[The Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions]
[The Regulatory Plan]
[From the U.S. Government Printing Office, www.gpo.gov]




                          The Regulatory Plan 


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                INTRODUCTION TO THE FALL 2003 REGULATORY PLAN

                Federal regulation is a fundamental instrument of 
                national policy. It is one of the three major tools -- 
                in addition to spending and taxing -- used to implement 
                policy. It is used to advance numerous public 
                objectives, including homeland security, environmental 
                protection, educational quality, food safety, 
                transportation safety, health care quality, equal 
                employment opportunity, energy security, immigration 
                control, and consumer protection. The Office of 
                Management and Budget's (OMB) Office of Information and 
                Regulatory Affairs (OIRA) is responsible for overseeing 
                and coordinating the Federal Government's regulatory 
                policies.

                The Regulatory Plan is published as part of the fall 
                edition of the Unified Agenda of Federal Regulatory and 
                Deregulatory Actions, and serves as a statement of the 
                Administration's regulatory and deregulatory policies 
                and priorities. The purpose of the Plan is to make the 
                regulatory process more accessible to the public and to 
                ensure that the planning and coordination necessary for 
                a well-functioning regulatory process occurs. The Plan 
                identifies regulatory priorities and contains 
                information about the most significant regulatory 
                actions that agencies expect to undertake in the coming 
                year. An accessible regulatory process enables citizen 
                centered service, which is a vital part of the 
                President's Management Agenda.

                Federal Regulatory Policy

                The Bush Administration supports Federal regulations 
                that are sensible and based on sound science, 
                economics, and the law. Accordingly, the Administration 
                is striving for a regulatory process that adopts new 
                rules when markets fail to serve the public interest, 
                simplifies and modifies existing rules to make them 
                more effective or less costly or less intrusive, and 
                rescinds outmoded rules whose benefits do not justify 
                their costs. In pursuing this agenda, OIRA has adopted 
                an approach based on the principles of regulatory 
                analysis and policy espoused in Executive Order 12866, 
                signed by President Clinton in 1993.

                Effective regulatory policy is not uniformly pro-
                regulation or anti-regulation. It begins with the 
                authority granted under the law. Within the discretion 
                available to the regulating agency by its statutory 
                authority, agencies apply a number of principles 
                articulated in Executive Order 12866 (as well as other 
                orders, such as Executive Order 13211, ``Actions 
                Concerning Regulations That Significantly Affect Energy 
                Supply, Distribution, or Use,'' signed May 18, 2001, 66 
                FR 28355), in order to design regulations that achieve 
                their ends in the most efficient way. This means 
                bringing to bear on the policy problem sound economic 
                principles, the highest quality information, and the 
                best possible science. This is not always an easy task, 
                as sometimes economic and scientific information may 
                point in very different directions, and therefore 
                designing regulations does not mean just the rote 
                application of quantified data to reach policy 
                decisions. In making regulatory decisions, we expect 
                agencies to consider not only benefit and cost items 
                that can be quantified and expressed in monetary units, 
                but also other attributes and factors that cannot be 
                integrated readily in a benefit-cost framework, such as 
                fairness and privacy. However, effective regulation is 
                the result

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                of the careful use of all available high-quality data, 
                and the application of broad principles established by 
                the President.

                In pursuing this goal of establishing an effective, 
                results-oriented regulatory system, the Bush 
                Administration has increased the level of public 
                involvement and transparency in its review and 
                clearance of new and existing regulations. First, in 
                2002 OMB sought public comment on a major regulatory 
                reform initiative. In response to this public 
                solicitation, OMB received recommendations on 316 
                distinct rules, guidance documents, and paperwork 
                requirements from over 1,700 commenters. In its review 
                of the 316 nominations, OMB found that 109 of the 
                reform ideas were already being addressed by agencies, 
                and another 51 ideas were referred to independent 
                agencies for their consideration. Of the 156 reform 
                nominations that OMB determined were ripe for 
                consideration by Cabinet-level agencies and the 
                Environmental Protection Agency, agencies have decided 
                to pursue 34 rules and 11 guidance documents for 
                reform, are undecided about 26 rules and 4 guidance 
                documents, and have decided not to pursue reform of 62 
                rules and 19 guidance documents at this time.

                Second, OIRA has enhanced the transparency of OMB's 
                regulatory review process to the public. OIRA's website 
                now enables the public to find information on rules 
                that are formally under review at OMB, have recently 
                been cleared, or have been returned to agencies for 
                reconsideration. OIRA has also increased the amount of 
                information available on its website. In addition to 
                information on meetings and correspondence, OIRA makes 
                available communications from the OIRA Administrator to 
                agencies, including ``prompt letters,'' ``return 
                letters,'' and ``post clearance letters,'' as well as 
                the Administrator's memorandum to the President's 
                Management Council (September 20, 2001) on presidential 
                review of agency rulemaking by OIRA.

                Third, the Bush Administration has moved aggressively 
                to establish basic quality performance goals for all 
                information disseminated by Federal agencies, including 
                information disseminated in support of proposed and 
                final regulations. The Federal agencies issued 
                guidelines on October 1, 2002 under the Information 
                Quality Law to ensure the ``quality, objectivity, 
                utility, and integrity'' of all information 
                disseminated by Federal agencies. Under these 
                guidelines, Federal agencies are taking appropriate 
                steps to incorporate the information quality 
                performance standards into agency information 
                dissemination practices, and developing pre-
                dissemination review procedures to substantiate the 
                quality of information before it is disseminated. Under 
                the agency information quality guidelines, ``affected 
                persons'' can request that the agencies correct 
                information if they believe that scientific, technical, 
                economic, statistical or other information disseminated 
                does not meet the agency and OMB standards. If the 
                requestor is dissatisfied with the initial agency 
                response to a correction request, an appeal opportunity 
                is provided by the agencies. To date, agencies have 
                received and responded to approximately 30 complaints 
                that appear to be stimulated by the Information Quality 
                Law. Although we are still in the early phases of 
                implementation, agencies are aware that ensuring the 
                high quality of government information disseminations 
                is a high priority of the Administration.

                As part of its efforts to improve the quality, 
                objectivity, utility, and integrity of information 
                disseminated by the Federal agencies, OMB recently 
                issued a proposed bulletin to realize the benefits of 
                meaningful peer review of the most important science 
                disseminated by the Federal government regarding 
                regulatory topics. Through the combination of ongoing 
                agency commitment, public interaction with the 
                agencies, and OMB oversight, the underlying information 
                and resulting analyses that agencies rely upon in 
                developing regulations can become even more effective 
                and reliable.


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                Fourth, the Administration is currently increasing the 
                impact of OMB's analytical perspective. The OIRA 
                Administrator is using the ``prompt letter'' to 
                agencies as a new way to suggest promising regulatory 
                priorities, and highlight issues that may warrant 
                regulatory attention. Though not meant to have legal 
                authority, these prompt letters are designed to bring 
                issues to the attention of agencies in a transparent 
                manner that permits public scrutiny and debate. Prompt 
                letters may highlight regulations that should be 
                pursued, rescinded, revised, or further investigated. 
                For example, OIRA's first set of prompts has suggested 
                lifesaving opportunities at FDA, NHTSA, OSHA and EPA. 
                In a letter to FDA, OIRA suggested that priority be 
                given to completing a promising rulemaking (started in 
                the previous Administration), to require that food 
                labels report the trans-fatty acid content of foods. 
                (Trans-fats are now recognized as a significant 
                contributor to coronary heart disease.) FDA has now 
                issued a final rule that will require the disclosure of 
                trans-fat content in food labels. Similarly, OSHA has 
                responded to an OIRA prompt letter by notifying each 
                employer in the country of the lifesaving effects and 
                cost-effectiveness of automatic defibrillators, a 
                lifesaving technology designed to save lives during 
                sudden cardiac arrest.

                In addition to increasing the level of public 
                involvement and transparency in its review of 
                regulations, the Bush Administration has sought to 
                enhance the role of analysis in the development of 
                effective regulations. OIRA, for example, recently 
                issued revised guidance to agencies on regulatory 
                analysis \1\ Key features of the revised guidance 
                include more emphasis on cost-effectiveness and more 
                careful evaluation of qualitative and intangible 
                values. OIRA was very interested in updating the 
                guidance in light of these and other innovations now 
                commonplace in the research community. The 2003 
                Regulatory Plan continues OIRA's effort to ensure 
                coordination across Federal agencies in pursuing 
                analytically sound regulatory policies.

                The Administration's 2003 Regulatory Priorities

                With regard to Federal regulation, the Bush 
                Administration's objective is quality, not quantity. 
                Those rules that are adopted promise to be more 
                effective, less intrusive, and more cost-effective in 
                achieving national objectives while demonstrating 
                greater durability in the face of political and legal 
                attack. The Regulatory Plan is integral to enhancing 
                the quality of Federal regulations, and OMB seeks to 
                ensure that the public is provided with the information 
                needed to understand and comment on the Federal 
                regulatory agenda. Accordingly, the 2003 Regulatory 
                Plan highlights the following themes:

                        1. regulations that are related to the events 
                            of September 11, 2001;

                        2. regulations that are of particular concern 
                            to small businesses;

                        3. regulations that were among those nominated 
                            by the public as reform candidates last 
                            year (see OMB's 2003 Report to Congress on 
                            the Costs and Benefits of Federal 
                            Regulations); and

                        4. issues that have been the subject of an OIRA 
                            ``prompt letter.''

                ------------

                \1\ See Circular A-4, ``Regulatory Analysis,'' 
                published as part of OMB's 2003 Report to Congress on 
                the Costs and Benefits of Federal Regulations. The 
                report is available on OMB's website at: http://
www.whitehouse.gov/omb/inforeg/2003--cost-ben--final--
rpt.pdf


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                Specifically, the Administration's regulatory 
                priorities can be grouped into five national policy 
                objectives: (1) strengthening economic performance; (2) 
                reducing barriers to the growth of small businesses; 
                (3) improving public health and safety; (4) enhancing 
                environmental protection; and (5) ensuring homeland 
                security. The Administration is committed to pursuing 
                regulatory actions that achieve each of these goals. 
                Below are examples of regulatory priorities in the 
                upcoming year that address each objective.

                Strengthening Economic Performance 

                One of the Administration's primary goals is to 
                strengthen the country's economic performance. Agencies 
                across the Federal Government are actively pursuing 
                this goal through regulatory changes.The Department of 
                Housing and Urban Development is undertaking 
                rulemakings on simplifying and improving the process of 
                obtaining mortgages to reduce settlement costs to 
                consumers. The rule simplifies the mortgage application 
                process and allows a greater understanding of the 
                upfront and long-term costs of a mortgage. The rule 
                should strengthen market competition among mortgage 
                providers and ultimately lower costs to consumers.

                Similarly, the Department of Transportation will 
                conclude a review of its Computer Reservations System 
                Regulations. The Department regulates computer 
                reservations systems owned by airlines or airline 
                affiliates that are used by travel agencies. The 
                current rules were designed to prevent the systems from 
                unreasonably prejudicing the competitive position of 
                other airlines and to ensure that travel agencies would 
                provide accurate and unbiased information to the 
                public. The Department is reexamining its rules to see 
                whether they should be readopted and, if so, whether 
                they should be changed in response to greater use of 
                the Internet in airline reservations and ticketing and 
                changes in the industry.

                Reducing Barriers to the Growth of Small Business

                This Administration has endeavored to encourage the 
                growth of small businesses in our economy. As President 
                George W. Bush has noted, ``Wealth is created by 
                Americans -- by creativity and enterprise and risk-
                taking. But government can create an environment where 
                businesses and entrepreneurs and families can dream and 
                flourish.'' To assist small businesses, the Small 
                Business Administration (SBA) will work to decrease the 
                complexity of small business size standards, thereby 
                encouraging small businesses to participate in the 
                Federal Government's small business programs. The SBA 
                intends to reduce the number of different size 
                standards levels. This restructuring will simplify the 
                identification of small businesses and the use of size 
                standards in Federal small business programs.

                Improving Public Health and Safety 

                The Federal Government's role in improving public 
                health and safety is broad in scope. The 
                Administration's 2003 regulatory priorities include a 
                Department of Labor rulemaking on child labor. This 
                regulation will set forth the permissible industries 
                and occupations in which 14- and 15-year-olds may be 
                employed, and specify the number of hours in a day and 
                in a week, and time periods within a day, that such 
                minors may be employed.

                The Department of Health and Human Services' Food and 
                Drug Administration (FDA) will issue a rule on Reducing 
                Medical Errors and Enhancing

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                Patient Safety. An upcoming final rule will require 
                human drug products to have a scannable bar code that 
                will reduce medication errors.

                Enhancing Environmental Protection

                Environmental protection is an integral consideration 
                in U.S. policies concerning natural resources, human 
                health, economic growth, energy, transportation, 
                agriculture, industry, and international trade. These 
                factors are similarly considered in establishing 
                environmental policy. The Administration is dedicated 
                to enhancing environmental protection through smart 
                regulations, based on the best scientific data 
                available.

                The Environmental Protection Agency (EPA) has proposed 
                a rule to reduce the particulate matter and nitrogen 
                oxide emissions from diesel-powered non-road vehicles 
                and equipment. Non-road engines emit significant 
                amounts of fine particles and nitrogen oxide emissions; 
                these pollutants are associated with a variety of 
                adverse health effects, ranging from lost work days and 
                greater numbers of hospital admissions to premature 
                mortality. The proposal will evaluate not only new 
                emission control devices that would be required for new 
                engines, but also the reductions in sulfur levels that 
                are likely to be needed to enable the control systems 
                to operate effectively. This comprehensive systems 
                approach is similar to that taken for the heavy-duty 
                diesel highway rule for trucks and buses that takes 
                effect in the 2006-2007 timeframe. EPA plans to publish 
                a final rule in spring 2004.

                EPA has promulgated two companion rules designed to 
                protect drinking water against the risks of both 
                microbial pathogens and the disinfectants that are used 
                to control them. The rules will enhance existing 
                monitoring and treatment requirements to ensure that 
                risks from disinfection byproducts, which have been 
                linked to various adverse health effects, are 
                minimized, without compromising the important 
                protection they provide against pathogens.

                Ensuring Homeland Security

                In its continued efforts to prevent future security 
                threats and provide relief for individuals affected by 
                the tragedies of the September 11, 2001 terrorist 
                attacks, the Federal Government is revisiting and 
                establishing practices and procedures to strengthen 
                homeland security. Several agencies, including the 
                Departments of Justice, Transportation, Labor, Health 
                and Human Services, Commerce, the Office of Personnel 
                Management, Small Business Administration, and the 
                Office of Management and Budget, issued new 
                regulations. Furthermore, these agencies are working to 
                coordinate their rulemaking activities with those from 
                the Department of Homeland Security.

                The Administration will continue to pursue regulatory 
                actions necessary to ensure homeland security. The 
                Department of Homeland Security will conclude work on a 
                Trade Act regulation that will require the submission 
                of arrival and departure manifests electronically in 
                advance of an aircraft or vessel's arrival in or 
                departure from the United States. The Department will 
                also work on a regulation for the critical 
                infrastructure program, which will determine the 
                receipt, care, and storage procedures of critical 
                infrastructure information voluntarily submitted by the 
                public. The protection of critical infrastructure 
                reduces the vulnerability of the United States to acts 
                of terrorism. Furthermore, the Department will propose 
                a rule which will provide critical incentives for the 
                development and deployment of antiterrorism 
                technologies.


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                Conclusion

                Smarter regulatory policies, created through public 
                participation, transparency, and cooperation across 
                Federal agencies, seek to accomplish these five 
                national objectives. Some of the following department 
                or agency plans provide information on regulatory 
                priorities in the context of these specific programs 
                and initiatives. All agencies' plans are a reflection 
                of the Administration's Federal Regulatory Policy 
                objectives, which aim at implementing an effective and 
                results-oriented regulatory system.
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