[Congressional Record Volume 141, Number 17 (Friday, January 27, 1995)]
[Senate]
[Pages S1711-S1719]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ROTH:
  S. 291. A bill to reform the regulatory process, to make government 
more efficient and effective, and for other purposes; to the Committee 
on Governmental Affairs.


                     regulatory reform legislation

 Mr. ROTH. Mr. President, I rise to emphasize the critical need 
for a smarter, more cost-effective approach to Government regulation. 
Today, I introduce legislation intended to generate constructive debate 
on this important issue.
  As chairman of the Committee on Governmental Affairs, I want to build 
consensus on how to regulate smarter among all engaged in the growing 
debate on regulatory reform--including the general public, businesses 
of all sizes, environmental and public interest groups, academia, State 
and local governments, the White House, and my colleagues on both sides 
of the aisle. Throughout my career, I have been committed to protecting 
the environment, health, and safety. I reaffirm that commitment today. 
We should not forget that many regulations provide important 
protections and benefits to the public. Let there be no mistake--we 
need a clean environment, safe workplaces, and safe medications.
  Mr. President, it is clear that the regulatory process is broken. Too 
many regulations impose undue costs, and the regulatory process itself 
has become too cumbersome, unresponsive, and inefficient. The 
cumulative cost of regulation is enormous and is rising at an alarming 
rate. The annual cost of Federal regulation was conservatively 
estimated at about $560 billion for 1992; it could exceed $660 billion 
by the year 2000. About three-fourths of the cost increase is expected 
from upcoming risk regulations, such as environmental, health, and 
safety standards.
  The rising cost of regulation affects us all--businesses large and 
small, governments at all levels, and the American worker and consumer. 
Regulations drive up prices and stifle wages, innovation, and economic 
growth. Although the direct costs of regulation generally are imposed 
on businesses and governments, these costs ultimately are passed on to 
the American consumer through higher prices, diminished wages, 
increased taxes, or reduced government services. The cost of regulation 
has been estimated at about $6,000 per year for the average American 
household.
  The recent elections brought to this Congress historic change, an 
with it, and unprecedented opportunity to reform the regulatory 
process. However, it is important that we take a balanced approach to 
reform. In our zeal to implement substantial changes, we should act 
carefully so that we truly perfect needed Government programs--not 
cripple or stymie them. Building a smarter regulatory process will 
require the expertise and consensus of those on all sides of the 
regulatory reform debate. Together, we should strive to achieve 
desirable social goals in the most cost-effective manner practical.
  My goal is to forge a consensus on effective legislation to make the 
regulatory process more efficient and effective. The bill I am 
introducing today is a first step in this direction, but it requires 
further debate and deliberation. It may be necessary to add further 
provisions, delete some, or revise others. I will chair a series of 
hearings, beginning on February 8, to provide a forum to discuss the 
broad principles of regulatory reform--those reflected in this bill as 
well as others we have not yet addressed.
  My bill will require Federal agencies to seriously consider whether 
the benefits of regulating justify its costs. When regulating risks, 
regulators will be required to make realistic estimates of risk based 
on the available data, and disclose to the public any assumptions 
necessary to measure those risks. The bill also will encourage agencies 
to base their priorities on the relative risks posed by various 
substances, activities, and products to achieve the greatest overall 
reduction in risk at the least cost. More generally, my bill will 
require agencies to review existing regulations, to be sensitive to the 
cumulative regulatory burden, and to select the most cost-effective, 
market-driven method practical. These are but some of the principles to 
be discussed at the hearings on regulatory reform.
  We can reinvent the regulatory process to ensure that when agencies 
choose to regulate, they will do so in a more effective and less costly 
manner. We can reduce the burden on governments, businesses, and the 
public, and still ensure that important benefits and protections are 
provided. We cannot afford to ignore the need to regulate smarter.
  I ask unanimous consent that the legislation I introduce today be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                 S. 291

       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 Reform Act of 
     1995''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of Contents.
         [[Page S1712]] TITLE I--REGULATORY ANALYSIS AND REVIEW

Sec. 101. Cost/Benefit Analysis of Agency Proposals; Risk Assessment; 
              Regulatory Review.
Sec. 102. Use of State or Local Requirements.
Sec. 103. Presidential Authority.

                    TITLE II--RISK-BASED PRIORITIES

Sec. 201. Short title.
Sec. 202. Purposes.
Sec. 203. Definitions.
Sec. 204. Department and Agency Program Goals.
Sec. 205. Comparative Risk Analysis.
Sec. 206. Reports to Congress and the President.
Sec. 207. Savings Provision and Judicial Review.

                    TITLE III--REGULATORY ACCOUNTING

Sec. 301. Short title.
Sec. 302. Accounting Statement.
Sec. 303. Associated Report to Congress.
Sec. 304. Guidance from Office of Management and Budget.
Sec. 305. Recommendations from Congressional Budget Office.
Sec. 306. Definitions.

   TITLE IV--MARKET INCENTIVES AND ECONOMICALLY EFFICIENT REGULATION

Sec. 401. Short title.
Sec. 402. Program Design Requirements.
Sec. 403. Agency Assessment and OMB Review.
Sec. 404. Definitions.
                TITLE I: REGULATORY ANALYSIS AND REVIEW

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

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

             ``Subchapter II--Analysis of Agency Proposals

     ``Sec. 621. Definitions

       ``For purposes of this subchapter and subchapter III of 
     this chapter:
       ``(1) The term `agency' has the same meaning as in section 
     551(1) of this title.
       ``(2) The term `person' has the same meaning as in section 
     551(2) of this title.
       ``(3) The term `rule' has the same meaning as in section 
     551(4) of this title, except that such term does not 
     include--
       ``(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.
       ``(B) a rule relating to monetary policy proposed or 
     promulgated by the Board of Governors of the Federal Reserve 
     System; or
       ``(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.
       ``(4) The term `major rule' means--
       ``(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 on the economy of $100,000,000 or more in 
     reasonably quantifiable direct and indirect costs, or has a 
     significant impact on a subsection of the economy; and
       ``(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--
       ``(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
       ``(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--
       ``(I) a rule that involves the internal revenue laws of the 
     United States;
       ``(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;
       ``(III) a rule exempt from notice and public procedure 
     pursuant to section 553(a) of this title; or
       ``(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.
       ``(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.
       ``(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.

     ``Sec. 622. Regulatory cost/benefit analysis

       ``(a) Prior to publishing notice of proposed rule making 
     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 rule making 
     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.
       ``(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 
     rule making 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.
       ``(c)(1) When the agency publishes a notice of proposed 
     rule making for a major rule, the agency shall issue and 
     place in the rule making file maintained under section 553(f) 
     of this title a preliminary regulatory analysis and shall 
     include in such notice of proposed rule making a summary of 
     the analysis. When the President or the officer elected 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 rule making 
     for that rule, the agency shall promptly issue and place in 
     the rule making 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 rule making.
       ``(2) Each preliminary regulatory analysis shall contain--
       ``(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;
       ``(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;
       ``(C) a succinct description of reasonable alternatives for 
     achieving the identified benefits of the proposed rule, 
     including alternatives that--
       ``(i) require no Government action;
       ``(ii) will accommodate differences between geographic 
     regions; and
       ``(iii) employ performance or other market based standards 
     which permit the greatest flexibility in achieving the 
     identified benefits of the proposed rule and which comply 
     with the requirements of title IV;
       ``(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 scientific evaluations or 
     scientific information in accordance with the requirements of 
     title IV; and
       ``(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 rule making objectives in 
     a more cost-effective manner than the alternatives to the 
     proposed rule, including alternatives identified in 
     accordance with title IV.
       ``(d)(1) When the agency publishes a final major rule, the 
     agency shall also issue and place in the rule making 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, any 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.
       [[Page S1713]] ``(2) Each final regulatory 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 rule making, including the market-based 
     mechanisms identified pursuant to title IV; and
       ``(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 rule making 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 
     rule making objectives in a more cost-effective manner than 
     the alternatives described in the rule making, including the 
     market-based incentives identified pursuant to title IV.
       ``(e)(1) An agency shall describe the nature and extent of 
     the nonquantifiable 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. 
     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.
       ``(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 rule making 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.
       ``(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.
       ``(g) The requirements of this section do not alter the 
     criteria for rule making otherwise applicable under other 
     statutes.

     ``Sec. 623. Judicial review

       ``(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.
       ``(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.
       ``(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
      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.
       ``(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 rule making 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.

     ``Sec. 624. Executive oversight

       ``(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.
       ``(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 rule making 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 therefore, shall be 
     inserted in the rule making file.
       ``(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.
       ``(d) The authority granted under subsection (a) of this 
     section and title II shall not apply to rules issued by the 
     Nuclear Regulatory Commission.
       ``(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.

                    Subchapter III--Risk Assessments

     ``Sec. 631. Findings, purposes, and definitions

       ``(a) Findings.--
       ``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; 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.
       ``(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 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.
       ``(4) Risk assessment has proved to be a useful decision-
     making 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.
       ``(5) The public stakeholders must be fully involved in the 
     decision-making 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.
       ``(b) Purposes.--
       ``The purposes of this subchapter are--
       ``(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;
       ``(2) to provide for full consideration and discussion of 
     relevant data and potential methodologies;
       ``(3) to require explanation of significant choices in the 
     risk assessment process that will allow for better public 
     understanding; and
       ``(4) to improve consistency within the executive branch in 
     preparing risk assessments and risk characterizations.
       ``(c) Definitions.--
       ``For purposes of this subchapter:
       ``(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:
       ``(A) Central estimates of risk using the most plausible 
     assumptions.
       ``(B) An approach that combines multiple estimates based on 
     different scenarios and weighs the probability of each 
     scenario.
       [[Page S1714]] ``(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.
       ``(2) Covered agency.--The term `covered agency' means each 
     of the following:
       ``(A) The Environmental Protection Agency.
       ``(B) The Department of Labor.
       ``(C) The Food and Drug Administration.
       ``(D) The Consumer Product Safety Commission.
       ``(E) The Department of Transportation.
       ``(F) The Department of Energy.
       ``(G) The Department of Agriculture.
       ``(H) The Department of Interior.
       ``(I) The Nuclear Regulatory Commission.
       ``(3) Emergency.--The term `emergency' means an imminent 
     and substantial endangerment to public health, safety, or the 
     environment.
       ``(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.
       ``(5) Risk assessment.--The term `risk assessment' means--
       ``(A) the process of identifying hazards and quantifying or 
     describing the degree of toxicity, exposure, or other risk 
     they pose for exposed individuals, populations, or resources; 
     and
       ``(B) the document containing the explanation of how the 
     assessment process has been applied to an individual 
     substance, activity, or condition.
       ``(6) Risk characterization.--The term `risk 
     characterization'--
       ``(A) means 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) includes discussions of uncertainties, conflicting 
     data, estimates, extrapolations, inferences, and opinions.
       ``(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.

     ``Sec. 632. Applicability

       ``(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.
       ``(b) Exceptions.--
       ``(1) In general.--This title shall not apply to risk 
     assessments or risk characterizations performed with respect 
     to--
       ``(A) a situation that the head of the agency considers to 
     be an emergency; or
       ``(B) a screening analysis, including a screening analysis 
     for the purposes of product registration, product 
     reregistrations, or premanufacturing notices.
       ``(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--
       ``(A) as the basis for imposing a restriction on a 
     substance or activity; or
       ``(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.
       ``(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.

     ``Sec. 633. Savings provisions

       ``Nothing in this title shall be construed to--
       ``(1) modify any statutory standard or requirement designed 
     to protect human health, safety, or the environment; or
       ``(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 secrets or other 
     confidential information.

     ``Sec. 634. Requirement to prepare risk assessments

       ``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--
       ``(1) a risk assessment in accordance with this title; and
       ``(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.

     ``Sec. 635. Principles for risk assessment

       ``(a) In General.--The head of each covered agency shall 
     ensure that risk assessments and all of their components--
       ``(1) distinguish scientific findings and best estimates of 
     risk from other considerations;
       ``(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;
       ``(3) rely on scientific findings of risk;
       ``(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
       ``(5) are tailored so that the degree of specificity and 
     rigor employed is commensurate with the consequences of the 
     decision to be made.
       ``(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.

     ``Sec. 636. Principles for risk characterization and risk 
       communication

       ``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:
       ``(1) Estimates of risk.--
       ``(A) Subject.--A description of the populations or natural 
     resources that are the subject of the risk characterization.
       ``(B) Assumptions, Inferences, and Models.--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) present a representative list and explanation of 
     plausible and alternative assumptions, inferences, or models;
       ``(ii) explain the basis for any choices;
       ``(iii) identify any subjective policy decisions or value 
     judgments; and
       ``(iv) indicate the extent to which any significant model 
     has been validated by, or conflicts with, empirical data.
       ``(C) Uncertainty.--The major uncertainties in the risk 
     assessment.
       ``(D) Exposure scenarios.--Information about exposure 
     scenarios used, including the likelihood of those scenarios.
       ``(E) Risk range.--To the extent feasible, a range of risk 
     estimates, including central estimates, for each exposure 
     scenario.
       ``(F) Scientific findings and policy decisions.--To the 
     extent feasible, each risk characterization should 
     distinguish between scientific findings and policy decisions.
       ``(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.
       ``(3) Summaries of other risk estimates.--If--
       ``(A) a covered agency provides a public comment period 
     with respect to a risk assessment or regulation;
       ``(B) a commenter provides a risk assessment, and a summary 
     of results of such risk assessment; and
       ``(C) such risk assessment is consistent with the 
     principles and the guidance provided under this subtitle, the 
     covered agency shall present such summary in connection with 
     its presentation of the risk assessment or regulation.

     ``Sec. 637. Guidelines, plan for assessing new information, 
       and report

       ``(a) Guidelines.--
       ``(1) In general.--Within 15 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.
       ``(2) Matters to be addressed.--The guidelines under 
     paragraph (1) shall--
       ``(A) include guidance on utilization of specific technical 
     methodologies and standards for acceptable quality of 
     specific kinds of data; and
       ``(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.
       ``(b) Plan.--
       ``(1) In general.--Within 18 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 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.
       ``(2) Contents.--A plan under paragraph (1) shall--
       ``(A) provide procedures for receiving and considering new 
     information and risk assessments from the public; and
       ``(B) set priorities for review and revision of risk 
     assessments based on such factors as the agency head 
     considers appropriate.
       ``(c) Report.--Within 3 years after the enactment of this 
     title, each covered agency 
     [[Page S1715]] shall provide a report to the Congress 
     evaluating the categories of policy and value judgments 
     identified under subparagraph (B)(iii) of section 636(1).
       ``(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.
       ``(e) Review.--The President shall review the guidelines 
     published under this section at least every 4 years.
       ``(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.

     ``Sec. 638. Risk management criteria

       ``For each major rule subject to this title, the head of 
     the agency or the President shall make a determination that--
       ``(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
       ``(2) there is no regulatory alternative that is allowed by 
     the statute under which the regulation is promulgated that 
     would achieve an equivalent reduction in risk in a more cost-
     effective and flexible manner.

     ``Sec. 639. Interagency coordination

       ``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--
       ``(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 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;
       ``(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-State cooperation in the 
     development and application of risk assessment.

           ``Subchapter IV--Regulatory Priorities and Review

     ``Sec. 641. Review of agency rules

       ``(a) (1) (A) Not later then 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--
       ``(i) each rule of the agency which is in effect of 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
       ``(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.
       ``(B) Each proposed scheduled required by subparagraph (A) 
     shall include--
       ``(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;
       ``(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
       `(iii) a statement that the agency requests comments from 
     the public on the proposed schedule.
       ``(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.
       ``(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.
       ``(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.
       ``(b)(1) Except where explicitly provided otherwise by 
     statute, the agency shall, pursuant to subsections (c) 
     through (e) of this section, review:
       ``(A) each rule on the schedule promulgated pursuant to 
     subsection (a) of this section;
       ``(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
       ``(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)(A) of this 
     title.

     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.
       ``(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 
     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.
       ``(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 a statement 
     specifying the agency's determination of whether the rule 
     continues to fulfill the intent of Congress in enacting that 
     authority:
       ``(2) an assessment 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; 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, including alternatives developed 
     in accordance with the provisions of title IV of this bill.
       ``(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.
       ``(e) If an agency proposed to renew without amendment a 
     rule under review pursuant to this section, the agency 
     shall--
       ``(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
       ``(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.
       ``(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 than fifteen years. Such extension 
     shall be published in the Federal Register with an 
     explanation of the reasons therefor.
       ``(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.
       ``(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.
       ``(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.
       ``(2) Agency compliance or noncompliance with the 
     provisions of subsection (b), (c), (e), (f) and (g) of this 
     section shall be subject to 
     [[Page S1716]] judicial review only pursuant to section 
     706(a)(1) of this title.
       ``(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.

     Sec. 642. Regulatory agenda and calendar

       ``(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--
       ``(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;
       ``(2) a statement of whether or not the rule is or is 
     expected to be a major rule;
       ``(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;
       ``(4) the name, address, and telephone number of an agency 
     official responsible for answering questions from the public 
     concerning the rule;
       ``(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
       ``(6) a cumulative summary of the status of the rules 
     listed on the previous agenda in accordance with clause (5) 
     of this subsection.
       ``(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.
       ``(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 published 
     with the rule an explanation of the omission of the rule from 
     such agenda and otherwise complies with this section with 
     resect to that rule.
       ``(d) Any compliance or noncompliance by the agency with 
     the provisions of this section shall not be subject to 
     judicial review.

     ``Sec. 643. Establishment of deadlines

       ``(a)(1) Whenever any agency published a notice of proposed 
     rule making 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.
       ``(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 that most expeditious consideration of the rule which 
     is possible, consistent with the interests of fairness and 
     other agency priorities.
       ``(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.
       ``(b) If an agency fails to complete action in a 
     proceeding, or a major portion of the proceeding, by the date 
     announced
      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.
       ``(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).
       ``(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.''.
       (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:
           ``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 analyses.
``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 proposals

``621. Definitions.
``622. Regulatory cost/benefit analysis.
``623. Judicial review.
``624. Executive oversight.


                   ``subchapter III--risk assessments

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


           ``subchapter IV--Regulatory priorities and review

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

       (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:

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

     ``Sec. 560. Use of duplicative State or local 
       requirements.''.

     SEC. 103. PRESIDENTIAL AUTHORITY.

       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.
                    TITLE II--RISK-BASED PRIORITIES

     SEC. 201. SHORT TITLE.

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

     SEC. 202. PURPOSES.

       It is the purposes of this title 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.

     SEC. 203. DEFINITIONS.

       For the purposes of this title:
       (1) Comparative Risk Analysis.--The term ``comparative risk 
     analysis'' means a process to systematically estimate, 
     compare, and 
     [[Page S1717]] 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 Food and Drug Administration.
       (D) The Consumer Product Safety Commission.
       (E) The Department of Transportation.
       (F) The Department of Energy.
       (G) The Department of Agriculture.
       (H) The Department of Interior.
       (I) The Nuclear Regulatory Commission.
       (3) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (4) Effect.--The term ``effect'' means a deleterious change 
     in the condition--
       (A) of a human or other living thing (including death, 
     cancer, or other chronic illness, decreased reproductive 
     capacity, or disfigurement); or
       (B) of an inanimate thing important to human welfare 
     (including destruction, degeneration, the loss of intended 
     function, and increased costs for maintenance).
       (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.
       (6) Likelihood.--The term ``likelihood'' means the 
     estimated probability that an effect will occur.
       (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
      exposure to a stressor.
       (8) Seriousness.--The term ``seriousness'' means the 
     intensity of effect, the likelihood, the irreversibility, and 
     the magnitude.

     SEC. 204. DEPARTMENT AND AGENCY PROGRAM GOALS.

       (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--
       (1) the covered agency determines to be the most serious; 
     and
       (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.
       (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:
       (1) the likelihood, irreversibility, and severity of the 
     effect; and
       (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.
       (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.
       (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--
       (1) in the covered agency's annual budget request to 
     Congress--
       (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;
       (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
       (C) identifying any statutory, regulatory, or 
     administrative obstacles to allocating agency resources in 
     accordance with the mandates of subsection (a);
       (2) explicitly considering the requirements of subsection 
     (a) and the results of the comparative risk analysis prepared 
     under section 205 of this title when
      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 
     competitive risk analysis when publishing any such agenda 
     or strategic plan;
       (3) developing an annual enforcement strategic plan that 
     targets the priority risks identified under subsection (a); 
     and
       (4) expressly considering the priority risks determined 
     under subsection (a) in selecting research activities.
       (e) Effective Date.--This section shall take effect 12 
     months from the date of enactment of his title.

     SEC. 205. COMPARATIVE RISK ANALYSIS.

       (a) Requirement.--Within 6 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--
       (1) to conduct a study of the methodologies for using 
     comparative risk to rank dissimilar human health, safety, and 
     environmental risks; and
       (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.

     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.
       (b) Criteria.--In arranging for the comparative risk 
     analysis referred to in subsection (a), the Director shall 
     ensure that--
       (1) the scope and specificity of the analysis are 
     sufficient to provide the President and agency heads guidance 
     in allocating resources agencies and among programs in 
     agencies to achieve the greatest degree of risk prevention 
     and reduction for the public and private resources expended;
       (2) the analysis is conducted through an open process, 
     which may include using panels of appropriate independent 
     experts and public stakeholders;
       (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);
       (4) there is an opportunity for public comment on the 
     results prior to making them final; and
       (5) the results are presented in a manner that 
     distinguishes between the scientific conclusions and any 
     policy or value judgments embodied in the comparisons.
       (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 3 years following 
     the enactment of this Act. 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 in subsections (a) and (b) above.
       (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 
     experiences of the states that have conducted comparative 
     risk analyses.
       (3) Report.--Within 180 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.
       (f) Technical guidance.--Not later than 180 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.

     SEC. 206. REPORTS AND RECOMMENDATIONS TO CONGRESS AND THE 
                   PRESIDENT.

       (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 24 
     months following the enactment of this legislation, and every 
     24 months therafter--
       (1) detailing how the agency has complied with section 204;
       (2) describing the reasons for any departure from the 
     requirement to establish priorities to achieve the greatest 
     overall net reduction in risk; and
       (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.
       (b) Recommendation.--In March of each year, the head of 
     each covered agency shall submit to Congress specific 
     recommendations for--
       (1) modifying, repealing, or enacting laws to reform, 
     eliminate, or enhance programs or mandates relating to human 
     health, safety, and the environment; and
       (2) modifying or eliminating statutorily or judicially 
     mandated deadlines,

     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).

     SEC. 207. SAVINGS PROVISION AND JUDICIAL REVIEW.

       (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.
       (2) Judicial Review.--Compliance or noncompliance by an 
     agency with the provisions of this title shall not be subject 
     to judicial review.
       [[Page S1718]] (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.
                    TITLE III--REGULATORY ACCOUNTING

     SEC. 301. SHORT TITLE

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

     SEC. 302. ACCOUNTING STATEMENT

       (a) In General.--
       (1) Responsibility for implementation.--The President shall 
     be responsible for implementing and administering the 
     requirements of this title.
       (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.
       (b) 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.
       (c) Timing and Procedures.--
       (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.
       (2) Deadlines for first statement.--The President shall 
     propose the first accounting statement under this section not 
     later than 2 years after the date of the enactment of this 
     Act and shall issue the first accounting statement in final 
     form not later than 3 years after the date of the enactment 
     of this Act. Such statement shall cover, at a minimum, each 
     of the 8 fiscal years beginning after the date of the 
     enactment of this Act.
       (d) Content of Accounting Statement.--
       (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.
       (2) Statement of costs.--
       (A) In general.--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 the regulatory program; and
       (ii) such other quantitative and qualitative measures of 
     costs as the President considers appropriate.
       (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:
       (i) Private sector costs.
       (ii) Federal sector administrative costs.
       (iii) Federal sector compliance costs.
       (iv) State and local government administrative costs.
       (v) State and local government compliance costs.
       (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.

     SEC. 303. ASSOCIATED REPORT TO CONGRESS.

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

     SEC. 304. 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, 
     provide guidance to agencies--
       (1) to standardize measures of costs and benefits in 
     accounting statements prepared pursuant to titles I and III, 
     including:
       (A) detailed guidance on estimating the costs and benefits 
     of major rules;
       (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.

     SEC. 305. 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 title, including recommendations on level of detail 
     and accuracy; and
       (2) for improving associated reports prepared pursuant to 
     this title, including recommendations on the quality of 
     analysis.

     SEC. 306. DEFINITIONS.

       For purposes of this title, the following definitions 
     apply:
       (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.
       (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 procedure or practice requirements of an 
     agency. The term does 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 of 
     foreign affairs function of the United States; or
       (C) regulations related to agency organization, management, 
     or personnel.
       (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--
       (A) the General Accounting Office;
       (B) 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.

   TITLE IV--MARKET INCENTIVES AND ECONOMICALLY EFFICIENT REGULATION

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Market Incentives Act of 
     1995''.

     SEC. 402. PROGRAM DESIGN REQUIREMENTS.

       (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.
       (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.
       (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.
     SEC. 403. AGENCY ASSESSMENT AND OMB REVIEW.

       (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.
       (b) OMB Review.--The Office of Management and Budget shall 
     review, as part of its 
     [[Page S1719]] 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.
       (c) Effective Date.--Section 403 shall take affect 3 months 
     after the date of enactment of this Act:

     SEC. 404. DEFINITIONS.

       For the purposes of this title:
       (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--
       (A) the General Accounting Office;
       (B) 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) The term ``major rule'' means--
       (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
       (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--
       (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
       (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 and export markets.

     For purposes of subparagraph (A) of this paragraph, the term 
     ``rule'' does not mean--
       (I) a rule that involves the internal revenue laws of the 
     United States;
       (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;
       (III) a rule exempt from notice and public procedure 
     pursuant to section 553(a) of title 5, United States Code; or
       (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.
       (3) The term ``market-based mechanism'' means a regulatory 
     requirement that:
       (a) imposes legal accountability for the achievement of an 
     explicit regulatory objective on each regulated person;
       (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
       (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.
       (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--
       (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.
       (B) a rule relating to monetary policy proposed or 
     promulgated by the Board of Governors of the Federal Reserve 
     System; or
       (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.
                                 ______

      By Mr. SHELBY:
  S. 292. A bill to provide Federal recognition of the Mowa Band of 
Choctaw Indians of Alabama; to the Committee on Indian Affairs.


            THE MOWA BAND OF CHOCTAW INDIANS RECOGNITION ACT

 Mr. SHELBY. Mr. President, today I am reintroducing the Mowa 
Band of Choctaw Indians Recognition Act. This particular piece of 
legislation has passed the Senate three times in the past two 
Congresses. While I would prefer not to have to pursue congressionally 
granted recognition for the Mowa Choctaws, this course of action has 
been dictated by the institutional resistance of the Bureau of Indian 
Affairs to Federal recognition of the Mowa.
  The Mowa Choctaws originally applied for Federal recognition in 1983. 
A State-recognized tribe with 3,500 members, the Mowa live within the 
boundaries of the original Choctaw Nation in Mobile and Washington 
Counties of Alabama. Mowa ancestors were signatories of the treaty of 
Dancing Rabbit Creek which provided for the nonremoval of Indian 
families. Under the treaty, the signatories and their descendants were 
entitled to retain their rights to Choctaw citizenship.
  The Mowa Choctaws have maintained an intense Indian identity over the 
past 160 years and have petitioned Congress for Federal recognition or 
to redress treaty grievances several times, beginning as early as 1836. 
Because of the failure of the BIA to act upon their petition in a 
timely manner, the Senate Committee on Indian Affairs reported the bill 
in both the 102d and 103d Congress with the recommendation that the 
Mowa be granted full Federal recognition.
  Only recently has the BIA acted upon the petition. In December, the 
BIA, after 12 years of delay, issued a preliminary finding denying the 
Mowa petition. However, the BIA only acted upon the petition when it 
became likely that the bill would pass the Congress and be sent to the 
President for his signature. I find this conduct at best suspicious, 
and most likely reflective of the BIA's longstanding bureaucratic 
disposition against the proposal.
  Mr. President, I have no intention of dropping this issue, regardless 
of the position of the BIA. Indeed, Congress granted Federal 
recognition to one-half dozen Indian tribes last year without the 
approval of the BIA. Congress writes the laws of this land. Career and 
appointed bureaucrats do not. The Mowa case is stronger than scores of 
past petitions for recognition that were approved, and I will continue 
to work to see that Congress rectifies this bureaucratic injustice and 
grants the Mowa Choctaws the Federal recognition that they 
deserve.


                          ____________________