[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Senate]
[Pages S9542-S9552]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          AMENDMENTS SUBMITTED

                                 ______


            THE COMPREHENSIVE REGULATORY REFORM ACT OF 1995

                                 ______


                  DOLE (AND OTHERS) AMENDMENT NO. 1487

  Mr. DOLE (for himself, Mr. Johnston, Mr. Hatch, Mr. Heflin, Mr. 
Nickles, Mr. Roth, Mr. Murkowski, Mr. Bond, Mr. Grassley, Mr. 
Coverdell, Mr. Thompson, Mr. Craig, Mr. Brown, Mr. Thomas, Mr. Kyl, Mr. 
Breaux, Mrs. Hutchison, Mr. Abraham, Mr. Grams, and Mr. Lott) proposed 
an amendment to the bill (S. 343) to reform the regulatory process, and 
for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. DEFINITIONS.

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

     SEC. 3. RULEMAKING.

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

     ``Sec. 553. Rulemaking

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

[[Page S9543]]
     not later than 60 days before the effective date of such rule. An 
     agency may make a rule effective in less than 60 days after 
     publication in the Federal Register if the rule grants or 
     recognizes an exemption, relieves a restriction, or if the 
     agency for good cause finds that such a delay in the 
     effective date would be contrary to the public interest and 
     publishes such finding and an explanation of the reasons 
     therefor, with the final rule.
       ``(j) Rulemaking File.--(1) The agency shall maintain a 
     file for each rulemaking proceeding conducted pursuant to 
     this section and shall maintain a current index to such file.
       ``(2) Except as provided in subsection (k), the file shall 
     be made available to the public not later than the date on 
     which the agency makes an initial publication concerning the 
     rule.
       ``(3) The rulemaking file shall include--
       ``(A) the notice of proposed rulemaking, any supplement to, 
     or modification or revision of, such notice, and any advance 
     notice of proposed rulemaking;
       ``(B) copies of all written comments received on the 
     proposed rule;
       ``(C) a transcript, summary, or other record of any public 
     hearing conducted on the rulemaking;
       ``(D) copies, or an identification of the place at which 
     copies may be obtained, of factual and methodological 
     material that pertains directly to the rulemaking and that 
     was considered by the agency in connection with the 
     rulemaking, or that was submitted to or prepared by or for 
     the agency in connection with the rulemaking; and
       ``(E) any statement, description, analysis, or other 
     material that the agency is required to prepare or issue in 
     connection with the rulemaking, including any analysis 
     prepared or issued pursuant to chapter 6.

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

     SEC. 4. ANALYSIS OF AGENCY RULES.

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

     ``Sec. 621. Definitions

       ``For purposes of this subchapter--
       ``(1) except as otherwise provided, the definitions under 
     section 551 shall apply to this subchapter;
       ``(2) the term `benefit' means the reasonably identifiable 
     significant favorable effects, quantifiable and 
     nonquantifiable, including social, environmental, health, and 
     economic effects, that are expected to result directly or 
     indirectly from implementation of a rule or other agency 
     action;
       ``(3) the term `cost' means the reasonably identifiable 
     significant adverse effects, quantifiable and 
     nonquantifiable, including social, environmental, health, and 
     economic effects that are expected to result directly or 
     indirectly from implementation of a rule or other agency 
     action;
       ``(4) the term `cost-benefit analysis' means an evaluation 
     of the costs and benefits of a rule, quantified to the extent 
     feasible and appropriate and otherwise qualitatively 
     described, that is prepared in accordance with the 
     requirements of this subchapter at the level of detail 
     appropriate and practicable for reasoned decisionmaking on 
     the matter involved, taking into consideration the 
     significance and complexity of the decision and any need for 
     expedition;
       ``(5) the term `major rule' means--
       ``(A) a rule or set of closely related rules that the 
     agency proposing the rule, the Director, or a designee of the 
     President determines is likely to have a gross annual effect 
     on the economy of $50,000,000 or more in reasonably 
     quantifiable increased costs; or
       ``(B) a rule that is otherwise designated a major rule by 
     the agency proposing the rule, the Director, or a designee of 
     the President (and a designation or failure to designate 
     under this clause shall not be subject to judicial review);
       ``(6) the term `market-based mechanism' means a regulatory 
     program that--
       ``(A) imposes legal accountability for the achievement of 
     an explicit regulatory objective on each regulated person;
       ``(B) affords maximum flexibility to each regulated person 
     in complying with mandatory regulatory objectives, which 
     flexibility shall, where feasible and appropriate, include, 
     but not be limited to, the opportunity to transfer to, or 
     receive from, other persons, including for cash or other 
     legal consideration, increments of compliance responsibility 
     established by the program; and
       ``(C) permits regulated persons to respond to changes in 
     general economic conditions and in economic circumstances 
     directly pertinent to the regulatory program without 
     affecting the achievement of the program's explicit 
     regulatory mandates;
       ``(7) the term `performance-based standards' means 
     requirements, expressed in terms of outcomes or goals rather 
     than mandatory means of achieving outcomes or goals, that 
     permit the regulated entity discretion to determine how best 
     to meet specific requirements in particular circumstances;
       ``(8) the term `reasonable alternatives' means the range of 
     reasonable regulatory options that the agency has authority 
     to consider under the statute granting rulemaking authority, 
     including flexible regulatory options of the type described 
     in section 622(c)(2)(C)(iii), unless precluded by the statute 
     granting the rulemaking authority; and
       ``(9) the term `rule' has the same meaning as in section 
     551(4), and--
       ``(A) includes any statement of general applicability that 
     substantially alters or creates rights or obligations of 
     persons outside the agency; and
       ``(B) does not include--
       ``(i) a rule that involves the internal revenue laws of the 
     United States, or the assessment and collection of taxes, 
     duties, or other revenues or receipts;
       ``(ii) a rule or agency action that implements an 
     international trade agreement to which the United States is a 
     party;
       ``(iii) a rule or agency action that authorizes the 
     introduction into commerce, or recognizes the marketable 
     status, of a product;
       ``(iv) a rule exempt from notice and public procedure under 
     section 553(a);
       ``(v) a rule or agency action relating to the public debt;
       ``(vi) a rule required to be promulgated at least annually 
     pursuant to statute, or that provides relief, in whole or in 
     part, from a statutory prohibition, other than a rule 
     promulgated pursuant to subtitle C of title II of the Solid 
     Waste Disposal Act (42 U.S.C. 6921 et seq.);
       ``(vii) a rule of particular applicability that approves or 
     prescribes the future rates, wages, prices, services, 
     corporate or financial structures, reorganizations, mergers, 
     acquisitions, accounting practices, or disclosures bearing on 
     any of the foregoing;
       ``(viii) a rule relating to monetary policy or to the 
     safety or soundness of federally insured depository 
     institutions or any affiliate of such an institution (as 
     defined in section 2(k) of the Bank Holding Company Act of 
     1956 (12 U.S.C. 1841(k))), credit unions, Federal Home Loan 
     Banks, government sponsored housing enterprises, farm credit 
     institutions, foreign banks that operate in the United States 
     and their affiliates, branches, agencies, commercial lending 
     companies, or representative offices, (as those terms are 
     defined in section 1 of the International Banking Act of 1978 
     (12 U.S.C. 3101));
       ``(ix) a rule relating to the payment system or the 
     protection of deposit insurance funds or the farm credit 
     insurance fund;
       ``(x) any order issued in a rate or certificate proceeding 
     by the Federal Energy Regulatory Commission, or a rule of 
     general applicability that the Federal Energy Regulatory 
     Commission certifies would increase 

[[Page S9544]]
     reliance on competitive market forces or reduce regulatory burdens;
       ``(xi) a rule or order relating to the financial 
     responsibility of brokers and dealers or futures commission 
     merchants, the safeguarding of investor securities and funds 
     or commodity future or options customer securities and funds, 
     the clearance and settlement of securities, futures, or 
     options transactions, or the suspension of trading under the 
     Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or 
     emergency action taken under the Commodity Exchange Act (7 
     U.S.C. 1 et seq.), or a rule relating to the protection of 
     the Securities Investor Protection Corporation, that is 
     promulgated under the Securities Investor Protection Act of 
     1970 (15 U.S.C. 78aaa et seq.); or
       ``(xii) a rule that involves the international trade laws 
     of the United States.
     ``Sec. 622. Rulemaking cost-benefit analysis

       ``(a) Determinations for Major Rule.--Prior to publishing a 
     notice of proposed rulemaking for any rule (or, in the case 
     of a notice of proposed rulemaking that has been published 
     but not issued as a final rule on or before the date of 
     enactment of this subchapter, not later than 30 days after 
     such date of enactment), each agency shall determine--
       ``(1) whether the rule is or is not a major rule within the 
     meaning of section 621(5)(A)(i) and, if it is not, whether it 
     should be designated as a major rule under section 621(5)(B); 
     and
       ``(2) if the agency determines that the rule is a major 
     rule, or otherwise designates it as a major rule, whether the 
     rule requires or does not require the preparation of a risk 
     assessment under section 632(a).
       ``(b) Designation.--(1) If an agency has determined that a 
     rule is not a major rule within the meaning of section 
     621(5)(A) and has not designated the rule as a major rule 
     within the meaning of section 621(5)(B), the Director or a 
     designee of the President may, as appropriate, determine that 
     the rule is a major rule or designate the rule as a major 
     rule not later than 30 days after the publication of the 
     notice of proposed rulemaking for the rule (or, in the case 
     of a notice of proposed rulemaking that has been published on 
     or before the date of enactment of this subchapter, not later 
     than 1 year after such date of enactment).
       ``(2) Such determination or designation shall be published 
     in the Federal Register, together with a succinct statement 
     of the basis for the determination or designation.
       ``(c) Initial Cost-Benefit Analysis.--(1)(A) When the 
     agency publishes a notice of proposed rulemaking for a major 
     rule, the agency shall issue and place in the rulemaking file 
     an initial cost-benefit analysis, and shall include a summary 
     of such analysis in the notice of proposed rulemaking.
       ``(B)(i) When an agency, the Director, or a designee of the 
     President has published a determination or designation that a 
     rule is a major rule after the publication of the notice of 
     proposed rulemaking for the rule, the agency shall promptly 
     issue and place in the rulemaking file an initial cost-
     benefit analysis for the rule and shall publish in the 
     Federal Register a summary of such analysis.
       ``(ii) Following the issuance of an initial cost-benefit 
     analysis under clause (i), the agency shall give interested 
     persons an opportunity to comment in the same manner as if 
     the initial cost-benefit analysis had been issued with the 
     notice of proposed rulemaking.
       ``(2) Each initial cost-benefit analysis shall contain--
       ``(A) a succinct analysis of the benefits of the proposed 
     rule, including any beneficial effects that cannot be 
     quantified, and an explanation of how the agency anticipates 
     such benefits will be achieved by the proposed rule, 
     including a description of the persons or classes of persons 
     likely to receive such benefits;
       ``(B) a succinct analysis of the costs of the proposed 
     rule, including any costs that cannot be quantified, and an 
     explanation of how the agency anticipates such costs will 
     result from the proposed rule, including a description of the 
     persons or classes of persons likely to bear such costs;
       ``(C) a succinct description (including an analysis of the 
     costs and benefits) of reasonable alternatives for achieving 
     the objectives of the statute, including, where such 
     alternatives exist, alternatives that--
       ``(i) require no government action, where the agency has 
     discretion under the statute granting the rulemaking 
     authority not to promulgate a rule;
       ``(ii) will accommodate differences among geographic 
     regions and among persons with differing levels of resources 
     with which to comply;
       ``(iii) employ performance-based standards, market-based 
     mechanisms, or other flexible regulatory options that permit 
     the greatest flexibility in achieving the regulatory result 
     that the statutory provision authorizing the rule is designed 
     to produce; or
       ``(iv) employ voluntary standards;
       ``(D) in any case in which the proposed rule is based on 
     one or more scientific evaluations, scientific information, 
     or a risk assessment, or is subject to the risk assessment 
     requirements of subchapter III, a description of the actions 
     undertaken by the agency to verify the quality, reliability, 
     and relevance of such scientific evaluation, scientific 
     information, or risk assessment; and
       ``(E) an explanation of how the proposed rule is likely to 
     meet the decisional criteria of section 624.
       ``(d) Final Cost-Benefit Analysis.--(1) When the agency 
     publishes a final major rule, the agency shall also issue and 
     place in the rulemaking file a final cost-benefit analysis, 
     and shall include a summary of the analysis in the statement 
     of basis and purpose.
       ``(2) Each final cost-benefit analysis shall contain--
       ``(A) a description and comparison of the benefits and 
     costs of the rule and of the reasonable alternatives to the 
     rule described in the rulemaking record, including flexible 
     regulatory options of the type described in subsection 
     (c)(2)(C)(iii), and a description of the persons likely to 
     receive such benefits and bear such costs; and
       ``(B) an analysis, based upon the rulemaking record 
     considered as a whole, of how the rule meets the decisional 
     criteria in section 624.
       ``(3) In considering the benefits and costs, the agency, 
     when appropriate, shall consider the benefits and costs 
     incurred by all of the affected persons or classes of persons 
     (including specially affected subgroups).
       ``(e) Requirements for Cost-Benefit Analyses.--(1)(A) The 
     description of the benefits and costs of a proposed and a 
     final rule required under this section shall include, to the 
     extent feasible, a quantification or numerical estimate of 
     the quantifiable benefits and costs.
       ``(B) The quantification or numerical estimate shall--
       ``(i) be made in the most appropriate unit of measurement, 
     using comparable assumptions, including time periods;
       ``(ii) specify the ranges of predictions; and
       ``(iii) explain the margins of error involved in the 
     quantification methods and the uncertainties and 
     variabilities in the estimates used.
       ``(C) An agency shall describe the nature and extent of the 
     nonquantifiable benefits and costs of a final rule pursuant 
     to this section in as precise and succinct a manner as 
     possible.
       ``(D) The agency evaluation of the relationship of benefits 
     to costs shall be clearly articulated.
       ``(E) An agency shall not be required to make such 
     evaluation primarily on a mathematical or numerical basis.
       ``(F) Nothing in this subsection shall be construed to 
     expand agency authority beyond the delegated authority 
     arising from the statute granting the rulemaking authority.
       ``(2) Where practicable and when understanding industry-by-
     industry effects is of central importance to a rulemaking, 
     the description of the benefits and costs of a proposed and 
     final rule required under this section shall describe such 
     benefits and costs on an industry by industry basis.
       ``(f) Health, Safety, or Emergency Exemption From Cost-
     Benefit Analysis.--(1) A major rule may be adopted and may 
     become effective without prior compliance with this 
     subchapter if--
       ``(A) the agency for good cause finds that conducting cost-
     benefit analysis is impracticable due to an emergency or 
     health or safety threat that is likely to result in 
     significant harm to the public or natural resources; and
       ``(B) the agency publishes in the Federal Register, 
     together with such finding, a succinct statement of the basis 
     for the finding.
       ``(2) Not later than 180 days after the promulgation of a 
     final major rule to which this section applies, the agency 
     shall comply with the provisions of this subchapter and, as 
     thereafter necessary, revise the rule.
     ``Sec. 623. Agency regulatory review

       ``(a) Preliminary Schedule for Rules.--(1) Not later than 1 
     year after the date of the enactment of this section, and 
     every 5 years thereafter, the head of each agency shall 
     publish in the Federal Register a notice of proposed 
     rulemaking under section 553 that contains a preliminary 
     schedule of rules selected for review under this section by 
     the head of the agency and in the sole discretion of the head 
     of the agency, and request public comment thereon, including 
     suggestions for additional rules warranting review. The 
     agency shall allow at least 180 days for public comment.
       ``(2) In selecting rules for the preliminary schedule, the 
     head of the agency shall consider the extent to which, in the 
     judgment of the head of the agency--
       ``(A) a rule is unnecessary, and the agency has discretion 
     under the statute authorizing the rule to repeal the rule;
       ``(B) a rule would not meet the decisional criteria of 
     section 624, and the agency has discretion under the statute 
     authorizing the rule to repeal the rule; or
       ``(C) a rule could be revised in a manner allowed by the 
     statute authorizing the rule so as to--
       ``(i) substantially decrease costs;
       ``(ii) substantially increase benefits; or
       ``(iii) provide greater flexibility for regulated entities, 
     through mechanisms including, but not limited to, those 
     listed in section 622(c)(2)(C)(iii).
       ``(3) The preliminary schedule under this subsection shall 
     propose deadlines for review of each rule listed thereon, and 
     such deadlines shall occur not later than 11 years from the 
     date of publication of the preliminary schedule.
       ``(4) Any interpretive rule, general statement of policy, 
     or guidance that has the force and effect of a rule under 
     section 621(9) shall be treated as a rule for purposes of 
     this section.

[[Page S9545]]

       ``(b) Schedule.--(1) Not later than 1 year after 
     publication of a preliminary schedule under subsection (a), 
     and subject to subsection (c), the head of each agency shall 
     publish a final rule that establishes a schedule of rules to 
     be reviewed by the agency under this section.
       ``(2) The schedule shall establish a deadline for 
     completion of the review of each rule listed on the schedule, 
     taking into account the criteria in subsection (d) and 
     comments received in the rulemaking under subsection (a). 
     Each such deadline shall occur not later than 11 years from 
     the date of publication of the preliminary schedule.
       ``(3) The schedule shall contain, at a minimum, all rules 
     listed on the preliminary schedule.
       ``(4) The head of the agency shall modify the agency's 
     schedule under this section to reflect any change ordered by 
     the court under subsection (e) or subsection (g)(3) or 
     contained in an appropriations Act under subsection (f).
       ``(c) Petitions and Comments Proposing Addition of Rules to 
     the Schedule.--(1) Notwithstanding section 553(l), a petition 
     to amend or repeal a major rule or an interpretative rule, 
     general statement of policy, or guidance on grounds arising 
     under this subchapter may only be filed during the 180-day 
     comment period under subsection (a) and not at any other 
     time. Such petition shall be reviewed only in accordance with 
     this subsection.
       ``(2) The head of the agency shall, in response to 
     petitions received during the rulemaking to establish the 
     schedule, place on the final schedule for the completion of 
     review within the first 3 years of the schedule any rule for 
     which a petition, on its face, together with any relevant 
     comments received in the rulemaking under subsection (a), 
     establishes that there is a substantial likelihood that, 
     considering the future impact of the rule--
       ``(A) the rule is a major rule under section 621(5)(A); and
       (B) the head of the agency would not be able to make the 
     findings required by section 624 with respect to the rule.
       ``(3) For the purposes of paragraph (2), the head of the 
     agency may consolidate multiple petitions on the same rule 
     into 1 determination with respect to review of the rule.
       ``(4) The head of the agency may, at the sole discretion of 
     the head of the agency, add to the schedule any other rule 
     suggested by a commentator during the rulemaking under 
     subsection (a).
       ``(d) Criteria for Establishing Deadlines for Review.--The 
     schedules in subsections (a) and (b) shall establish 
     deadlines for review of each rule on the schedule that take 
     into account--
       ``(1) the extent to which, for a particular rule, the 
     preliminary views of the agency are that--
       ``(A) the rule is unnecessary, and the agency has 
     discretion under the statute authorizing the rule to repeal 
     the rule;
       ``(B) the rule would not meet the decisional criteria of 
     section 624, and the agency has discretion under the statute 
     authorizing the rule to repeal the rule; or
       ``(C) the rule could be revised in a manner allowed by the 
     statute authorizing the rule so as to meet the decisional 
     criteria under section 624 and to--
       ``(i) substantially decrease costs;
       ``(ii) substantially increase benefits; or
       ``(iii) provide greater flexibility for regulated entities, 
     through mechanisms including, but not limited to, those 
     listed in section 622(c)(2)(C)(iii);
       ``(2) the importance of each rule relative to other rules 
     being reviewed under this section; and
       ``(3) the resources expected to be available to the agency 
     under subsection (f) to carry out the reviews under this 
     section.
       ``(e) Judicial Review.--(1) Notwithstanding section 625 and 
     except as provided otherwise in this subsection, agency 
     compliance or noncompliance with the requirements of this 
     section shall be subject to judicial review in accordance 
     with section 706 of this title.
       ``(2) The United States Court of Appeals for the District 
     of Columbia Circuit shall have exclusive jurisdiction to 
     review agency action pursuant to subsections (a), (b), and 
     (c).
       ``(3) A petition for review of final agency action under 
     subsection (b) or subsection (c) shall be filed not later 
     than 60 days after the agency publishes the final rule under 
     subsection (b).
       ``(4) The court upon review, for good cause shown, may 
     extend the 3-year deadline under subsection (c)(2) for a 
     period not to exceed 1 additional year.
       ``(5) The court shall remand to the agency any schedule 
     under subsection (b) only if final agency action under 
     subsection (b) is arbitrary or capricious. Agency action 
     under subsection (d) shall not be subject to judicial review.
       ``(f) Annual Budget.--(1) The President's annual budget 
     proposal submitted under section 1105(a) of title 31 for each 
     agency subject to this section shall--
       ``(A) identify as a separate sum the amount requested to be 
     appropriated for implementation of this section during the 
     upcoming fiscal year; and
       ``(B) include a list of rules which may terminate during 
     the year for which the budget proposal is made.
       ``(2) Amendments to the schedule under subsection (b) that 
     change a deadline for review of a rule may be included in 
     annual appropriations Acts for the relevant agencies. An 
     authorizing committee with jurisdiction may submit, to the 
     House of Representatives or Senate appropriations committee 
     (as the case may be), amendments to the schedule published by 
     an agency under subsection (b) that change a deadline for 
     review of a rule. The appropriations committee to which such 
     amendments have been submitted shall include or propose the 
     amendments in the annual appropriations Act for the relevant 
     agency. Each agency shall modify its schedule under 
     subsection (b) to reflect such amendments that are enacted 
     into law.
       ``(g) Review of Rule.--(1) For each rule on the schedule 
     under subsection (b), the agency shall--
       ``(A) not later than 2 years before the deadline in such 
     schedule, publish in the Federal Register a notice that 
     solicits public comment regarding whether the rule should be 
     continued, amended, or repealed;
       ``(B) not later than 1 year before the deadline in such 
     schedule, publish in the Federal Register a notice that--
       ``(i) addresses public comments generated by the notice in 
     subparagraph (A);
       ``(ii) contains a preliminary analysis provided by the 
     agency of whether the rule is a major rule, and if so, 
     whether it satisfies the decisional criteria of section 624;
       ``(iii) contains a preliminary determination as to whether 
     the rule should be continued, amended, or repealed; and
       ``(iv) solicits public comment on the preliminary 
     determination for the rule; and
       ``(C) not later than 60 days before the deadline in such 
     schedule, publish in the Federal Register a final notice on 
     the rule that--
       ``(i) addresses public comments generated by the notice in 
     subparagraph (B); and
       ``(ii) contains a final determination of whether to 
     continue, amend, or repeal the rule; and
       ``(iii) if the agency determines to continue the rule and 
     the rule is a major rule, contains findings necessary to 
     satisfy the decisional criteria of section 624; and
       ``(iv) if the agency determines to amend the rule, contains 
     a notice of proposed rulemaking under section 553.
       ``(2) If the final determination of the agency is to 
     continue or repeal the rule, that determination shall take 
     effect 60 days after the publication in the Federal Register 
     of the notice in paragraph (1)(C).
       ``(3) An interested party may petition the U.S. Court of 
     Appeals for the District of Columbia Circuit to extend the 
     period for review of a rule on the schedule for up to two 
     years and to grant such equitable relief as is appropriate, 
     if such petition establishes that--
       ``(A) the rule is likely to terminate under subsection (i);
       ``(B) the agency needs additional time to complete the 
     review under this subsection;
       ``(C) terminating the rule would not be in the public 
     interest; and
       ``(D) the agency has not expeditiously completed its 
     review.
       ``(h) Deadline for Final Agency Action on Modified Rule.--
     If an agency makes a determination to amend a major rule 
     under subsection (g)(1)(C)(ii), the agency shall complete 
     final agency action with regard to such rule not later than 2 
     years of the date of publication of the notice in subsection 
     (g)(1)(C) containing such determination. Nothing in this 
     subsection shall limit the discretion of an agency to decide, 
     after having proposed to modify a major rule, not to 
     promulgate such modification. Such decision shall constitute 
     final agency action for the purposes of judicial review.
       ``(i) Termination of Rules.--If the head of an agency has 
     not completed the review of a rule by the deadline 
     established in the schedule published or modified pursuant to 
     subsection (b) and subsection (c), the head of the agency 
     shall not enforce the rule, and the rule shall terminate by 
     operation of law as of such date.
       ``(j) Final Agency Action.--(1) The final determination of 
     an agency to continue or repeal a major rule under subsection 
     (g)(1)(C) shall be considered final agency action.
       ``(2) Failure to promulgate an amended major rule or to 
     make other decisions required by subsection (h) by the date 
     established under such subsection shall be considered final 
     agency action.

     ``Sec. 624. Decisional criteria

       ``(a) Construction With Other Laws.--The requirements of 
     this section shall supplement, and not supersede, any other 
     decisional criteria otherwise provided by law.
       ``(b) Requirements.--Except as provided in subsection (c), 
     no final major rule subject to this subchapter shall be 
     promulgated unless the agency head publishes in the Federal 
     Register a finding that--
       ``(1) the benefits from the rule justify the costs of the 
     rule;
       ``(2) the rule employs to the extent practicable flexible 
     reasonable alternatives of the type described in section 
     622(c)(2)(C)(iii); and
       ``(3)(A) the rule adopts the least cost alternative of the 
     reasonable alternatives that achieve the objectives of the 
     statute; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment identified by the agency in the rulemaking record 
     make a more costly alternative that achieves the objectives 
     of the statute appropriate and in the public interest and the 
     agency head provides an explanation of those considerations, 
     the rule adopts the least cost alternative of the reasonable 
     alternatives necessary to take into account such 
     uncertainties or benefits; and

[[Page S9546]]

       ``(4) if a risk assessment is required by section 632--
       ``(A) the rule is likely to significantly reduce the human 
     health, safety, and environmental risks to be addressed; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment, preclude making the finding under subparagraph 
     (A), promulgating the final rule is nevertheless justified 
     for reasons stated in writing accompanying the rule and 
     consistent with subchapter III.
       ``(c) Alternative Requirements.--If, applying the statutory 
     requirements upon which the rule is based, a rule cannot 
     satisfy the criteria of subsection (b), the agency head may 
     promulgate the rule if the agency head finds that--
       ``(1) the rule employs to the extent practicable flexible 
     reasonable alternatives of the type described in section 
     622(c)(2)(C)(iii);
       ``(2)(A) the rule adopts the least cost alternative of the 
     reasonable alternatives that achieve the objectives of the 
     statute; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment identified by the agency in the rulemaking record 
     make a more costly alternative that achieves the objectives 
     of the statute appropriate and in the public interest, and 
     the agency head provides an explanation of those 
     consideration, the rule adopts the least cost alternative of 
     the reasonable alternatives necessary to take into account 
     such uncertainties or benefits; and
       ``(3) if a risk assessment is required by section 632--
       ``(A) the rule is likely to significantly reduce the human 
     health, safety, and environmental risks to be addressed; or
       ``(B) if scientific, technical, or economic uncertainties 
     or nonquantifiable benefits to health, safety, or the 
     environment, preclude making the finding under subparagraph 
     (A), promulgating the final rule is nevertheless justified 
     for reasons stated in writing accompanying the rule and 
     consistent with subchapter III.
       ``(d) Publication of Reasons for Noncompliance.--If an 
     agency promulgates a rule to which subsection (c) applies, 
     the agency head shall prepare a written explanation of why 
     the agency was required to promulgate a rule that does not 
     satisfy the criteria of subsection (b) and shall transmit the 
     explanation with the final cost-benefit analysis to Congress 
     when the final rule is promulgated.
     ``Sec. 625. Jurisdiction and judicial review

       ``(a) Review.--Compliance or noncompliance by an agency 
     with the provisions of this subchapter and subchapter III 
     shall be subject to judicial review only in accordance with 
     this section.
       ``(b) Jurisdiction.--(1) Except as provided in subsection 
     (e), subject to paragraph (2), each court with jurisdiction 
     under a statute to review final agency action to which this 
     title applies, has jurisdiction to review any claims of 
     noncompliance with this subchapter and subchapter III.
       ``(2) Except as provided in subsection (e), no claims of 
     noncompliance with this subchapter or subchapter III shall be 
     reviewed separate or apart from judicial review of the final 
     agency action to which they relate.
       ``(c) Record.--Any analysis or review required under this 
     subchapter or subchapter III shall constitute part of the 
     rulemaking record of the final agency action to which it 
     pertains for the purposes of judicial review.
       ``(d) Standards for Review.--In any proceeding involving 
     judicial review under section 706 or under the statute 
     granting the rulemaking authority, failure to comply with 
     this subchapter or subchapter III may be considered by the 
     court solely for the purpose of determining whether the final 
     agency action is arbitrary and capricious or an abuse of 
     discretion (or unsupported by substantial evidence where that 
     standard is otherwise provided by law).
       ``(e) Interlocutory Review.--(1) The United States Court of 
     Appeals for the District of Columbia Circuit shall have 
     jurisdiction to review--
       ``(A) an agency determination that a rule is not a major 
     rule pursuant to section 622(a); and
       ``(B) an agency determination that a risk assessment is not 
     required pursuant to section 632(a).
       ``(2) A petition for review of agency action under 
     paragraph (1) shall be filed within 60 days after the agency 
     makes the determination or certification for which review is 
     sought.
       ``(3) Except as provided in this subsection, no court shall 
     have jurisdiction to review any agency determination or 
     certification specified in paragraph (1).

     ``Sec. 626. Deadlines for rulemaking

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

     ``Sec. 627. Special rule

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

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

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

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

     ``Sec. 629. Petition for alternative method of compliance

       ``(a) Except as provided in subsection (e), or unless 
     prohibited by the statute authorizing the rule, any person 
     subject to a major rule may petition the relevant agency to 
     modify or waive the specific requirements of the major rule 
     (or any portion thereof) and to authorize such person to 
     demonstrate compliance through alternative means not 
     otherwise permitted by the major rule. The petition shall 
     identify with reasonable specificity the requirements for 
     which the waiver is sought and the alternative means of 
     compliance being proposed.
       ``(b) The agency shall grant the petition if the petition 
     shows that there is a reasonable likelihood that the proposed 
     alternative means of compliance--
       ``(1) would achieve the identified benefits of the major 
     rule with at least an equivalent level of protection of 
     health, safety, and the environment as would be provided by 
     the major rule; and

[[Page S9547]]

       ``(2) would not impose an undue burden on the agency that 
     would be responsible for enforcing such alternative means of 
     compliance.
       ``(c) A decision to grant or to deny a petition under this 
     subsection shall be made not later than 180 days after the 
     petition is submitted, but in no event shall agency action 
     taken pursuant to this section be subject to judicial review.
       ``(d) Following a decision to grant or deny a petition 
     under this section, no further petition for such rule, 
     submitted by the same person, shall be granted unless such 
     petition pertains to a different facility or installation 
     owned or operated by such person or unless such petition is 
     based on a significant change in a fact, circumstance, or 
     provision of law underlying or otherwise related to the rule 
     occurring since the initial petition was granted or denied, 
     that warrants the granting of such petition.
       ``(e) If the statute authorizing the rule which is the 
     subject of the petition provides procedures or standards for 
     an alternative method of compliance the petition shall be 
     reviewed solely under the terms of the statute.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

     ``Sec. 631. Definitions

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

     ``Sec. 632. Applicability

       ``(a) In General.--Except as provided in subsection (c), 
     for each proposed and final major rule, a primary purpose of 
     which is to protect human health, safety, or the environment, 
     or a consequence of which is a substantial substitution risk, 
     that is proposed by an agency after the date of enactment of 
     this subchapter, or is pending on the date of enactment of 
     this subchapter, the head of each agency shall prepare a risk 
     assessment in accordance with this subchapter.
       ``(b) Application of Principles.--(1) Except as provided in 
     subsection (c), the head of each agency shall apply the 
     principles in this subchapter to any risk assessment 
     conducted to support a determination by the agency of risk to 
     human health, safety, or the environment, if such 
     determination would be likely to have an effect on the United 
     States economy equivalent to that of a major rule.
       ``(2) In applying the principles of this subchapter to risk 
     assessments other than those in subsections (a), (b)(1), and 
     (c), the head of each agency shall publish, after notice and 
     public comment, guidelines for the conduct of such other risk 
     assessments that adapt the principles of this subchapter in a 
     manner consistent with section 633(a)(4) and the risk 
     assessment and risk management needs of the agency.
       ``(3) An agency shall not, as a condition for the issuance 
     or modification of a permit, conduct, or require any person 
     to conduct, a risk assessment, except if the agency finds 
     that the risk assessment meets the requirements of section 
     633 (a) through (f).
       ``(c) Exceptions.--(1) This subchapter shall not apply to 
     risk assessments performed with respect to--
       ``(A) a situation for which the agency finds good cause 
     that conducting a risk assessment is impracticable due to an 
     emergency or health and safety threat that is likely to 
     result in significant harm to the public or natural 
     resources;
       ``(B) a rule or agency action that authorizes the 
     introduction into commerce, or initiation of manufacture, of 
     a substance, mixture, or product, or recognizes the 
     marketable status of a product;
       ``(C) a human health, safety, or environmental inspection, 
     an action enforcing a statutory provision, rule, or permit, 
     or an individual facility or site permitting action, except 
     to the extent provided by subsection (b)(3);
       ``(D) a screening analysis clearly identified as such; or
       ``(E) product registrations, reregistrations, tolerance 
     settings, and reviews of premanufacture notices under the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136 et seq.) and the Toxic Substances Control Act (15 U.S.C. 
     2601 et seq.).
       ``(2) An analysis shall not be treated as a screening 
     analysis for the purposes of paragraph (1)(D) if the result 
     of the analysis is used--
       ``(A) as the basis for imposing a restriction on a 
     previously authorized substance, product, or activity after 
     its initial introduction into manufacture or commerce; or
       ``(B) as the basis for a formal determination by the agency 
     of significant risk from a substance or activity.
       ``(3) This subchapter shall not apply to any food, drug, or 
     other product label or labeling, or to any risk 
     characterization appearing on any such label.

     ``Sec. 633. Principles for risk assessments

       ``(a) In General.--(1) The head of each agency shall design 
     and conduct risk assessments in a manner that promotes 
     rational and informed risk management decisions and informed 
     public input into the process of making agency decisions.
       ``(2) The head of each agency shall establish and maintain 
     a distinction between risk assessment and risk management.
       ``(3) An agency may take into account priorities for 
     managing risks, including the types of information that would 
     be important in evaluating a full range of alternatives, in 
     developing priorities for risk assessment activities.
       ``(4) In conducting a risk assessment, the head of each 
     agency shall employ the level of detail and rigor considered 
     by the agency as appropriate and practicable for reasoned 
     decisionmaking in the matter involved, proportionate to the 
     significance and complexity of the potential agency action 
     and the need for expedition.
       ``(5) An agency shall not be required to repeat discussions 
     or explanations in each risk assessment required under this 
     subchapter if there is an unambiguous reference to a relevant 
     discussion or explanation in another reasonably available 
     agency document that was prepared consistent with this 
     section.
       ``(b) Iterative Process.--(1) Each agency shall develop and 
     use an iterative process for risk assessment, starting with 
     relatively inexpensive screening analyses and progressing to 
     more rigorous analyses, as circumstances or results warrant.
       ``(2) In determining whether or not to proceed to a more 
     detailed analysis, the head of the agency shall take into 
     consideration whether or not use of additional data or the 
     analysis thereof would significantly change the estimate of 
     risk and the resulting agency action.
       ``(c) Data Quality.--(1) The head of each agency shall base 
     each risk assessment only on the best reasonably available 
     scientific data and scientific understanding, including 
     scientific information that finds or fails to find a 
     correlation between a potential hazard and an adverse effect, 
     and data regarding exposure and other relevant physical 
     conditions that are reasonably expected to be encountered.
       ``(2) The agency shall select data for use in a risk 
     assessment based on a reasoned analysis of the quality and 
     relevance of the data, and shall describe such analysis.
       ``(3) In making its selection of data, the agency shall 
     consider whether the data were published in the peer-reviewed 
     scientific literature, or developed in accordance with good 
     laboratory practice or published or other appropriate 
     protocols to ensure data quality, such as the standards for 
     the development of test data promulgated pursuant to section 
     4 of the Toxic Substances Control Act (15 U.S.C. 2603), and 
     the standards for data requirements promulgated pursuant to 
     section 3 of the Federal Insecticide, Fungicide, and 
     Rodenticide Act (7 U.S.C. 136a), or other form of independent 
     evaluation.
       ``(4) Subject to paragraph (3), relevant scientific data 
     submitted by interested parties shall be reviewed and 
     considered by the agency in the analysis under paragraph (2).
       ``(5) When conflicts among scientific data appear to exist, 
     the risk assessment shall include a discussion of all 
     relevant information including the likelihood of alternative 
     interpretations of the data and emphasizing--
       ``(A) postulates that represent the most reasonable 
     inferences from the supporting scientific data; and
       ``(B) when a risk assessment involves an extrapolation from 
     toxicological studies, data with the greatest scientific 
     basis of support for the resulting harm to affected 
     individuals, populations, or resources.
       ``(6) The head of an agency shall not automatically 
     incorporate or adopt any recommendation or classification 
     made by any foreign government, the United Nations, any 
     international governmental body or standards-making 
     organization, concerning the health effects value of a 
     substance, except as provided in paragraph (2) of this 
     subsection. Nothing in this paragraph shall be construed to 
     affect the implementation or application of any treaty or 
     international trade agreement to which the United States is a 
     party.
       ``(d) Use of Policy Judgments.--(1) An agency shall not use 
     policy judgments, including default assumptions, inferences, 

[[Page S9548]]
     models or safety factors, when relevant and adequate scientific data 
     and scientific understanding, including site-specific data, 
     are available. The agency shall modify or decrease the use of 
     policy judgments to the extent that higher quality scientific 
     data and understanding become available.
       ``(2) When a risk assessment involves choice of a policy 
     judgment, the head of the agency shall--
       ``(A) identify the policy judgment and its scientific or 
     policy basis, including the extent to which the policy 
     judgment has been validated by, or conflicts with, empirical 
     data;
       ``(B) explain the basis for any choices among policy 
     judgments; and
       ``(C) describe reasonable alternative policy judgments that 
     were not selected by the agency for use in the risk 
     assessment, and the sensitivity of the conclusions of the 
     risk assessment to the alternatives, and the rationale for 
     not using such alternatives.
       ``(3) An agency shall not inappropriately combine or 
     compound multiple policy judgments.
       ``(4) The agency shall, subject to notice and opportunity 
     for public comment, develop and publish guidelines describing 
     the agency's default policy judgments and how they were 
     chosen, and guidelines for deciding when and how, in a 
     specific risk assessment, to adopt alternative policy 
     judgments or to use available scientific information in place 
     of a policy judgment.
       ``(e) Risk Characterization.--In each risk assessment, the 
     agency shall include in the risk characterization, as 
     appropriate, each of the following:
       ``(1) A description of the hazard of concern.
       ``(2) A description of the populations or natural resources 
     that are the subject of the risk assessment.
       ``(3) An explanation of the exposure scenarios used in the 
     risk assessment, including an estimate of the corresponding 
     population at risk and the likelihood of such exposure 
     scenarios.
       ``(4) A description of the nature and severity of the harm 
     that could plausibly occur.
       ``(5) A description of the major uncertainties in each 
     component of the risk assessment and their influence on the 
     results of the assessment.
       ``(f) Presentation of Risk Assessment Conclusions.--(1) To 
     the extent feasible and scientifically appropriate, the head 
     of an agency shall--
       ``(A) express the overall estimate of risk as a range or 
     probability distribution that reflects variabilities, 
     uncertainties and data gaps in the analysis;
       ``(B) provide the range and distribution of risks and the 
     corresponding exposure scenarios, identifying the reasonably 
     expected risk to the general population and, where 
     appropriate, to more highly exposed or sensitive 
     subpopulations; and
       ``(C) where quantitative estimates of the range and 
     distribution of risk estimates are not available, describe 
     the qualitative factors influencing the range of possible 
     risks.
       ``(2) When scientific data and understanding that permits 
     relevant comparisons of risk are reasonably available, the 
     agency shall use such information to place the nature and 
     magnitude of risks to human health, safety, and the 
     environment being analyzed in context.
       ``(3) When scientifically appropriate information on 
     significant substitution risks to human health, safety, or 
     the environment is reasonably available to the agency, or is 
     contained in information provided to the agency by a 
     commentator, the agency shall describe such risks in the risk 
     assessments.
       ``(g) Peer Review.--(1) Each agency shall provide for peer 
     review in accordance with this section of any risk assessment 
     subject to the requirements of this subchapter that forms 
     that basis of any major rule or a major environmental 
     management activity.
       ``(2) Each agency shall develop a systematic program for 
     balanced, independent, and external peer review that--
       ``(A) shall provide for the creation or utilization of peer 
     review panels, expert bodies, or other formal or informal 
     devices that are balanced and comprised of participants 
     selected on the basis of their expertise relevant to the 
     sciences involved in regulatory decisions and who are 
     independent of the agency program that developed the risk 
     assessment being reviewed;
       ``(B) shall not exclude any person with substantial and 
     relevant expertise as a participant on the basis that such 
     person has a potential interest in the outcome, if such 
     interest is fully disclosed to the agency, and the agency 
     includes such disclosure as part of the record, unless the 
     result of the review would have a direct and predictable 
     effect on a substantial financial interest of such person;
       ``(C) shall provide for a timely completed peer review, 
     meeting agency deadlines, that contains a balanced 
     presentation of all considerations, including minority 
     reports and agency response to all significant peer review 
     comments; and
       ``(D) shall provide adequate protections for confidential 
     business information and trade secrets, including requiring 
     panel members to enter into confidentiality agreements.
       ``(3) Each peer review shall include a report to the 
     Federal agency concerned detailing the scientific and 
     technical merit of data and the methods used for the risk 
     assessment, and shall identify significant peer review 
     comments. Each agency shall provide a written response to all 
     significant peer review comments. All peer review comments, 
     conclusions, composition of the panels, and the agency's 
     responses shall be made available to the public and shall be 
     made part of the administrative record for purposes of 
     judicial review of any final agency action.
       ``(4)(A) The Director of the Office of Science and 
     Technology Policy shall develop a systematic program to 
     oversee the use and quality of peer review of risk 
     assessments.
       ``(B) The Director or the designee of the President may 
     order an agency to conduct peer review for any risk 
     assessment or cost-benefit analysis that is likely to have a 
     significant impact on public policy decisions, or that would 
     establish an important precedent.
       ``(5) The proceedings of peer review panels under this 
     section shall not be subject to the Federal Advisory 
     Committee Act.
       ``(h) Public Participation.--The head of each agency shall 
     provide appropriate opportunities for public participation 
     and comment on risk assessments.

     ``Sec. 634. Petition for review of a major free-standing risk 
       assessment

       ``(a) Any interested person may petition an agency to 
     conduct a scientific review of a risk assessment conducted or 
     adopted by the agency, except for a risk assessment used as 
     the basis for a major rule or a site-specific risk 
     assessment.
       ``(b) The agency shall utilize external peer review, as 
     appropriate, to evaluate the claims and analyses in the 
     petition, and shall consider such review in making its 
     determination of whether to grant the petition.
       ``(c) The agency shall grant the petition if the petition 
     establishes that there is a reasonable likelihood that--
       ``(1)(A) the risk assessment that is the subject of the 
     petition was carried out in a manner substantially 
     inconsistent with the principles in section 633; or
       ``(B) the risk assessment that is the subject of the 
     petition does not take into account material significant new 
     scientific data and scientific understanding;
       ``(2) the risk assessment that is the subject of the 
     petition contains significantly different results than if it 
     had been properly conducted pursuant to subchapter III; and
       ``(3) a revised risk assessment will provide the basis for 
     reevaluating an agency determination of risk, and such 
     determination currently has an effect on the United States 
     economy equivalent to that of major rule.
       ``(d) A decision to grant, or final action to deny, a 
     petition under this subsection shall be made not later than 
     180 days after the petition is submitted.
       ``(e) If the agency grants the petition, it shall complete 
     its review of the risk assessment not later than 1 year after 
     its decision to grant the petition. If the agency revises the 
     risk assessment, in response to its review, it shall do so in 
     accordance with section 633.

     ``Sec. 635. Comprehensive risk reduction

       ``(a) Setting Priorities.--The head of each agency with 
     programs to protect human health, safety, or the environment 
     shall set priorities for the use of resources available to 
     address those risks to human health, safety, and the 
     environment, with the goal of achieving the greatest overall 
     net reduction in risks with the public and private sector 
     resources expended.
       ``(b) Incorporating Risk-Based Priorities Into Budget and 
     Planning.--The head of each agency in subsection (a) shall 
     incorporate the priorities identified under subsection (a) 
     into the agency budget, strategic planning, regulatory 
     agenda, enforcement, and research activities. When submitting 
     its budget request to Congress and when announcing its 
     regulatory agenda in the Federal Register, each covered 
     agency shall identify the risks that the covered agency head 
     has determined are the most serious and can be addressed in a 
     cost-effective manner using the priorities set under 
     subsection (a), the basis for that determination, and 
     explicitly identify how the agency's requested budget and 
     regulatory agenda reflect those priorities.
       ``(c) Reports by the National Academy of Sciences.--(1) Not 
     later than 6 months after the date of enactment of this 
     section, the Director of the Office of Science and Technology 
     Policy shall enter into an arrangement with the National 
     Academy of Sciences to investigate and report on comparative 
     risk analysis. The arrangement shall provide, to the extent 
     feasible, for--
       ``(A) 1 or more reports evaluating methods of comparative 
     risk analysis that would be appropriate for agency programs 
     related to human health, safety, and the environment to use 
     in setting priorities for activities; and
       ``(B) a report providing a comprehensive and comparative 
     analysis of the risks to human health, safety, and the 
     environment that are addressed by agency programs to protect 
     human health, safety, and the environment, along with 
     companion activities to disseminate the conclusions of the 
     report to the public.
       ``(2) The report or reports prepared under paragraph (1)(A) 
     shall be completed not later than 3 years after the date of 
     enactment of this section. The report under paragraph (1)(B) 
     shall be completed not later than 4 years after the date of 
     enactment of this section, and shall draw, as appropriate, 
     upon the insights and conclusions of the report or reports 
     made under paragraph (1)(A). The companion activities under 
     paragraph (1)(B) shall be completed not later than 5 years 
     after the date of enactment of this section.
       ``(3)(A) The head of an agency with programs to protect 
     human health, safety, and 

[[Page S9549]]
     the environment shall incorporate the recommendations of reports under 
     paragraph (1) in revising any priorities under subsection 
     (a).
       ``(B) The head of the agency shall submit a report to the 
     appropriate Congressional committees of jurisdiction 
     responding to the recommendations from the National Academy 
     of Sciences and describing plans for utilizing the results of 
     comparative risk analysis in agency budget, strategic 
     planning, regulatory agenda, enforcement, and research and 
     development activities.
       ``(4) Following the submission of the report in paragraph 
     (2), for the next 5 years, the head of the agency shall 
     submit, with the budget request submitted to Congress under 
     section 1105(a) of title 31, a description of how the 
     requested budget of the agency and the strategic planning 
     activities of the agency reflect priorities determined using 
     the recommendations of reports issued under subsection (a). 
     The head of the agency shall include in such description--
       ``(A) recommendations on the modification, repeal, or 
     enactment of laws to reform, eliminate, or enhance programs 
     or mandates relating to human health, safety, or the 
     environment; and
       ``(B) recommendation on the modification or elimination of 
     statutory or judicially mandated deadlines,

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

     ``Sec. 636. Rule of construction

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

     ``Sec. 641. Procedures

       ``(a) In General.--The Director or a designee of the 
     President shall--
       ``(1) establish and, as appropriate, revise procedures for 
     agency compliance with this chapter; and
       ``(2) monitor, review, and ensure agency implementation of 
     such procedures.
       ``(b) Public Comment.--Procedures established pursuant to 
     subsection (a) shall only be implemented after opportunity 
     for public comment. Any such procedures shall be consistent 
     with the prompt completion of rulemaking proceedings.
       ``(c) Time for Review.--(1) If procedures established 
     pursuant to subsection (a) include review of any initial or 
     final analyses of a rule required under chapter 6, the time 
     for any such review of any initial analysis shall not exceed 
     90 days following the receipt of the analysis by the 
     Director, or a designee of the President.
       ``(2) The time for review of any final analysis required 
     under chapter 6 shall not exceed 90 days following the 
     receipt of the analysis by the Director, a designee of the 
     President.
       ``(3)(A) The times for each such review may be extended for 
     good cause by the President or by an officer to whom the 
     President has delegated his authority pursuant to section 642 
     for an additional 45 days. At the request of the head of an 
     agency, the President or such an officer may grant an 
     additional extension of 45 days.
       ``(B) Notice of any such extension, together with a 
     succinct statement of the reasons therefor, shall be inserted 
     in the rulemaking file.

     ``Sec. 642. Delegation of authority

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

     ``Sec. 643. Judicial review

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

     ``Sec. 644. Regulatory agenda

       ``The head of each agency shall provide, as part of the 
     semiannual regulatory agenda published under section 602--
       ``(1) a list of risk assessments subject to subsection 632 
     (a) or (b)(1) under preparation or planned by the agency;
       ``(2) a brief summary of relevant issues addressed or to be 
     addressed by each listed risk assessment;
       ``(3) an approximate schedule for completing each listed 
     risk assessment;
       ``(4) an identification of potential rules, guidance, or 
     other agency actions supported or affected by each listed 
     risk assessment; and
       ``(5) the name, address, and telephone number of an agency 
     official knowledgeable about each listed risk assessment.''.
       (b) Regulatory Flexibility Analysis.--
       (1) Final regulatory flexibility analysis.--Section 604 of 
     title 5, United States Code, is amended by adding at the end 
     thereof the following new subsection:
       ``(c)(1) Except as provided in paragraph (2), no final rule 
     for which a final regulatory flexibility analysis is required 
     under this section shall be promulgated unless the agency 
     finds that the final rule minimizes significant economic 
     impact on small entities to the maximum extent possible, 
     consistent with the purposes of this subchapter, the 
     objectives of the rule, and the requirements of applicable 
     statutes.
       ``(2) If an agency determines that a statute requires a 
     rule to be promulgated that does not satisfy the criterion of 
     paragraph (1), the agency shall--
       ``(A) include a written explanation of such determination 
     in the final regulatory flexibility analysis; and
       ``(B) transmit the final regulatory flexibility analysis to 
     Congress when the final rule is promulgated.''.
       (2) Judicial review.--Section 611 of title 5, United States 
     Code, is amended to read as follows:
     ``Sec. 611. Judicial review

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

     an affected small entity may petition for the judicial review 
     of such certification, analysis, or failure to prepare such 
     analysis, in accordance with this subsection. A court having 
     jurisdiction to review such rule for compliance with section 
     553 or under any other provision of law shall have 
     jurisdiction over such petition.
       ``(2)(A) Notwithstanding any other provision of law, an 
     affected small entity shall have 1 year after the effective 
     date of the final rule to challenge the certification, 
     analysis or failure to prepare an analysis required by this 
     subchapter with respect to any such rule.
       ``(B) If an agency delays the issuance of a final 
     regulatory flexibility analysis pursuant to section 608(b), a 
     petition for judicial review under this subsection may be 
     filed not later than 1 year after the date the analysis is 
     made available to the public.
       ``(3) For purposes of this subsection, the term `affected 
     small entity' means a small entity that is or will be subject 
     to the provisions of, or otherwise required to comply with, 
     the final rule.
       ``(4) Nothing in this subsection shall be construed to 
     limit the authority of any court to stay the effective date 
     of any rule or provision thereof under any other provision of 
     law.
       ``(5)(A) Notwithstanding section 605, if the court 
     determines, on the basis of the court's review of the 
     rulemaking record, that there is substantial evidence that 
     the rule would have a significant economic impact on a 
     substantial number of small entities, the court shall order 
     the agency to prepare a final regulatory flexibility analysis 
     that satisfies the requirements of section 604.
       ``(B) If the agency prepared a final regulatory flexibility 
     analysis, the court shall order the agency to take corrective 
     action consistent with section 604 if the court determines, 
     on the basis of the court's review of the rulemaking record, 
     that the final regulatory flexibility analysis does not 
     satisfy the requirements of section 604.
       ``(6) The court shall stay the rule and grant such other 
     relief as the court determines to be appropriate if, by the 
     end of the 90-day period beginning on the date of the order 
     of the court pursuant to paragraph (5), the agency fails, as 
     appropriate--
       ``(A) to prepare the analysis required by section 604; or
       ``(B) to take corrective action consistent with section 
     604.
       ``(b) In an action for the judicial review of a rule, any 
     regulatory flexibility analysis for such rule (including an 
     analysis prepared or corrected pursuant to subsection (a)(5)) 
     shall constitute part of the whole record of agency action in 
     connection with such review.
       ``(c) Except as otherwise required by the provisions of 
     this subchapter, the court shall apply the same standards of 
     judicial review that govern the review of agency findings 
     under the statute granting the agency authority to conduct 
     the rulemaking.''.
       (c) Revision of Certain Provisions of the Federal Food, 
     Drug, and Cosmetic Act Relating to Testing.--In applying 
     section 409(c)(3)(A), 512(d)(1), or 721(b)(5)(B) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 348(c)(3)(A), 
     360b(d)(1), 379e(b)(5)(B)), the Secretary of Health and Human 
     Services and the Administrator of the Environmental 
     Protection Agency shall not prohibit or refuse to approve a 
     substance or product on the basis of safety, where the 
     substance or product presents a negligible or insignificant 
     foreseeable risk to human health resulting from its intended 
     use.
       (d) Toxic Release Inventory Review.--Section 313(d) of the 
     Emergency Planning 

[[Page S9550]]
     and Community Right-to-Know Act of 1986 (42 U.S.C. 11023(d)) is 
     amended--
       (1) in paragraph (2) by inserting after ``epidemiological 
     or other population studies,'' the following: ``and on the 
     rule of reason, including a consideration of the 
     applicability of such evidence to levels of the chemical in 
     the environment that may result from reasonably anticipated 
     releases''; and
       (2) in subsection (e)(1), by inserting before ``Within 180 
     days'' the following: ``The Administrator shall grant any 
     petition that establishes substantial evidence that the 
     criteria in subparagraph (A) either are or are not met.''.
       (e) Technical and Conforming Amendments.--
       (1) Chapter analysis.--Part I of title 5, United States 
     Code, is amended by striking the chapter heading and table of 
     sections for chapter 6 and inserting the following:
           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS
                  ``SUBCHAPTER I--REGULATORY ANALYSIS

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

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

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

                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Definitions.
``632. Applicability.
``633. Principles for risk assessments.
``634. Petition for review of a major free-standing risk assessment.
``635. Comprehensive risk reduction.
``636. Rule of construction.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

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

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

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

     SEC. 5. JUDICIAL REVIEW.

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

     ``Sec. 706. Scope of review

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

     ``Sec. 707. Consent decrees

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

     ``Sec. 708. Affirmative defense

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

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

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

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

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

       ``(a)(1)(A) Before a rule can take effect as a final rule, 
     the Federal agency promulgating such rule shall submit to 
     each House of the Congress and to the Comptroller General a 
     report containing--
       ``(i) a copy of the rule;
       ``(ii) a concise general statement relating to the rule; 
     and
       ``(iii) the proposed effective date of the rule.
       ``(B) The Federal agency promulgating the rule shall make 
     available to each House of Congress and the Comptroller 
     General, upon request--
       ``(i) a complete copy of the cost-benefit analysis of the 
     rule, if any;
       ``(ii) the agency's actions relevant to sections 603, 604, 
     605, 607, and 609;
       ``(iii) the agency's actions relevant to sections 202, 203, 
     204, and 205 of the Unfunded Mandates Reform Act of 1995; and
       ``(iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders, such as 
     Executive Order No. 12866.
       ``(C) Upon receipt, each House shall provide copies to the 
     Chairman and Ranking Member of each committee with 
     jurisdiction.
       ``(2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction to each 
     House of the Congress by the end of 12 calendar days after 
     the submission or publication date as provided in section 
     802(b)(2). The report of the Comptroller General shall 
     include an assessment of the agency's compliance with 
     procedural steps required by paragraph (1)(B).
       ``(B) Federal agencies shall cooperate with the Comptroller 
     General by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       ``(3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect as a final rule, the latest 
     of--
       ``(A) the later of the date occurring 60 days after the 
     date on which--
       ``(i) the Congress receives the report submitted under 
     paragraph (1); or
       ``(ii) the rule is published in the Federal Register;
       ``(B) if the Congress passes a joint resolution of 
     disapproval described under section 802 relating to the rule, 
     and the President signs a veto of such resolution, the 
     earlier date--
       ``(i) on which either House of Congress votes and fails to 
     override the veto of the President; or
       ``(ii) occurring 30 session days after the date on which 
     the Congress received the veto and objections of the 
     President; or
       ``(C) the date the rule would have otherwise taken effect, 
     if not for this section (unless a joint resolution of 
     disapproval under section 802 is enacted).
       ``(4) Except for a major rule, a rule shall take effect as 
     otherwise provided by law after submission to Congress under 
     paragraph (1).
       ``(5) Notwithstanding paragraph (3), the effective date of 
     a rule shall not be delayed by operation of this chapter 
     beyond the date on which either House of Congress votes to 
     reject a joint resolution of disapproval under section 802.
       ``(b) A rule shall not take effect (or continue) as a final 
     rule, if the Congress passes a joint resolution of 
     disapproval described under section 802.
       ``(c)(1) Notwithstanding any other provision of this 
     section (except subject to paragraph (3)), a rule that would 
     not take effect by reason of this chapter may take effect, if 
     the President makes a determination under paragraph (2) and 
     submits written notice of such determination to the Congress.
       ``(2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the rule should take effect 
     because such rule is--

[[Page S9551]]

       ``(A) necessary because of an imminent threat to health or 
     safety or other emergency;
       ``(B) necessary for the enforcement of criminal laws;
       ``(C) necessary for national security; or
       ``(D) issued pursuant to a statute implementing an 
     international trade agreement.
       ``(3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 802 or the effect of a joint resolution of 
     disapproval under this section.
       ``(d)(1) In addition to the opportunity for review 
     otherwise provided under this chapter, in the case of any 
     rule that is published in the Federal Register (as a rule 
     that shall take effect as a final rule) during the period 
     beginning on the date occurring 60 days before the date the 
     Congress adjourns sine die through the date on which the 
     succeeding Congress first convenes, section 802 shall apply 
     to such rule in the succeeding Congress.
       ``(2)(A) In applying section 802 for purposes of such 
     additional review, a rule described under paragraph (1) shall 
     be treated as though--
       ``(i) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the 15th 
     session day after the succeeding Congress first convenes; and
       ``(ii) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(B) Nothing in this paragraph shall be construed to 
     affect the requirement under subsection (a)(1) that a report 
     shall be submitted to Congress before a final rule can take 
     effect.
       ``(3) A rule described under paragraph (1) shall take 
     effect as a final rule as otherwise provided by law 
     (including other subsections of this section).
       ``(e)(1) Section 802 shall apply in accordance with this 
     subsection to any major rule that is published in the Federal 
     Register (as a rule that shall take effect as a final rule) 
     during the period beginning on November 20, 1994, through the 
     date on which the Comprehensive Regulatory Reform Act of 1995 
     takes effect.
       ``(2) In applying section 802 for purposes of Congressional 
     review, a rule described under paragraph (1) shall be treated 
     as though--
       ``(A) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the date of 
     enactment of the Comprehensive Regulatory Reform Act of 1995; 
     and
       ``(B) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(3) The effectiveness of a rule described under paragraph 
     (1) shall be as otherwise provided by law, unless the rule is 
     made of no force or effect under section 802.
       ``(f) Any rule that takes effect and later is made of no 
     force or effect by enactment of a joint resolution under 
     section 802 shall be treated as though such rule had never 
     taken effect.
       ``(g) If the Congress does not enact a joint resolution of 
     disapproval under section 802, no court or agency may infer 
     any intent of the Congress from any action or inaction of the 
     Congress with regard to such rule, related statute, or joint 
     resolution of disapproval.

     ``Sec. 802. Congressional disapproval procedure

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

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

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

     ``Sec. 804. Definitions

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

     ``Sec. 805. Judicial review

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

     ``Sec. 806. Applicability; severability

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

     ``Sec. 807. Exemption for monetary policy

       ``Nothing in this chapter shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall take effect on the date of enactment of this Act and 
     shall 

[[Page S9552]]
     apply to any rule that takes effect as a final rule on or after such 
     effective date.
       (d) Technical Amendment.--The table of chapters for part I 
     of title 5, United States Code, is amended by inserting 
     immediately after the item relating to chapter 7 the 
     following:

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

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

     SEC. 8. STUDIES AND REPORTS.

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

     SEC. 9. MISCELLANEOUS PROVISIONS.

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

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