[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Senate]
[Pages S9481-S9491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                    REGULATORY PROCEDURES REFORM ACT

  Mr. GLENN. Mr. President, yesterday, I, along with a bipartisan group 
of Senators, introduced S. 1001, the Regulatory Procedures Reform Act 
of 1995.
  Upon its introduction, it was my intention to have the bill printed 
in the Record so that all Members with an interest in this important 
issue--the 

[[Page S9482]]
issue of regulatory reform--would have the opportunity to review the 
provisions of the measure. Unfortunately, the measure was not printed.
  Therefore, I now ask unanimous consent that the text of S. 1001 and a 
comparative be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                S. 1001

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. DEFINITIONS.

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

     SEC. 3. ANALYSIS OF AGENCY RULES.

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

     ``Sec. 621. Definitions

       ``For purposes of this subchapter the definitions under 
     section 551 shall apply and--
       ``(1) the term `benefit' means the reasonably identifiable 
     significant favorable effects, including social, 
     environmental, and economic benefits, that are expected to 
     result directly or indirectly from implementation of a rule 
     or an alternative to a rule;
       ``(2) the term `cost' means the reasonably identifiable 
     significant adverse effects, including social, environmental, 
     and economic costs that are expected to result directly or 
     indirectly from implementation of, or compliance with, a rule 
     or an alternative to a rule;
       ``(3) the term `cost-benefit analysis' means an evaluation 
     of the costs and benefits of a rule, quantified to the extent 
     feasible and appropriate and otherwise qualitatively 
     described, that is prepared in accordance with the 
     requirements of this subchapter at the level of detail 
     appropriate and practicable for reasoned decisionmaking on 
     the matter involved, taking into consideration the 
     significance and complexity of the decision and any need for 
     expedition;
       ``(4)(A) the term `major rule' means a rule or a group of 
     closely related rules that the agency proposing the rule, the 
     Director, or a designee of the President reasonably 
     determines is likely to have a gross annual effect on the 
     economy of $100,000,000 or more in reasonably quantifiable 
     direct and indirect costs; and
       ``(B) the term `major rule' shall not include--
       ``(i) a rule that involves the internal revenue laws of the 
     United States;
       ``(ii) a rule or agency action that authorizes the 
     introduction into, or removal from, commerce, or recognizes 
     the marketable status, of a product; or
       ``(iii) a rule exempt from notice and public comment 
     procedure under section 553 of this title;
       ``(5) the term `market-based mechanism' means a regulatory 
     program that--
       ``(A) imposes legal accountability for the achievement of 
     an explicit regulatory objective, including the reduction of 
     environmental pollutants or of risks to human health, safety, 
     or the environment, on each regulated person;
       ``(B) affords maximum flexibility to each regulated person 
     in complying with mandatory regulatory objectives, and such 
     flexibility shall, where feasible and appropriate, include 
     the opportunity to transfer to, or receive from, other 
     persons, including for cash or other legal consideration, 
     increments of compliance responsibility established by the 
     program; and
       ``(C) permits regulated persons to respond at their own 
     discretion in an automatic manner, consistent with 
     subparagraph (B), to changes in general economic conditions 
     and in economic circumstances directly pertinent to the 
     regulatory program without affecting the achievement of the 
     program's explicit regulatory mandates under subparagraph 
     (A);
       ``(6) the term `performance standard' means a requirement 
     that imposes legal accountability for the achievement of an 
     explicit regulatory objective, such as the reduction of 
     environmental pollutants or of risks to human health, safety, 
     or the environment, on each regulated person;
       ``(7) the term `risk assessment' has the same meaning as 
     such term is defined under section 631(5); and
       ``(8) the term `rule' has the same meaning as in section 
     551(4) of this title, and shall not include--
       ``(A) a rule of particular applicability that approves or 
     prescribes for the future rates, wages, prices, services, 
     corporate or financial structures, reorganizations, mergers, 
     acquisitions, accounting practices, or disclosures bearing on 
     any of the foregoing;
       ``(B) a rule relating to monetary policy proposed or 
     promulgated by the Board of Governors of the Federal Reserve 
     System or by the Federal Open Market Committee;
       ``(C) a rule relating to the safety or soundness of 
     federally insured depository institutions or any affiliate of 
     such an institution (as defined in section 2(k) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(k)); credit 
     unions; the Federal Home Loan Banks; government-sponsored 
     housing enterprises; a Farm Credit System Institution; 
     foreign banks, and their branches, agencies, commercial 
     lending companies or representative offices that operate in 
     the United States and any affiliate of such foreign banks (as 
     those terms are defined in the International Banking Act of 
     1978 (12 U.S.C. 3101)); or a rule relating to the payments 
     system or the protection of deposit insurance funds or Farm 
     Credit Insurance Fund; or
       ``(D) a rule issued by the Federal Election Commission or a 
     rule issued by the Federal Communications Commission pursuant 
     to sections 312(a)(7) and 315 of the Communications Act of 
     1934 (47 U.S.C. 312(a)(7) and 315).

     ``Sec. 622. Rulemaking cost-benefit analysis

       ``(a) Before publishing notice of a proposed rulemaking for 
     any rule (or, in the case of a notice of a proposed 
     rulemaking that has been published on or before the effective 
     date of this subchapter, no later than 30 days after such 
     date), each agency shall determine whether the rule is or is 
     not a major rule. For the purpose of any such determination, 
     a group of closely related rules shall be considered as one 
     rule.
       ``(b)(1) If an agency has determined that a rule is not a 
     major rule, the Director or a designee of the President may, 
     as appropriate, determine that the rule is a major rule no 
     later than 30 days after the publication of the notice of 
     proposed rulemaking for the rule (or, in the case of a notice 
     of proposed rulemaking that has been published on or before 
     the effective date of this subchapter, no later than 60 days 
     after such date).
       ``(2) Such determination shall be published in the Federal 
     Register, together with a succinct statement of the basis for 
     the determination.
       ``(c)(1)(A) When the agency publishes a notice of proposed 
     rulemaking for a major rule, the agency shall issue and place 
     in the rulemaking file an initial cost-benefit analysis, and 
     shall include a summary of such analysis in the notice of 
     proposed rulemaking.
       ``(B)(i) When the Director or a designee of the President 
     has published a determination that a rule is a major rule 
     after the publication of the notice of proposed rulemaking 
     for the rule, the agency shall promptly issue and place in 
     the rulemaking file an initial cost-benefit analysis for the 
     rule and shall publish in the Federal Register a summary of 
     such analysis.
       ``(ii) Following the issuance of an initial cost-benefit 
     analysis under clause (i), the agency shall give 
     interested persons an opportunity to comment pursuant to 
     section 553 in the same manner as if the draft cost-
     benefit analysis had been issued with the notice of 
     proposed rulemaking.
       ``(2) Each initial cost-benefit analysis shall contain--
       ``(A) an analysis of the benefits of the proposed rule, 
     including any benefits that cannot be quantified, and an 
     explanation of how the agency anticipates that such benefits 
     will be achieved by the proposed rule, including a 
     description of the persons or classes of persons likely to 
     receive such benefits;
       ``(B) an analysis of the costs of the proposed rule, 
     including any costs that cannot be quantified, and an 
     explanation of how the agency anticipates that such costs 
     will result from the proposed rule, including a description 
     of the persons or classes of persons likely to bear such 
     costs;
       ``(C) an identification (including an analysis of costs and 
     benefits) of an appropriate number of reasonable alternatives 
     allowed under the statute granting the rulemaking authority 
     for achieving the identified benefits of the proposed rule, 
     including alternatives that--
       ``(i) require no government action;
       ``(ii) will accommodate differences among geographic 
     regions and among persons with differing levels of resources 
     with which to comply; and
       ``(iii) employ voluntary programs, performance standards, 
     or market-based mechanisms that permit greater flexibility in 
     achieving the identified benefits of the proposed rule and 
     that comply with the requirements of subparagraph (D);
       ``(D) an assessment of the feasibility of establishing a 
     regulatory program that operates through the application of 
     market-based mechanisms;
       ``(E) an explanation of the extent to which the proposed 
     rule--
       ``(i) will accommodate differences among geographic regions 
     and among persons with differing levels of resources with 
     which to comply; and
       ``(ii) employs voluntary programs, performance standards, 
     or market-based mechanisms that permit greater flexibility in 
     achieving the identified benefits of the proposed rule;
       ``(F) a description of the quality, reliability, and 
     relevance of scientific or economic evaluations or 
     information in accordance with the cost-benefit analysis and 
     risk assessment requirements of this chapter;
       ``(G) if not expressly or implicitly inconsistent with the 
     statute under which the agency is proposing the rule, an 
     explanation of the extent to which the identified benefits 

[[Page S9483]]
     of the proposed rule justify the identified costs of the proposed rule, 
     and an explanation of how the proposed rule is likely to 
     substantially achieve the rulemaking objectives in a more 
     cost-effective manner than the alternatives to the proposed 
     rule, including alternatives identified in accordance with 
     subparagraph (C); and
       ``(H) if a major rule subject to subchapter III addresses 
     risks to human health, safety, or the environment--
       ``(i) a risk assessment in accordance with this chapter; 
     and
       ``(ii) for each such proposed or final rule, an assessment 
     of incremental risk reduction or other benefits associated 
     with each significant regulatory alternative considered by 
     the agency in connection with the rule or proposed rule.
       ``(d)(1) When the agency publishes a final major rule, the 
     agency shall also issue and place in the rulemaking file a 
     final cost-benefit analysis, and shall include a summary of 
     the analysis in the statement of basis and purpose.
       ``(2) Each final cost-benefit analysis shall contain--
       ``(A) a description and comparison of the benefits and 
     costs of the rule and of the reasonable alternatives to the 
     rule described in the rulemaking, including the market-based 
     mechanisms identified under subsection (c)(2)(C)(iii); and
       ``(B) if not expressly or implicitly inconsistent with the 
     statute under which the agency is acting, a reasonable 
     determination, based upon the rulemaking file considered as a 
     whole, whether--
       ``(i) the benefits of the rule justify the costs of the 
     rule; and
       ``(ii) the rule will achieve the rulemaking objectives in a 
     more cost-effective manner than the alternatives described in 
     the rulemaking, including the market-based mechanisms 
     identified under subsection (c)(2)(C)(iii).
       ``(e)(1) The analysis of the benefits and costs of a 
     proposed and a final rule required under this section shall 
     include, to the extent feasible, a quantification or 
     numerical estimate of the quantifiable benefits and costs. 
     Such quantification or numerical estimate shall be made in 
     the most appropriate units of measurement, using comparable 
     assumptions, including time periods, shall specify the ranges 
     of predictions, and shall explain the margins of error 
     involved in the quantification methods and in the estimates 
     used. An agency shall describe the nature and extent of the 
     nonquantifiable benefits and costs of a final rule pursuant 
     to this section in as precise and succinct a manner as 
     possible. An agency shall not be required to make such 
     evaluation primarily on a mathematical or numerical basis.
       ``(2)(A) In evaluating and comparing costs and benefits and 
     in evaluating the risk assessment information developed under 
     subchapter III, the agency shall not rely on cost, benefit, 
     or risk assessment information that is not accompanied by 
     data, analysis, or other supporting materials that would 
     enable the agency and other persons interested in the 
     rulemaking to assess the accuracy, reliability, and 
     uncertainty factors applicable to such information.
       ``(B) The agency evaluations of the relationships of the 
     benefits of a proposed and final rule to its costs shall be 
     clearly articulated in accordance with this section.
       ``(f) As part of the promulgation of each major rule that 
     addresses risks to human health, safety, or the environment, 
     the head of the agency or the President shall make a 
     determination that--
       ``(1) the risk assessment and the analysis under subsection 
     (c)(2)(H) are based on a scientific evaluation of the risk 
     addressed by the major rule and that the conclusions of such 
     evaluation are supported by the available information; and
       ``(2) the regulatory alternative chosen will reduce risk in 
     a cost-effective and, to the extent feasible, flexible 
     manner, taking into consideration any of the alternatives 
     identified under subsection (c)(2) (C) and (D).
       ``(g) The preparation of the initial or final cost-benefit 
     analysis required by this section shall only be performed 
     under the direction of an officer or employee of the agency. 
     The preceding sentence shall not preclude a person outside 
     the agency from gathering data or information to be used by 
     the agency in preparing any such cost-benefit analysis or 
     from providing an explanation sufficient to permit the agency 
     to analyze such data or information. If any such data or 
     information is gathered or explained by a person outside the 
     agency, the agency shall specifically identify in the initial 
     or final cost-benefit analysis the data or information 
     gathered or explained and the person who gathered or 
     explained it, and shall describe the arrangement by which the 
     information was procured by the agency, including the total 
     amount of funds expended for such procurement.
       ``(h) The requirements of this subchapter shall not alter 
     the criteria for rulemaking otherwise applicable under other 
     statutes.

     ``Sec. 623. Judicial review

       ``(a) Compliance or noncompliance by an agency with the 
     provisions of this subchapter and subchapter III shall not be 
     subject to judicial review except in connection with review 
     of a final agency rule and according to the provisions of 
     this section.
       ``(b) Any determination by a designee of the President or 
     the Director that a rule is, or is not, a major rule shall 
     not be subject to judicial review in any manner.
       ``(c) The determination by an agency that a rule is, or is 
     not, a major rule shall be set aside by a reviewing court 
     only upon a clear and convincing showing that the 
     determination is erroneous in light of the information 
     available to the agency at the time the agency made the 
     determination.
       ``(d) If the cost-benefit analysis or risk assessment 
     required under this chapter has been wholly omitted for any 
     major rule, a court shall vacate the rule and remand the case 
     for further consideration. If an analysis or assessment has 
     been performed, the court shall not review to determine 
     whether the analysis or assessment conformed to the 
     particular requirements of this chapter.
       ``(e) Any cost-benefit analysis or risk assessment prepared 
     under this chapter shall not be subject to judicial 
     consideration separate or apart from review of the agency 
     action to which it relates. When an action for judicial 
     review of an agency action is instituted, any regulatory 
     analysis for such agency action shall constitute part of the 
     whole administrative record of agency action for the purpose 
     of judicial review of the agency action, and shall, to the 
     extent relevant, be considered by a court in determining the 
     legality of the agency action.

     ``Sec. 624. Deadlines for rulemaking

       ``(a) All deadlines in statutes that require agencies to 
     propose or promulgate any rule subject to section 622 or 
     subchapter III during the 2-year period beginning on the 
     effective date of this section shall be suspended until the 
     earlier of--
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 6 months after the date of the 
     applicable deadline.
       ``(b) All deadlines imposed by any court of the United 
     States that would require an agency to propose or promulgate 
     a rule subject to section 622 or subchapter III during the 2-
     year period beginning on the effective date of this section 
     shall be suspended until the earlier of--
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 6 months after the date of the 
     applicable deadline.
       ``(c) In any case in which the failure to promulgate a rule 
     by a deadline occurring during the 2-year period beginning on 
     the effective date of this section would create an obligation 
     to regulate through individual adjudications, the deadline 
     shall be suspended until the earlier of--
       ``(1) the date on which the requirements of section 622 or 
     subchapter III are satisfied; or
       ``(2) the date occurring 6 months after the date of the 
     applicable deadline.

     ``Sec. 625. Agency review of rules

       ``(a)(1)(A) No later than 9 months after the effective date 
     of this section, each agency shall prepare and publish in the 
     Federal Register a proposed schedule for the review, in 
     accordance with this section, of--
       ``(i) each rule of the agency that is in effect on such 
     effective date and which, if adopted on such effective date, 
     would be a major rule; and
       ``(ii) each rule of the agency in effect on the effective 
     date of this section (in addition to the rules described in 
     clause (i)) that the agency has selected for review.
       ``(B) Each proposed schedule required under subparagraph 
     (A) shall be developed in consultation with--
       ``(i) the Administrator of the Office of Information and 
     Regulatory Affairs; and
       ``(ii) the classes of persons affected by the rules, 
     including members from the regulated industries, small 
     businesses, State and local governments, and organizations 
     representing the interested public.
       ``(C) Each proposed schedule required under subparagraph 
     (A) shall establish priorities for the review of rules that, 
     in the joint determination of the Administrator of the Office 
     of Information and Regulatory Affairs and the agency, most 
     likely can be amended or eliminated to--
       ``(i) provide the same or greater benefits at substantially 
     lower costs;
       ``(ii) achieve substantially greater benefits at the same 
     or lower costs; or
       ``(iii) replace command-and-control regulatory requirements 
     with market mechanisms or performance standards that achieve 
     substantially equivalent benefits at lower costs or with 
     greater flexibility.
       ``(D) Each proposed schedule required by subparagraph (A) 
     shall include--
       ``(i) a brief explanation of the reasons the agency 
     considers each rule on the schedule to be a major rule, or 
     the reasons why the agency selected the rule for review;
       ``(ii) a date set by the agency, in accordance with 
     subsection (b), for the completion of the review of each such 
     rule; and
       ``(iii) a statement that the agency requests comments from 
     the public on the proposed schedule.
       ``(E) The agency shall set a date to initiate review of 
     each rule on the schedule in a manner that will ensure the 
     simultaneous review of related items and that will achieve a 
     reasonable distribution of reviews over the period of time 
     covered by the schedule.
       ``(2) No later than 90 days before publishing in the 
     Federal Register the proposed schedule required under 
     paragraph (1), each agency shall make the proposed schedule 
     available to the Director or a designee of the President. The 
     President or that officer may select for review in accordance 
     with this section any additional rule.
       ``(3) No later than 1 year after the effective date of this 
     section, each agency shall publish in the Federal Register a 
     final schedule for the review of the rules referred to in 

[[Page S9484]]
     paragraphs (1) and (2). Each agency shall publish with the final 
     schedule the response of the agency to comments received 
     concerning the proposed schedule.
       ``(b)(1) Except as explicitly provided otherwise by 
     statute, the agency shall, pursuant to subsections (c) 
     through (e), review--
       ``(A) each rule on the schedule promulgated pursuant to 
     subsection (a);
       ``(B) each major rule promulgated, amended, or otherwise 
     continued by an agency after the effective date of this 
     section; and
       ``(C) each rule promulgated after the effective date of 
     this section that the President or the officer designated by 
     the President selects for review pursuant to subsection 
     (a)(2).
       ``(2) Except as provided pursuant to subsection (f), the 
     review of a rule required by this section shall be completed 
     no later than the later of--
       ``(A) 10 years after the effective date of this section; or
       ``(B) 10 years after the date on which the rule is--
       ``(i) promulgated; or
       ``(ii) amended or continued under this section.
       ``(c) An agency shall publish in the Federal Register a 
     notice of its proposed action under this section with respect 
     to a rule being reviewed. The notice shall include--
       ``(1) an identification of the specific statutory authority 
     under which the rule was promulgated and an explanation of 
     whether the agency's interpretation of the statute is 
     expressly required by the current text of that statute or, if 
     not, whether it is within the range of permissible 
     interpretations of the statute;
       ``(2) an analysis of the benefits and costs of the rule 
     during the period in which it has been in effect;
       ``(3) an explanation of the proposed agency action with 
     respect to the rule, including action to repeal or amend the 
     rule to resolve inconsistencies or conflicts with any other 
     obligation or requirement established by any Federal statute, 
     rule, or other agency statement, interpretation, or action 
     that has the force of law; and
       ``(4) a statement that the agency seeks proposals from the 
     public for modifications or alternatives to the rule which 
     may accomplish the objectives of the rule in a more effective 
     or less burdensome manner.
       ``(d) If an agency proposes to repeal or amend a rule under 
     review pursuant to this section, the agency shall, after 
     issuing the notice required by subsection (c), comply with 
     the provisions of this chapter, chapter 5, and any other 
     applicable law. The requirements of such provisions and 
     related requirements shall apply to the same extent and in 
     the same manner as in the case of a proposed agency action to 
     repeal or amend a rule that is not taken pursuant to the 
     review required by this section.
       ``(e) If an agency proposes to continue without amendment a 
     rule under review pursuant to this section, the agency 
     shall--
       ``(1) give interested persons no less than 60 days after 
     the publication of the notice required by subsection (c) to 
     comment on the proposed continuation; and
       ``(2) publish in the Federal Register notice of the 
     continuation of such rule.
       ``(f) Any agency, which for good cause finds that 
     compliance with this section with respect to a particular 
     rule during the period provided in subsection (b) of this 
     section is contrary to an important public interest may 
     request the President, or the officer designated by the 
     President pursuant to subsection (a)(2), to establish a 
     period longer than 10 years for the completion of the review 
     of such rule. The President or that officer may extend the 
     period for review of a rule to a total period of no more than 
     15 years. Such extension shall be published in the Federal 
     Register with an explanation of the reasons therefor.
       ``(g) If the agency fails to comply with the requirements 
     of subsection (b)(2), the agency shall immediately commence a 
     rulemaking action pursuant to section 553 of this title to 
     repeal the rule.
       ``(h) Nothing in this section shall relieve any agency from 
     its obligation to respond to a petition to issue, amend, or 
     repeal a rule, for an interpretation regarding the meaning of 
     a rule, or for a variance or exemption from the terms of a 
     rule, submitted pursuant to any other provision of law.

     ``Sec. 626. Public participation and accountability

       ``In order to maximize accountability for, and public 
     participation in, the development and review of regulatory 
     actions each agency shall, consistent with chapter 5 and 
     other applicable law, provide the public with opportunities 
     for meaningful participation in the development of regulatory 
     actions, including--
       ``(1) seeking the involvement, where practicable and 
     appropriate, of those who are intended to benefit from and 
     those who are expected to be burdened by any regulatory 
     action;
       ``(2) providing in any proposed or final rulemaking notice 
     published in the Federal Register--
       ``(A) a certification of compliance with the requirements 
     of this chapter, or an explanation why such certification 
     cannot be made;
       ``(B) a summary of any regulatory analysis required under 
     this chapter, or under any other legal requirement, and 
     notice of the availability of the regulatory analysis;
       ``(C) a certification that the rule will produce benefits 
     that will justify the cost to the Government and to the 
     public of implementation of, and compliance with, the rule, 
     or an explanation why such certification cannot be made; and
       ``(D) a summary of the results of any regulatory review and 
     the agency's response to such review, including an 
     explanation of any significant changes made to such 
     regulatory action as a consequence of regulatory review;
       ``(3) identifying, upon request, a regulatory action and 
     the date upon which such action was submitted to the 
     designated officer to whom authority was delegated under 
     section 644 for review;
       ``(4) disclosure to the public, consistent with section 
     633(3), of any information created or collected in performing 
     a regulatory analysis required under this chapter, or under 
     any other legal requirement; and
       ``(5) placing in the appropriate rulemaking record all 
     written communications received from the Director, other 
     designated officer, or other individual or entity relating to 
     regulatory review.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

     ``Sec. 631. Definitions

       ``For purposes of this subchapter, the definitions under 
     sections 551 and 621 shall apply, and--
       ``(1) the term `covered agency' means each agency required 
     to comply with this subchapter, as provided in section 632;
       ``(2) the term `emergency' means an imminent or substantial 
     endangerment to public health, safety, or the environment if 
     no action is taken;
       ``(3) the term `exposure assessment' means the scientific 
     determination of the intensity, frequency, and duration of 
     exposures to the hazard in question;
       ``(4) 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;
       ``(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) Except as provided in subsection (c), this subchapter 
     shall apply to all risk assessments and risk 
     characterizations prepared in connection with a major rule 
     addressing health, safety, and environmental risks by--
       ``(1) the Secretary of Defense, for major rules relating to 
     the programs and responsibilities of the United States Army 
     Corps of Engineers;
       ``(2) the Secretary of the Interior, for major rules 
     relating to the programs and responsibilities of the Office 
     of Surface Mining Reclamation and Enforcement;
       ``(3) the Secretary of Agriculture, for major rules 
     relating to the programs and responsibilities of--
       ``(A) the Animal and Plant Health Inspection Service;
       ``(B) the Grain Inspection, Packers, and Stockyards 
     Administration;
       ``(C) the Food Safety and Inspection Service;
       ``(D) the Forest Service; and
       ``(E) the Natural Resources Conservation Service;
       ``(4) the Secretary of Commerce, for major rules relating 
     to the programs and responsibilities of the National Marine 
     Fisheries Service;
       ``(5) the Secretary of Labor, for major rules relating to 
     the programs and responsibilities of--
       ``(A) the Occupational Safety and Health Administration; 
     and
       ``(B) the Mine Safety and Health Administration;
       ``(6) the Secretary of Health and Human Services, for major 
     rules relating to the programs and responsibilities assigned 
     to the Food and Drug Administration;
       ``(7) the Secretary of Transportation, for major rules 
     relating to the programs and responsibilities assigned to--
       ``(A) the Federal Aviation Administration; and
       ``(B) the National Highway Traffic Safety Administration;
       ``(8) the Secretary of Energy, for major rules relating to 
     nuclear safety, occupational safety and health, and 
     environmental restoration and waste management;
       ``(9) the Chairman of the Consumer Product Safety 
     Commission;

[[Page S9485]]

       ``(10) the Administrator of the Environmental Protection 
     Agency; and
       ``(11) the Chairman of the Nuclear Regulatory Commission.
       ``(b)(1) No later than 18 months after the effective date 
     of this section, the President, acting through the Director 
     of the Office of Management and Budget, shall determine 
     whether other Federal agencies should be considered covered 
     agencies for the purposes of this subchapter. Such 
     determination, with respect to a particular Federal agency, 
     shall be based on the impact of risk assessment documents and 
     risk characterization documents on--
       ``(A) regulatory programs administered by that agency; and
       ``(B) the communication of risk information by that agency 
     to the public.
       ``(2) If the President makes a determination under 
     paragraph (1), this subchapter shall apply to any agency 
     determined to be a covered agency beginning on a date set by 
     the President. Such date may be no later than 6 months after 
     the date of such determination.
       ``(c)(1) This subchapter shall not apply to risk 
     assessments or risk characterizations performed with respect 
     to--
       ``(A) an emergency determined by the head of an agency;
       ``(B) a health, safety, or environmental inspection, 
     compliance or enforcement action, or individual facility 
     permitting action; or
       ``(C) a screening analysis.
       ``(2) This subchapter shall not apply to any food, drug, or 
     other product label, or to any risk characterization 
     appearing on any such label.

     ``Sec. 633. Savings provisions

       ``Nothing in this subchapter shall be construed to--
       ``(1) modify any statutory standard or requirement designed 
     to protect human health, safety, or the environment; or
       ``(2) require the disclosure of any trade secret or other 
     confidential information.

     ``Sec. 634. Principles for risk assessments

       ``(a)(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) An agency shall not be required to repeat discussions 
     or explanations in each risk assessment required under this 
     subchapter if there is an unambiguous reference to a relevant 
     discussion or explanation in another reasonably available 
     agency document that meets the requirements of this section.
       ``(5)(A) 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.
       ``(B)(i) 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.
       ``(ii) 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.
       ``(b)(1) The head of each agency shall base each risk 
     assessment on the best reasonably available scientific 
     information, 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 head of an agency shall select data for use in 
     the assessment based on an appropriate consideration of the 
     quality and relevance of the data, and shall describe the 
     basis for selecting the data.
       ``(3) In making its selection of data, the head of an 
     agency shall consider whether the data were developed in 
     accordance with good scientific practice or other appropriate 
     protocols to ensure data quality.
       ``(4) Subject to paragraph (3), relevant scientific data 
     submitted by interested parties shall be reviewed and 
     considered in the analysis by the head of an agency 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 data.
       ``(c)(1) To the maximum extent practicable, the head of 
     each agency shall use postulates, including default 
     assumptions, inferences, models, or safety factors, when 
     relevant scientific data and understanding, including site-
     specific data, are lacking.
       ``(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 by, 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 for 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 head of each agency shall develop a procedure and 
     publish guidelines for choosing default postulates and for 
     deciding when and how in a specific risk assessments to adopt 
     alternative postulates or to use available scientific 
     information in place of a default postulate.
       ``(d) The head of each agency shall provide appropriate 
     opportunities for public participation and comment on risk 
     assessments.
       ``(e) In each risk assessment, the head of each 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) To the extent feasible and scientifically 
     appropriate, the head of an agency shall--
       ``(1) express the overall estimate of risk as a range or 
     probability distribution that reflects variabilities and 
     uncertainties in the analysis;
       ``(2) 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 or sensitive 
     subpopulations; and
       ``(3) where quantitative estimates of the range and 
     distribution of risk estimates are not available, describe 
     the qualitative factors influencing the range of possible 
     risks.
       ``(g) The head of an agency shall place the nature and 
     magnitude of risks to human health, safety, and the 
     environment being analyzed in context, including appropriate 
     comparisons with other risks that are familiar to, and 
     routinely encountered by, the general public.
       ``(h) In any notice of proposed or final regulatory action 
     subject to this subchapter, the head of an agency shall 
     describe significant substitution risks to human health or 
     safety identified by the agency or contained in information 
     provided to the agency by a commentator.

     ``Sec. 635. Peer review

       ``(a) The head of each covered agency shall develop a 
     systematic program for independent and external peer review 
     required under subsection (b). Such program shall be 
     applicable throughout each covered agency and--
       ``(1) shall provide for the creation of peer review panels 
     that--
       ``(A) consist of members with expertise relevant to the 
     sciences involved in regulatory decisions and who are 
     independent of the covered agency; and
       ``(B) are broadly representative and balanced and, to the 
     extent relevant and appropriate, may include persons 
     affiliated with Federal, State, local, or tribal governments, 
     small businesses, other representatives of industry, 
     universities, agriculture, labor consumers, conservation 
     organizations, or other public interest groups and 
     organizations;
       ``(2) shall not exclude any person with substantial and 
     relevant expertise as a panel member on the basis that such 
     person represents an entity that may have a potential 
     interest in the outcome, if such interest is fully disclosed 
     to the agency, and in the case of a regulatory decision 
     affecting a single entity, no peer reviewer representing such 
     entity may be included on the panel;
       ``(3) shall provide for a timely completed peer review, 
     meeting agency deadlines, that contains a balanced 
     presentation of all considerations, including minority 
     reports and an agency response to all significant peer review 
     comments; and
       ``(4) shall provide adequate protections for confidential 
     business information and trade secrets, including requiring 
     panel members to enter into confidentiality agreements.
       ``(b)(1)(A) Except as provided under subparagraph (B), each 
     covered agency shall provide for peer review in accordance 
     with this section of any risk assessment or cost-benefit 
     analysis that forms the basis of any major rule that 
     addresses risks to the environment, health, or safety.
       ``(B) Subparagraph (A) shall not apply to a rule or other 
     action taken by an agency to authorize or approve any 
     individual substance or product.
       ``(2) The Director of the Office of Management and Budget 
     may order that peer review be provided for any risk 
     assessment or cost-benefit analysis that is likely to have a 
     significant impact on public policy decisions or would 
     establish an important precedent.
       ``(c) Each peer review under this section shall include a 
     report to the Federal agency concerned with respect to the 
     scientific and technical merit of data and methods used for 
     the risk assessments or cost-benefit analyses.

[[Page S9486]]

       ``(d) The head of the covered agency shall provide a 
     written response to all significant peer review comments.
       ``(e) All peer review comments or conclusions and the 
     agency's responses shall be made available to the public and 
     shall be made part of the administrative record for purposes 
     of judicial review of any final agency action.
       ``(f) No peer review shall be required under this section 
     for any data, method, document, or assessment, or any 
     component thereof, which has been previously subjected to 
     peer review.

     ``Sec. 636. Guidelines, plan for assessing new information, 
       and report

       ``(a)(1)(A) As soon as practicable and scientifically 
     feasible, each covered agency shall adopt, after notification 
     and opportunity for public comment, guidelines to implement 
     the risk assessment principles under section 634, as well as 
     the cost-benefit analysis requirements under section 622, and 
     shall provide a format for summarizing risk assessment 
     results.
       ``(B) No later than 12 months after the effective date of 
     this section, the head of each covered agency shall issue a 
     report on the status of such guidelines to the Congress.
       ``(2) The guidelines under paragraph (1) shall--
       ``(A) include guidance on use of specific technical 
     methodologies and standards for acceptable quality of 
     specific kinds of data;
       ``(B) address important decisional factors for the risk 
     assessment, risk characterization, and cost-benefit analysis 
     at issue; and
       ``(C) provide procedures for the refinement and replacement 
     of policy-based default assumptions.
       ``(b) The guidelines, plan and report under this section 
     shall be developed after notice and opportunity for public 
     comment, and after consultation with representatives of 
     appropriate State agencies and local governments, and such 
     other departments and agencies, organizations, or persons as 
     may be advisable.
       ``(c) The President shall review the guidelines published 
     under this section at least every 4 years.
       ``(d) The development, issuance, and publication of risk 
     assessment and risk characterization guidelines under this 
     section shall not be subject to judicial review.

     ``Sec. 637. Research and training in risk assessment

       ``(a) The head of each covered agency shall regularly and 
     systematically evaluate risk assessment research and training 
     needs of the agency, including, where relevant and 
     appropriate, the following:
       ``(1) Research to reduce generic data gaps, to address 
     modelling needs (including improved model sensitivity), and 
     to validate default options, particularly those common to 
     multiple risk assessments.
       ``(2) Research leading to improvement of methods to 
     quantify and communicate uncertainty and variability among 
     individuals, species, populations, and, in the case of 
     ecological risk assessment, ecological communities.
       ``(3) Emerging and future areas of research, including 
     research on comparative risk analysis, exposure to multiple 
     chemicals and other stressors, noncancer endpoints, 
     biological markers of exposure and effect, mechanisms of 
     action in both mammalian and nonmammalian species, dynamics 
     and probabilities of physiological and ecosystem exposures, 
     and prediction of ecosystem-level responses.
       ``(4) Long-term needs to adequately train individuals in 
     risk assessment and risk assessment application. Evaluations 
     under this paragraph shall include an estimate of the 
     resources needed to provide necessary training.
       ``(b) The head of each covered agency shall develop a 
     strategy and schedule for carrying out research and training 
     to meet the needs identified in subsection (a).

     ``Sec. 638. Interagency coordination

       ``(a) To promote the conduct, application, and practice of 
     risk assessment in a consistent manner and to identify risk 
     assessment data and research needs common to more than 1 
     Federal agency, the Director of the Office of Management and 
     Budget, in consultation with the Office of Science and 
     Technology Policy, shall--
       ``(1) periodically survey the manner in which each Federal 
     agency involved in risk assessment is conducting such risk 
     assessment to determine the scope and adequacy of risk 
     assessment practices in use by the Federal Government;
       ``(2) provide advice and recommendations to the President 
     and Congress based on the surveys conducted and 
     determinations made under paragraph (1);
       ``(3) establish appropriate interagency mechanisms to 
     promote--
       ``(A) coordination among Federal agencies conducting risk 
     assessment with respect to the conduct, application, and 
     practice of risk assessment; and
       ``(B) the use of state-of-the-art risk assessment practices 
     throughout the Federal Government;
       ``(4) establish appropriate mechanisms between Federal and 
     State agencies to communicate state-of-the-art risk 
     assessment practices; and
       ``(5) periodically convene meetings with State government 
     representatives and Federal and other leaders to assess the 
     effectiveness of Federal and State cooperation in the 
     development and application of risk assessment.
       ``(b) The President shall appoint National Peer Review 
     Panels to review every 3 years the risk assessment practices 
     of each covered agency for programs designed to protect human 
     health, safety, or the environment. The Panels shall submit a 
     report to the President and the Congress at least every 3 
     years containing the results of such review.

     ``Sec. 639. Plan for review of risk assessments

       ``(a) No later than 18 months after the effective date of 
     this section, the head of each covered agency shall publish a 
     plan to review and revise any risk assessment published 
     before the expiration of such 18-month period if the covered 
     agency determines that significant new information or 
     methodologies are available that could significantly alter 
     the results of the prior risk assessment.
       ``(b) A plan under subsection (a) shall--
       ``(1) provide procedures for receiving and considering new 
     information and risk assessments from the public; and
       ``(2) set priorities and criteria for review and revision 
     of risk assessments based on such factors as the agency head 
     considers appropriate.

     ``Sec. 640. Judicial review

       ``The provisions of section 623 relating to judicial review 
     shall apply to this subchapter.

     ``Sec. 640a. Deadlines for rulemaking

       ``The provisions of section 624 relating to deadlines for 
     rulemaking shall apply to this subchapter.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

     ``Sec. 641. Definition

       ``For purposes of this subchapter, the definitions under 
     sections 551 and 621 shall apply.

     ``Sec. 642. Procedures

       ``The Director or other designated officer to whom 
     authority is delegated under section 644 shall--
       ``(1) establish procedures for agency compliance with this 
     chapter; and
       ``(2) monitor, review, and ensure agency implementation of 
     such procedures.

     ``Sec. 643. Promulgation and adoption

       ``(a) Procedures established pursuant to section 642 shall 
     only be implemented after opportunity for public comment. Any 
     such procedures shall be consistent with the prompt 
     completion of rulemaking proceedings.
       ``(b)(1) If procedures established pursuant to section 642 
     include review of any initial or final analyses of a rule 
     required under this chapter, the time for any such review of 
     any initial analysis shall not exceed 60 days following the 
     receipt of the analysis by the Director, a designee of the 
     President, or by an officer to whom the authority granted 
     under section 642 has been delegated pursuant to section 644.
       ``(2) The time for review of any final analysis required 
     under this chapter shall not exceed 60 days following the 
     receipt of the analysis by the Director, a designee of the 
     President, or such officer.
       ``(3)(A) The times for each such review may be extended for 
     good cause by the President or such officer for an additional 
     30 days.
       ``(B) Notice of any such extension, together with a 
     succinct statement of the reasons therefor, shall be inserted 
     in the rulemaking file.

     ``Sec. 644. Delegation of authority

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

     ``Sec. 645. Public disclosure of information

       ``The Director or other designated officer to whom 
     authority is delegated under section 644, in carrying out the 
     provisions of section 642, shall establish procedures 
     (covering all employees of the Director or other designated 
     officer) to provide public and agency access to information 
     concerning regulatory review actions, including--
       ``(1) disclosure to the public on an ongoing basis of 
     information regarding the status of regulatory actions 
     undergoing review;
       ``(2) disclosure to the public, no later than publication 
     of, or other substantive notice to the public concerning a 
     regulatory action, of--
       ``(A) all written communications, regardless of form or 
     format, including drafts of all proposals and associated 
     analyses, between the Director or other designated officer 
     and the regulatory agency;
       ``(B) all written communications, regardless of form or 
     format, between the Director or other designated officer and 
     any person not employed by the executive branch of the 
     Federal Government relating to the substance of a regulatory 
     action;
       ``(C) a record of all oral communications relating to the 
     substance of a regulatory action between the Director or 
     other designated officer and any person not employed by the 
     executive branch of the Federal Government; and
       ``(D) a written explanation of any review action and the 
     date of such action; and
       ``(3) disclosure to the regulatory agency, on a timely 
     basis, of--
       ``(A) all written communications between the Director or 
     other designated officer and 

[[Page S9487]]
     any person who is not employed by the executive branch of the Federal 
     Government;
       ``(B) a record of all oral communications, and an 
     invitation to participate in meetings, relating to the 
     substance of a regulatory action between the Director or 
     other designated officer and any person not employed by the 
     executive branch of the Federal Government; and
       ``(C) a written explanation of any review action taken 
     concerning an agency regulatory action.

     ``Sec. 646. Judicial review

       ``The exercise of the authority granted under this 
     subchapter by the Director, the President, or by an officer 
     to whom such authority has been delegated under section 644 
     shall not be subject to judicial review in any manner.''.
       (b) Regulatory Flexibility Analysis.--
       (1) In general.--Section 611 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 611. Judicial review

       ``(a)(1) Except as provided in paragraph (2), no later than 
     1 year after the effective date of a final rule with respect 
     to which an agency--
       ``(A) certified, pursuant to section 605(b), that such rule 
     would not have a significant economic impact on a substantial 
     number of small entities; or
       ``(B) prepared a final regulatory flexibility analysis 
     pursuant to section 604,

     an affected small entity may petition for the judicial review 
     of such certification or analysis in accordance with this 
     subsection. A court having jurisdiction to review such rule 
     for compliance with section 553 of this title or under 
     any other provision of law shall have jurisdiction to 
     review such certification or analysis.
       ``(2)(A) Except as provided in subparagraph (B), in the 
     case of a provision of law that requires that an action 
     challenging a final agency regulation be commenced before the 
     expiration of the 1-year period provided in paragraph (1), 
     such lesser period shall apply to a petition for the judicial 
     review under this subsection.
       ``(B) In a case in which an agency delays the issuance of a 
     final regulatory flexibility analysis pursuant to section 
     608(b), a petition for judicial review under this subsection 
     shall be filed no later than--
       ``(i) 1 year; or
       ``(ii) in a case in which a provision of law requires that 
     an action challenging a final agency regulation be commenced 
     before the expiration of the 1-year period provided in 
     paragraph (1), the number of days specified in such provision 
     of law,

     after the date the analysis is made available to the public.
       ``(3) For purposes of this subsection, the term `affected 
     small entity' means a small entity that is or will be 
     adversely affected by the final rule.
       ``(4) Nothing in this subsection shall be construed to 
     affect the authority of any court to stay the effective date 
     of any rule or provision thereof under any other provision of 
     law.
       ``(5)(A) In a case in which an agency certifies that such 
     rule would not have a significant economic impact on a 
     substantial number of small entities, the court may order the 
     agency to prepare a final regulatory flexibility analysis 
     pursuant to section 604 if the court determines, on the basis 
     of the rulemaking record, that the certification was 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       ``(B) In a case in which the agency prepared a final 
     regulatory flexibility analysis, the court may order the 
     agency to take corrective action consistent with section 604 
     if the court determines, on the basis of the rulemaking 
     record, that the final regulatory flexibility analysis was 
     prepared by the agency without complying with section 604.
       ``(6) If, by the end of the 90-day period beginning on the 
     date of the order of the court pursuant to paragraph (5) (or 
     such longer period as the court may provide), the agency 
     fails, as appropriate--
       ``(A) to prepare the analysis required by section 604; or
       ``(B) to take corrective action consistent with section 604 
     of this title,

     the court may stay the rule or grant such other relief as it 
     deems appropriate.
       ``(7) In making any determination or granting any relief 
     authorized by this subsection, the court shall take due 
     account of the rule of prejudicial error.
       ``(b) In an action for the judicial review of a rule, any 
     regulatory flexibility analysis for such rule (including an 
     analysis prepared or corrected pursuant to subsection (a)(5)) 
     shall constitute part of the whole record of agency action in 
     connection with such review.
       ``(c) Nothing in this section bars judicial review of any 
     other impact statement or similar analysis required by any 
     other law if judicial review of such statement or analysis is 
     otherwise provided by law.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on the effective date of this Act, except 
     that the judicial review authorized by section 611(a) of 
     title 5, United States Code (as added by subsection (a)), 
     shall apply only to final agency rules issued after such 
     effective date.
       (c) Presidential Authority.--Nothing in this Act shall 
     limit the exercise by the President of the authority and 
     responsibility that the President otherwise possesses under 
     the Constitution and other laws of the United States with 
     respect to regulatory policies, procedures, and programs of 
     departments, agencies, and offices.
       (d) Technical and Conforming Amendments.--
       (1) Part I of title 5, United States Code, is amended by 
     striking out the chapter heading and table of sections for 
     chapter 6 and inserting in lieu thereof the following:

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

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

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

                   ``SUBCHAPTER III--RISK ASSESSMENTS

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

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Definition.
``642. Procedures.
``643. Promulgation and adoption.
``644. Delegation of authority.
``645. Public disclosure of information.
``646. Judicial review.''.

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

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

     SEC. 4. CONGRESSIONAL REVIEW.

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

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

     ``Sec. 801. Congressional review of agency rulemaking

       ``(a) For purposes of this chapter, the term--
       ``(1) `major rule' means a major rule as defined under 
     section 621(4) of this title and as determined under section 
     622 of this title; and
       ``(2) `rule' (except in reference to a rule of the Senate 
     or House of Representatives) is a reference to a major rule.
       ``(b)(1) Upon the promulgation of a final major rule, the 
     agency promulgating such rule shall submit to the Congress a 
     copy of the rule, the statement of basis and purpose for the 
     rule, and the proposed effective date of the rule.
       ``(2) A rule submitted under paragraph (1) shall not take 
     effect as a final rule before the latest of the following:
       ``(A) The later of the date occurring 45 days after the 
     date on which--
       ``(i) the Congress receives the rule submitted under 
     paragraph (1); or
       ``(ii) the rule is published in the Federal Register.
       ``(B) If the Congress passes a joint resolution of 
     disapproval described under subsection (i) relating to the 
     rule, and the President signs a veto of such resolution, the 
     earlier date--
       ``(i) on which either House of Congress votes and fails to 
     override the veto of the President; or
       ``(ii) occurring 30 session days after the date on which 
     the Congress received the veto and objections of the 
     President.
       ``(C) The date the rule would have otherwise taken effect, 
     if not for this section (unless a joint resolution of 
     disapproval under subsection (i) is approved).
       ``(c) A major rule shall not take effect as a final rule if 
     the Congress passes a joint resolution of disapproval 
     described under subsection (i), which is signed by the 
     President or is vetoed and overridden by the Congress.
       ``(d)(1) Notwithstanding any other provision of this 
     section (except subject to paragraph (2)), a major rule that 
     would not take effect by reason of this section may take 
     effect if the President makes a determination and submits 
     written notice of such determination to the Congress that the 
     major rule should take effect because such major rule is--
       ``(A) necessary because of an imminent threat to health or 
     safety, or other emergency;

[[Page S9488]]

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

``8. Congressional Review of Agency Rulemaking.........................
                                                        801''.

     SEC. 5. STUDIES AND REPORTS.

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

     SEC. 6. RISK-BASED PRIORITIES.

       (a) Purposes.--The purposes of this section are to--
       (1) encourage Federal agencies engaged in regulating risks 
     to human health, safety, and the environment to achieve the 
     greatest risk reduction at the least cost practical;
       (2) promote the coordination of policies and programs to 
     reduce risks to human health, safety, and the environment; 
     and
       (3) promote open communication among Federal agencies, the 
     public, the President, and Congress regarding environmental, 
     health, and safety risks, and the prevention and management 
     of those risks.
       (b) Definitions.--For the purposes of this section:
       (1) Comparative risk analysis.--The term ``comparative risk 
     analysis'' means a process to systematically estimate, 
     compare, and rank the size and severity of risks to provide a 
     common basis for evaluating strategies for reducing or 
     preventing those risks.
       (2) Covered agency.--The term ``covered agency'' means each 
     of the following:
       (A) The Environmental Protection Agency.
       (B) The Department of Labor.
       (C) The Department of Transportation.
       (D) The Food and Drug Administration.
       (E) The Department of Energy.
       (F) The Department of the Interior.
       (G) The Department of Agriculture.
       (H) The Consumer Product Safety Commission.
       (I) The National Oceanic and Atmospheric Administration.
       (J) The United States Army Corps of Engineers.
       (K) The Nuclear Regulatory Commission.
       (3) Effect.--The term ``effect'' means a deleterious change 
     in the condition of--
       (A) a human or other living thing (including death, cancer, 
     or other chronic illness, decreased reproductive capacity, or 
     disfigurement); or
       (B) an inanimate thing important to human welfare 
     (including destruction, degeneration, the loss of intended 
     function, and increased costs for maintenance).
       (4) Irreversibility.--The term ``irreversibility'' means 
     the extent to which a return to conditions before the 
     occurrence of an effect are either very slow or will never 
     occur.
       (5) Likelihood.--The term ``likelihood'' means the 
     estimated probability that an effect will occur.
       (6) Magnitude.--The term ``magnitude'' means the number of 
     individuals or the quantity of ecological resources or other 
     resources that contribute to human welfare that are affected 
     by exposure to a stressor.
       (7) Seriousness.--The term ``seriousness'' means the 
     intensity of effect, the likelihood, the irreversibility, and 
     the magnitude.
       (c) Department and Agency Program Goals.--
       (1) Setting priorities.--In exercising authority under 
     applicable laws protecting human health, safety, or the 
     environment, 

[[Page S9489]]
     the head of each covered agency should set priorities and use the 
     resources available under those laws to address those risks 
     to human health, safety, and the environment that--
       (A) the covered agency determines to be the most serious; 
     and
       (B) can be addressed in a cost-effective manner, with the 
     goal of achieving the greatest overall net reduction in risks 
     with the public and private sector resources expended.
       (2) Determining the most serious risks.--In identifying the 
     greatest risks under paragraph (1) of this subsection, each 
     covered agency shall consider, at a minimum--
       (A) the likelihood, irreversibility, and severity of the 
     effect; and
       (B) the number and classes of individuals potentially 
     affected, and shall explicitly take into account the results 
     of the comparative risk analysis conducted under subsection 
     (d) of this section.
       (3) OMB review.--The covered agency's determinations of the 
     most serious risks for purposes of setting priorities shall 
     be reviewed and approved by the Director of the Office of 
     Management and Budget before submission of the covered 
     agency's annual budget requests to Congress.
       (4) Incorporating risk-based priorities into budget and 
     planning.--The head of each covered agency shall incorporate 
     the priorities identified under paragraph (1) into the agency 
     budget, strategic planning, regulatory agenda, enforcement, 
     and research activities. When submitting its budget request 
     to Congress and when announcing its regulatory agenda in the 
     Federal Register, each covered agency shall identify the 
     risks that the covered agency head has determined are the 
     most serious and can be addressed in a cost-effective manner 
     under paragraph (1), the basis for that determination, and 
     explicitly identify how the covered agency's requested budget 
     and regulatory agenda reflect those priorities.
       (5) Effective date.--This subsection shall take effect 12 
     months after the date of enactment of this Act.
       (d) Comparative Risk Analysis.--
       (1) Requirement.--(A)(i) No later than 6 months after the 
     effective date of this Act, the Director of the Office of 
     Management and Budget shall enter into appropriate 
     arrangements with an accredited scientific body--
       (I) to conduct a study of the methodologies for using 
     comparative risk to rank dissimilar human health, safety, and 
     environmental risks; and
       (II) to conduct a comparative risk analysis.
       (ii) The comparative risk analysis shall compare and rank, 
     to the extent feasible, human health, safety, and 
     environmental risks potentially regulated across the spectrum 
     of programs administered by all covered agencies.
       (B) The Director shall consult with the Office of Science 
     and Technology Policy regarding the scope of the study and 
     the conduct of the comparative risk analysis.
       (2) Criteria.--In arranging for the comparative risk 
     analysis referred to in paragraph (1) of this subsection, the 
     Director shall ensure that--
       (A) the scope and specificity of the analysis are 
     sufficient to provide the President and agency heads guidance 
     in allocating resources across agencies and among programs in 
     agencies to achieve the greatest degree of risk prevention 
     and reduction for the public and private resources expended;
       (B) the analysis is conducted through an open process, by 
     individuals with relevant expertise, including toxicologists, 
     biologists, engineers and experts in medicine, industrial 
     hygiene and environmental effects;
       (C) the analysis is conducted, to the extent feasible, 
     consistent with the risk assessment and risk characterization 
     principles in sections 635 and 636 of this title;
       (D) the methodologies and principal scientific 
     determinations made in the analysis are subjected to 
     independent and external peer review consistent with section 
     635, and the conclusions of the peer review are made publicly 
     available as part of the final report required under 
     subsection (e);
       (E) there is an opportunity for public comment on the 
     results before making them final; and
       (F) the results are presented in a manner that 
     distinguishes between the scientific conclusions and any 
     policy or value judgments embodied in the comparisons.
       (3) Completion and review.--No later than 3 years after the 
     effective date of this Act, the comparative risk analysis 
     required under paragraph (1) shall be completed. The 
     comparative risk analysis shall be reviewed and revised at 
     least every 5 years thereafter for a minimum of 15 years 
     following the release of the first analysis. The Director 
     shall arrange for such review and revision with an accredited 
     scientific body in the same manner as provided under 
     paragraphs (1) and (2).
       (4) Study.--The study of methodologies provided under 
     paragraph (1) shall be conducted as part of the first 
     comparative risk analysis and shall be completed no later 
     than 180 days after the completion of that analysis. The goal 
     of the study shall be to develop and rigorously test methods 
     of comparative risk analysis. The study shall have sufficient 
     scope and breadth to test approaches for improving 
     comparative risk analysis and its use in setting priorities 
     for human health, safety, and environmental risk prevention 
     and reduction.
       (5) Technical guidance.--No later than 180 days after the 
     effective date of this Act, the Director, in collaboration 
     with other heads of covered agencies shall enter into a 
     contract with the National Research Council to provide 
     technical guidance to agencies on approaches to using 
     comparative risk analysis in setting human health, safety, 
     and environmental priorities to assist agencies in complying 
     with subsection (c) of this section.
       (e) Reports and Recommendations to Congress and the 
     President.--No later than 24 months after the effective date 
     of this Act, each covered agency shall submit a report to 
     Congress and the President--
       (1) detailing how the agency has complied with subsection 
     (c) and describing the reasons for any departure from the 
     requirement to establish priorities to achieve the greatest 
     overall net reduction in risk;
       (2) recommending--
       (A) modification, repeal, or enactment of laws to reform, 
     eliminate, or enhance programs or mandates relating to human 
     health, safety, or the environment; and
       (B) modification or elimination of statutorily or 
     judicially mandated deadlines,

     that would assist the covered agency to set priorities in 
     activities to address the risks to human health, safety, or 
     the environment in a manner consistent with the requirements 
     of subsection (c)(1);
       (3) evaluating the categories of policy and value judgments 
     used in risk assessment, risk characterization, or cost-
     benefit analysis; and
       (4) discussing risk assessment research and training needs, 
     and the agency's strategy and schedule for meeting those 
     needs.
       (f) Savings Provision and Judicial Review.--
       (1) In general.--Nothing in this section shall be construed 
     to modify any statutory standard or requirement designed to 
     protect human health, safety, or the environment.
       (2) Judicial review.--Compliance or noncompliance by an 
     agency with the provisions of this section shall not be 
     subject to judicial review.
       (3) Agency analysis.--Any analysis prepared under this 
     section shall not be subject to judicial consideration 
     separate or apart from the requirement, rule, program, or law 
     to which it relates. When an action for judicial review of a 
     covered agency action is instituted, any analysis for, or 
     relating to, the action shall constitute part of the whole 
     record of agency action for the purpose of judicial review of 
     the action and shall, to the extent relevant, be considered 
     by a court in determining the legality of the covered agency 
     action.

     SEC. 7. REGULATORY ACCOUNTING.

       (a) Definitions.--For purposes of this section, the 
     following definitions apply:
       (1) Agency.--The term ``agency'' means any executive 
     department, military department, Government corporation, 
     Government controlled corporation, or other establishment in 
     the executive branch of the Government (including the 
     Executive Office of the President), or any independent 
     regulatory agency, but shall not include--
       (A) the General Accounting Office;
       (B) the Federal Election Commission;
       (C) the governments of the District of Columbia and of the 
     territories and possessions of the United States, and their 
     various subdivisions; or
       (D) government-owned contractor-operated facilities, 
     including laboratories engaged in national defense research 
     and production activities.
       (2) Regulation.--The term ``regulation'' means an agency 
     statement of general applicability and future effect designed 
     to implement, interpret, or prescribe law or policy or 
     describing the procedures or practice requirements of an 
     agency. The term shall not include--
       (A) administrative actions governed by sections 556 and 557 
     of title 5, United States Code;
       (B) regulations issued with respect to a military or 
     foreign affairs function of the United States; or
       (C) regulations related to agency organization, management, 
     or personnel.
       (b) Accounting Statement.--
       (1) In general.--(A) The President shall be responsible for 
     implementing and administering the requirements of this 
     section.
       (B) Every 2 years, no later than June of the second year, 
     the President shall prepare and submit to Congress an 
     accounting statement that estimates the annual costs of 
     Federal regulatory programs and corresponding benefits in 
     accordance with this subsection.
       (2) Years covered by accounting statement.--Each accounting 
     statement shall cover, at a minimum, the 5 fiscal years 
     beginning on October 1 of the year in which the report is 
     submitted and may cover any fiscal year preceding such fiscal 
     years for purpose of revising previous estimates.
       (3) Timing and procedures.--(A) The President shall provide 
     notice and opportunity for comment for each accounting 
     statement. The President may delegate to an agency the 
     requirement to provide notice and opportunity to comment for 
     the portion of the accounting statement relating to that 
     agency.
       (B) The President shall propose the first accounting 
     statement under this subsection no later than 2 years after 
     the effective date of this Act and shall issue the first 
     accounting statement in final form no later than 3 years 
     after such effective date. Such statement shall cover, at a 
     minimum, each of the fiscal years beginning after the 
     effective date of this Act.
       (4) Content of accounting statement.--(A) Each accounting 
     statement shall contain 

[[Page S9490]]
     estimates of costs and benefits with respect to each fiscal year 
     covered by the statement in accordance with this paragraph. 
     For each such fiscal year for which estimates were made in a 
     previous accounting statement, the statement shall revise 
     those estimates and state the reasons for the revisions.
       (B)(i) An accounting statement shall estimate the costs of 
     Federal regulatory programs by setting forth, for each year 
     covered by the statement--
       (I) the annual expenditure of national economic resources 
     for each regulatory program; and
       (II) such other quantitative and qualitative measures of 
     costs as the President considers appropriate.
       (ii) For purposes of the estimate of costs in the 
     accounting statement, national economic resources shall 
     include, and shall be listed under, at least the following 
     categories:
       (I) Private sector costs.
       (II) Federal sector costs.
       (III) State and local government costs.
       (C) An accounting statement shall estimate the benefits of 
     Federal regulatory programs by setting forth, for each year 
     covered by the statement, such quantitative and qualitative 
     measures of benefits as the President considers appropriate. 
     Any estimates of benefits concerning reduction in human 
     health, safety, or environmental risks shall present the most 
     plausible level of risk practical, along with a statement of 
     the reasonable degree of scientific certainty.
       (c) Associated Report to Congress.--
       (1) In general.--At the same time as the President submits 
     an accounting statement under subsection (b), the President, 
     acting through the Director of the Office of Management and 
     Budget, shall submit to Congress a report associated with the 
     accounting statement (hereinafter referred to as an 
     ``associated report''). The associated report shall contain, 
     in accordance with this subsection--
       (A) analyses of impacts; and
       (B) recommendations for reform.
       (2) Analyses of impacts.--The President shall include in 
     the associated report the following:
       (A) The cumulative impact on the economy of Federal 
     regulatory programs covered in the accounting statement. 
     Factors to be considered in such report shall include impacts 
     on the following:
       (i) The ability of State and local governments to provide 
     essential services, including police, fire protection, and 
     education.
       (ii) Small business.
       (iii) Productivity.
       (iv) Wages.
       (v) Economic growth.
       (vi) Technological innovation.
       (vii) Consumer prices for goods and services.
       (viii) Such other factors considered appropriate by the 
     President.
       (B) A summary of any independent analyses of impacts 
     prepared by persons commenting during the comment period on 
     the accounting statement.
       (3) Recommendations for reform.--The President shall 
     include in the associated report the following:
       (A) A summary of recommendations of the President for 
     reform or elimination of any Federal regulatory program or 
     program element that does not represent sound use of national 
     economic resources or otherwise is inefficient.
       (B) A summary of any recommendations for such reform or 
     elimination of Federal regulatory programs or program 
     elements prepared by persons commenting during the comment 
     period on the accounting statement.
       (d) Guidance From Office of Management and Budget.--The 
     Director of the Office of Management and Budget shall, in 
     consultation with the Council of Economic Advisers and the 
     agencies, develop guidance for the agencies--
       (1) to standardize measures of costs and benefits in 
     accounting statements prepared pursuant to this section and 
     section 3 of this Act, including--
       (A) detailed guidance on estimating the costs and benefits 
     of major rules; and
       (B) general guidance on estimating the costs and benefits 
     of all other rules that do not meet the thresholds for major 
     rules; and
       (2) to standardize the format of the accounting statements.
       (e) Recommendations From Congressional Budget Office.--
     After each accounting statement and associated report 
     submitted to Congress, the Director of the Congressional 
     Budget Office shall make recommendations to the President--
       (1) for improving accounting statements prepared pursuant 
     to this section, including recommendations on level of detail 
     and accuracy; and
       (2) for improving associated reports prepared pursuant to 
     this section, including recommendations on the quality of 
     analysis.
       (f) Judicial Review.--No requirements under this section 
     shall be subject to judicial review in any manner.

     SEC. 8. EFFECTIVE DATE.

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

    Regulatory Reform Alternative and Comparisons With Dole/Johnston

       Our principles for regulatory reform are the following:
       (1) Cost-benefit and risk assessment requirements should 
     apply to only major rules, which has been set at $100 million 
     for executive branch review since President Reagan's time.
       Our bill applies to rules that have an impact on the 
     economy of $100 million or more.
       The Dole/Johnston draft applies to rules that have an 
     impact on the economy of $50 million or more.
       (2) Regulatory reform should not become a lawyer's dream, 
     opening up a multitude of new avenues for judicial review.
       Our bill limits judicial review to determinations of: (1) 
     whether a rule is major; and (2) whether a final rule is 
     arbitrary or capricious, taking into consideration the whole 
     rulemaking file. Specific procedural requirements for cost-
     benefit analysis and risk assessment are not subject to 
     judicial review except as part of the whole rulemaking file.
       The Dole/Johnston draft will lead to a litigation explosion 
     that will swamp the courts and bog down agencies. It would 
     allow review of steps in risk assessment and cost-benefit 
     analysis, in addition to the determination of a major rule 
     and of agency decisions to grant or deny petitions. It alters 
     APA standards in ways that undermine legal precedent and 
     invite lawsuits. And it seeks to limit agency discretion in 
     ways that will lead inevitably to challenges in court.
       (3) Regulatory reform should not be a ``fix'' for special 
     interests.
       Our bill focuses on the fundamentals of regulatory reform 
     and contains no special interest provisions.
       The Dole/Johnston draft provides relief to specific 
     business interests, e.g., by restricting the Toxics Release 
     Inventory, limiting the Delaney Clause, and delaying and 
     increasing costs of Superfund cleanups.
       (4) Regulatory reform should make Federal agencies more 
     efficient and effective, not tie up agency resources with 
     additional bureaucratic processes.
       Our bill requires cost-benefit analysis and risk assessment 
     for major rules, and requires agencies to review all their 
     major rules by a time certain.
       The Dole/Johnston draft covers a much broader scope of 
     rules and has several convoluted petition processes for 
     ``interested parties'' (e.g., to amend or rescind a major 
     rule, and to review policies or guidance). These petitions 
     are judicially reviewable and must be granted or denied by an 
     agency within a specified time frame. The petitions will eat 
     up agency resources and allow the petitioners, not the 
     agencies, to set agency priorities.
       (5) Regulatory reform legislation should improve analysis, 
     but not override health, safety or environmental protections.
       Our bill requires agencies to explain whether benefits 
     justify costs and whether the rule will be more cost-
     effective than alternatives. It does not allow cost-benefit 
     determinations to control agency decisions or to override 
     existing protections of health, safety or environmental laws.
       The Dole/Johnston draft has three separate decisional 
     criteria that control agency decisions, regardless of the 
     underlying statutes. These overriding provisions are created 
     for major rule cost-benefit determinations, for environmental 
     cleanups, and for regulatory flexibility analyses. The reg 
     flex override actually conflicts with the cost-benefit 
     decisional criteria. And the cost-benefit test limits 
     agencies to the cheapest rule, not the most cost-effective 
     one.
       (6) There should be ``sunshine'' in the regulatory review 
     process.
       Our bill ensures that agencies and OMB publicly disclose 
     the status of regulatory review, related decisions and 
     documents, and communications from persons outside of the 
     government.
       The Dole/Johnston draft has no ``sunshine'' provisions to 
     protect against regulatory review delay, unsubstantiated 
     review decisions or undisclosed special interest lobbying and 
     political deals.
       The text of this bill is almost identical to S. 291, the 
     ``Regulatory Reform Act of 1995,'' which was reported 
     unanimously from the Senate Committee on Governmental 
     Affairs. Like S. 291, this bill:
       (1) Covers all ``major'' rules with a cost impact of $100 
     million.
       (2) Requires cost-benefit analysis for all major rules.
       (3) Requires risk assessment for all major rules related to 
     environment, health, or safety.
       (4) Requires peer review of cost-benefit analyses and risk 
     assessments.
       (5) Limits judicial review to the determination of 
     ``major'' rules and to the final rulemaking file.
       (6) Requires agencies to review existing rules every ten 
     years, with a presidential extension of up to five years.
       (7) Provides judicial review of Regulatory Flexibility Act 
     decisions, allowing one year for small entities to petition 
     for review of agency compliance with the Reg Flex Act.
       (8) Requires public disclosure of regulatory analysis and 
     review documents to ensure ``sunshine'' in the regulatory 
     review process.
       (9) Provides legislative ``veto'' of major rules to provide 
     an expedited procedure for Congress to review rules.
       (10) Requires risk-based priority setting for the most 
     serious risks to health, safety, and the environment.
       (11) Requires regulatory accounting every two years on the 
     cumulative costs and benefits of agency regulations.
       This bill only differs from S. 291 on three points:
       (1) It does not have an arbitrary sunset for existing rules 
     that agency fail to be reviewed. Rather, it has an action-
     forcing 

[[Page S9491]]
     mechanism that uses the rulemaking process.
       (2) It does not include any narrative definitions for 
     ``major'' rule (e.g., ``adverse effects on wages'').
       (3) It incorporates technical changes to risk assessment to 
     track more closely recommendations of the National Academy of 
     Sciences and to cover specific programs and agencies, not 
     just agencies.

                          ____________________