[Congressional Record Volume 141, Number 102 (Wednesday, June 21, 1995)]
[Senate]
[Pages S8793-S8806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                           REGULATORY REFORM

  Mr. DOLE. Mr. President, I have stated several times my intention to 
move as soon as possible to the regulatory reform bill. Regulatory 
reform is one of the most important issues this Congress will face, and 
the American people have made clear that they expect us to act. 
Regulatory reform does not have to be a partisan issue.
  Democrats and Republicans alike have seen a need to inject common 
sense into how the Federal Government crafts regulations. Democrats and 
Republicans alike recognize that we cannot continue to bear $500 
billion of added costs to the economy. That is why I believe it is 
important that we pass a strong regulatory reform bill, with bipartisan 
support.
  Senator Heflin, for example, has provided welcome leadership in 
helping to craft this bill. I have been working with Senator Johnston 
for some time to produce a strong regulatory reform package, in order 
to ensure that Congress answers America's call for relief.
  I am pleased to say that I think Senator Johnston and I have reached 
an agreement on at least a discussion draft, a package that we believe 
will enjoy broad support. My intention would be to, as soon as the 
draft is completed, ask that the draft be printed in the Record today 
so that everybody might have an opportunity to see it. Earlier this 
year, we had a dispute because not all Members had seen a draft on an 
earlier piece of legislation. Hopefully, by Tuesday of next week, we 
can bring that bill to the floor and try to complete it by the end of 
next week. We can put that into the Record today.
  Again, this is a draft. We reached an agreement on this. It does not 
mean it may be the perfect answer or there may not be change between 
now and next Tuesday. I have talked to some of my colleagues on the 
other side, such as the Senator from Massachusetts, Senator Kerry, and 
many are wanting an opportunity to see what the draft is. By printing 
it in the Record, it will be available tomorrow, Friday, Saturday, 
Sunday and Monday and, hopefully, we can go to it on Tuesday.
  I have suggested, and the Senator from Louisiana suggested, that we 
make that statement on the floor.
  I yield to Senator Johnston.
  Mr. JOHNSTON. I thank the distinguished leader for his statement. He 
is correct that he and I have agreed upon a draft. It has been arrived 
at after extensive conversations, negotiations and [[Page S 
8794]] writing, and we have worked in over 100 amendments to the 
underlying text. I hope my colleagues like the result, and I have 
reason to suspect that they will.
  I would like to emphasize and ask the majority leader, if he does not 
agree with this--that this is, in fact, a discussion draft, and that we 
invite input from all of our colleagues. By filing this to be printed, 
it is simply a matter of giving notice to colleagues of what is in the 
discussion draft. It is not the filing of the bill or the filing of an 
amendment. But it is a filing of notice, so that all of those who have 
meaningful input can work through the process and, hopefully, we will 
be able to improve the bill, so that by the time a bill or an amendment 
is filed, it will contain the suggestions of our colleagues, if we can 
agree upon those suggestions. Am I correct on that?
  Mr. DOLE. Let me respond to that. The Senator is correct. I will 
underscore that this is a very significant effort. I do not want to 
downplay the importance of the draft, because it is important. It is a 
result of a lot of work on behalf of a lot of people on both sides of 
the aisle.
  I do not want to suggest we are going to rewrite the whole thing. It 
is important. It has not been completed, and it could be improved, some 
would say by making it stronger, or there may be another way to improve 
it.
  If there is no objection, I will ask unanimous consent later to have 
it printed. It is not completed yet. That will appear in the Record 
tomorrow morning and, hopefully, we can continue discussions tomorrow 
and Friday and again on Monday, so that on Tuesday we might be prepared 
to take the bill up with fairly broad bipartisan support.
  Mr. JOHNSTON. Mr. President, I thank the leader for his statement. I 
thank him especially for the attitude of cooperation in the drafting of 
this ``discussion draft'' because the leader did not come in as a man 
with 56 votes in his pocket, the majority of votes, and do it his way; 
but rather, the input which I have had from this side of the aisle I 
tried to faithfully follow, and tried to compromise. Not everything 
went our way, and not everything went the Senator's way.
  I really believe this is an excellent bill that I can 
enthusiastically support, and I hope my colleagues can improve, 
significantly, or in whatever ways they choose.
  I think we have a draft that is going to attract some wide bipartisan 
support. I certainly hope so. From my part, I solicit and welcome any 
suggestions which I will faithfully try to negotiate to improve the 
bill, if any such suggestions are made.
  Mr. DOLE. Again, I thank my colleague from Louisiana. He spent a lot 
more time on this this week than I. I know, for example, the many, many 
hours the Senator from Louisiana spent.
  I also wanted to recognize the efforts of the Senator from Utah, 
Senator Hatch; the Senator from Delaware, Senator Roth; the Senator 
from Alaska, Senator Murkowski; the Senator from Oklahoma, Senator 
Nickles; the Senator from Missouri, Senator Bond; the Senator from 
Alabama, Senator Heflin, whom I have already alluded to, and a number 
of others on this side, including the Senator from Georgia, Senator 
Coverdell, who has been working in, I think, a very bipartisan way to 
try to find something we can agree on.
  This is very important legislation. We hope we can have a bipartisan 
bill.
  Mr. DASCHLE. Mr. President, Senator Dole has laid out his plans 
having to do with the next piece of legislation, and I know a couple of 
our colleagues were hoping to comment on that.
  Mr. DOLE. I am happy to yield to the Senator from Massachusetts.
  Mr. KERRY. Mr. President, I would like to thank the majority leader 
and the Senator from Louisiana. I think this is a very positive and 
constructive step, to print the bill as a draft proposal rather than 
enter it as a piece of legislation at this point. I thank them for 
doing that.
  I think the key here--as the majority leader has said, this is 
definitely one of the most sweeping and important pieces of legislation 
that we have yet considered--I think it is essential that we have an 
opportunity to try to guarantee that in the next few days, we come 
together as a working group to see if the product that will come to the 
floor as a bill, finally introduced, reflects the maximum amount of 
changes possible in the good spirit of bipartisan compromise.
  I note for the majority leader that last year, we passed a cost-
benefit definition by a vote of 0 to 8. I was pleased to vote for that. 
I think we ought to be able to, if we work in the next few days, to 
approach this bill with that same concept.
  One of the fears that some Members have at this point is that there 
is enough layering of judicial involvement here that at a time when we 
are moving forward--securities reform, product liability reform, tort 
reform--we are suddenly perhaps creating a whole new avenue of tort 
possibilities.
  I will simply ask the majority leader if, in the spirit of printing 
this, it is also his intention to now engage, in a couple of days, 
together with the Senator from Louisiana, with the Senator from 
Michigan, the Senator from Ohio, and others who are interested, in 
trying to see if we can pare down some of those differences that might 
help to truly make the final product introduced a bipartisan effort.
  Mr. DOLE. Mr. President, I respond in the affirmative to the Senator 
from Massachusetts.
  That is why I will ask consent later this evening, when we have the 
draft completed, so that we would have Thursday and Friday, and staff 
could have whatever time over the weekend and again on Monday, for the 
principals to see if we can come together.
  We may not be able to come together. Maybe it will not happen next 
Tuesday. As I understand, a lot of people have been working on this in 
good faith, and all have not been in the same room but have been in 
different rooms in different groups.
  That is based on the suggestion made by the Senator from 
Massachusetts earlier today. I think we agreed that we would not push 
it, we would not try to start on a bill tomorrow, but we would put it 
in the Record, a draft. It may not be the one that is introduced next 
week. The answer is yes.
  Mr. KERRY. I think that is constructive. I thank the majority leader. 
He has certainly pledged to try to work in good faith to see if we can 
reach agreements.
  Mr. GLENN. Mr. President, I want to add a couple of comments here. I 
think we have been at this on two tracks. There was a lot of regulatory 
reform legislation put in this year and considered in the Governmental 
Affairs Committee. We came out with a bill.
  Another bill went through the Judiciary Committee process which is 
the one that the distinguished majority leader is referring to, that he 
and Senator Johnston have been working on.
  Now there has been a dual track going on. In addition to the 
Judiciary Committee bill, some have also been working on the bill that 
came out of the Governmental Affairs Committee, and it was voted 
unanimously out of Governmental Affairs with both Republican and 
Democratic support, a unanimous vote.
  Now, we have taken that bill and done some work on it, and we think 
we have made some pretty good improvements.
  It is ready. I will not submit it today, in view of what the majority 
leader has proposed here. But there have been two tracks. All of the 
work with regard to regulatory reform has not been centered on just the 
one bill that will be submitted today. I wanted to point that out to my 
colleagues.
  I am happy to work with the Senator from Louisiana, as well as the 
majority leader, in trying to work this thing out and get the best of 
all of this legislation together if we possibly can do it.
 Whether that can be done in time enough to bring a completed form to 
the floor by next Tuesday, I do not know. But we can sure take a crack 
at it and see.

  I just want to point out we do have this other effort. And the bill 
that we have been working on----
  Mr. KERRY. Will the Senator yield for a moment?
  Mr. GLENN. Just one more comment and I will yield the floor. We do 
have this other bill ready to go, in case we cannot negotiate these 
things out. I think it is a pretty good bill. We have given a lot of 
thought to it and have changed some of the things for which I know 
there was some objection. [[Page S 8795]] 
  With that I yield the floor.
  Mr. JOHNSTON. Will the Senator yield? Will the Senator from Ohio 
yield?
  Mr. JOHNSTON addressed the chair.
  The PRESIDING OFFICER. The Senator from Louisiana.
  Mr. JOHNSTON. Mr. President, in response to the Senator from Ohio I 
might say the excellent work he and Senator Roth and the members of the 
Governmental Affairs Committee did was very much a matter of concern 
and negotiation to us on this bill. Particularly the judicial review, 
the recommendations which will appear in this draft are, really, 
motivated by the good work the Senator from Ohio and Senator Roth did 
in their bill. So it is not that we considered only the Judiciary 
product.
  To the contrary, the good work that went in the Roth-Glenn bill we 
sought to incorporate in this bill--I hope successfully. But to the 
extent it can be improved we solicit and invite those comments and 
suggestions.
  Mr. LEVIN. Mr. President, will the Senator yield?
  Mr. JOHNSTON. Yes, of course.
  Mr. LEVIN. Let me just first commend the Senator from Louisiana and 
the majority leader for the process they are now undertaking. This is a 
process which submits a draft to the Congressional Record printer so we 
all can look at it and make suggestions to them for changes before it 
is introduced as a bill. I think that is the right process and holds 
out at least some hope that there could be a broad, bipartisan 
consensus behind the regulatory reform bill.
  There is a broad, bipartisan consensus that we need regulatory 
reform. I think almost all of us have voted for it in one version or 
another. I have worked closely with my friend from Louisiana, as a 
matter of fact, over the years on some regulatory reform issues. But I 
think the fact they are going through this discussion draft stage 
first, before it is introduced as a bill, with the representation that 
they are open to suggestions from people on both sides of the aisle 
with points of view on that draft before they finally agree on a final 
bill, I think is an important step forward. Then, if that does not work 
out there will be, of course, time for alternatives then to be offered.
  I thank my friend from Louisiana and the majority leader.
  Mr. KERRY. Mr. President, just before we close off on the subject, it 
is my understanding from the conversations that we had privately on 
this, but I think I am not violating any of them to say that at this 
moment the expectancy is that whatever does come to the floor will be 
truly open to the full legislative process and not prejudged in a way 
we find with just a series of tabling motions and there is no 
legislative effort. Am I correct in that also?
  Mr. JOHNSTON. The Senator is correct. But more than that, we solicit 
these comments in advance of filing the bill. That is an easier time 
and place to get this done.
  Mr. KERRY. I could not agree with the Senator more.
  Mr. JOHNSTON. Mr. President, I imagine there are going to be a lot of 
amendments. This is a huge and vitally important bill where each word 
carries tremendous meaning and where experts are going to look at it 
and be able to suggest improvements. For my part I think there are a 
lot of improvements that can be made. There are a lot of things I would 
like to change.
  For example, we have a $50 million threshold for rules. I think it 
ought to be higher. That was a matter of compromise. And I hope we can 
discuss that seriously before we get to the floor or at least on the 
floor.
  So the Senator is correct, it is open for serious negotiations before 
we file it, and after it is filed of course it is open for amendment. 
And I hope we will do it in a very bipartisan way and expect we will.
  Mr. DOLE. Mr. President, I ask unanimous consent that the text of the 
draft be printed in the Record.
  There being no objection, the draft was ordered to be printed in the 
Record, as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. DEFINITIONS.

       Section 551 of title 5, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``this subchapter'' and inserting ``this chapter and chapters 
     7 and 8'';
       (2) in paragraph (13), by striking ``and'';
       (3) in paragraph (14), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(15) `Director' means the Director of the Office of 
     Management and Budget.''.

     SEC. 3. RULEMAKING.

       Section 553 of title 5, United States Code, is amended to 
     read as follows:

     ``Sec. 553. Rulemaking

       ``(a) Applicability.--This section applies to every 
     rulemaking, according to the provisions thereof, except to 
     the extent that there is involved--
       ``(1) a matter pertaining to a military or foreign affairs 
     function of the United States;
       ``(2) a matter relating to the management or personnel 
     practices of an agency;
       ``(3) an interpretive rule, general statement of policy, 
     guidance, or rule of agency organization, procedure, or 
     practice, unless such rule, statement, or guidance has 
     general applicability and substantially alters or creates 
     rights or obligations of persons outside the agency; or
       ``(4) a rule relating to the acquisition, management, or 
     disposal by an agency of real or personal property, or of 
     services, that is promulgated in compliance with applicable 
     criteria and procedures.
       ``(b) Notice of Proposed Rulemaking.--General notice of 
     proposed rulemaking shall be published in the Federal 
     Register, unless all persons subject thereto are named and 
     either personally served or otherwise have actual notice of 
     the proposed rulemaking in accordance with law. Each notice 
     of proposed rulemaking shall include--
       ``(1) a statement of the time, place, and nature of public 
     rulemaking proceedings;
       ``(2) a succinct explanation of the need for and specific 
     objectives of the proposed rule, including an explanation of 
     the agency's determination of whether or not the rule is a 
     major rule within the meaning of section 621(5);
       ``(3) a succinct explanation of the specific statutory 
     basis for the proposed rule, including an explanation of--
       ``(A) whether the interpretation is clearly required by the 
     text of the statute; or
       ``(B) if the interpretation is not clearly required by the 
     text of the statute, an explanation that the interpretation 
     is within the range of permissible interpretations of the 
     statute as identified by the agency, and an explanation why 
     the interpretation selected by the agency is the agency's 
     preferred interpretation;
       ``(4) the terms or substance of the proposed rule;
       ``(5) a summary of any initial analysis of the proposed 
     rule required to be prepared or issued pursuant to chapter 6;
       ``(6) a statement that the agency seeks proposals from the 
     public and from State and local governments for alternative 
     methods to accomplish the objectives of the rulemaking that 
     are more effective or less burdensome than the approach used 
     in the proposed rule; and
       ``(7) a statement specifying where the file of the 
     rulemaking proceeding maintained pursuant to subsection (j) 
     may be inspected and how copies of the items in the file may 
     be obtained.
       ``(c) Period for Comment.--The agency shall give interested 
     persons not less than 60 days after providing the notice 
     required by subsection (b) to participate in the rulemaking 
     through the submission of written data, views, or arguments.
       ``(d) Good Cause Exception.--Unless notice or hearing is 
     required by statute, a final rule may be adopted and may 
     become effective without prior compliance with subsections 
     (b) and (c) and (e) through (g) if the agency for good cause 
     finds that providing notice and public procedure thereon 
     before the rule becomes effective is impracticable, 
     unnecessary, or contrary to the public interest. If a rule is 
     adopted under this subsection, the agency shall publish the 
     rule in the Federal Register with the finding and a succinct 
     explanation of the reasons therefor.
       ``(e) Procedural Flexibility.--To collect relevant 
     information, and to identify and elicit full and 
     representative public comment on the significant issues of a 
     particular rulemaking, the agency may use such other 
     procedures as the agency determines are appropriate, 
     including--
       ``(1) the publication of an advance notice of proposed 
     rulemaking;
       ``(2) the provision of notice, in forms which are more 
     direct than notice published in the Federal Register, to 
     persons who would be substantially affected by the proposed 
     rule but who are unlikely to receive notice of the proposed 
     rulemaking through the Federal Register;
       ``(3) the provision of opportunities for oral presentation 
     of data, views, information, or rebuttal arguments at 
     informal public hearings, meetings, and round table 
     discussions, which may be held in the District of Columbia 
     and other locations;
       ``(4) the establishment of reasonable procedures to 
     regulate the course of informal public hearings, meetings and 
     round table discussions, including the designation of 
     representatives to make oral presentations or engage in 
     direct or cross-examination on behalf of several parties with 
     a common interest in a rulemaking, and the provision of 
     transcripts, summaries, or other records of [[Page S 
     8796]] all such public hearings and summaries of meetings and 
     round table discussions;
       ``(5) the provision of summaries, explanatory materials, or 
     other technical information in response to public inquiries 
     concerning the issues involved in the rulemaking; and
       ``(6) the adoption or modification of agency procedural 
     rules to reduce the cost or complexity of the procedural 
     rules.
       ``(f) Planned Final Rule.--If the provisions of a final 
     rule that an agency plans to adopt are so different from the 
     provisions of the original notice of proposed rulemaking that 
     the original notice did not fairly apprise the public of the 
     issues ultimately to be resolved in the rulemaking or of the 
     substance of the rule, the agency shall publish in the 
     Federal Register a notice of the final rule the agency plans 
     to adopt, together with the information relevant to such rule 
     that is required by the applicable provisions of this section 
     and that has not previously been published in the Federal 
     Register. The agency shall allow a reasonable period for 
     comment on such planned final rule prior to its adoption.
       ``(g) Statement of Basis and Purpose.--An agency shall 
     publish each final rule it adopts in the Federal Register, 
     together with a concise statement of the basis and purpose of 
     the rule and a statement of when the rule may become 
     effective. The statement of basis and purpose shall include--
       ``(1) an explanation of the need for, objectives of, and 
     specific statutory authority for, the rule;
       ``(2) a discussion of, and response to, any significant 
     factual or legal issues presented by the rule, or raised by 
     the comments on the proposed rule, including a description of 
     the reasonable alternatives to the rule proposed by the 
     agency and by interested persons, and the reasons why each 
     such alternative was rejected;
       ``(3) a succinct explanation of whether the specific 
     statutory basis for the rule is expressly required by the 
     text of the statute, or if the specific statutory 
     interpretation upon which the rule is based is not expressly 
     required by the text of the statute, an explanation that the 
     interpretation is within the range of permissible 
     interpretations of the statute as identified by the agency, 
     and why the agency has rejected other interpretations 
     proposed in comments to the agency;
       ``(4) an explanation of how the factual conclusions upon 
     which the rule is based are substantially supported in the 
     rulemaking file; and
       ``(5) a summary of any final analysis of the rule required 
     to be prepared or issued pursuant to chapter 6.
       ``(h) Nonapplicability.--In the case of a rule that is 
     required by statute to be made on the record after 
     opportunity for an agency hearing, sections 556 and 557 shall 
     apply in lieu of subsections (c), (e), (f), and (g).
       ``(i) Effective Date.--An agency shall publish the final 
     rule in the Federal Register not later than 60 days before 
     the effective date of such rule. An agency may make a rule 
     effective in less than 60 days after publication in the 
     Federal Register if the rule grants or recognizes an 
     exemption, relieves a restriction, or if the agency for good 
     cause finds that such a delay in the effective date would be 
     contrary to the public interest and publishes such finding 
     and an explanation of the reasons therefor, with the final 
     rule.
       ``(j) Rulemaking File.--(1) The agency shall maintain a 
     file for each rulemaking proceeding conducted pursuant to 
     this section and shall maintain a current index to such file.
       ``(2) Except as provided in subsection (k), the file shall 
     be made available to the public not later than the date on 
     which the agency makes an initial publication concerning the 
     rule.
       ``(3) The rulemaking file shall include--
       ``(A) the notice of proposed rulemaking, any supplement to, 
     or modification or revision of, such notice, and any advance 
     notice of proposed rulemaking;
       ``(B) copies of all written comments received on the 
     proposed rule;
       ``(C) a transcript, summary, or other record of any public 
     hearing conducted on the rulemaking;
       ``(D) copies, or an identification of the place at which 
     copies may be obtained, of factual and methodological 
     material that pertains directly to the rulemaking and that 
     was considered by the agency in connection with the 
     rulemaking, or that was submitted to or prepared by or for 
     the agency in connection with the rulemaking; and
       ``(E) any statement, description, analysis, or other 
     material that the agency is required to prepare or issue in 
     connection with the rulemaking, including any analysis 
     prepared or issued pursuant to chapter 6.

     The agency shall place each of the foregoing materials in the 
     file as soon as practicable after each such material becomes 
     available to the agency.
       ``(k) Confidential Treatment.--The file required by 
     subsection (j) need not include any material described in 
     section 552(b) if the agency includes in the file a statement 
     that notes the existence of such material and the basis upon 
     which the material is exempt from public disclosure under 
     such section. The agency may not substantially rely on any 
     such material in formulating a rule unless it makes the 
     substance of such material available for adequate comment by 
     interested persons. The agency may use summaries, 
     aggregations of data, or other appropriate mechanisms to 
     protect the confidentiality of such material to the maximum 
     extent possible.
       ``(l) Rulemaking Petition.--(1) Each agency shall give an 
     interested person the right to petition--
       ``(A) for the issuance, amendment, or repeal of a rule;
       ``(B) for the amendment or repeal of an interpretive rule 
     or general statement of policy or guidance;
       ``(C) for an interpretation regarding the meaning of a 
     rule, interpretive rule, general statement of policy, or 
     guidance; and
       ``(D) for a variance or exemption from the terms of a rule 
     to which the petitioner is otherwise subject, provided the 
     statute authorizing the rule does not prohibit a variance or 
     exemption.
       ``(2) The agency shall grant or deny a petition made 
     pursuant to paragraph (1), and give written notice of its 
     determination to the petitioner, with reasonable promptness, 
     but in no event later than 18 months after the petition was 
     received by the agency.
       ``(3) The written notice of the agency's determination 
     shall include an explanation of the determination and a 
     response to each significant factual and legal claim that 
     forms the basis of the petition.
       ``(m) Judicial Review.--(1) The decision of an agency to 
     use or not to use procedures in a rulemaking under subsection 
     (e) shall not be subject to judicial review.
       ``(2) The rulemaking file required under subsection (j) 
     shall constitute the rulemaking record for purposes of 
     judicial review.
       ``(3) No court shall hold unlawful or set aside an agency 
     rule based on a violation of subsection (j), unless the court 
     finds that such violation has precluded fair public 
     consideration of a material issue of the rulemaking taken as 
     a whole.
       ``(4)(A) Judicial review of compliance or noncompliance 
     with subsection (j) shall be limited to review of action or 
     inaction on the part of an agency.
       ``(B) A decision by an agency to deny a petition under 
     subsection (l) shall be subject to judicial review 
     immediately upon denial, as final agency action under the 
     statute granting the agency authority to carry out its 
     action.
       ``(n) Construction.--(1) Notwithstanding any other 
     provision of law, this section shall apply to and supplement 
     the procedures governing informal rulemaking under statutes 
     that are not generally subject to this section.
       ``(2) Nothing in this section authorizes the use of 
     appropriated funds available to any agency to pay the 
     attorney's fees or other expenses of persons intervening in 
     agency proceedings.''.

     SEC. 4. ANALYSIS OF AGENCY RULES.

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

     ``Sec. 621. Definitions

       ``For purposes of this subchapter--
       ``(1) except as otherwise provided, the definitions under 
     section 551 shall apply to this subchapter;
       ``(2) the term `benefit' means the reasonably identifiable 
     significant favorable effects, including social, 
     environmental, and economic effects, that are expected to 
     result directly or indirectly from implementation of a rule 
     or other agency action;
       ``(3) the term `cost' means the reasonably identifiable 
     significant adverse effects, including social, environmental, 
     and economic costs, that are expected to result directly or 
     indirectly from implementation of a rule or other agency 
     action;
       ``(4) the term `cost-benefit analysis' means an evaluation 
     of the costs and benefits of a rule, quantified to the extent 
     feasible and appropriate and otherwise qualitatively 
     described, that is prepared in accordance with the 
     requirements of this subchapter at the level of detail 
     appropriate and practicable for reasoned decisionmaking on 
     the matter involved, taking into consideration the 
     significance and complexity of the decision and any need for 
     expedition;
       ``(5)(A) the term `major rule' means--
       ``(i) a rule or set of closely related rules that the 
     agency proposing the rule, the Director, or a designee of the 
     President determines is likely to have a gross annual effect 
     on the economy of $50,000,000 or more in reasonably 
     quantifiable increased costs;
       ``(ii) a rule that is otherwise designated a major rule by 
     the agency proposing the rule, the Director, or a designee of 
     the President;
       ``(B) a designation or failure to designate under 
     subparagraph (A)(ii) shall not be subject to judicial review; 
     or
       ``(6) the term `market-based mechanism' means a regulatory 
     program 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, where feasible and appropriate, 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 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;
       ``(7) the term `performance-based standards' means 
     requirements, expressed in [[Page S 8797]] terms of outcomes 
     or goals rather than mandatory means of achieving outcomes or 
     goals, that permit the regulated entity discretion to 
     determine how best to meet specific requirements in 
     particular circumstances;
       ``(8) the term `reasonable alternatives' means the range of 
     regulatory options that the agency has authority to consider 
     under the statute granting rulemaking authority, including 
     flexible regulatory options of the type described in section 
     622(c)(2)(C)(iii), unless precluded by the statute granting 
     the rulemaking authority; and
       ``(9) the term `rule' has the same meaning as in section 
     551(4), and--
       ``(A) includes any statement of general applicability that 
     substantially alters or creates rights or obligations of 
     persons outside the agency; and
       ``(B) does not include--
       ``(i) a rule that involves the internal revenue laws of the 
     United States;
       ``(ii) a rule or agency action that authorizes the 
     introduction into commerce, or recognizes the marketable 
     status, of a product;
       ``(iii) a rule exempt from notice and public procedure 
     under section 553(a);
       ``(iv) a rule or agency action relating to the public debt;
       ``(v) a rule required to be promulgated at least annually 
     pursuant to statute, or that provides relief, in whole or in 
     part, from a statutory prohibition, other than a rule 
     promulgated pursuant to subtitle C of title II of the Solid 
     Waste Disposal Act (42 U.S.C. 6921 et seq.);
       ``(vi) a rule of particular applicability that approves or 
     prescribes the future rates, wages, prices, services, 
     corporate or financial structures, reorganizations, mergers, 
     acquisitions, accounting practices, or disclosures bearing on 
     any of the foregoing;
       ``(vii) a rule relating to monetary policy or to the safety 
     or soundness of federally insured depository institutions or 
     any affiliate of such an institution (as defined in section 
     2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(k))), credit unions, Federal Home Loan Banks, government 
     sponsored housing enterprises, farm credit institutions, 
     foreign banks that operate in the United States and their 
     affiliates, branches, agencies, commercial lending companies, 
     or representative offices, (as those terms are defined in 
     section 1 of the International Banking Act of 1978 (12 U.S.C. 
     3101));
       ``(viii) a rule relating to the payment system or the 
     protection of deposit insurance funds or the farm credit 
     insurance fund;
       ``(ix) any order issued in a rate or certificate proceeding 
     by the Federal Energy Regulatory Commission, or a rule of 
     general applicability that the Federal Energy Regulatory 
     Commission certifies would increase reliance on competitive 
     market forces or reduce regulatory burdens; or
       ``(x) a rule relating to the financial responsibility of 
     brokers and dealers, the safeguarding of investor securities 
     and funds, the clearance and settlement of securities 
     transactions, or the suspension of trading that is 
     promulgated under the Securities Exchange Act of 1934 (15 
     U.S.C. 78a et seq.), or a rule relating to the protection of 
     the Securities Investor Protection Corporation, that is 
     promulgated under the Securities Investor Protection Act of 
     1970 (15 U.S.C. 78aaa et seq.).
     ``Sec. 622. Rulemaking cost-benefit analysis

       ``(a) Determination of Major Rule.--Prior to publishing a 
     notice of proposed rulemaking for any rule (or, in the case 
     of a notice of proposed rulemaking that has been published 
     but not issued on or before the date of enactment of this 
     subchapter, not later than 30 days after such date of 
     enactment), each agency shall determine whether the rule is 
     or is not a major rule within the meaning of section 
     621(5)(A)(i) and, if it is not, whether it should be 
     designated as a major rule under section 621(5)(A)(ii).
       ``(b) Designation.--(1) If an agency has determined that a 
     rule is not a major rule within the meaning of section 
     621(5)(A)(i) and has not designated the rule as a major rule 
     within the meaning of section 621(5)(A)(ii), the Director or 
     a designee of the President may, as appropriate, determine 
     that the rule is a major rule or designate the rule as a 
     major rule not later than 30 days after the publication of 
     the notice of proposed rulemaking for the rule (or, in the 
     case of a notice of proposed rulemaking that has been 
     published on or before the date of enactment of this 
     subchapter, not later than 1 year after such date of 
     enactment).
       ``(2) Such determination or designation shall be published 
     in the Federal Register, together with a succinct statement 
     of the basis for the determination or designation.
       ``(c) Initial Cost-Benefit Analysis.--(1)(A) When the 
     agency publishes a notice of proposed rulemaking for a major 
     rule, the agency shall issue and place in the rulemaking file 
     an initial cost-benefit analysis, and shall include a summary 
     of such analysis in the notice of proposed rulemaking.
       ``(B)(i) When an agency, the Director, or a designee of the 
     President has published a determination or designation that a 
     rule is a major rule after the publication of the notice of 
     proposed rulemaking for the rule, the agency shall promptly 
     issue and place in the rulemaking file an initial cost-
     benefit analysis for the rule and shall publish in the 
     Federal Register a summary of such analysis.
       ``(ii) Following the issuance of an initial cost-benefit 
     analysis under clause (i), the agency shall give interested 
     persons an opportunity to comment in the same manner as if 
     the initial cost-benefit analysis had been issued with the 
     notice of proposed rulemaking.
       ``(2) Each initial cost-benefit analysis shall contain--
       ``(A) a succinct analysis of the benefits of the proposed 
     rule, including any beneficial effects that cannot be 
     quantified, and an explanation of how the agency anticipates 
     such benefits will be achieved by the proposed rule, 
     including a description of the persons or classes of persons 
     likely to receive such benefits;
       ``(B) a succinct analysis of the costs of the proposed 
     rule, including any costs that cannot be quantified, and an 
     explanation of how the agency anticipates such costs will 
     result from the proposed rule, including a description of the 
     persons or classes of persons likely to bear such costs;
       ``(C) a succinct description (including an analysis of the 
     costs and benefits) of reasonable alternatives for achieving 
     the identified benefits of the proposed rule, including, 
     where such alternatives exist, alternatives that--
       ``(i) require no government action, where the agency has 
     discretion under the statute granting the rulemaking 
     authority not to promulgate a rule;
       ``(ii) will accommodate differences among geographic 
     regions and among persons with differing levels of resources 
     with which to comply;
       ``(iii) employ performance-based standards, market-based 
     mechanisms, or other flexible regulatory options that permit 
     the greatest flexibility in achieving the regulatory result 
     that the statutory provision authorizing the rule is designed 
     to produce; or
       ``(iv) employ voluntary standards;
       ``(D) in any case in which the proposed rule is based on 
     one or more scientific evaluations, scientific information, 
     or a risk assessment, or is subject to the risk assessment 
     requirements of subchapter III, a description of the actions 
     undertaken by the agency to verify the quality, reliability, 
     and relevance of such scientific evaluation, scientific 
     information, or risk assessment; and
       ``(E) an explanation of whether the proposed rule is likely 
     to meet the decisional criteria of section 624.
       ``(d) Final Cost-Benefit Analysis.--(1) When the agency 
     publishes a final major rule, the agency shall also issue and 
     place in the rulemaking file a final cost-benefit
      analysis, and shall include a summary of the analysis in the 
     statement of basis and purpose.
       ``(2) Each final cost-benefit analysis shall contain--
       ``(A) a description and comparison of the benefits and 
     costs of the rule and of the reasonable alternatives to the 
     rule described in the rulemaking record, including flexible 
     regulatory options of the type described in subsection 
     (c)(2)(C)(iii), and a description of the persons likely to 
     receive such benefits and bear such costs; and
       ``(B) an analysis, based upon the rulemaking record 
     considered as a whole, of whether and how the rule meets the 
     decisional criteria in section 624.
       ``(3) In considering the benefits and costs, the agency, 
     when appropriate, shall consider the benefits and costs 
     incurred by all of the affected persons or classes of persons 
     (including specially affected subgroups).
       ``(e) Requirements for Cost-Benefit Analyses.--(1)(A) The 
     description of the benefits and costs of a proposed and a 
     final rule required under this section shall include, to the 
     extent feasible, a quantification or numerical estimate of 
     the quantifiable benefits and costs. The analysis shall take 
     into account only costs and benefits that are reasonably 
     related to the effect that the statute under which the 
     rulemaking is authorized is designed to produce.
       ``(B) The quantification or numerical estimate shall--
       ``(i) be made in the most appropriate unit of measurement, 
     using comparable assumptions, including time periods;
       ``(ii) specify the ranges of predictions; and
       ``(iii) explain the margins of error involved in the 
     quantification methods and the uncertainties and 
     variabilities in the estimates used.
       ``(C) An agency shall describe the nature and extent of the 
     nonquantifiable benefits and costs of a final rule pursuant 
     to this section in as precise and succinct a manner as 
     possible.
       ``(D) The agency evaluation of the relationship of benefits 
     to costs shall be clearly articulated.
       ``(E) An agency shall not be required to make such 
     evaluation primarily on a mathematical or numerical basis.
       ``(2) Where practicable and when understanding industry-by-
     industry effects is of central importance to a rulemaking, 
     the description of the benefits and costs of a proposed and 
     final rule required under this section shall describe such 
     benefits and costs on an industry-by-industry basis.
       ``(f) Health, Safety, or Emergency Exemption From Cost-
     Benefit Analysis.--(1) A major rule may
      be adopted and may become effective without prior compliance 
     with this subchapter if--
       ``(A) the agency for good cause finds that conducting cost-
     benefit analysis is impracticable due to an emergency or 
     health or safety threat that is likely to result in 
     significant harm to the public or natural resources; and
       ``(B) the agency publishes in the Federal Register, 
     together with such finding, a succinct statement of the basis 
     for the finding.
       ``(2) Not later than 180 days after the promulgation of a 
     final major rule to which this [[Page S 8798]] section 
     applies, the agency shall comply with the provisions of this 
     subchapter and, if thereafter necessary, revise the rule.

     ``Sec. 623. Agency Regulatory Review and Petitions

       ``(a) Preliminary Schedule for Rules.--Not later than 1 
     year after the date of enactment of this section, and every 5 
     years thereafter, each agency shall publish in the Federal 
     Register a preliminary schedule of rules selected for review 
     by the agency under this section, and request public comment 
     thereon, including suggestions for additional rules 
     warranting review. Such preliminary schedule shall propose 
     deadlines for review of each rule listed thereon, and such 
     deadlines shall occur not later than 11 years after the date 
     of publication of the preliminary schedule.
       ``(b) Interpretive Rules, General Statements of Policy, and 
     Guidance.--(1) For each interpretive rule, general statement 
     of policy, or guidance, which on the date of enactment of 
     this section has the force or effect of a rule under section 
     621(9), the agency shall, not later than the date of 
     publication of the preliminary schedule in subsection (a)--
       ``(A) withdraw the rule;
       ``(B) issue a new interpretive rule, general statement of 
     policy, or guidance;
       ``(C) publish notice in the Federal Register that the 
     interpretive rule, general statement of policy, of guidance 
     does not have the force or effect of a rule; or
       ``(D) include the rule on the schedule in subsection (a).
       ``(2) If such rule is included on the schedule in 
     subsection (a), the rule may remain in force pending its 
     review under this section, if the agency makes a finding of 
     good cause and publishes such finding in the Federal Register 
     with the schedule.
       ``(c) Schedule.--(1) Not later than 1 year after 
     publication of a preliminary schedule under subsection (a), 
     the agency shall publish a schedule of rules to be reviewed 
     by the agency under this section, taking into account the 
     criteria in subsection (d), and comments from the public.
       ``(2) The agency shall publish revisions to the schedule as 
     necessary to reflect changes to the schedule required
      by agency action pursuant to subsection (e) or (j)(4) or 
     required to comply with any conditions of an annual 
     appropriations Act affecting the agency.
       ``(3) The schedule, including any revisions of the 
     schedule, shall establish a deadline for completion of the 
     review of each rule listed thereon. Each such deadline shall 
     occur not later than 10 years from the date of initial 
     publication of the schedule.
       ``(d) Criteria for Establishing Deadlines for Review.--The 
     schedules in subsections (a) and (c) shall establish 
     priorities for the review of rules listed on the schedule, 
     and the deadlines for review of each rule on the schedule, 
     that take into account--
       ``(1) the extent to which, for a particular rule the 
     preliminary views of the agency are that--
       ``(A) the rule is unnecessary, and the agency has 
     discretion under the statute authorizing the rule to repeal 
     the rule;
       ``(B) the rule would not meet the decisional criteria of 
     section 624, and the agency has discretion under the statute 
     authorizing the rule to repeal the rule; or
       ``(C) the rule could be revised in a manner allowed by the 
     statute authorizing the rule to meet the decisional criteria 
     under section 624 and to--
       ``(i) substantially decrease costs;
       ``(ii) substantially increase benefits; or
       ``(iii) provide greater flexibility for regulated entities, 
     through mechanisms including those listed in section 
     622(c)(2)(C)(iii);
       ``(2) the resources expected to be available to the agency 
     to carry out the reviews under this section; and
       ``(3) the importance of each rule relative to the other 
     rules being reviewed under this section.
       ``(e) Petition for Reconsideration of Priority.--(1) Any 
     interested person may petition the agency to revise the 
     deadline for completion of review of a rule listed on a 
     schedule under subsection (c). The petition shall identify 
     with reasonable specificity the rule to be reviewed and the 
     revised deadline requested. A decision to grant, or final 
     agency action to deny, such petition shall be made with 
     reasonable promptness, but in no event later than 18 months 
     after the petition was received by the agency. If the 
     petition is granted, the final schedule under subsection (c) 
     shall be modified to reflect the revised deadline. The agency 
     shall give notice of each petition submitted under this 
     subsection and shall consider any comments submitted in 
     granting or denying the petition.
       ``(2) Notwithstanding section 533(l)(2), during the time 
     between a decision to grant or deny a petition and the 
     publication of the next preliminary schedule under subsection 
     (a), no further petition under this subsection on the same 
     rule shall be required to be considered by the agency 
     unless--
       ``(A) such further petition was filed not later than 90 
     days after public notice under this subsection; or
       ``(B) such further petition is based on a significant 
     change in fact, circumstance, or provision of law underlying 
     or otherwise related to the rule and occurring since the 
     petition was granted or denied, that warrants the review of 
     the deadline.
       ``(f) Review of Rule.--(1) For each rule on the schedule 
     under subsection (c), the agency shall--
       ``(A) not later than 2 years before the deadline in such 
     schedule, publish in the Federal Register a notice that 
     solicits public comment regarding whether the rule should be 
     extended, modified, or terminated;
       ``(B) not later than 1 year before the deadline in such 
     schedule, publish in the Federal Register a notice that--
       ``(i) addresses public comments generated by the notice in 
     subparagraph (A);
       ``(ii) contains a preliminary analysis provided by agency 
     of whether the rule satisfies the decisional criteria of 
     section 624;
       ``(iii) contains a preliminary determination as to whether 
     the rule should be extended, modified, or terminated; and
       ``(iv) solicits public comment on the preliminary 
     determination for the rule; and
       ``(C) not later than 60 days before the deadline in such 
     schedule, publish in the Federal Register a final notice on 
     the rule that--
       ``(i) addresses public comments generated by the notice in 
     subparagraph (B);
       ``(ii) contains a final determination of whether to extend, 
     modify, or terminate the rule;
       ``(iii) if the agency determines to extend the rule, 
     contains findings necessary to satisfy the decisional 
     criteria of section 624; and
       ``(iv) if the agency determines to modify the rule, 
     contains a notice of proposed rulemaking under section 553.
       ``(2) If the agency's final determination is to extend or 
     terminate the rule, that determination shall take effect
      60 days after the publication in the Federal Register of the 
     notice in paragraph (1)(c).
       ``(3) The head of an agency may extend the period for 
     completing review of a rule for up to 2 years after the 
     deadline in the schedule, if the head of the agency--
       ``(A) makes a finding of good cause for making the 
     extension;
       ``(B) makes a finding that the extension is in the public 
     interest; and
       ``(C) publishes such findings in the Federal Register with 
     a notice of the extension.
       ``(g) Deadline for Final Agency Action on Modified Rule.--
     If an agency makes a determination to modify a rule under 
     subsection (f)(1)(C)(ii), the agency shall complete final 
     agency action with regard to such rule not later than 2 years 
     after the date of publication of the notice in subsection 
     (f)(1)(C) containing such determination. Nothing in this 
     subsection shall limit the discretion of an agency to decide, 
     after having proposed to modify a rule, not to promulgate 
     such modification. Such decision shall constitute final 
     agency action for the purposes of judicial review.
       ``(h) Termination of Rules.--(1) Subject to paragraph (2), 
     if the head of an agency has not completed the review of a 
     rule by the deadline established in the schedule published 
     under subsection (c), the head of the agency shall not 
     enforce the rule, and the rule shall terminate by operation 
     of law, as of such deadline.
       ``(2) If a notice of extension has been published under 
     subsection (f), the head of an agency shall not enforce a 
     rule subject to such notice, and the rule shall terminate by 
     operation of law, as of the earlier of--
       ``(A) the date that is 2 years after the deadline in the 
     schedule; or
       ``(B) the date designated in the notice.
       ``(i) Appropriations.--(1) The President's annual budget 
     proposal submitted under section 1105(a) of title 31 for each 
     agency subject to this section shall--
       ``(A) identify as a separate sum, the amount requested to 
     be appropriated for implementation of this section during the 
     upcoming fiscal year;
       ``(B) include a copy of the schedule under subsection (c); 
     and
       ``(C) include a list of rules that may terminate during the 
     year for which the budget proposal is made.
       ``(2) Amendments to the schedule under subsection (c) may 
     be included in annual appropriations Acts for the relevant 
     agencies. Each agency shall modify its schedule under 
     subsection (c) to reflect such amendments.
       ``(j) Petition To Amend or Repeal a Major Rule.--(1) A 
     petition under section 553(l)(1)(A) to amend or repeal a 
     major rule shall be reviewed in accordance with this 
     subsection. The petition shall identify with reasonable 
     specificity the major rule to be reviewed and the amendment 
     or repeal requested.
       ``(2) The agency shall grant the petition if the petition 
     shows that--
       ``(A) there is a reasonable likelihood that, considering 
     the future impact of the rule--
       ``(i) the rule is a major rule under section 621(5); and
       ``(ii) the head of the agency would not be able to make the 
     findings required by section 624 with respect to the future 
     impact of the rule; and
       ``(B) a schedule was published by the agency under 
     subsection (c) at the time that the petition was received by 
     the agency, and the rule was not scheduled for review on such 
     schedule.
       ``(3) The agency shall give notice in the Federal Register 
     on any petition under this subsection and shall consider any 
     comments submitted in granting or denying the petition. 
     Notwithstanding section 553(l)(2), during the 5-year period 
     immediately following a decision to grant or deny a petition, 
     no further petition of the same rule, reviewable under this 
     subsection, shall be required to be considered by the agency, 
     unless--
       ``(A) such further petition was filed not later than 90 
     days after notice was provided under this paragraph; or
       ``(B) such further petition is based on a significant 
     change in a fact, circumstance, or [[Page S 8799]] provision 
     of law underlying or otherwise related to the rule and 
     occurring since the petition was granted or denied, that 
     warrants the amendment or repeal of the rule.
       ``(4) If the agency grants the petition reviewed under this 
     subsection, or the petitioner is the prevailing party upon 
     judicial review of the denial of a petition, the agency shall 
     amend the schedule under subsection (c) to include the rule, 
     and assign a deadline for completion of the review of the 
     rule according to the criteria of subsection (d).
       ``(5) This subsection shall become effective, for each 
     agency, on the date of publication of the first schedule for 
     that agency under subsection (c).
       ``(k) Petition To Review Interpretive Rules, General 
     Statements of Policy, and Guidance.--(1) A petition under 
     section 553(l)(1)(B) to review an interpretive rule, general 
     statement of policy, or guidance on the basis that on the 
     date the petition is filed, the interpretive
      rule, general statement of policy, or guidance has the force 
     and effect of a rule under section 621(9) shall be 
     reviewed in accordance with this subsection. The petition 
     shall identify with reasonable specificity why the 
     interpretive rule, general statement of policy, or 
     guidance has the force and effect of a rule under section 
     621(9).
       ``(2) The agency shall grant the petition if the petition 
     shows there is a reasonable likelihood that--
       ``(A) the interpretive rule, general statement of policy, 
     or guidance has the force and effect of a rule under section 
     621(9) on the date the petition is filed; and
       ``(B) if a schedule has been published by the agency under 
     subsection (c), at the time that the petition was received by 
     the agency, the interpretive rule, general statement of 
     policy, or guidance is not on such schedule.
       ``(3) For each interpretive rule, general statement of 
     policy, or guidance for which a petition is granted under 
     this subsection, the agency shall--
       ``(A) immediately withdraw the interpretive rule, general 
     statement of policy, or guidance;
       ``(B) publish notice in the Federal Register that the 
     interpretive rule, general statement of policy, or guidance 
     does not have the force or effect of a rule; or
       ``(C) add the interpretive rule, general statement of 
     policy, or guidance to the schedule under subsection (c), and 
     assign a deadline for completion of the review of the rule 
     according to the criteria in subsection (d).
       ``(4) If the agency adds the interpretive rule, general 
     statement of policy, or guidance to the final schedule in 
     subsection (c), it may continue to enforce the interpretive 
     rule, general statement of policy, or guidance, if the agency 
     makes a finding of good cause and publishes such finding in 
     the Federal Register.
       ``(5) This subsection shall take effect, for each agency, 
     on the date of publication by the agency of the first 
     schedule for review under subsection (c).
       ``(l) Petition for Review of a Major Risk Assessment.--(1) 
     Any interested person may petition an agency to conduct a 
     scientific review of a risk assessment conducted or adopted 
     by the agency.
       ``(2) The agency shall utilize external peer review, as 
     appropriate, to evaluate the claims and analyses in the 
     petition, and shall consider such review in making its 
     determination of whether to grant the petition.
       ``(3) The agency shall grant the petition if the petition 
     shows that there is a reasonable likelihood that--
       ``(A)(i) the risk assessment that is the subject of the 
     petition was carried out in a manner substantially 
     inconsistent with the principles in section 633; or
       ``(ii) the risk assessment that is the subject of the 
     petition does not take into account material significant new 
     scientific data and scientific understanding;
       ``(B) the risk assessment that is the subject of the 
     petition contains different results than if it had been 
     properly conducted pursuant to subchapter III; and
       ``(C) a revised risk assessment will provide the basis for 
     reevaluating an agency determination of risk that would be 
     likely to have an effect on the United States economy 
     equivalent to that of major rule.
       ``(4) A decision to grant, or final action to deny, a 
     petition under this subsection shall be made not later than 
     180 days after the petition is submitted.
       ``(5) If the agency grants the petition, it shall complete 
     its review of the risk assessment not later than 1 year after 
     its decision to grant the petition. If the agency revises the 
     risk assessment, in response to its review, it shall subject 
     the revised risk assessment to peer review under section 
     633(i) prior to its publication.
       ``(m) Final Agency Action.--(1) A failure to promulgate a 
     modified rule, or to make other decisions required by 
     subsection (g), by the date established under such 
     subsection, shall constitute final agency action.
       ``(2) An agency's determination to extend or terminate a 
     rule under this section shall be considered a final agency 
     action.
       ``(3) An agency's action with respect to a petition filed 
     under subsection (e) shall be overturned by the court on 
     review only upon a determination by the court that such 
     action was arbitrary and capricious or an abuse of discretion 
     under section 706(a)(2)(A).
       ``(4) A decision to grant or deny a petition under 
     subsection (l) shall be final agency action.

     ``Sec. 624. Decisional criteria

       ``(a) Construction With Other Laws.--The requirements of 
     this section shall supplement, and not supersede, any other 
     decisional criteria otherwise provided by law.
       ``(b) Requirements.--Except as provided in subsection (c), 
     no final major rule subject to this subchapter shall be 
     promulgated unless the agency head publishes in the Federal 
     Register a finding that--
       ``(1) the benefits from the rule justify the costs of the 
     rule;
       ``(2) the rule employs to the extent practicable flexible 
     reasonable alternatives of the type described in section 
     622(c)(2)(C)(iii); and
       ``(3)(A) the rule adopts
        the least cost alternative of the reasonable alternatives 
     that achieves the objectives of the statute; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment identified by the agency in the rulemaking record 
     make a more costly alternative that achieves the objectives 
     of the statute appropriate and in the public interest and the 
     agency head provides an explanation of those considerations, 
     the rule adopts the least cost alternative of the reasonable 
     alternatives necessary to take into account such 
     uncertainties or benefits; and
       ``(4) if a risk assessment is required by section 632--
       ``(A) the rule is likely to significantly reduce the human 
     health, safety, and environmental risks to be addressed; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment, preclude making the finding under subparagraph 
     (A), promulgating the final rule is nevertheless justified 
     for reasons stated in writing accompanying the rule and 
     consistent with subchapter III.
       ``(c) Alternative Requirements.--If, applying the statutory 
     requirements upon which the rule is based, a rule cannot 
     satisfy the criteria of subsection (b), the agency head may 
     promulgate the rule if the agency head finds that--
       ``(1) the rule employs to the extent practicable flexible 
     reasonable alternatives of the type described in section 
     622(c)(2)(C)(iii);
       ``(2)(A) the rule adopts the least cost alternative of the 
     reasonable alternatives that achieves the objectives of the 
     statute; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment identified by the agency in the rulemaking record 
     make a more costly alternative that achieves the objectives 
     of the statute appropriate and in the public interest, and 
     the agency head provides an explanation of those 
     consideration, the rule adopts the least cost alternative of 
     the reasonable alternatives necessary to take into account 
     such uncertainties or benefits; and
       ``(3) if a risk assessment is required by section 632--
       ``(A) the rule is likely
        to significantly reduce the human health, safety, and 
     environmental risks to be addressed;
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment, preclude making the finding under subparagraph 
     (A), promulgating the final rule is nevertheless justified 
     for reasons stated in writing accompanying the rule and 
     consistent with subchapter III.
       ``(d) Publication of Reasons for Noncompliance.--If an 
     agency promulgates a rule to which subsection (c) applies, 
     the agency head shall prepare a written explanation of why 
     the agency was required to promulgate a rule that does not 
     satisfy the criteria of subsection (b) and shall transmit the 
     explanation with the final cost-benefit analysis to Congress 
     when the final rule is promulgated.

     ``Sec. 625. Jurisdiction and judicial review

       (a) Review.--Compliance or noncompliance by an agency with 
     the provisions of this subchapter and subchapter III shall be 
     subject to judicial review only in accordance with this 
     section.
       (b) Jurisdiction.--(1) Subject to paragraph (2), each court 
     with jurisdiction under a statute to review final agency 
     action to which this title applies has jurisdiction to review 
     any claims of noncompliance with this subchapter and 
     subchapter III.
       (2) No claims of noncompliance with this subchapter or 
     subchapter III shall be reviewed separate or apart from 
     judicial review of the final agency action to which they 
     relate.
       (c) Record.--Any analysis or review required under this 
     subchapter or subchapter III shall constitute part of the 
     rulemaking record of the final agency action to which it 
     pertains for purposes of judicial review.
       (d) Standards for Review.--In any proceeding involving 
     judicial review under section 706 or under the statute 
     granting rulemaking authority, failure to comply with this 
     subchapter or subchapter III may be considered by the court 
     solely for the purpose of determining whether the final 
     agency action is arbitrary and capricious or an abuse of 
     discretion (or unsupported by substantial evidence where that 
     standard is otherwise provided by law).

     ``Sec. 626. Deadlines for rulemaking

       ``(a) Statutory.--All deadlines in statutes that require 
     agencies to propose or promulgate any rule subject
      to section 622 or subchapter III during the 5-year period 
     beginning on the effective date of this section shall be 
     suspended until the earlier of-- [[Page S 8800]] 
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.
       ``(b) Court-Ordered.--All deadlines imposed by any court of 
     the United States that would require an agency to propose or 
     promulgate a rule subject to section 622 or subchapter III 
     during the 5-year period beginning on the effective date of 
     this section shall be suspended until the earlier of--
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.
       ``(c) Obligation To Regulate.--In any case in which the 
     failure to promulgate a rule by a deadline occurring during 
     the 5-year period beginning on the effective date of this 
     section would create an obligation to regulate through 
     individual adjudications, the deadline shall be suspended 
     until the earlier of--
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.

     ``Sec. 627. Special rule

       ``Notwithstanding any other provision of the Comprehensive 
     Regulatory Reform Act of 1995, or the amendments made by such 
     Act, for purposes of this subchapter and subchapter IV, the 
     head of each appropriate Federal banking agency (as defined 
     in section 3(q) of the Federal Deposit Insurance Act), the 
     National Credit Union Administration, the Federal Housing 
     Finance Board, the Office of Federal Housing Enterprise 
     Oversight, and the Farm Credit Administration, shall have 
     authority with respect to such agency that otherwise would be 
     provided under such subchapters to the Director, a designee 
     of the President, Vice President, or any officer designated 
     or delegated with authority under such subchapters.

     ``Sec. 628. Requirements for major environmental management 
       activities

       ``(a) Definition.--For purposes of this section, the term 
     `major environmental management activity' means--
       ``(1) a corrective action requirement under the Solid Waste 
     Disposal Act;
       ``(2) a response action or damage assessment under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.);
       ``(3) the treatment, storage, or disposal of radioactive or 
     mixed waste in connection with site restoration activity; and
       ``(4) Federal guidelines for the conduct of such activity, 
     including site-specific guidelines,

     the expected costs, expenses, and damages of which are likely 
     to exceed, in the aggregate; $10,000,000.
       ``(b) Applicability.--A major environmental management 
     activity is subject to this section unless construction or 
     other remediation activity has commenced on a significant 
     portion of the activity, and--
       ``(1) it is more cost-effective to complete the work than 
     to apply the provisions of this section; or
       ``(2) the application of the provisions of this section, 
     including any delays caused thereby, will result in a 
     significant risk to human health or the environment.
       ``(c) Requirement To Prepare Risk Assessment.--(1) For each 
     major environmental management activity or significant unit 
     thereof that is proposed by the agency after the date of 
     enactment of this subchapter, is pending on the date of 
     enactment of this subchapter, or is subject to a granted 
     petition for review pursuant to section 623, the head of an 
     agency shall prepare--
       ``(A) a risk assessment in accordance with subchapter III; 
     and
       ``(B) a cost-benefit analysis equivalent to that which 
     would be required under this subchapter, if such subchapter 
     were applicable.
       ``(2) In conducting a risk assessment or cost-benefit 
     analysis under this section, the head of the agency shall 
     incorporate the reasonably anticipated probable future use of 
     the land and its surroundings (and any associated media and 
     resources of either) affected by the environmental management 
     activity.
       ``(3) For actions pending on the date of enactment of this 
     section or proposed during the year following the date of 
     enactment of this section, in lieu of preparing a risk 
     assessment in accordance with subchapter III or cost-benefit 
     analysis under this subchapter, an agency may use other 
     appropriately developed analyses that allow it to make the 
     judgments required under subsection (d).
       ``(d) Requirement.--The requirements of this subsection 
     shall supplement, and not supercede, any other requirement 
     provided by any law. A major environmental management 
     activity under this section shall meet the decisional 
     criteria under section 624 as if it is a major rule under 
     such section

                   ``SUBCHAPTER III--RISK ASSESSMENTS

     ``Sec. 631. Definitions

       ``For purposes of this subchapter--
       ``(1) except as otherwise provided, the definitions under 
     section 551 shall apply to this subchapter;
       ``(2) the term `exposure assessment' means the scientific 
     determination of the intensity, frequency and duration of 
     actual or potential exposures to the hazard in question;
       ``(3) the term `hazard assessment' means the scientific 
     determination of whether a hazard can cause an increased 
     incidence of one or more significant adverse effects, and a 
     scientific evaluation of the relationship between the degree 
     of exposure to a perceived cause of an adverse effect and the 
     incidence and severity of the effect;
       ``(4) the term `major rule' has the meaning given such term 
     in section 621(5);
       ``(5) the term `risk assessment' means the systematic 
     process of organizing and analyzing scientific knowledge and 
     information on potential hazards, including as appropriate 
     for the specific risk involved, hazard assessment, exposure 
     assessment, and risk characterization;
       ``(6) the term `risk characterization' means the 
     integration and organization of hazard and exposure 
     assessment to estimate the potential for specific harm to an 
     exposed individual population or natural resource including, 
     to the extent feasible, a characterization of the 
     distribution of risk as well as an analysis of uncertainties, 
     variabilities, conflicting information, and inferences and 
     assumptions in the assessment;
       ``(7) the term `screening analysis' means an analysis using 
     simple conservative postulates to arrive at an estimate of 
     upper and lower bounds as appropriate, that permits the 
     manager to eliminate risks from further consideration and 
     analysis, or to help establish priorities for agency action; 
     and
       ``(8) the term `substitution risk' means an increased risk 
     to human health, safety, or the environment reasonably likely 
     to result from a regulatory option.

     ``Sec. 632. Applicability

       ``(a) In General.--(1) Except as provided in subsection 
     (c), for each proposed and final major rule, a primary 
     purpose of which is to protect human health, safety, or the 
     environment, or a consequence of which is a substantial 
     substitution risk, that is proposed by an agency after the 
     date of enactment of this subchapter, or is pending on the 
     date of enactment of this subchapter, the head of each agency 
     shall prepare a risk assessment in accordance with this 
     subchapter.
       ``(2) An agency shall not, as a condition for the issuance 
     or modification of a permit, conduct, or require any
      person to conduct, a risk assessment not otherwise 
     explicitly required by law or regulation.
       ``(b) Application of Principles.--Except as provided in 
     subsection (c), the head of each agency shall apply the 
     principles in this subchapter to any risk assessment carried 
     out by, or on behalf of, or prepared by others and adopted 
     by, the agency in connection with human health, safety, and 
     environmental risks.
       ``(c) Exceptions.--(1) This subchapter shall not apply to 
     risk assessments performed with respect to--
       ``(A) a situation for which the agency finds good cause 
     that conducting a risk assessment is impracticable due to an 
     emergency or health and safety threat that is likely to 
     result in significant harm to the public or natural 
     resources;
       ``(B) a rule or agency action that authorizes the 
     introduction into commerce, or initiation of manufacture, of 
     a substance, mixture, or product, or recognizes the 
     marketable status of a product;
       ``(C) a human health, safety, or environmental inspection, 
     an action enforcing a rule or permit, or an individual 
     facility permitting action, except risk assessments conducted 
     in connection with permits issued under subtitle C of title 
     II of the Solid Waste Disposal Act (42 U.S.C. 6921 et seq.);
       ``(D) a screening analysis clearly identified as such; or
       ``(E) product registrations, reregistrations, tolerance 
     settings, and reviews of premanufacture notices under the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136 et seq.) and the Toxic Substances Control Act (15 U.S.C. 
     2601 et seq.).
       ``(2) An analysis shall not be treated as a screening 
     analysis for the purposes of paragraph (1)(D) if the result 
     of the analysis is used--
       ``(A) as the basis for imposing a restriction on a 
     previously authorized substance, product, or activity after 
     its initial introduction into manufacture or commerce; or
       ``(B) to characterize a finding of significant risk from a 
     substance or activity in any agency document or other 
     communication made available to the public, the media, or 
     Congress.
       ``(3) This subchapter shall not apply to any food, drug, or 
     other product label or labeling, or to any risk 
     characterization appearing on any such label.

     ``Sec. 633. Principles for risk assessments

       ``(a) In General.--(1) The head of each agency shall design 
     and conduct risk assessments in a manner
      that promotes rational and informed risk management 
     decisions and informed public input into the process of 
     making agency decisions.
       ``(2) The head of each agency shall establish and maintain 
     a distinction between risk assessment and risk management.
       ``(3) An agency may take into account priorities for 
     managing risks, including the types of information that would 
     be important in evaluating a full range of alternatives, in 
     developing priorities for risk assessment activities.
       ``(4) In conducting a risk assessment, the head of each 
     agency shall employ the level of detail and rigor appropriate 
     and practicable for reasoned decisionmaking in the matter 
     involved, proportionate to the significance and complexity of 
     the potential agency action and the need for expedition.
       ``(5) An agency shall not be required to repeat discussions 
     or explanations in each risk [[Page S 8801]] assessment 
     required under this subchapter if there is an unambiguous 
     reference to a relevant discussion or explanation in another 
     reasonably available agency document that was prepared in 
     accordance with this section.
       ``(b) Level of Detail.--(1) Each agency shall develop and 
     use an iterative process for risk assessment, starting with 
     relatively inexpensive screening analyses and progressing to 
     more rigorous analyses, as circumstances or results warrant.
       ``(2) In determining whether or not to proceed to a more 
     detailed analysis, the head of the agency shall take into 
     consideration whether or not use of additional data or the 
     analysis thereof would significantly change the estimate of 
     risk.
       ``(c) Data Quality.--(1) The head of each agency shall base 
     each risk assessment only on the best reasonably available 
     scientific data and scientific understanding, including 
     scientific information that finds or fails to find a 
     correlation between a potential hazard and an adverse effect, 
     and data regarding exposure and other relevant physical 
     conditions that are reasonably expected to be encountered.
       ``(2) The agency shall select data for use in a risk 
     assessment based on a reasoned analysis of the quality and 
     relevance of the data, and shall describe such analysis.
       ``(3) In making its selection of data, the agency shall 
     consider whether the data were developed in accordance with 
     good laboratory practice or other appropriate protocols to 
     ensure data quality, such as the standards for the 
     development of test data promulgated pursuant to section 4 of 
     the Toxic Substances Control Act (15 U.S.C. 2603),
      and the standards for data requirements promulgated pursuant 
     to section 3 of the Federal Insecticide, Fungicide, and 
     Rodenticide Act (7 U.S.C. 136a), or other form of 
     independent valuation.
       ``(4) Subject to paragraph (3), relevant scientific data 
     submitted by interested parties shall be reviewed and 
     considered by the agency in the analysis under paragraph (2).
       ``(5) When conflicts among scientific data appear to exist, 
     the risk assessment shall include a discussion of all 
     relevant information including the likelihood of alternative 
     interpretations of the data and emphasizing--
       ``(A) postulates that represent the most reasonable 
     inferences from the supporting scientific data; and
       ``(B) when a risk assessment involves an extrapolation from 
     toxicological studies, data with the greatest scientific 
     basis of support for the resulting harm to affected 
     individuals, populations, or resources.
       ``(6) The head of an agency shall not automatically 
     incorporate or adopt any recommendation or classification 
     made by any foreign government, the United Nations, any 
     international governmental body or standards-making 
     organization, concerning the health effects value of a 
     substance. Nothing in this paragraph shall be construed to 
     affect the implementation or application of any treaty or 
     international trade agreement to which the United States is a 
     party.
       ``(d) Use of Postulates.--(1) To the maximum extent 
     practicable, each agency shall use postulates, including 
     default assumptions, inferences, models or safety factors, 
     only when relevant scientific data and scientific 
     understanding, including site-specific data, are lacking. The 
     agency shall decrease the use of postulates to the extent 
     higher quality scientific data and understanding become 
     available.
       ``(2) When a risk assessment involves choice of a 
     postulate, the head of the agency shall--
       ``(A) identify the postulate and its scientific or policy 
     basis, including the extent to which the postulate has been 
     validated, or conflicts with empirical data;
       ``(B) explain the basis for any choices among postulates; 
     and
       ``(C) describe reasonable alternative postulates that were 
     not selected by the agency for use in the risk assessment, 
     and the sensitivity of the conclusions of the risk assessment 
     to the alternatives, and the rationale for not using such 
     alternatives.
       ``(3) An agency shall not inappropriately combine or 
     compound multiple postulates.
       ``(4) The agency shall develop a procedure and publish 
     guidelines for choosing default postulates and for deciding 
     when and how in a specific risk assessment to adopt 
     alternative postulates or to use available scientific 
     information in place of a default postulate.
       ``(e) Risk Characterization.--In each risk assessment, the 
     agency shall include in the risk characterization, as 
     appropriate, each of the following:
       ``(1) A description of the hazard of concern.
       ``(2) A description of the populations or natural resources 
     that are the subject of the risk assessment.
       ``(3) An explanation of the exposure scenarios used in the 
     risk assessment, including an estimate of the corresponding 
     population at risk and the likelihood of such exposure 
     scenarios.
       ``(4) A description of the nature and severity of the harm 
     that could plausibly occur.
       ``(5) A description of the major uncertainties in each 
     component of the risk assessment and their influence on the 
     results of the assessment.
       ``(f) Presentation of Risk Assessment Conclusions.--(1) To 
     the extent feasible and scientifically appropriate, the head 
     of an agency shall--
       ``(A) express the overall estimate of risk as a range or 
     probability distribution that reflects variabilities, 
     uncertainties and data gaps in the analysis;
       ``(B) provide the range and distribution of risks and the 
     corresponding exposure scenarios, identifying the reasonably 
     expected risk to the general population and, where 
     appropriate, to more highly exposed subpopulations; and
       ``(C) where quantitative estimates of the range and 
     distribution of risk estimates are not available, describe 
     the qualitative factors influencing the range of possible 
     risks.
       ``(2) When scientific data and understanding that permits 
     relevant comparisons of risk are reasonably available, the 
     agency shall use such information to place the nature and 
     magnitude of risks to human health, safety, and the 
     environment being analyzed in context.
       ``(3) When scientifically appropriate information on 
     significant substitution risks to human health, safety, or 
     the environment is reasonably available to the agency, or is 
     contained in information provided to the agency by a
      commentator, the agency shall describe such risks in the 
     risk assessments.
       ``(g) Peer Review.--(1) Each agency shall provide for peer 
     review in accordance with this section of any risk assessment 
     subject to the requirements of this subchapter that forms 
     that basis of any major rule or a major environmental 
     management activity.
       ``(2) Each agency shall develop a systematic program for 
     balanced, independent, and external peer review that--
       ``(A) shall provide for the creation or utilization of peer 
     review panels, expert bodies, or other devices that are 
     balanced and comprised of participants selected on the basis 
     of their expertise relevant to the sciences involved in 
     regulatory decisions and who are independent of the agency 
     program that developed the risk assessment being reviewed;
       ``(B) shall not exclude any person with substantial and 
     relevant expertise as a participant on the basis that such 
     person has a potential interest in the outcome, if such 
     interest is fully disclosed to the agency, unless the result 
     of the review would have a direct and predictable effect on a 
     substantial financial interest of such person;
       ``(C) shall provide for a timely completed peer review, 
     meeting agency deadlines, that contains a balanced 
     presentation of all considerations, including minority 
     reports and agency response to all significant peer review 
     comments; and
       ``(D) shall provide adequate protections for confidential 
     business information and trade secrets, including requiring 
     panel members to enter into confidentiality agreements.
       ``(3) Each peer review shall include a report to the 
     Federal agency concerned detailing the scientific and 
     technical merit of data and the methods used for the risk 
     assessment or cost-benefit analysis, and shall identify 
     significant peer review comments. Each agency shall provide a 
     written response to all significant peer review comments. All 
     peer review comments, conclusions, composition of the panels, 
     and the agency's responses shall be made available to the 
     public and shall be made part of the administrative record 
     for purposes of judicial review of any final agency action.
       ``(4)(A) The Director of the Office of Science and 
     Technology Policy shall develop a systematic program to 
     oversee the use and quality of peer review of risk 
     assessments.
       ``(B) The Director or the designee of the President may 
     order an agency to conduct peer review for any risk 
     assessment that is likely to have a significant impact on
      public policy decisions, or that would establish an 
     important precedent.
       ``(5) The proceedings of peer review panels under this 
     section shall not be subject to the Federal Advisory 
     Committee Act.
       ``(h) Public Participation.--The head of each agency shall 
     provide appropriate opportunities for public participation 
     and comment on risk assessments.

     ``Sec. 634. Rule of construction

       ``Nothing in this subchapter shall be construed to--
       ``(1) preclude the consideration of any data or the 
     calculation of any estimate to more fully describe or analyze 
     risk, scientific uncertainty, or variability; or
       ``(2) require the disclosure of any trade secret or other 
     confidential information.

     ``Sec. 635. Comprehensive risk reduction

       ``(a) Setting Priorities.--The head of each agency with 
     programs to protect human health, safety, or the environment 
     shall set priorities for the use of resources available to 
     address those risks to human health, safety, and the 
     environment, with the goal of achieving the greatest overall 
     net reduction in risks with the public and private sector 
     resources expended.
       ``(b) Incorporating Risk-Based Priorities Into Budget and 
     Planning.--The head of each agency in subsection (a) shall 
     incorporate the priorities identified under subsection (a) 
     into the agency budget, strategic planning, regulatory 
     agenda, enforcement, and research activities. When submitting 
     its budget request to Congress and when announcing its 
     regulatory agenda in the Federal Register, each covered 
     agency shall identify the risks that the covered agency head 
     has determined are the most serious and can be addressed in a 
     cost-effective manner using the priorities set under 
     subsection (a), the basis for that determination, and 
     explicitly identify how the agency's requested budget and 
     regulatory agenda reflect those priorities.
       ``(c) Reports by the National Academy of Sciences.--(1) Not 
     later than 6 months after [[Page S 8802]] the date of 
     enactment of this section, the Director of the Office of 
     Science and Technology Policy shall enter into an arrangement 
     with the National Academy of Sciences to investigate and 
     report on comparative risk analysis. The arrangement shall 
     provide, to the extent deemed appropriate and feasible by the 
     Academy, for--
       ``(A) 1 or more reports evaluating methods of comparative 
     risk analysis that would be appropriate for agency programs 
     related to human health, safety, and the environment to use 
     in setting priorities for activities; and
       ``(B) a report providing a comprehensive and comparative 
     analysis of the risks to human health, safety, and the 
     environment that are addressed by agency programs under 
     subsection (a), along with
      companion activities to disseminate the conclusions of the 
     report to the public.
       ``(2) The report or reports prepared under paragraph (1)(A) 
     shall be completed not later than 3 years after the date of 
     enactment of this section. The report under paragraph (1)(B) 
     shall be completed not later than 4 years after the date of 
     enactment of this section, and shall draw, as appropriate, 
     upon the insights and conclusions of the report or reports 
     made under paragraph (1)(A). The companion activities under 
     paragraph (1)(B) shall be completed not later than 5 years 
     after the date of enactment of this section.
       ``(3)(A) The head of an agency with programs to protect 
     human health, safety, and the environment shall incorporate 
     the recommendations of reports under paragraph (1) in 
     revising any priorities under subsection (a).
       ``(B) The head of the agency shall submit a report to the 
     appropriate Congressional committees of jurisdiction 
     responding to the recommendations from the National Academy 
     of Sciences and describing plans for utilizing the results of 
     comparative risk analysis in agency budget, strategic 
     planning, regulatory agenda, enforcement, and research and 
     development activities.
       ``(4) Following the submission of the report in paragraph 
     (2), for the next 5 years, the head of the agency shall 
     submit, with the budget request submitted to Congress under 
     section 1105(a) of title 31, a description of how the 
     requested budget of the agency and the strategic planning 
     activities of the agency reflect priorities determined using 
     the recommendations of reports issued under subsection (a). 
     The head of the agency shall include in such description--
       ``(A) recommendations on the modification, repeal, or 
     enactment of laws to reform, eliminate, or enhance programs 
     or mandates relating to human health, safety, or the 
     environment; and
       ``(B) recommendation on the modification or elimination of 
     statutory or judicially mandated deadlines,

     that would assist the head of the agency to set priorities in 
     activities to address the risks to human health, safety, or 
     the environment that incorporate the priorities developed 
     using the recommendations of the reports under subsection 
     (a), resulting in more cost-effective programs to address 
     risk.
       ``(5) For each budget request submitted in accordance with 
     paragraph (4), the Director shall submit an analysis of ways 
     in which resources could be reallocated among Federal 
     agencies to achieve the greatest overall net reduction in 
     risk.
                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

     ``Sec. 641. Procedures

       ``(a) In General.--The Director or a designee of the 
     President shall--
       ``(1) establish and, as appropriate, revise procedures for 
     agency compliance with this chapter; and
       ``(2) monitor, review, and ensure agency implementation of 
     such procedures.
       ``(b) Public Comment.--Procedures established pursuant to 
     subsection (a) shall only be implemented after opportunity 
     for public comment. Any such procedures shall be consistent 
     with the prompt completion of rulemaking proceedings.
       ``(c) Time for Review.--(1) If procedures established 
     pursuant to subsection (a) include review of any initial or 
     final analyses of a rule required under chapter 6, the time 
     for any such review of any initial analysis shall not exceed 
     90 days following the receipt of the analysis by the 
     Director, or a designee of the President.
       ``(2) The time for review of any final analysis required 
     under chapter 6 shall not exceed 90 days following the 
     receipt of the analysis by the Director, a designee of the 
     President.
       ``(3)(A) The times for each such review may be extended for 
     good cause by the President or by an officer to whom the 
     President has delegated his authority pursuant to section 642 
     for an additional 30 days. At the request of the head of an 
     agency, the President or such an officer may grant an 
     additional extension of 30 days.
       ``(B) Notice of any such extension, together with a 
     succinct statement of the reasons therefor, shall be inserted 
     in the rulemaking file.

     ``Sec. 642. Delegation of authority

       ``(a) In General.--The President may delegate the authority 
     granted by this subchapter to an officer within the Executive 
     Office of the President whose appointment has been subject to 
     the advice and consent of the Senate.
       ``(b) Notice.--Notice of any delegation, or any revocation 
     or modification thereof shall be published in the Federal 
     Register.

     ``Sec. 643. Judicial review

       ``The exercise of the authority granted under this 
     subchapter by the Director, the President, or by an officer 
     to whom such authority has been delegated under section 642 
     and agency compliance or noncompliance with the procedure 
     under section 641 shall not be subject to judicial review.

     ``Sec. 644. Regulatory agenda

       ``The head of each agency shall provide, as part of the 
     semiannual regulatory agenda published under section 602--
       ``(1) a list of risk assessments under preparation or 
     planned by the agency;
       ``(2) a brief summary of relevant issues addressed or to be 
     addressed by each listed risk assessment;
       ``(3) an approximate schedule for completing each listed 
     risk assessment;
       ``(4) an identification of potential rules, guidance, or 
     other agency actions supported or affected by each listed 
     risk assessment; and
       ``(5) the name, address, and telephone number of an agency 
     official knowledgeable about each listed risk assessment.''.
       (b) Regulatory Flexibility Analysis.--
       (1) Final regulatory flexibility analysis.--Section 604 of 
     title 5, United States Code, is amended by adding at the end 
     thereof the following new subsection:
       ``(c)(1) No final rule for which a final regulatory 
     flexibility analysis is required under this section shall be 
     promulgated unless the agency finds that the final rule 
     minimizes significant economic impact on small entities to 
     the maximum extent possible, consistent with the purposes of 
     this subchapter, the objectives of the rule, and the 
     requirements of applicable statutes.
       ``(2) If an agency determines that a statute requires a 
     rule to be promulgated that does not satisfy the criterion of 
     paragraph (1), the agency shall--
       ``(A) include a written explanation of such determination 
     in the final regulatory flexibility analysis; and
       ``(B) transmit the final regulatory flexibility analysis to 
     Congress when the final rule is promulgated.''.
       (2) Judicial review.--Section 611 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 611. Judicial review

       ``(a)(1) For any rule described in section 603(a), and with 
     respect to which the agency--
       ``(A) certified, pursuant to section 605(b), that such rule 
     would not have a significant economic impact on a substantial 
     number of small entities;
       ``(B) prepared a final regulatory flexibility analysis 
     pursuant to section 604; or
       ``(C) did not prepare an initial regulatory flexibility 
     analysis pursuant to section 603 or a final regulatory 
     flexibility analysis pursuant to section 604 except as 
     permitted by sections 605 and 608,

     an affected small entity may petition for the judicial review 
     of such certification, analysis, or failure to prepare such 
     analysis, in accordance with this subsection. A court having 
     jurisdiction to review such rule for compliance with section 
     553 or under any other provision of law shall have 
     jurisdiction over such petition.
       ``(2)(A) Notwithstanding any other provision of law, an 
     affected small entity shall have 1 year after the effective 
     date of the final rule to challenge the certification, 
     analysis or failure to prepare an analysis required by this 
     subchapter with respect to any such rule.
       ``(B) If an agency delays the issuance of a final 
     regulatory flexibility analysis pursuant to section 608(b), a 
     petition for judicial review under this subsection may be 
     filed not later than 1 year after the date the analysis is 
     made available to the public.
       ``(3) For purposes of this subsection, the term `affected 
     small entity' means a small entity that is or will be subject 
     to the provisions of, or otherwise required to comply with, 
     the final rule.
       ``(4) Nothing in this subsection shall be construed to 
     limit the authority of any court to stay the effective date 
     of any rule or provision thereof under any other provision of 
     law.
       ``(5)(A) Notwithstanding section 605, if the court 
     determines, on the basis of the court's review of the 
     rulemaking record, that there is substantial evidence that 
     the rule would have a significant economic impact on a 
     substantial number of small entities, the court shall order 
     the agency to prepare a final regulatory flexibility analysis 
     that satisfies the requirements of section 604.
       ``(B) If the agency prepared a final regulatory flexibility 
     analysis, the court shall order the agency to take corrective 
     action consistent with section 604 if the court determines, 
     on the basis of the court's review of the rulemaking record, 
     that the final regulatory flexibility analysis does not 
     satisfy the requirements of section 604.
       ``(6) The court shall stay the rule and grant such other 
     relief as the court determines to be appropriate if, by the 
     end of the 90-day period beginning on the date of the order 
     of the court pursuant to paragraph (5), the agency fails, as 
     appropriate--
       ``(A) to prepare the analysis required by section 604; or
       ``(B) to take corrective action consistent with section 
     604.
       ``(b) In an action for the judicial review of a rule, any 
     regulatory flexibility analysis for such rule (including an 
     analysis prepared or corrected pursuant to subsection (a)(5)) 
     shall constitute part of the whole record of agency action in 
     connection with such review. [[Page S 8803]] 
       ``(c) Except as otherwise required by the provisions of 
     this subchapter, the court shall apply the same standards of 
     judicial review that govern the review of agency findings 
     under the statute granting the agency authority to conduct 
     the rulemaking.''.
       (c) Revision of Certain Provisions of the Federal Food, 
     Drug, and Cosmetic Act Relating to Testing.--In applying 
     section 409(c)(3)(A), 512(d)(1), or 721(b)(5)(B) of the 
     Federal Food, Drug, and Cosmetic
      Act (21 U.S.C. 348(c)(3)(A), 360b(d)(1), 379e(b)(5)(B)), the 
     Secretary of Health and Human Services and the 
     Administrator of the Environmental Protection Agency shall 
     not prohibit or refuse to approve a substance or product 
     on the basis of safety, where the substance or product 
     presents a negligible or insignificant foreseeable risk to 
     human health resulting from its intended use.
       (d) Toxic Release Inventory.--
       (1) Within 180 days after the date of the enactment of this 
     subsection, the Administrator of the Environmental Protection 
     Agency shall carry out a review of each characterization or 
     listing of a substance added since November 8, 1994 to the 
     Toxic Release Inventory under section 313(c) of the Emergency 
     Planning and Community Right to Know Act of 1986.
       (2) In this review the Administrator shall determine with 
     the respect to each such characterization or listing whether 
     removal of the substance from the Toxic Release Inventory 
     presents a foreseeable significant risk to human health or 
     the environment.
       (3) The Administrator shall remove from the Toxic Release 
     Inventory any substance whose removal is justified by the 
     determination under paragraph (2).
       (4) (A) Within 90 days after the date of the enactment of 
     this subsection the Administrator shall publish in the 
     Federal Register a draft review and the Administrator's 
     preliminary plans to use the authority under paragraph (3), 
     and afford interested persons an opportunity to comment.
       (B) Promptly upon completion of the review, the 
     Administrator shall provide Congress with a written report 
     summarizing the review and the reasons for action or inaction 
     on each characterization or listing subject to this, 
     subsection.
       (e) Technical and Conforming Amendments.--
       (1) Chapter analysis.--Part I of title 5, United States 
     Code, is amended by striking the chapter heading and table of 
     sections for chapter 6 and inserting the following:

           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS
                  ``SUBCHAPTER I--REGULATORY ANALYSIS

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

``621. Definitions.
``622. Rulemaking cost-benefit analysis.
``623. Agency regulatory review and petitions.
``624. Decisional criteria.
``625. Jurisdiction and judicial review.
``626. Deadlines for rulemaking.
``627. Special rule.
``628. Requirements for major environmental management activities.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Definitions.
``632. Applicability.
``633. Principles for risk assessments.
``634. Rule of construction.
``635. Comprehensive risk reduction.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Procedures.
``642. Delegation of authority.
``643. Judicial review.
``644. Regulatory agenda.''.

       (2) Subchapter heading.--Chapter 6 of title 5, United 
     States Code, is amended by inserting immediately before 
     section 601, the following subchapter heading:

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

     SEC. 5. JUDICIAL REVIEW.

       (a) In General.--Chapter 7 of title 5, United States Code, 
     is amended--
       (1) by striking section 706; and
       (2) by adding at the end the following new sections:

     ``Sec. 706. Scope of review

       ``(a) To the extent necessary to reach a decision and when 
     presented, the reviewing court shall decide all relevant 
     questions of law, interpret constitutional and statutory 
     provisions, and determine the meaning or applicability of the 
     terms of an agency action. The reviewing court shall--
       ``(1) compel agency action unlawfully withheld or 
     unreasonably delayed; and
       ``(2) hold unlawful and set aside agency action, findings 
     and conclusions found to be--
       ``(A) arbitrary, capricious, an abuse of discretion, or 
     otherwise not in accordance with law;
       ``(B) contrary to constitutional right, power, privilege, 
     or immunity;
       ``(C) in excess of statutory jurisdiction, authority, or 
     limitations, or short of statutory right;
       ``(D) without observance of procedure required by law;
       ``(E) unsupported by substantial evidence in a proceeding 
     subject to sections 556 and 557 or otherwise reviewed on the 
     record of an agency hearing provided by statute;
       ``(F) without substantial support in the rulemaking file, 
     viewed as a whole, for the asserted or necessary factual 
     basis, in the case of a rule adopted in a proceeding subject 
     to section 553; or
       ``(G) unwarranted by the facts to the extent that the facts 
     are subject to trial de novo by the reviewing court.
       ``(b) In making the determinations set forth in subsection 
     (a), the court shall review the whole record or those parts 
     of it cited by a party, and due account shall be taken of the 
     rule of prejudicial error.

     ``Sec. 707. Consent decrees

       ``In interpreting any consent decree in effect on or after 
     the date of enactment of this section that imposes on an 
     agency an obligation to initiate, continue, or complete 
     rulemaking proceedings, the court shall not enforce the 
     decree in a way that divests the agency of discretion clearly 
     granted to the agency by statute to respond to changing 
     circumstances, make policy or managerial choices, or protect 
     the rights of third parties.

     ``Sec. 708. Affirmative defense

       ``Notwithstanding any other provision of law, it shall be 
     an affirmative defense in any enforcement action brought by 
     an agency that the regulated person or entity reasonably 
     relied on and is complying with a rule, regulation, 
     adjudication, directive, or order of such agency or any other 
     agency that is incompatible, contradictory, or otherwise 
     cannot be reconciled with the agency rule, regulation, 
     adjudication, directive, or order being enforced.
       (b) Technical Amendment.--The analysis for chapter 7 of 
     title 5, United States Code, is amended by striking the item 
     relating to section 706 and inserting the following new 
     items:

``706. Scope of review.
``707. Consent decrees.
``708. Affirmative defense.''
     SEC. 6. CONGRESSIONAL REVIEW.

       (a) Finding.--The Congress finds that effective steps for 
     improving the efficiency and proper management of Government 
     operations will be promoted if a moratorium on the 
     implementation of certain significant final rules is imposed 
     in order to provide Congress an opportunity for review.
       (b) In General.--Title 5, United States Code, is amended by 
     inserting immediately after chapter 7 the following new 
     chapter:

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
``801. Congressional review.
``802. Congressional disapproval procedure.
``803. Special rule on statutory, regulatory, and judicial deadlines.
``804. Definitions.
``805. Judicial review.
``806. Applicability; severability.
``807. Exemption for monetary policy.
     ``Sec. 801. Congressional review

       ``(a)(1)(A) Before a rule can take effect as a final rule, 
     the Federal agency promulgating such rule shall submit to 
     each House of the Congress and to the Comptroller General a 
     report containing--
       ``(i) a copy of the rule;
       ``(ii) a concise general statement relating to the rule; 
     and
       ``(iii) the proposed effective date of the rule.
       ``(B) The Federal agency promulgating the rule shall make 
     available to each House of Congress and the Comptroller 
     General, upon request--
       ``(i) a complete copy of the cost-benefit analysis of the 
     rule, if any;
       ``(ii) the agency's actions relevant to sections 603, 604, 
     605, 607, and 609;
       ``(iii) the agency's actions relevant to sections 202, 203, 
     204, and 205 of the Unfunded Mandates Reform Act of 1995; and
       ``(iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders, such as 
     Executive Order No. 12866.
       ``(C) Upon receipt, each House shall provide copies to the 
     Chairman and Ranking Member of each committee with 
     jurisdiction.
       ``(2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction to each 
     House of the Congress by the end of 12 calendar days after 
     the submission or publication date as provided in section 
     802(b)(2). The report of the Comptroller General shall 
     include an assessment of the agency's compliance with 
     procedural steps required by paragraph (1)(B).
       ``(B) Federal agencies shall cooperate with the Comptroller 
     General by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       ``(3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect as a final rule, the latest 
     of--
       ``(A) the later of the date occurring 60 days after the 
     date on which--
       ``(i) the Congress receives the report submitted under 
     paragraph (1); or
       ``(ii) the rule is published in the Federal Register; [[Page S 
     8804]] 
       ``(B) if the Congress passes a joint resolution of 
     disapproval described under section 802 relating to the rule, 
     and the President signs a veto of such resolution, the 
     earlier date--
       ``(i) on which either House of Congress votes and fails to 
     override the veto of the President; or
       ``(ii) occurring 30 session days after the date on which 
     the Congress received the veto and objections of the 
     President; or
       ``(C) the date the rule would have otherwise taken effect, 
     if not for this section (unless a joint resolution of 
     disapproval under section 802 is enacted).
       ``(4) Except for a major rule, a rule shall take effect as 
     otherwise provided by law after submission to Congress under 
     paragraph (1).
       ``(5) Notwithstanding paragraph (3), the effective date of 
     a rule shall not be delayed by operation of this chapter 
     beyond the date on which either House of Congress votes to 
     reject a joint resolution of disapproval under section 802.
       ``(b) A rule shall not take effect (or continue) as a final 
     rule, if the Congress passes a joint resolution of 
     disapproval described under section 802.
       ``(c)(1) Notwithstanding any other provision of this 
     section (except subject to paragraph (3)), a rule that would 
     not take effect by reason of this chapter may take effect, if 
     the President makes a determination under paragraph (2) and 
     submits written notice of such determination to the Congress.
       ``(2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the rule should take effect 
     because such rule is--
       ``(A) necessary because of an imminent threat to health or 
     safety or other emergency;
       ``(B) necessary for the enforcement of criminal laws; or
       ``(C) necessary for national security.
       ``(3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 802 or the effect of a joint resolution of 
     disapproval under this section.
       ``(d)(1) In addition to the opportunity for review 
     otherwise provided under this chapter, in the case of any 
     rule that is published in the Federal Register (as a rule 
     that shall take effect as a final rule) during the period 
     beginning on the date occurring 60 days before the date the 
     Congress adjourns sine die through the date on which the 
     succeeding Congress first convenes, section 802 shall apply 
     to such rule in the succeeding Congress.
       ``(2)(A) In applying section 802 for purposes of such 
     additional review, a rule described under paragraph (1) shall 
     be treated as though--
       ``(i) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the 15th 
     session day after the succeeding Congress first convenes; and
       ``(ii) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(B) Nothing in this paragraph shall be construed to 
     affect the requirement under subsection (a)(1) that a report 
     shall be submitted to Congress before a final rule can take 
     effect.
       ``(3) A rule described under paragraph (1) shall take 
     effect as a final rule as otherwise provided by law 
     (including other subsections of this section).
       ``(e)(1) Section 802 shall apply in accordance with this 
     subsection to any major rule that is published in the Federal 
     Register (as a rule that shall take effect as a final rule) 
     during the period beginning on November 20, 1994, through the 
     date on which the Comprehensive Regulatory Reform Act of 1995 
     takes effect.
       ``(2) In applying section 802 for purposes of Congressional 
     review, a rule described under paragraph (1) shall be treated 
     as though--
       ``(A) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the date of 
     the enactment of the Comprehensive Regulatory Reform Act of 
     1995; and
       ``(B) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(3) The effectiveness of a rule described under paragraph 
     (1) shall be as otherwise provided by law, unless the rule is 
     made of no force or effect under section 802.
       ``(f) Any rule that takes effect and later is made of no 
     force or effect by the enactment of a joint resolution under 
     section 802 shall be treated as though such rule had never 
     taken effect.
       ``(g) If the Congress does not enact a joint resolution of 
     disapproval under section 802, no court or agency may infer 
     any intent of the Congress from any action or inaction of the 
     Congress with regard to such rule, related statute, or joint 
     resolution of disapproval.

     ``Sec. 802. Congressional disapproval procedure

       ``(a) For purposes of this section, the term `joint 
     resolution' means only a joint resolution introduced during 
     the period beginning on the date on which the report referred 
     to in section 801(a) is received by Congress and ending 60 
     days thereafter, the matter after the resolving clause of 
     which is as follows: `That Congress disapproves the rule 
     submitted by the ____ relating to ____, and such rule shall 
     have no force or effect.'. (The blank spaces being 
     appropriately filled in.)
       ``(b)(1) A resolution described in paragraph (1) shall be 
     referred to the committees in each House of Congress with 
     jurisdiction. Such a resolution may not be reported before 
     the eighth day after its submission or publication date.
       ``(2) For purposes of this subsection the term `submission 
     or publication date' means the later of the date on which--
       ``(A) the Congress receives the report submitted under 
     section 801(a)(1); or
       ``(B) the rule is published in the Federal Register.
       ``(c) If the committee to which is referred a resolution 
     described in subsection (a) has not reported such resolution 
     (or an identical resolution) at the end of 20 calendar days 
     after the submission or publication date defined under 
     subsection (b)(2), such committee may be discharged from 
     further consideration of such resolution in the Senate upon a 
     petition supported in writing by 30 Members of the Senate and 
     in the House upon a petition supported in writing by one-
     fourth of the Members duly sworn and chosen or by motion of 
     the Speaker supported by the Minority Leader, and such 
     resolution shall be placed on the appropriate calendar of the 
     House involved.
       ``(d)(1) When the committee to which a resolution is 
     referred has reported, or when a committee is discharged 
     (under subsection (c)) from further consideration of, a 
     resolution described in subsection (a), it is at any time 
     thereafter in order (even though a previous motion to the 
     same effect has been disagreed to) for a motion to proceed to 
     the consideration of the resolution, and all points of order 
     against the resolution (and against consideration of 
     resolution) are waived. The motion is not subject to 
     amendment, or to a motion to postpone, or to a motion to 
     proceed to the consideration of other business. A motion to 
     reconsider the vote by which the motion is agreed to or 
     disagreed to shall not be in order. If a motion to proceed to 
     the consideration of the resolution is agreed to, the 
     resolution shall remain the unfinished business of the 
     respective House until disposed of.
       ``(2) Debate on the resolution, and on all debatable 
     motions and appeals in connection therewith, shall be limited 
     to not more than 10 hours, which shall be divided equally 
     between those favoring and those opposing the resolution. A 
     motion further to limit debate is in order and not debatable. 
     An amendment to, or a motion to postpone, or a motion to 
     proceed to the consideration of other business, or a motion 
     to recommit the resolution is not in order.
       ``(3) Immediately following the conclusion of the debate on 
     a resolution described in subsection (a), and a single quorum 
     call at the conclusion of the debate if requested in 
     accordance with the rules of the appropriate House, the vote 
     on final passage of the resolution shall occur.
       ``(4) Appeals from the decisions of the Chair relating to 
     the application of the rules of the Senate or the House of 
     Representatives, as the case may be, to the procedure 
     relating to a resolution described in subsection (a) shall be 
     decided without debate.
       ``(e) If, before the passage by one House of a resolution 
     of that House described in subsection (a), that House 
     receives from the other House a resolution described in 
     subsection (a), then the following procedures shall apply:
       ``(1) The resolution of the other House shall not be 
     referred to a committee.
       ``(2) With respect to a resolution described in subsection 
     (a) of the House receiving the resolution--
       ``(A) the procedure in that House shall be the same as if 
     no resolution had been received from the other House; but
       ``(B) the vote on final passage shall be on the resolution 
     of the other House.
       ``(f) This section is enacted by Congress--
       ``(1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a resolution described in 
     subsection (a), and it supersedes other rules only to the 
     extent that it is inconsistent with such rules; and
       ``(2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.

     ``Sec. 803. Special rule on statutory, regulatory, and 
       judicial deadlines

       ``(a) In the case of any deadline for, relating to, or 
     involving any rule which does not take effect (or the 
     effectiveness of which is terminated) because of the 
     enactment of a joint resolution under section 802, that 
     deadline is extended until the date 1 year after the date of 
     the joint resolution. Nothing in this subsection shall be 
     construed to affect a deadline merely by reason of the 
     postponement of a rule's effective date under section 801(a).
       ``(b) The term `deadline' means any date certain for 
     fulfilling any obligation or exercising any authority 
     established by or under any Federal statute or regulation, or 
     by or under any court order implementing any Federal statute 
     or regulation.

     ``Sec. 804. Definitions

       ``(a) For purposes of this chapter--
       ``(1) the term `Federal agency' means any agency as that 
     term is defined in section 551(1) (relating to administrative 
     procedure);
       ``(2) the term `major rule' has the same meaning given such 
     term in section 621(5); and
       ``(3) the term `final rule' means any final rule or interim 
     final rule. [[Page S 8805]] 
       ``(b) As used in subsection (a)(3), the term `rule' has the 
     meaning given such term in section 551, except that such term 
     does not include any rule of particular applicability 
     including a rule that approves or prescribes for the future 
     rates, wages, prices, services, or allowances therefor, 
     corporate or financial structures, reorganizations, mergers, 
     or acquisitions thereof, or accounting practices or 
     disclosures bearing on any of the foregoing or any rule of 
     agency organization, personnel, procedure, practice or any 
     routine matter.

     ``Sec. 805. Judicial review

       ``No determination, finding, action, or omission under this 
     chapter shall be subject to judicial review.

     ``Sec. 806. Applicability; severability

       ``(a) This chapter shall apply notwithstanding any other 
     provision of law.
       ``(b) If any provision of this chapter or the application 
     of any provision of this chapter to any person or 
     circumstance, is held invalid, the application of such 
     provision to other persons or circumstances, and the 
     remainder of this chapter, shall not be affected thereby.

     ``Sec. 807. Exemption for monetary policy

       ``Nothing in this chapter shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall take effect on the date of enactment of this Act and 
     shall apply to any rule that takes effect as a final rule on 
     or after such effective date.
       (d) Technical Amendment.--The table of chapters for part I 
     of title 5, United States Code, is amended by inserting 
     immediately after the item relating to chapter 7 the 
     following:

``8. Congressional Review of Agency Rulemaking...............801''.....
     SEC. 7. REGULATORY ACCOUNTING.

       (a) Definitions.--For purposes of this section, the 
     following definitions apply:
       (1) Major rule.--The term ``major rule'' has the same 
     meaning as defined in section 621(5)(A)(i) of title 5, United 
     States Code. The term shall not include--
       (A) administrative actions governed by sections 556 and 557 
     of title 5, United States Code;
       (B) regulations issued with respect to a military or 
     foreign affairs function of the United States; or
       (C) regulations related to agency organization, management, 
     or personnel.
       (2) Agency.--The term ``agency'' means any executive 
     department, military department, Government corporation, 
     Government controlled corporation, or other establishment in 
     the executive branch of the Government (including the 
     Executive Office of the President), or any independent 
     regulatory agency, but shall not include--
       (A) the General Accounting Office;
       (B) the Federal Election Commission;
       (C) the governments of the District of Columbia and of the 
     territories and possessions of the United States, and their 
     various subdivisions; or
       (D) Government-owned contractor-operated facilities, 
     including laboratories engaged in national defense research 
     and production activities.
       (b) Accounting Statement.--
       (1) In general.--(A) The President shall be responsible for 
     implementing and administering the requirements of this 
     section.
       (B) Not later than June 1, 1997, and each June 1 
     thereafter, the President shall prepare and submit to 
     Congress an accounting statement that estimates the annual 
     costs of major rules and corresponding benefits in accordance 
     with this subsection.
       (2) Years covered by accounting statement.--Each accounting 
     statement shall cover, at a minimum, the 5 fiscal years 
     beginning on October 1 of the year in which the report is 
     submitted and may cover any fiscal year preceding such fiscal 
     years for purpose of revising previous estimates.
       (3) Timing and procedures.--(A) The President shall provide 
     notice and opportunity for comment for each accounting 
     statement. The President may delegate to an agency the 
     requirement to provide notice and opportunity to comment for 
     the portion of the accounting statement relating to that 
     agency.
       (B) The President shall propose the first accounting 
     statement under this subsection 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 such effective date. Such statement shall cover, 
     at a minimum, each of the fiscal years beginning after the 
     date of the enactment of this Act.
       (4) Content of accounting statement.--(A) Each accounting 
     statement shall contain estimates of costs and benefits with 
     respect to each fiscal year covered by the statement in 
     accordance with this paragraph. For each such fiscal year for 
     which estimates were made in a previous accounting statement, 
     the statement shall revise those estimates and state the 
     reasons for the revisions.
       (B)(i) An accounting statement shall estimate the costs of 
     major rules by setting forth, for each year covered by the 
     statement--
       (I) the annual expenditure of national economic resources 
     for major rules, grouped by regulatory program; and
       (II) such other quantitative and qualitative measures of 
     costs as the President considers appropriate.
       (ii) For purposes of the estimate of costs in the 
     accounting statement, national economic resources shall 
     include, and shall be listed under, at least the following 
     categories:
       (I) Private sector costs.
       (II) Federal sector costs.
       (III) State and local government administrative costs.
       (C) An accounting statement shall estimate the benefits of 
     major rules 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 health, safety, 
     or environmental risks shall present the most plausible level 
     of risk practical, along with a statement of the reasonable 
     degree of scientific certainty.
       (c) Associated Report to Congress.--
       (1) In general.--At the same time as the President submits 
     an accounting statement under subsection (b), the President, 
     acting through the Director of the Office of Management and 
     Budget, shall submit to Congress a report associated with the 
     accounting statement (hereinafter referred to as an 
     ``associated report''). The associated report shall contain, 
     in accordance with this subsection--
       (A) analyses of impacts; and
       (B) recommendations for reform.
       (2) Analyses of impacts.--The President shall include in 
     the associated report the following:
       (A) Analyses prepared by the President of the cumulative 
     impact of major rules in Federal regulatory programs covered 
     in the accounting statement on the following:
       (i) The ability of State and local governments to provide 
     essential services, including police, fire protection, and 
     education.
       (ii) Small business.
       (iii) Productivity.
       (iv) Wages.
       (v) Economic growth.
       (vi) Technological innovation.
       (vii) Consumer prices for goods and services.
       (viii) Such other factors considered appropriate by the 
     President.
       (B) A summary of any independent analyses of impacts 
     prepared by persons commenting during the comment period on 
     the accounting statement.
       (3) Recommendations for reform.--The President shall 
     include in the associated report the following:
       (A) A summary of recommendations of the President for 
     reform or elimination of any Federal regulatory program or 
     program element that does not represent sound use of national 
     economic resources or otherwise is inefficient.
       (B) A summary of any recommendations for such reform or 
     elimination of Federal regulatory programs or program 
     elements prepared by persons commenting during the comment 
     period on the accounting statement.
       (d) Guidance From Office of Management and Budget.--The 
     Director of the Office of Management and Budget shall, in 
     consultation with the Council of Economic Advisers, provide 
     guidance to agencies--
       (1) to standardize measures of costs and benefits in 
     accounting statements prepared pursuant to sections 3 and 7 
     of this Act, including--
       (A) detailed guidance on estimating the costs and benefits 
     of major rules; and
       (B) general guidance on estimating the costs and benefits 
     of all other rules that do not meet the thresholds for major 
     rules; and
       (2) to standardize the format of the accounting statements.
       (e) Recommendations From Congressional Budget Office.--
     After each accounting statement and associated report 
     submitted to Congress, the Director of the Congressional 
     Budget Office shall make recommendations to the President--
       (1) for improving accounting statements prepared pursuant 
     to this section, including recommendations on level of detail 
     and accuracy; and
       (2) for improving associated reports prepared pursuant to 
     this section, including recommendations on the quality of 
     analysis.
       (f) Judicial Review.--No requirements under this section 
     shall be subject to judicial review in any manner.

     SEC. 8. STUDIES AND REPORTS.

       (a) Risk Assessments.--The Administrative Conference of the 
     United States shall--
       (1) develop and carry out an ongoing study of the operation 
     of the risk assessment requirements of subchapter III of 
     chapter 6 of title 5, United States Code (as added by section 
     4 of this Act); and
       (2) submit an annual report to the Congress on the findings 
     of the study.
       (b) Administrative Procedure Act.--Not later than December 
     31, 1996, the Administrative Conference of the United States 
     shall--
       (1) carry out a study of the operation of the 
     Administrative Procedure Act (as amended by section 3 of this 
     Act); and
       (2) submit a report to the Congress on the findings of the 
     study, including proposals for revision, if any.

     SEC. 9. MISCELLANEOUS PROVISIONS.

       (a) Effective Date.--Except as otherwise provided, this Act 
     and the amendments made by this Act shall take effect on the 
     date of enactment.
       (b) Severability.--If any provision of this Act, an 
     amendment made by this Act, or the application of such 
     provision or amendment [[Page S 8806]] to any person or 
     circumstance is held to be unconstitutional, the remainder of 
     this Act, the amendments made by this Act, and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.
     

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