[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 981 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 981

                To provide for analysis of major rules.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 1997

Mr. Levin (for himself, Mr. Thompson, Mr. Glenn, Mr. Abraham, Mr. Robb, 
 Mr. Roth, Mr. Rockefeller, and Mr. Stevens) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
                To provide for analysis of major rules.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Regulatory Improvement Act of 
1997''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Current regulatory programs can be improved by being 
        more firmly rooted in sound economic and scientific analysis.
            (2) Cost-benefit analysis and risk assessment are useful 
        tools to better inform agencies in developing regulations, 
        although they do not replace the need for good judgment and 
        consideration of values.
            (3) Cost and risk need to be considered in evaluating 
        regulatory proposals which address health, safety, or the 
        environment. Other factors such as social values, 
        distributional effects, and equity, must also be considered.
            (4) Cost-benefit analysis and risk assessment should be 
        presented with a clear statement of the analytical assumptions 
        and uncertainties including an explanation of what is known and 
        not known and what the implications of alternative assumptions 
        might be.
            (5) The public has a right to know about the costs and 
        benefits of regulations, the risks addressed, the amount of 
        risk reduced, and the quality of scientific and economic 
        analysis used to support decisions. Such knowledge will promote 
        the quality, integrity and responsiveness of agency actions.
            (6) The Administrator of the Office of Information and 
        Regulatory Affairs should oversee regulatory activities to 
        ensure consistent and valid use of cost-benefit analysis and 
        risk assessment among all agencies.
            (7) The Federal Government should develop a better 
        understanding of the strengths, weaknesses, and uncertainties 
        of cost-benefit analysis and risk assessment and conduct the 
        research needed to improve these analytical tools.

SEC. 3. REGULATORY ANALYSIS.

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

                  ``SUBCHAPTER II--REGULATORY ANALYSIS

``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, quantifiable and 
        nonquantifiable, including social, health, safety, 
        environmental, economic, and distributional effects, that are 
        expected to result directly or indirectly from implementation 
        of, or compliance with, a rule;
            ``(2) the term `cost' means the reasonably identifiable 
        significant adverse effects, quantifiable and nonquantifiable, 
        including social, health, safety, environmental, economic, and 
        distributional effects that are expected to result directly or 
        indirectly from implementation of, or compliance with, 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 uncertainties, the significance and complexity of 
        the decision, and the need to adequately inform the public;
            ``(4) the term `Director' means the Director of the Office 
        of Management and Budget, acting through the Administrator of 
        the Office of Information and Regulatory Affairs;
            ``(5) the term `flexible regulatory options' means 
        regulatory options that permit flexibility to regulated persons 
        in achieving the objective of the statute as addressed by the 
        rule making, including regulatory options that use market-based 
        mechanisms, outcome oriented performance-based standards, or 
        other options that promote flexibility;
            ``(6) the term `major rule' means a rule or a group of 
        closely related rules that--
                    ``(A) the agency proposing the rule or the Director 
                reasonably determines is likely to have an annual 
                effect on the economy of $100,000,000 or more in 
                reasonably quantifiable costs; or
                    ``(B) is otherwise designated a major rule by the 
                Director on the ground that the rule is likely to 
                adversely affect, in a material way, the economy, a 
                sector of the economy, including small business, 
                productivity, competition, jobs, the environment, 
                public health or safety, or State, local or tribal 
                governments, or communities;
            ``(7) the term `reasonable alternative' means a reasonable 
        regulatory option that would achieve the objective of the 
        statute as addressed by the rule making and that the agency has 
        authority to adopt under the statute granting rule making 
        authority, including flexible regulatory options;
            ``(8) the term `risk assessment' means the systematic 
        process of organizing hazard and exposure assessments to 
        estimate the potential for specific harm to exposed 
        individuals, populations, or natural resources;
            ``(9) the term `risk characterization' means the 
        presentation of risk assessment results including, to the 
        extent feasible, a characterization of the distribution of risk 
        as well as an analysis of uncertainties, variabilities, 
        conflicting information, and inferences and assumptions in the 
        assessment;
            ``(10) the term `rule' has the same meaning as in section 
        551(4), and shall not include--
                    ``(A) a rule exempt from notice and public comment 
                procedure under section 553;
                    ``(B) a rule that involves the internal revenue 
                laws of the United States, or the assessment and 
                collection of taxes, duties, or other revenue or 
                receipts;
                    ``(C) 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;
                    ``(D) 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;
                    ``(E) 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;
                    ``(F) a rule or order relating to the financial 
                responsibility, recordkeeping, or reporting of brokers 
                and dealers (including Government securities brokers 
                and dealers) or futures commission merchants, the 
                safeguarding of investor securities and funds or 
                commodity future or options customer securities and 
                funds, the clearance and settlement of securities, 
                futures, or options transactions, or the suspension of 
                trading under the Securities Exchange Act of 1934 (15 
                U.S.C. 78a et seq.) or emergency action taken under the 
                Commodity Exchange Act (7 U.S.C. 1 et seq.), or a rule 
                relating to the protection of the Securities Investor 
                Protection Corporation, that is promulgated under the 
                Securities Investor Protection Act of 1970 (15 U.S.C. 
                78aaa et seq.), or a rule relating to the custody of 
                Government securities by depository institutions under 
                section 3121 or 9110 of title 31;
                    ``(G) a rule issued by the Federal Election 
                Commission or a rule issued by the Federal 
                Communications Commission under sections 312(a)(7) and 
                315 of the Communications Act of 1934 (47 U.S.C. 
                312(a)(7) and 315);
                    ``(H) a rule required to be promulgated at least 
                annually pursuant to statute; or
                    ``(I) a rule or agency action relating to the 
                public debt;
            ``(11) the term `screening analysis' means an analysis 
        using simple assumptions to arrive at an estimate of upper and 
        lower bounds of risk as appropriate; and
            ``(12) the term `substitution risk' means an increased risk 
        to health, safety, or the environment reasonably likely to 
        result from a regulatory option.
``Sec. 622. Applicability
    ``Except as provided in section 623(e), this subchapter shall apply 
to all proposed and final major rules.
``Sec. 623. Regulatory analysis
    ``(a)(1) Before publishing a notice of a proposed rule making for 
any rule, each agency shall determine whether the rule is or is not a 
major rule covered by this subchapter.
    ``(2) The Director may designate any rule to be a major rule under 
section 621(6)(B), if the Director--
            ``(A) makes such designation no later than 30 days after 
        the close of the comment period for the rule; and
            ``(B) publishes such determination in the Federal Register 
        together with a succinct statement of the basis for the 
        determination within 30 days after such determination.
    ``(b)(1)(A) When an agency publishes a notice of proposed rule 
making for a major rule, the agency shall prepare and place in the rule 
making file an initial regulatory analysis, and shall include a summary 
of such analysis consistent with subsection (d) in the notice of 
proposed rule making.
    ``(B)(i) When the Director has published a determination that a 
rule is a major rule after the publication of the notice of proposed 
rule making for the rule, the agency shall promptly prepare and place 
in the rule making file an initial regulatory analysis for the rule and 
shall publish in the Federal Register a summary of such analysis 
consistent with subsection (d).
    ``(ii) Following the issuance of an initial regulatory analysis 
under clause (i), the agency shall give interested persons an 
opportunity to comment under section 553 in the same manner as if the 
initial regulatory analysis had been issued with the notice of proposed 
rule making.
    ``(2) Each initial regulatory analysis shall contain--
            ``(A) a cost-benefit analysis of the proposed rule that 
        shall contain--
                    ``(i) 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;
                    ``(ii) 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; and
                    ``(iii) an evaluation of the relationship of the 
                benefits of the proposed rule to its costs, including 
                the determinations required under subsection (c)(3), 
                taking into account the results of any risk assessment;
                    ``(iv) an evaluation of the benefits and costs of a 
                reasonable number of reasonable alternatives reflecting 
                the range of regulatory options that would achieve the 
                objective of the statute as addressed by the rule 
                making, including, where feasible, alternatives that--
                            ``(I) require no government action;
                            ``(II) accommodate differences among 
                        geographic regions and among persons with 
                        differing levels of resources with which to 
                        comply; or
                            ``(III) employ flexible regulatory options;
                    ``(v) a description of the scientific or economic 
                evaluations or information upon which the agency 
                substantially relied in the cost-benefit analysis and 
                risk assessment required under this subchapter, and an 
                explanation of how the agency reached the 
                determinations under subsection (c)(3); and
            ``(B) if required, the risk assessment in accordance with 
        section 624.
    ``(c)(1) When the agency publishes a final major rule, the agency 
shall also prepare and place in the rule making file a final regulatory 
analysis, and shall prepare a summary of the analysis consistent with 
subsection (d).
    ``(2) Each final regulatory analysis shall address each of the 
requirements for the initial regulatory analysis under subsection 
(b)(2), revised to reflect--
            ``(A) any material changes made to the proposed rule by the 
        agency after publication of the notice of proposed rule making;
            ``(B) any material changes made to the cost-benefit 
        analysis or risk assessment; and
            ``(C) agency consideration of significant comments received 
        regarding the proposed rule and the initial regulatory 
        analysis, including regulatory review communications under 
        subchapter IV.
    ``(3)(A) The agency shall include in the statement of basis and 
purpose for the rule a reasonable determination, based upon the rule 
making record considered as a whole--
            ``(i) whether the rule is likely to provide benefits that 
        justify the costs of the rule; and
            ``(ii) whether the rule is likely to substantially achieve 
        the rule making objective in a more cost-effective manner, or 
        with greater net benefits, than the other reasonable 
        alternatives considered by the agency.
    ``(B) If the agency head cannot reasonably determine that the final 
rule is likely to provide benefits that justify the costs of the rule 
and substantially achieve the rule making objective in a more cost-
effective manner or with greater net benefits than the other reasonable 
alternatives considered by the agency, the agency head shall--
            ``(i) explain why such determinations cannot be made;
            ``(ii) identify any statutory provision or other factor 
        that prevents such determinations; and
            ``(iii) describe a reasonable alternative considered by the 
        agency, if feasible, that would allow the agency to determine 
        that the benefits justify the costs and that the rule making 
        objective would be achieved in a more cost-effective manner or 
        with greater net benefits than the other reasonable 
        alternatives considered by the agency.
    ``(d) Each agency shall include an executive summary of the 
regulatory analysis, including any risk assessment, in the regulatory 
analysis and in the statement of basis and purpose for the rule. Such 
executive summary shall include a succinct presentation of--
            ``(1) the benefits and costs expected to result from the 
        rule and any determinations required under subsection (c)(3);
            ``(2) if applicable, the risk addressed by the rule, 
        including the most plausible estimate of the risk and the 
        results of any risk assessment;
            ``(3) the benefits and costs of reasonable alternatives 
        considered by the agency; and
            ``(4) the key assumptions and scientific or economic 
        information upon which the agency relied.
    ``(e)(1) A major rule may be adopted without prior compliance with 
this subchapter if--
            ``(A) the agency for good cause finds that conducting the 
        regulatory analysis under this subchapter is contrary to the 
        public interest due to an emergency, or an imminent threat to 
        health or safety that is likely to result in significant harm 
        to the public or the environment; and
            ``(B) the agency publishes in the Federal Register, 
        together with such finding, a succinct statement of the basis 
        for the finding.
    ``(2) If a major rule is adopted under paragraph (1), the agency 
shall comply with this subchapter as promptly as possible unless 
compliance would be unreasonable because the rule is, or soon will be, 
no longer in effect.
``Sec. 624. Principles for risk assessments
    ``(a)(1) Subject to paragraph (2), each agency shall design and 
conduct risk assessments in accordance with this subchapter for each 
proposed and final major rule the primary purpose of which is to 
address health, safety, or environmental risk, or which results in a 
significant substitution risk, in a manner that promotes rational and 
informed risk management decisions and informed public input into and 
understanding of the process of making agency decisions.
    ``(2) If a risk assessment under this subchapter is otherwise 
required by this section, but the agency determines that--
            ``(A) a final rule subject to this subchapter is 
        substantially similar to the proposed rule with respect to the 
        risk being addressed;
            ``(B) a risk assessment for the proposed rule has been 
        carried out in a manner consistent with this subchapter; and
            ``(C) a new risk assessment for the final rule is not 
        required in order to respond to comments received during the 
        period for comment on the proposed rule,
the agency may publish such determination along with the final rule in 
lieu of preparing a new risk assessment for the final rule.
    ``(b) Each agency shall consider in each risk assessment reliable 
and reasonably available scientific information and shall describe the 
basis for selecting such scientific information.
    ``(c)(1) Each agency may use reasonable assumptions to the extent 
that relevant and reliable scientific information, including site-
specific or substance-specific information, is not reasonably 
available.
    ``(2) When a risk assessment involves a choice of assumptions, the 
agency shall--
            ``(A) identify the assumption and its scientific or policy 
        basis, including the extent to which the assumption has been 
        validated by, or conflicts with, empirical data;
            ``(B) explain the basis for any choices among assumptions 
        and, where applicable, the basis for combining multiple 
        assumptions; and
            ``(C) describe reasonable alternative assumptions that were 
        considered but not selected by the agency for use in the risk 
        assessment, how such alternative assumptions would have changed 
        the conclusions of the risk assessment, and the rationale for 
        not using such alternatives.
    ``(d) Each agency shall provide appropriate opportunity for public 
comment and participation during the development of a risk assessment.
    ``(e) Each risk assessment supporting a major rule under this 
subchapter shall include, as appropriate, each of the following:
            ``(1) A description of the hazard of concern.
            ``(2) A description of the populations or natural resources 
        that are the subject of the risk assessment.
            ``(3) An explanation of the exposure scenarios used in the 
        risk assessment, including an estimate of the corresponding 
        population at risk and the likelihood of such exposure 
        scenarios.
            ``(4) A description of the nature and severity of the harm 
        that could reasonably occur as a result of exposure to the 
        hazard.
            ``(5) A description of the major uncertainties in each 
        component of the risk assessment and their influence on the 
        results of the assessment.
    ``(f) To the extent scientifically appropriate, each agency shall--
            ``(1) express the overall estimate of risk as a reasonable 
        range or probability distribution that reflects variabilities, 
        uncertainties, and lack of data in the analysis;
            ``(2) provide the range and distribution of risks and the 
        corresponding exposure scenarios, identifying the range and 
        distribution and likelihood of risk to the general population 
        and, as appropriate, to more highly exposed or sensitive 
        subpopulations, including the most plausible estimates of the 
        risks; and
            ``(3) where quantitative estimates are not available, 
        describe the qualitative factors influencing the range, 
        distribution, and likelihood of possible risks.
    ``(g) When scientific information that permits relevant comparisons 
of risk is reasonably available, each agency shall use the information 
to place the nature and magnitude of a risk to health, safety, or the 
environment being analyzed in relationship to other reasonably 
comparable risks familiar to and routinely encountered by the general 
public. Such comparisons should consider relevant distinctions among 
risks, such as the voluntary or involuntary nature of risks.
    ``(h) When scientifically appropriate information on significant 
substitution risks to health, safety, or the environment is reasonably 
available to the agency, the agency shall describe such risks in the 
risk assessment.
``Sec. 625. Peer review
    ``(a) Each agency shall provide for peer review in accordance with 
this section of any cost benefit analysis and risk assessment required 
by this subchapter that forms the basis of any major rule covered by 
this subchapter.
    ``(b)(1) Peer review required under subsection (a) shall--
            ``(A) provide for the creation or utilization of peer 
        review panels, expert bodies, or other formal or informal 
        devices that are broadly representative and balanced and that 
        consist of panel members or participants with expertise 
        relevant to the sciences involved in the regulatory decisions 
        and who are independent of the agency program;
            ``(B) exclude any person as a panel member or participant 
        if such person has a financial interest in the outcome, unless 
        such person fully discloses such interest to the agency and the 
        public;
            ``(C) provide for the timely completion of the peer review 
        including meeting agency deadlines;
            ``(D) contain a balanced presentation of all 
        considerations, including minority reports and an agency 
        response to all significant peer review comments; and
            ``(E) provide adequate protections for confidential 
        business information and trade secrets, including requiring 
        panel members or participants to enter into confidentiality 
        agreements.
    ``(2) All peer review written comments or conclusions and the 
agency's written responses to significant peer review comments shall be 
made available to the public and shall be made part of the rule making 
record for purposes of judicial review of any final agency action.
    ``(3) If the head of an agency, with the concurrence of the 
Director, publishes a determination that a cost-benefit analysis or 
risk assessment, or any component thereof, has been previously 
subjected to adequate peer review, no further peer review shall be 
required under this section for such analysis, assessment, or 
component.
``Sec. 626. Deadlines for rule making
    ``(a) All deadlines in statutes or imposed by a court of the United 
States, that require an agency to propose or promulgate any major rule 
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 this subchapter 
        are satisfied; or
            ``(2) the date occurring 6 months after the date of the 
        applicable deadline.
    ``(b) In any case in which the failure to promulgate a major 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 this subchapter 
        are satisfied; or
            ``(2) the date occurring 6 months after the date of the 
        applicable deadline.
``Sec. 627. Judicial review
    ``(a) Compliance or noncompliance by an agency with the provisions 
of this subchapter shall only be subject to judicial review in 
accordance with this section.
    ``(b) Any determination of an agency whether a rule is or is not a 
major rule under section 621(6)(A) 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.
    ``(c) Any determination by the Director that a rule is a major rule 
under section 621(6), or any failure to make such determination, shall 
not be subject to judicial review in any manner.
    ``(d) The cost-benefit analysis and any risk assessment required 
under this subchapter shall not be subject to judicial review separate 
from review of the final rule to which they apply. The cost-benefit 
analysis, cost-benefit determination under section 623(c)(3), and any 
risk assessment shall be part of the whole rule making record for 
purposes of judicial review of the rule and shall be considered by a 
court in determining whether the final rule is arbitrary or capricious 
unless the agency can demonstrate that the analysis or assessment would 
not be material to the outcome of the rule.
    ``(e) If an agency fails to perform the cost-benefit analysis, 
cost-benefit determination, or risk assessment, a court shall remand or 
invalidate the rule.
``Sec. 628. Guidelines, interagency coordination, and research
    ``(a)(1) No later than 9 months after the date of enactment of this 
section, the Director, in consultation with the Director of the Office 
of Science and Technology Policy and the relevant agency heads, shall 
develop guidelines for cost-benefit analyses and risk assessments 
required by this subchapter or with significant implications for public 
policy. To the extent feasible such guidelines shall apply the 
principles of sections 623 and 624. The Director shall oversee and 
periodically revise such guidelines as appropriate.
    ``(2) As soon as practicable and no later than 18 months after the 
date of enactment of this section, each relevant agency shall adopt 
detailed guidelines for risk assessments required by this subchapter or 
with significant implications for public policy. Such guidelines shall 
be consistent with the guidance issued under paragraph (1). Each agency 
shall periodically revise such agency guidelines as appropriate.
    ``(3) The guidelines under this subsection shall be developed 
following notice and public comment. The development and issuance of 
the guidelines shall not be subject to judicial review, except in 
accordance with section 706(1) of this title.
    ``(b) To promote the use of cost-benefit analysis and assessment in 
a consistent manner and to identify agency research and training needs, 
the Director, in consultation with the Director of the Office of 
Science and Technology Policy, shall--
            ``(1) oversee periodic evaluations of Federal agency cost-
        benefit analysis and risk assessment;
            ``(2) provide advice and recommendations to the President 
        and Congress to improve agency use of cost-benefit analysis and 
        risk assessment;
            ``(3) establish appropriate interagency mechanisms to 
        improve the consistency and quality of cost-benefit analysis 
        and risk assessment among Federal agencies; and
            ``(4) establish appropriate mechanisms between Federal and 
        State agencies to improve cooperation in the development and 
        application of cost-benefit analysis and risk assessment.
    ``(c)(1) The head of each agency, in consultation with the Director 
and the Director of the Office of Science and Technology Policy, shall 
regularly evaluate and develop a strategy to meet agency needs for 
research and training in cost-benefit analysis and risk assessment, 
including research on modelling, the development of generic data, 
use of assumptions and the identification and quantification of 
uncertainty and variability.
    ``(2)(A) No later than 6 months from the date of enactment of this 
section, the Director, in consultation with the Director of the Office 
of Science and Technology Policy, shall enter into appropriate 
arrangements with an accredited scientific institution to conduct 
research to--
            ``(i) identify and evaluate a common basis to assist 
        comparative risk analysis and risk communication related to 
        both carcinogens and noncarcinogens; and
            ``(ii) appropriately incorporate risk assessments into 
        related cost-benefit analyses.
    ``(B) The results of the research conducted under this paragraph 
shall be submitted to the Director and Congress no later than 18 months 
after the date of enactment of this section.
``Sec. 629. Comparative risk analysis study
    ``(a) No later than 180 days after the effective date of this 
section,  the Director, in consultation with the Director of the Office 
of Science and Technology Policy, shall enter into a contract with an 
accredited scientific institution to conduct a study that provides--
            ``(1) a systematic comparison of the extent and severity of 
        significant risks to human health, safety, or the environment 
        (hereafter referred to as a comparative risk analysis);
            ``(2) a study of methodologies for using comparative risk 
        analysis to compare dissimilar risks to human health, safety, 
        or the environment; and
            ``(3) technical guidance and recommendations on the use of 
        comparative risk analysis to assist in allocating resources 
        within and across agencies to set priorities for the reduction 
        of risks to human health, safety, or the environment.
    ``(b) The Director shall ensure that the study required under 
subsection (a) is--
            ``(1) conducted through an open process providing peer 
        review consistent with section 625 and opportunities for public 
        comment and participation; and
            ``(2) completed and submitted to Congress and the President 
        no later than 3 years after the effective date of this section.
    ``(c) No later than 5 years after the effective date of this 
section, and periodically thereafter, the President shall submit a 
report to Congress recommending legislative changes to assist in 
setting priorities to more effectively and efficiently reduce risks to 
human health, safety, or the environment.

                   ``SUBCHAPTER III--REVIEW OF RULES

``Sec. 631. Definitions
    ``For purposes of this subchapter the definitions under sections 
551 and 621 shall apply.
``Sec. 632. Advisory committee on regulations
    ``(a)(1)(A) No later than 90 days after the date of enactment of 
this section and every 5 years thereafter, the head of each agency 
described under subparagraph (B) shall establish an advisory committee 
for the review of rules.
    ``(B) An agency referred to under subparagraph (A) is any agency 
that has promulgated a major rule during the 10-year period preceding 
the date of the establishment of an advisory committee under 
subparagraph (A).
    ``(2) The head of an agency described under paragraph (1) may 
establish panels under its advisory committee.
    ``(b)(1) Each such agency head shall appoint a reasonable number of 
members to serve on the agency's advisory committee and shall designate 
a chairman from the members of the committee. Membership on the 
committee shall represent a balanced cross-section of public and 
private interests affected by the regulations of the agency, including 
small businesses, small governments, and public interest groups. No 
employee of the agency establishing the committee shall serve as a 
member of such agency's committee under this section.
    ``(2) Each member shall be appointed for the life of the advisory 
committee. The advisory committee shall terminate 1 year after the date 
on which the committee is established.
    ``(3) A vacancy on a committee shall be filled in the same manner 
as the original appointment.
    ``(4) Each committee shall solicit public comments and may solicit 
public participation through appropriate means including hearings, 
written comments, public meetings, and electronic mail.
    ``(5) Members of each committee shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with sections 
5702 and 5703.
    ``(6) Each committee shall be subject to the provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.).
``Sec. 633. Agency regulatory review
    ``(a) Each advisory committee appointed under section 632 shall 
develop a list of rules promulgated by the agency that the committee 
serves, which the committee determines should be reviewed by the agency 
and can reasonably be reviewed by the agency within a 5-year period. 
In selecting rules for review, each committee shall consider the extent 
to which--
            ``(1) a rule could be revised to substantially increase net 
        benefits, including through flexible regulatory options;
            ``(2) the rule is important relative to other rules being 
        considered for review; and
            ``(3) the agency has discretion under the statute 
        authorizing the rule to modify or repeal the rule.
    ``(b) In developing the list required under subsection (a), each 
advisory committee shall obtain comments and suggestions from the 
public.
    ``(c) No later than 1 year after an advisory committee is 
established, such committee shall deliver to the agency the committee's 
recommended list of rules to be reviewed in order of priority. The 
agency shall immediately publish the list in the Federal Register and 
forward a copy of the list to the appropriate committees of 
jurisdiction in the House of Representatives and the Senate.
    ``(d)(1) No later than 60 days after receiving and reviewing the 
list of rules from its committee, the agency shall publish in the 
Federal Register a preliminary schedule for review of rules based on 
such list.
    ``(2) The agency shall provide in the Federal Register at the time 
the preliminary schedule is published an explanation of each 
modification to the list provided by the advisory committee and shall 
invite public comment on the preliminary schedule for a period of no 
less than 60 days.
    ``(e) The preliminary schedule under this section shall propose 
deadlines for review of each rule listed thereon, and such deadlines 
shall occur no later than 5 years from the date of publication of the 
final schedule.
    ``(f)(1) No later than 60 days after the close of the comment 
period, the agency shall publish a final schedule of rules to be 
reviewed by the agency under this section.
    ``(2) The schedule shall establish a deadline for completion of the 
review of each rule listed on the schedule. Each deadline shall occur 
no later than 5 years from the date of publication of the final 
schedule.
    ``(g) In preparing the preliminary and final schedule, the agency 
shall give deference to the recommendations of its advisory committee 
but may modify the list of rules to be reviewed, taking into account 
the factors contained in subsection (a) and the resource constraints of 
the agency.
    ``(h)(1) For each rule on the schedule under subsection (e), the 
agency shall--
            ``(A) no later than 2 years before the deadline in such 
        schedule, publish in the Federal Register a notice that 
        solicits public comment regarding whether the rule should be 
        continued, amended, or repealed;
            ``(B) no later than 1 year before the deadline in such 
        schedule, publish in the Federal Register a notice that--
                    ``(i) addresses public comments generated by the 
                notice in subparagraph (A);
                    ``(ii) contains a preliminary analysis by the 
                agency with respect to subsection (a) (1), (2), and 
                (3);
                    ``(iii) contains a preliminary determination 
                whether the rule should be continued, amended, or 
                repealed; and
                    ``(iv) solicits public comment on the preliminary 
                determination for the rule; and
            ``(C) no later than 60 days before the deadline in such 
        schedule, publish in the Federal Register a final notice on the 
        rule that--
                    ``(i) addresses public comments generated by the 
                notice in subsection (c);
                    ``(ii) contains a determination to continue, amend, 
                or repeal the rule and an explanation of such 
                determination with respect to subsection (a) (1), (2), 
                and (3); and
                    ``(iii) if the agency determines to amend or repeal 
                the rule, contains, if required, a notice of proposed 
                rule making under section 553.
    ``(2) If the final determination of the agency is to continue the 
rule, such determination shall constitute final agency action 60 days 
after the publication in the Federal Register of the notice in 
paragraph (1)(C).
    ``(i) If an agency makes a determination to amend or repeal a rule 
under subsection (h)(1)(C), the agency shall complete final agency 
action with regard to such rule no later than 2 years after the 
deadline established for such rule under subsection (f)(2).
    ``(j) Nothing in this section shall limit the discretion of an 
agency to decide, after having proposed to modify or repeal a rule, not 
to promulgate such modification or repeal. Such decision shall 
constitute final agency action for the purposes of judicial review.
    ``(k) Agency failure to take the actions required by this section 
shall be subject to judicial review only under section 706(1). There 
shall be no judicial review of the preliminary or final schedule.
    ``(l) A court may remand a determination under subsection (h)(2) 
only upon a clear and convincing showing that the agency could have 
adopted a reasonable alternative that would substantially increase net 
benefits, including through flexible regulatory options, while meeting 
the objectives of the statute as addressed by the rule making.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``Sec. 641. Definitions
    ``For purposes of this subchapter--
            ``(1) the definitions under sections 551 and 621 shall 
        apply; and
            ``(2) the term `regulatory action' means any one of the 
        following:
                    ``(A) An agenda or schedule for rule makings.
                    ``(B) Advance notice of proposed rule making.
                    ``(C) Notice of proposed rule making.
                    ``(D) Final rule making, including interim final 
                rule making.
``Sec. 642. Presidential regulatory review
    ``(a) The President shall establish a process for the review and 
coordination of Federal agency regulatory actions. Such process shall 
be the responsibility of the Director.
    ``(b) For the purpose of carrying out the review established under 
subsection (a), the Director shall--
            ``(1) develop and oversee uniform regulatory policies and 
        procedures, including those by which each agency shall comply 
        with the requirements of this chapter;
            ``(2) develop policies and procedures for the review of 
        regulatory actions by the Director; and
            ``(3) develop and oversee an annual governmentwide 
        regulatory planning process that shall include review of 
        planned agency major rules and other significant regulatory 
        actions and publication of--
                    ``(A) a summary of and schedule for promulgation of 
                planned agency major rules;
                    ``(B) agency specific schedules for review of 
                existing rules under subchapter III;
                    ``(C) a summary of regulatory review actions 
                undertaken in the prior year;
                    ``(D) a list of major rules promulgated in the 
                prior year for which an agency could not make the 
                determinations that the benefits of a rule justify the 
                costs under section 623(c)(3);
                    ``(E) identification of significant agency 
                noncompliance with this chapter in the prior year; and
                    ``(F) recommendations for improving compliance with 
                this chapter and increasing the efficiency and 
                effectiveness of the regulatory process.
    ``(c) The review established under subsection (a) shall be 
conducted as expeditiously as practicable and the Director's review of 
any regulatory action shall be limited to no more than 90 days, unless 
extended for an additional 30 days at the written request of the rule 
making agency or the Director.
``Sec. 643. Public disclosure of information
    ``(a) The Director, in carrying out the provisions of section 642, 
shall establish procedures 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 a regulatory action, of--
                    ``(A) all written communications relating to the 
                substance of a regulatory action including drafts of 
                all proposals and associated analyses, between the 
                Director or employees of the Director and the 
                regulatory agency;
                    ``(B) all written communications relating to the 
                substance of a regulatory action between the Director 
                or employees of the Director and any person not 
                employed by the executive branch of the Federal 
                Government;
                    ``(C) a list identifying the dates, names of 
                individuals involved, and subject matter discussed in 
                substantive meetings and telephone conversations 
                relating to the substance of a regulatory action 
                between the Director or employees of the Director 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 relating to the 
                substance of a regulatory action between the Director 
                or employees of the Director and any person who is not 
                employed by the executive branch of the Federal 
                Government;
                    ``(B) a list identifying the dates, names of 
                individuals involved, and subject matter discussed in 
                substantive meetings and telephone conversations, and 
an invitation to participate in meetings, relating to the substance of 
a regulatory action between the Director or employees of the Director 
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.
    ``(b) Prior to the publication of any proposed or final rule, the 
agency shall include in the rule making record--
            ``(1) a document identifying in a complete, clear, and 
        simple manner, the substantive changes between the draft 
        submitted to the Director for review and the rule subsequently 
        announced;
            ``(2) a document identifying those changes in the rule that 
        were made at the suggestion or recommendation of the Director; 
        and
            ``(3) all written communications exchanged between the 
        Director and the agency during the review of the rule, 
        including drafts of all proposals and associated analyses.
``Sec. 644. Judicial review
    ``The exercise of the authority granted under this subchapter by 
the Director or the President shall not be subject to judicial review 
in any manner.''.
    (b) 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.
    (c) Technical and Conforming Amendments.--
            (1) Part I of title 5, United States Code, is amended by 
        striking the chapter heading and table of sections for chapter 
        6 and inserting the following:

           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS

           ``SUBCHAPTER I--ANALYSIS OF REGULATORY FLEXIBILITY

``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--REGULATORY ANALYSIS

``621. Definitions.
``622. Applicability.
``623. Regulatory analysis.
``624. Principles for risk assessments.
``625. Peer review.
``626. Deadlines for rule making.
``627. Judicial review.
``628. Guidelines, interagency coordination, and research.
``629. Comparative risk analysis study.
                   ``SUBCHAPTER III--REVIEW OF RULES

``631. Definitions.
``632. Advisory committee on regulations.
``633. Agency regulatory review.
                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Definitions.
``642. Presidential regulatory review.
``643. Public disclosure of information.
``644. 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--ANALYSIS OF REGULATORY FLEXIBILITY''.

SEC. 4. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act shall take 
effect 180 days after the date of enactment of this Act, but shall not 
apply to any agency rule for which a notice of proposed rulemaking is 
published on or before August 1, 1997.
                                 <all>