
        arrives at a qualitative estimate or a bounding estimate of 
        risk that permits the risk manager to accept or reject some 
        management options, or permits establishing priorities for 
        agency action. Such term includes an assessment performed by a 
        regulated party and submitted to an agency under a regulatory 
        requirement.
            ``(8) The term `substitution risk' means a reasonably 
        likely increased risk to human health, safety, or the 
        environment from a regulatory option designed to decrease other 
        risks.
``Sec. 633. Applicability
    ``(a) Except as provided in subsection (c), this subchapter 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 a major rule addressing health, safety, and 
environmental risks.
    ``(b)(1) No later than 18 months after the effective date of this 
section, the President, acting through the Director of the Office of 
Management and Budget, shall determine whether other Federal agencies 
should be considered covered agencies for the purposes of this 
subchapter. Such determination, with respect to a particular Federal 
agency, shall be based on the impact of risk assessment documents and 
risk characterization documents on--
            ``(A) regulatory programs administered by that agency; and
            ``(B) the communication of risk information by that agency 
        to the public.
    ``(2) If the President makes a determination under paragraph (1), 
the provisions of this subchapter shall apply to any affected agency 
beginning on a date set by the President. Such date may be no later 
than 6 months after the date of such determination.
    ``(c)(1) This subchapter shall not apply to risk assessments or 
risk characterizations performed with respect to--
            ``(A) an emergency determined by the head of an agency;
            ``(B) a health, safety, or environmental inspection or 
        individual facility permitting action; or
            ``(C) a screening analysis.
    ``(2) This subchapter shall not apply to any food, drug, or other 
product label, or to any risk characterization appearing on any such 
label.
``Sec. 634. Savings provisions
    ``Nothing in this subchapter 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 secret or other 
        confidential information.
``Sec. 635. Principles for risk assessment
    ``(a) The head of each covered agency shall ensure that risk 
assessments and all of the components of such assessments--
            ``(1) provide for a systematic means to structure 
        information useful to decision makers;
            ``(2) provide, to the maximum extent practicable, that 
        policy-driven default assumptions be used only in the absence 
        of relevant available information;
            ``(3) promote involvement from all stakeholders;
            ``(4) provide an opportunity for public input throughout 
        the regulatory process; and
            ``(5) are designed so that the degree of specificity and 
        rigor employed is commensurate with the consequences of the 
        decision to be made.
    ``(b) A risk assessment shall, to the maximum extent practicable, 
clearly delineate hazard identification from dose-response and exposure 
assessment and make clear the relationship between the level of risk 
and the level of exposure to a hazard.
``Sec. 636. Principles for risk characterization
    ``In characterizing risk in any risk assessment document, 
regulatory proposal, or decision, each covered agency shall include in 
the risk characterization, as appropriate, each of the following:
            ``(1)(A) A description of the exposure scenarios used, the 
        natural resources or subpopulations being exposed, and the 
        likelihood of those exposure scenarios.
            ``(B) 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) identify the assumptions, inferences, and 
                models that materially affect the outcome;
                    ``(ii) explain the basis for any choices;
                    ``(iii) identify any policy decisions or policy-
                based default assumptions;
                    ``(iv) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data; and
                    ``(v) describe the impact of alternative choices of 
                assumptions, default options or mathematical models.
            ``(C) The major sources of uncertainties in the hazard 
        identification, dose-response and exposure assessment phases of 
        the risk assessment.
            ``(D) To the extent feasible, the range and distribution of 
        exposures and risks derived from the risk assessment should be 
        included as a component of the risk characterization.
            ``(2) 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 made available to the 
        agency.
``Sec. 637. Peer review
    ``(a) The head of each covered agency shall develop a systematic 
program for independent and external peer review required under 
subsection (b). Such program shall be applicable throughout each 
covered agency and--
            ``(1) shall provide for the creation of peer review panels 
        that--
                    ``(A) consist of members with expertise relevant to 
                the sciences involved in regulatory decisions and who 
                are independent of the covered agency; and
                    ``(B) are broadly representative and balanced and, 
                to the extent relevant and appropriate, may include 
                persons affiliated with Federal, State, local, or 
                tribal governments, small businesses, other 
                representatives of industry, universities, agriculture, 
                labor consumers, conservation organizations, or other 
                public interest groups and organizations;
            ``(2) shall not exclude any person with substantial and 
        relevant expertise as a panel member on the basis that such 
        person represents an entity that may have a potential interest 
        in the outcome, if such interest is fully disclosed to the 
        agency, and in the case of a regulatory decision affecting a 
        single entity, no peer reviewer representing such entity may be 
        included on the panel;
            ``(3) shall provide for a timely completed peer review, 
        meeting agency deadlines, that contains a balanced presentation 
        of all considerations, including minority reports and an agency 
        response to all significant peer review comments; and
            ``(4) shall provide adequate protections for confidential 
        business information and trade secrets, including requiring 
        panel members to enter into confidentiality agreements.
    ``(b)(1)(A) Except as provided under subparagraph (B), each covered 
agency shall provide for peer review in accordance with this section of 
any risk assessment or cost-benefit analysis that forms the basis of 
any major rule that addresses risks to the environment, health, or 
safety.
    ``(B) Subparagraph (A) shall not apply to a rule or other action 
taken by an agency to authorize or approve any individual substance or 
product.
    ``(2) The Director of the Office of Management and Budget may order 
that peer review be provided for any risk assessment or cost-benefit 
analysis that is likely to have a significant impact on public policy 
decisions or would establish an important precedent.
    ``(c) Each peer review under this section shall include a report to 
the Federal agency concerned with respect to the scientific and 
technical merit of data and methods used for the risk assessments or 
cost-benefit analyses.
    ``(d) The head of the covered agency shall provide a written 
response to all significant peer review comments.
    ``(e) All peer review comments or conclusions and the agency's 
responses shall be made available to the public and shall be made part 
of the administrative record for purposes of judicial review of any 
final agency action.
    ``(f) No peer review shall be required under this section for any 
data, method, document, or assessment, or any component thereof, which 
has been previously subjected to peer review.
``Sec. 638. Guidelines, plan for assessing new information, and report
    ``(a)(1)(A) As soon as practicable and scientifically feasible, 
each covered agency shall adopt, after notification and opportunity for 
public comment, guidelines to implement the risk assessment and risk 
characterization principles under sections 635 and 636, as well as the 
cost-benefit analysis requirements under section 622, and shall provide 
a format for summarizing risk assessment results.
    ``(B) No later than 12 months after the effective date of this 
section, the head of each covered agency shall issue a report on the 
status of such guidelines to the Congress.
    ``(2) The guidelines under paragraph (1) shall--
            ``(A) include guidance on use of specific technical 
        methodologies and standards for acceptable quality of specific 
        kinds of data;
            ``(B) address important decisional factors for the risk 
        assessment, risk characterization, and cost-benefit analysis at 
        issue; and
            ``(C) provide procedures for the refinement and replacement 
        of policy-based default assumptions.
    ``(b) 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.
    ``(c) The President shall review the guidelines published under 
this section at least every 4 years.
    ``(d) The development, issuance, and publication of risk assessment 
and risk characterization guidelines under this section shall not be 
subject to judicial review.
``Sec. 639. Research and training in risk assessment
    ``(a) The head of each covered agency shall regularly and 
systematically evaluate risk assessment research and training needs of 
the agency, including, where relevant and appropriate, the following:
            ``(1) Research to reduce generic data gaps, to address 
        modelling needs (including improved model sensitivity), and to 
        validate default options, particularly those common to multiple 
        risk assessments.
            ``(2) Research leading to improvement of methods to 
        quantify and communicate uncertainty and variability among 
        individuals, species, populations, and, in the case of 
        ecological risk assessment, ecological communities.
            ``(3) Emerging and future areas of research, including 
        research on comparative risk analysis, exposure to multiple 
        chemicals and other stressors, noncancer endpoints, biological 
        markers of exposure and effect, mechanisms of action in both 
        mammalian and nonmammalian species, dynamics and probabilities 
        of physiological and ecosystem exposures, and prediction of 
        ecosystem-level responses.
            ``(4) Long-term needs to adequately train individuals in 
        risk assessment and risk assessment application. Evaluations 
        under this paragraph shall include an estimate of the resources 
        needed to provide necessary training.
    ``(b) The head of each covered agency shall develop a strategy and 
schedule for carrying out research and training to meet the needs 
identified in subsection (a).
``Sec. 640. Interagency coordination
    ``(a) 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 1 Federal agency, the Director 
of the Office of Management and Budget, in consultation with 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--
                    ``(A) coordination among Federal agencies 
                conducting risk assessment with respect to the conduct, 
                application, and practice of risk assessment; and
                    ``(B) 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 and State cooperation in the 
        development and application of risk assessment.
    ``(b) The President shall appoint National Peer Review Panels to 
review every 3 years the risk assessment practices of each covered 
agency for programs designed to protect human health, safety, or the 
environment. The Panels shall submit a report to the President and the 
Congress at least every 3 years containing the results of such review.
``Sec. 640a. Plan for review of risk assessments
    ``(a) No later than 18 months after the effective date of this 
section, the head of each covered agency shall publish a plan to review 
and revise any risk assessment published before the expiration of such 
18-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.
    ``(b) A plan under subsection (a) shall--
            ``(1) provide procedures for receiving and considering new 
        information and risk assessments from the public; and
            ``(2) set priorities and criteria for review and revision 
        of risk assessments based on such factors as the agency head 
        considers appropriate.
``Sec. 640b. Judicial review
    ``The provisions of section 623 relating to judicial review shall 
apply to this subchapter.
``Sec. 640c. Deadlines for rulemaking
    ``The provisions of section 624 relating to deadlines for 
rulemaking shall apply to this subchapter.
                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``Sec. 641. Definition
    ``For purposes of this subchapter, the definitions under sections 
551 and 621 shall apply.
``Sec. 642. Procedures
    ``The Director or other designated officer to whom authority is 
delegated under section 644 shall--
            ``(1) establish procedures for agency compliance with this 
        chapter; and
            ``(2) monitor, review, and ensure agency implementation of 
        such procedures.
``Sec. 643. Promulgation and adoption
    ``(a) Procedures established pursuant to section 642 shall only be 
implemented after opportunity for public comment. Any such procedures 
shall be consistent with the prompt completion of rulemaking 
proceedings.
    ``(b)(1) If procedures established pursuant to section 642 include 
review of any initial or final analyses of a rule required under this 
chapter, the time for any such review of any initial analysis shall not 
exceed 60 days following the receipt of the analysis by the Director, a 
designee of the President, or by an officer to whom the authority 
granted under section 642 has been delegated pursuant to section 644.
    ``(2) The time for review of any final analysis required under this 
chapter shall not exceed 60 days following the receipt of the analysis 
by the Director, a designee of the President, or such officer.
    ``(3)(A) The times for each such review may be extended for good 
cause by the President or such officer for an additional 30 days.
    ``(B) Notice of any such extension, together with a succinct 
statement of the reasons therefor, shall be inserted in the rulemaking 
file.
``Sec. 644. Delegation of authority
    ``(a) The President shall delegate the authority granted by this 
subchapter to the Director or to another officer within the Executive 
Office of the President whose appointment has been subject to the 
advice and consent of the Senate.
    ``(b) Notice of any delegation, or any revocation or modification 
thereof shall be published in the Federal Register.
``Sec. 645. Public disclosure of information
    ``The Director or other designated officer to whom authority is 
delegated under section 644, in carrying out the provisions of section 
642, shall establish procedures (covering all employees of the Director 
or other designated officer) to provide public and agency access to 
information concerning regulatory review actions, including--
            ``(1) disclosure to the public on an ongoing basis of 
        information regarding the status of regulatory actions 
        undergoing review;
            ``(2) disclosure to the public, no later than publication 
        of, or other substantive notice to the public concerning a 
        regulatory action, of--
                    ``(A) all written communications, regardless of 
                form or format, including drafts of all proposals and 
                associated analyses, between the Director or other 
                designated officer and the regulatory agency;
                    ``(B) all written communications, regardless of 
                form or format, between the Director or other 
                designated officer and any person not employed by the 
                executive branch of the Federal Government relating to 
                the substance of a regulatory action;
                    ``(C) a record of all oral communications relating 
                to the substance of a regulatory action between the 
                Director or other designated officer and any person not 
                employed by the executive branch of the Federal 
                Government; and
                    ``(D) a written explanation of any review action 
                and the date of such action; and
            ``(3) disclosure to the regulatory agency, on a timely 
        basis, of--
                    ``(A) all written communications between the 
                Director or other designated officer and any person who 
                is not employed by the executive branch of the Federal 
                Government;
                    ``(B) a record of all oral communications, and an 
                invitation to participate in meetings, relating to the 
                substance of a regulatory action between the Director 
                or other designated officer and any person not employed 
                by the executive branch of the Federal Government; and
                    ``(C) a written explanation of any review action 
                taken concerning an agency regulatory action.
``Sec. 646. Judicial review
    ``The exercise of the authority granted under this subchapter by 
the Director, the President, or by an officer to whom such authority 
has been delegated under section 644 shall not be subject to judicial 
review in any manner.''.
    (b) Regulatory Flexibility Analysis.--
            (1) In general.--Section 611 of title 5, United States 
        Code, is amended to read as follows:
``Sec. 611. Judicial review
    ``(a)(1) Except as provided in paragraph (2), no later than 1 year 
after the effective date of a final rule with respect to which an 
agency--
            ``(A) certified, pursuant to section 605(b), that such rule 
        would not have a significant economic impact on a substantial 
        number of small entities; or
            ``(B) prepared a final regulatory flexibility analysis 
        pursuant to section 604,
an affected small entity may petition for the judicial review of such 
certification or analysis in accordance with this subsection. A court 
having jurisdiction to review such rule for compliance with section 553 
of this title or under any
 other provision of law shall have jurisdiction to review such 
certification or analysis.
    ``(2)(A) Except as provided in subparagraph (B), in the case of a 
provision of law that requires that an action challenging a final 
agency regulation be commenced before the expiration of the 1-year 
period provided in paragraph (1), such lesser period shall apply to a 
petition for the judicial review under this subsection.
    ``(B) In a case in which an agency delays the issuance of a final 
regulatory flexibility analysis pursuant to section 608(b), a petition 
for judicial review under this subsection shall be filed no later 
than--
            ``(i) 1 year; or
            ``(ii) in a case in which a provision of law requires that 
        an action challenging a final agency regulation be commenced 
        before the expiration of the 1-year period provided in 
        paragraph (1), the number of days specified in such provision 
        of law,
after the date the analysis is made available to the public.
    ``(3) For purposes of this subsection, the term `affected small 
entity' means a small entity that is or will be adversely affected by 
the final rule.
    ``(4) Nothing in this subsection shall be construed to affect the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law.
    ``(5)(A) In a case in which an agency certifies that such rule 
would not have a significant economic impact on a substantial number of 
small entities, the court may order the agency to prepare a final 
regulatory flexibility analysis pursuant to section 604 if the court 
determines, on the basis of the rulemaking record, that the 
certification was arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.
    ``(B) In a case in which the agency prepared a final regulatory 
flexibility analysis, the court may order the agency to take corrective 
action consistent with section 604 if the court determines, on the 
basis of the rulemaking record, that the final regulatory flexibility 
analysis was prepared by the agency without complying with section 604.
    ``(6) If, by the end of the 90-day period beginning on the date of 
the order of the court pursuant to paragraph (5) (or such longer period 
as the court may provide), the agency fails, as appropriate--
            ``(A) to prepare the analysis required by section 604; or
            ``(B) to take corrective action consistent with section 604 
        of this title,
the court may stay the rule or grant such other relief as it deems 
appropriate.
    ``(7) In making any determination or granting any relief authorized 
by this subsection, the court shall take due account of the rule of 
prejudicial error.
    ``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(5)) shall constitute 
part of the whole record of agency action in connection with such 
review.
    ``(c) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the effective date of this Act, except 
        that the judicial review authorized by section 611(a) of title 
        5, United States Code (as added by subsection (a)), shall apply 
        only to final agency rules issued after such effective date.
    (c) Presidential Authority.--Nothing in this Act shall limit the 
exercise by the President of the authority and responsibility that the 
President 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.
    (d) Technical and Conforming Amendments.--
            (1) 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 analysis.
``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 RULES

``621. Definitions.
``622. Rulemaking cost-benefit analysis.
``623. Judicial review.
``624. Deadlines for rulemaking.
``625. Agency review of rules.
``626. Public participation and accountability.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Findings and purposes.
``632. Definitions.
``633. Applicability.
``634. Savings provisions.
``635. Principles for risk assessment.
``636. Principles for risk characterization.
``637. Peer review.
``638. Guidelines, plan for assessing new information, and report.
``639. Research and training in risk assessment.
``640. Interagency coordination.
``640a. Plan for review of risk assessments.
``640b. Judicial review.
``640c. Deadlines for rulemaking.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Definition.
``642. Procedures.
``643. Promulgation and adoption.
``644. Delegation of authority.
``645. Public disclosure of information.
``646. Judicial review.''.
            (2) Chapter 6 of title 5, United States Code, is amended by 
        inserting immediately before section 601, the following 
        subchapter heading:

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.
SEC. 4. CONGRESSIONAL REVIEW.

    (a) In General.--Part I of title 5, United States Code, is amended 
by inserting after chapter 7 the following new chapter:

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

``Sec. 801. Congressional review of agency rulemaking
    ``(a) For purposes of this chapter, the term--
            ``(1) `major rule' means a major rule as defined under 
        section 621(4) of this title and as determined under section 
        622 of this title; and
            ``(2) `rule' (except in reference to a rule of the Senate 
        or House of Representatives) is a reference to a major rule.
    ``(b)(1) Upon the promulgation of a final major rule, the agency 
promulgating such rule shall submit to the Congress a copy of the rule, 
the statement of basis and purpose for the rule, and the proposed 
effective date of the rule.
    ``(2) A rule submitted under paragraph (1) shall not take effect as 
a final rule before the latest of the following:
            ``(A) The later of the date occurring 45 days after the 
        date on which--
                    ``(i) the Congress receives the rule submitted 
                under paragraph (1); or
                    ``(ii) the rule is published in the Federal 
                Register.
            ``(B) If the Congress passes a joint resolution of 
        disapproval described under subsection (i) relating to the 
        rule, and the President signs a veto of such resolution, the 
        earlier date--
                    ``(i) on which either House of Congress votes and 
                fails to override the veto of the President; or
                    ``(ii) occurring 30 session days after the date on 
                which the Congress received the veto and objections of 
                the President.
            ``(C) The date the rule would have otherwise taken effect, 
        if not for this section (unless a joint resolution of 
        disapproval under subsection (i) is approved).
    ``(c) A major rule shall not take effect as a final rule if the 
Congress passes a joint resolution of disapproval described under 
subsection (i), which is signed by the President or is vetoed and 
overridden by the Congress.
    ``(d)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (2)), a major rule that would not take 
effect by reason of this section may take effect if the President makes 
a determination and submits written notice of such determination to the 
Congress that the major rule should take effect because such major rule 
is--
            ``(A) necessary because of an imminent threat to health or 
        safety, or other emergency;
            ``(B) necessary for the enforcement of criminal laws; or
            ``(C) necessary for national security.
    ``(2) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under subsection (i) 
or the effect of a joint resolution of disapproval under this section.
    ``(e)(1) Subsection (i) shall apply to any major rule that is 
promulgated as a final rule during the period beginning on the date 
occurring 60 days before the date the Congress adjourns sine die 
through the date on which the succeeding Congress first convenes.
    ``(2) For purposes of subsection (i), a major rule described under 
paragraph (1) shall be treated as though such rule were published in 
the Federal Register (as a rule that shall take effect as a final rule) 
on the date the succeeding Congress first convenes.
    ``(3) During the period between the date the Congress adjourns sine 
die through the date on which the succeeding Congress first convenes, a 
rule described under paragraph (1) shall take effect as a final rule as 
otherwise provided by law.
    ``(f) Any rule that takes effect and later is made of no force or 
effect by the enactment of a joint resolution under subsection (i) 
shall be treated as though such rule had never taken effect.
    ``(g) If the Congress does not enact a joint resolution of 
disapproval under subsection (i), no court or agency may infer any 
intent of the Congress from any action or inaction of the Congress with 
regard to such major rule, related statute, or joint resolution of 
disapproval.
    ``(h) If the agency fails to comply with the requirements of 
subsection (b) for any rule, the rule shall cease to be enforceable 
against any person.
    ``(i)(1) For purposes of this subsection, the term `joint 
resolution' means only a joint resolution introduced after the date on 
which the rule referred to in subsection (b) is
 received by Congress the matter after the resolving clause of which is 
as follows: `That Congress disapproves the rule submitted by the 
____________ relating to ______________, and such rule shall have no 
force or effect.' (The blank spaces being appropriately filled in.)
    ``(2)(A) In the Senate, a resolution described in paragraph (1) 
shall be referred to the committees with jurisdiction. Such a 
resolution shall not be reported before the eighth day after its 
submission or publication date.
    ``(B) For purposes of this subsection, the term `submission or 
publication date' means the later of the date on which--
            ``(i) the Congress receives the rule submitted under 
        subsection (b)(1); or
            ``(ii) the rule is published in the Federal Register.
    ``(3) In the Senate, if the committee to which a resolution 
described in paragraph (1) is referred has not reported such resolution 
(or an identical resolution) at the end of 20 calendar days after its 
submission or publication date, such committee may be discharged on a 
petition approved by 30 Senators from further consideration of such 
resolution and such resolution shall be placed on the Senate calendar.
    ``(4)(A) In the Senate, when the committee to which a resolution is 
referred has reported, or when a committee is discharged (under 
paragraph (3)) from further consideration of, a resolution described in 
paragraph (1), it shall at any time thereafter be in order (even though 
a previous motion to the same effect has been disagreed to) for any 
Senator to move to proceed to the consideration of the resolution, and 
all points of order against the resolution (and against consideration 
of the resolution) shall be waived. The motion shall be privileged in 
the Senate and shall not be debatable. The motion shall not be subject 
to amendment, or to a motion to postpone, or to a motion to proceed to 
the consideration of other business. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in order. If 
a motion to proceed to the consideration of the resolution is agreed 
to, the resolution shall remain the unfinished business of the Senate 
until disposed of.
    ``(B) In the Senate, debate on the resolution, and on all debatable 
motions and appeals in connection therewith, shall be limited to not 
more than 10 hours, which shall be divided equally between those 
favoring and those opposing the resolution. A motion further to limit 
debate shall be in order and shall not be debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the resolution shall not be in 
order. A motion to reconsider the vote by which the resolution is 
agreed to or disagreed to shall not be in order.
    ``(C) In the Senate, immediately following the conclusion of the 
debate on a resolution described in paragraph (1), and a single quorum 
call at the conclusion of the debate if requested in accordance with 
the Senate rules, the vote on final passage of the resolution shall 
occur.
    ``(D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
resolution described in paragraph (1) shall be decided without debate.
    ``(5) If, before the passage in the Senate of a resolution 
described in paragraph (1), the Senate receives from the House of 
Representatives a resolution described in paragraph (1), then the 
following procedures shall apply:
            ``(A) The resolution of the House of Representatives shall 
        not be referred to a committee.
            ``(B) With respect to a resolution described in paragraph 
        (1) of the Senate--
                    ``(i) the procedure in the Senate shall be the same 
                as if no resolution had been received from the other 
                House; but
                    ``(ii) the vote on final passage shall be on the 
                resolution of the other House.
    ``(6) This subsection is enacted by Congress--
            ``(A) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed to be a part of the rules of each House, respectively, 
        but applicable only with respect to the procedure to be 
        followed in that House in the case of a resolution described in 
        paragraph (1), and it supersedes other rules only to the extent 
        that it is inconsistent with such rules; and
            ``(B) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    ``(j) No requirements under this chapter shall be subject to 
judicial review in any manner.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 5, United States Code, is amended by inserting after 
the item relating to chapter 7 the following:

``8. Congressional Review of Agency Rulemaking..............     801''.
SEC. 5. STUDIES AND REPORTS.

    (a) Risk Assessments.--The Administrative Conference of the United 
States shall--
            (1) develop and carry out an ongoing study of the operation 
        of the risk assessment requirements of
         subchapter III of chapter 6 of title 5, United States Code (as 
added by section 3 of this Act); and
            (2) submit an annual report to the Congress on the findings 
        of the study.
    (b) Administrative Procedure Act.--No later than December 31, 1996, 
the Administrative Conference of the United States shall--
            (1) carry out a study of the operation of chapters 5 and 6 
        of title 5, United States Code (commonly referred to as the 
        Administrative Procedure Act), as amended by section 3 of this 
        Act; and
            (2) submit a report to the Congress on the findings of the 
        study, including proposals for revision, if any.

SEC. 6. RISK-BASED PRIORITIES.

    (a) Purposes.--The purposes of this section are 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.
    (b) Definitions.--For the purposes of this section:
            (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 Department of Transportation.
                    (D) The Food and Drug Administration.
                    (E) The Department of Energy.
                    (F) The Department of the Interior.
                    (G) The Department of Agriculture.
                    (H) The Consumer Product Safety Commission.
                    (I) The National Oceanic and Atmospheric 
                Administration.
                    (J) The United States Army Corps of Engineers.
                    (K) The Nuclear Regulatory Commission.
            (3) Effect.--The term ``effect'' means a deleterious change 
        in the condition of--
                    (A) a human or other living thing (including death, 
                cancer, or other chronic illness, decreased 
                reproductive capacity, or disfigurement); or
                    (B) an inanimate thing important to human welfare 
                (including destruction, degeneration, the loss of 
                intended function, and increased costs for 
                maintenance).
            (4) Irreversibility.--The term ``irreversibility'' means 
        the extent to which a return to conditions before the 
        occurrence of an effect are either very slow or will never 
        occur.
            (5) Likelihood.--The term ``likelihood'' means the 
        estimated probability that an effect will occur.
            (6) 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.
            (7) Seriousness.--The term ``seriousness'' means the 
        intensity of effect, the likelihood, the irreversibility, and 
        the magnitude.
    (c) Department and Agency Program Goals.--
            (1) Setting priorities.--In exercising authority under 
        applicable laws protecting human health, safety, or the 
        environment, the head of each covered agency should set 
        priorities and use the resources available under those laws to 
        address those risks to human health, safety, and the 
        environment that--
                    (A) the covered agency determines to be the most 
                serious; and
                    (B) 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.
            (2) Determining the most serious risks.--In identifying the 
        greatest risks under paragraph (1) of this subsection, each 
        covered agency shall consider, at a minimum--
                    (A) the likelihood, irreversibility, and severity 
                of the effect; and
                    (B) the number and classes of individuals 
                potentially affected, and shall explicitly take into 
                account the results of the comparative risk analysis 
                conducted under subsection (d) of this section.
            (3) OMB review.--The covered agency's determinations 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 before submission of the covered agency's 
        annual budget requests to Congress.
            (4) Incorporating risk-based priorities into budget and 
        planning.--The head of each covered agency shall incorporate 
        the priorities identified under paragraph (1) into the agency 
        budget, strategic planning, regulatory agenda, enforcement, and 
        research activities. When submitting its budget request to 
        Congress and when announcing its regulatory agenda in the 
        Federal Register, each covered agency shall identify the risks 
        that the covered agency head has determined are the most 
        serious and can be addressed in a cost-effective manner under 
        paragraph (1), the basis for that determination, and explicitly 
        identify how the covered agency's requested budget and 
        regulatory agenda reflect those priorities.
            (5) Effective date.--This subsection shall take effect 12 
        months after the date of enactment of this Act.
    (d) Comparative Risk Analysis.--
            (1) Requirement.--(A)(i) No later than 6 months after the 
        effective date of this Act, the Director of the Office of 
        Management and Budget shall enter
         into appropriate arrangements with an accredited scientific 
body--
                    (I) to conduct a study of the methodologies for 
                using comparative risk to rank dissimilar human health, 
                safety, and environmental risks; and
                    (II) to conduct a comparative risk analysis.
            (ii) 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.
            (B) 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.
            (2) Criteria.--In arranging for the comparative risk 
        analysis referred to in paragraph (1) of this subsection, the 
        Director shall ensure that--
                    (A) 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;
                    (B) the analysis is conducted through an open 
                process, by individuals with relevant expertise, 
                including toxicologists, biologists, engineers and 
                experts in medicine, industrial hygiene and 
                environmental effects;
                    (C) the analysis is conducted, to the extent 
                feasible, consistent with the risk assessment and risk 
                characterization principles in sections 635 and 636 of 
                this title;
                    (D) the methodologies and principal scientific 
                determinations made in the analysis are subjected to 
                independent and external peer review consistent with 
                section 637, and the conclusions of the peer review are 
                made publicly available as part of the final report 
                required under subsection (e);
                    (E) there is an opportunity for public comment on 
                the results before making them final; and
                    (F) the results are presented in a manner that 
                distinguishes between the scientific conclusions and 
                any policy or value judgments embodied in the 
                comparisons.
            (3) Completion and review.--No later than 3 years after the 
        effective date of this Act, the comparative risk analysis 
        required under paragraph (1) shall be completed. The 
        comparative risk analysis shall be reviewed and revised at 
        least every 5 years thereafter for a minimum of 15 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 under paragraphs 
        (1) and (2).
            (4) Study.--The study of methodologies provided under 
        paragraph (1) shall be conducted as part of the first 
        comparative risk analysis and shall be completed no later than 
        180 days after the completion of that 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.
            (5) Technical guidance.--No later than 180 days after the 
        effective date 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 subsection (c) 
        of this section.
    (e) Reports and Recommendations to Congress and the President.--No 
later than 24 months after the effective date of this Act, each covered 
agency shall submit a report to Congress and the President--
            (1) detailing how the agency has complied with subsection 
        (c) and describing the reasons for any departure from the 
        requirement to establish priorities to achieve the greatest 
        overall net reduction in risk;
            (2) recommending--
                    (A) modification, repeal, or enactment of laws to 
                reform, eliminate, or enhance programs or mandates 
                relating to human health, safety, or the environment; 
                and
                    (B) modification or elimination of statutorily or 
                judicially mandated deadlines,
        that would assist the covered agency to set priorities in 
        activities to address the risks to human health, safety, or the 
        environment in a manner consistent with the requirements of 
        subsection (c)(1);
            (3) evaluating the categories of policy and value judgments 
        used in risk assessment, risk characterization, or cost-benefit 
        analysis; and
            (4) discussing risk assessment research and training needs, 
        and the agency's strategy and schedule for meeting those needs.
    (f) Savings Provision and Judicial Review.--
            (1) In general.--Nothing in this section 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 section shall not be subject 
        to judicial review.
            (3) Agency analysis.--Any analysis prepared under this 
        section 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.
SEC. 7. REGULATORY ACCOUNTING.

    (a) Definitions.--For purposes of this section, the following 
definitions apply:
            (1) Agency.--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 shall 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) Regulation.--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 shall 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.
    (b) Accounting Statement.--
            (1) In general.--(A) The President shall be responsible for 
        implementing and administering the requirements of this 
        section.
            (B) Every 2 years, no later than June of the second year, 
        the President shall prepare and submit to Congress an 
        accounting statement that estimates the annual costs of Federal 
        regulatory programs and corresponding benefits in accordance 
        with this subsection.
            (2) Years covered by accounting statement.--Each accounting 
        statement shall cover, at a minimum, the 5 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.
            (3) Timing and procedures.--(A) 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.
            (B) The President shall propose the first accounting 
        statement under this subsection no later than 2 years after the 
        effective date of this Act and shall issue the first accounting 
        statement in final form no later than 3 years after such 
        effective date. Such statement shall cover, at a minimum, each 
        of the fiscal years beginning after the effective date of this 
        Act.
            (4) Content of accounting statement.--(A) Each accounting 
        statement shall contain estimates of costs and benefits with 
        respect to each fiscal year covered by the statement in 
        accordance with this paragraph. 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.
            (B)(i) 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 each regulatory program; and
                    (II) such other quantitative and qualitative 
                measures of costs as the President considers 
                appropriate.
            (ii) 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 costs.
                    (III) State and local government costs.
            (C) 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.
    (c) Associated Report to Congress.--
            (1) In general.--At the same time as the President submits 
        an accounting statement under subsection (b), 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 subsection--
                    (A) analyses of impacts; and
                    (B) recommendations for reform.
            (2) Analyses of impacts.--The President shall include in 
        the associated report the following:
                    (A) The cumulative impact on the economy of Federal 
                regulatory programs covered in the accounting 
                statement. Factors to be considered in such report 
                shall include impacts on the following:
                            (i) The ability of State and local 
                        governments to provide essential services, 
                        including police, fire protection, and 
                        education.
                            (ii) Small business.
                            (iii) Productivity.
                            (iv) Wages.
                            (v) Economic growth.
                            (vi) Technological innovation.
                            (vii) Consumer prices for goods and 
                        services.
                            (viii) Such other factors considered 
                        appropriate by the President.
                    (B) A summary of any independent analyses of 
                impacts prepared by persons commenting during the 
                comment period on the accounting statement.
            (3) Recommendations for reform.--The President shall 
        include in the associated report the following:
                    (A) 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.
                    (B) 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.
    (d) 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 and the agencies, develop guidance for the 
agencies--
            (1) to standardize measures of costs and benefits in 
        accounting statements prepared pursuant to this section and 
        section 3 of this Act, including--
                    (A) detailed guidance on estimating the costs and 
                benefits of major rules; and
                    (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.
    (e) 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 section, including recommendations on level of detail 
        and accuracy; and
            (2) for improving associated reports prepared pursuant to 
        this section, including recommendations on the quality of 
        analysis.
    (f) Judicial Review.--No requirements under this section shall be 
subject to judicial review in any manner.

SEC. 8. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act shall take 
effect 180 days after the date of the enactment of this Act.


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