congress focuses on regulatory process

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GOVERNMENT Legislation Congress focuses on regulatory process S ince the 104th Congress convened on Jan. 4, the House has set a torrid legislative pace. And at first the Senate kept up. The Congressional Accountability Act, H.R. 1 and S. 2, was a top priority of the new leadership in both branches of Congress and had strong Democratic support. So the legislation—which requires Congress to comply with the same employment, discrimination, occupational safety and health, and other requirements that it imposes on other orga- nizations, both now and in the future—was signed into law by President Clinton before the month was out. House Republicans kept going, passing in quick succession legislation implementing many provisions of their "Contract With America" dealing with "onerous" federal regulations. The first regulatory reform bill to reach the floor, however, wasn't part of the contract at all. That was H.R. 450, which es- sentially imposes a yearlong freeze on federal regulatory ac- tivity extending back to Nov. 20,1994, and forward to Dec. 31, 1995, or until the contract's regulatory reform provisions call- ing for risk assessment and cost-benefit analysis of new regu- lations are enacted. The Senate Committee on Governmental Affairs approved its version of the regulatory moratorium bill, S. 219, on March 9. Under the Senate bill, the moratorium would be retroactive to Nov. 9, the day after the '94 elections, and would apply only to rules having an impact of $100 million or more a year. The regulatory reform bill that has drawn the most support from the chemical industry and the most opposition from the Administration and environmental groups is H.R. 1022. As passed by the House, the bill requires risk assessments and cost-benefit analyses for all major regulatory proposals, de- fined as those having an annual economic impact of $25 mil- lion or more. If a regulatory proposal has an impact of $100 million or more, these analyses would have to undergo peer review. The bill also contains a provision that would override existing environmental and health and safety laws prohibiting the consideration of costs in setting a standard. The closest things the Senate has to H.R. 1022 are two bills still undergoing committee review. S. 333, the Depart- ment of Energy Risk Management Act, introduced by Sen. Frank Murkowski (R-Alaska), chairman of the Committee on Energy & Natural Resources, started out applying only to DOE environmental cleanup activities. It has since been broadened to require risk assessment and cost-benefit anal- ysis for any proposal by any agency that addresses health, safety, and/or risk to natural resources. S. 343 is a compre- hensive regulatory reform bill introduced by majority lead- er Bob Dole (R-Kan.). As they currently stand, neither bill overrides existing law or includes peer review requirements. However, such provisions may be added when the bills are marked up in committee, a process expected to occur shortly. Janice Long Budgets. (H.R. 845,889) Eliminate or reduce funding for Defense Department dual-use technology program, cut '95 funding for Advanced Technology Program from $431 million to $324 million Congressiona accountability. (H.R. 1, S. 2) Require Congress to adhere to the same laws it imposes on other organizations, including past laws such as the Occupa- tional Safety & Health Act and future laws hnergy. (H.R. 655) Provides Department of Energy with $100 million over three years to fund development of hydrogen energy technologies Environment. (H.R. 961) Comprehensive rewrite of Clean Water Act directs EPA to analyze costs of imple- menting water regulations, complete risk assessments for each proposed level; sets up a wetlands ranking system (S. 333) Sets forth criteria to be used by Department of Energy to prioritize environmental restoration activities on the basis of risk assessments Legal reforms. (H.R. 988, S. 243, 300) Codify standards for admissibility of scientific evidence in court cases, re- quire losers to pay all court costs in certain federal cases (H.R. 956) Sets national standards for product liability suits, caps punitive damage awards, eliminates joint lia- bility for punitive damages Regulatory activity. (H.R. 450, S. 219) Freeze federal rule-making activities retroactively to 11/20/94 and for- ward to 12/31/95 (H.R. 926, S. 100, 291, 343) Require agencies to follow three-step process when promulgating major rules and/ or prepare regulatory impact analyses for each rule, an- alyze alternative approaches Risk assessment. (H.R. 1022, S. 291,343) Mandate rieor- ous assessment of how effectively a rule reduces puolic risks and cost-benefit analysis for any regulation whose cost exceeds a certain threshold Securities litigation. (H.R. 1058, S. 240) Forbid reckless statements that could deceive investors, limit investors' ability to sue companies Takings. (H.R. 925, S. 22,135, 239) Require government to compensate property owners if actions required by federal environmental laws lessen value of that proper- ty by 20% or more Unfunded mandates. (H.R. 5, S. 1) Provide that state and local governments do not have to comply with new federal regulations costing $50 million or more unless the federal government picks up the tab 18 MARCH 20, 1995 C&EN

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Page 1: Congress focuses on regulatory process

GOVERNMENT Legislation

Congress focuses on regulatory process

Since the 104th Congress convened on Jan. 4, the House has set a torrid legislative pace. And at first the Senate kept up. The Congressional Accountability Act, H.R. 1

and S. 2, was a top priority of the new leadership in both branches of Congress and had strong Democratic support. So the legislation—which requires Congress to comply with the same employment, discrimination, occupational safety and health, and other requirements that it imposes on other orga­nizations, both now and in the future—was signed into law by President Clinton before the month was out.

House Republicans kept going, passing in quick succession legislation implementing many provisions of their "Contract With America" dealing with "onerous" federal regulations. The first regulatory reform bill to reach the floor, however, wasn't part of the contract at all. That was H.R. 450, which es­sentially imposes a yearlong freeze on federal regulatory ac­tivity extending back to Nov. 20,1994, and forward to Dec. 31, 1995, or until the contract's regulatory reform provisions call­ing for risk assessment and cost-benefit analysis of new regu­lations are enacted.

The Senate Committee on Governmental Affairs approved its version of the regulatory moratorium bill, S. 219, on March 9. Under the Senate bill, the moratorium would be retroactive to Nov. 9, the day after the '94 elections, and would apply only to rules having an impact of $100 million or more a year.

The regulatory reform bill that has drawn the most support from the chemical industry and the most opposition from the Administration and environmental groups is H.R. 1022. As passed by the House, the bill requires risk assessments and cost-benefit analyses for all major regulatory proposals, de­fined as those having an annual economic impact of $25 mil­lion or more. If a regulatory proposal has an impact of $100 million or more, these analyses would have to undergo peer review. The bill also contains a provision that would override existing environmental and health and safety laws prohibiting the consideration of costs in setting a standard.

The closest things the Senate has to H.R. 1022 are two bills still undergoing committee review. S. 333, the Depart­ment of Energy Risk Management Act, introduced by Sen. Frank Murkowski (R-Alaska), chairman of the Committee on Energy & Natural Resources, started out applying only to DOE environmental cleanup activities. It has since been broadened to require risk assessment and cost-benefit anal­ysis for any proposal by any agency that addresses health, safety, and/or risk to natural resources. S. 343 is a compre­hensive regulatory reform bill introduced by majority lead­er Bob Dole (R-Kan.).

As they currently stand, neither bill overrides existing law or includes peer review requirements. However, such provisions may be added when the bills are marked up in committee, a process expected to occur shortly.

Janice Long

Budgets. (H.R. 845,889) Eliminate or reduce funding for Defense Department dual-use technology program, cut '95 funding for Advanced Technology Program from $431 million to $324 million

Congressiona accountability. (H.R. 1, S. 2) Require Congress to adhere to the same laws it imposes on other organizations, including past laws such as the Occupa­tional Safety & Health Act and future laws

hnergy. (H.R. 655) Provides Department of Energy with $100 million over three years to fund development of hydrogen energy technologies

Environment. (H.R. 961) Comprehensive rewrite of Clean Water Act directs EPA to analyze costs of imple­menting water regulations, complete risk assessments for each proposed level; sets up a wetlands ranking system

(S. 333) Sets forth criteria to be used by Department of Energy to prioritize environmental restoration activities on the basis of risk assessments

Legal reforms. (H.R. 988, S. 243, 300) Codify standards for admissibility of scientific evidence in court cases, re­quire losers to pay all court costs in certain federal cases

(H.R. 956) Sets national standards for product liability suits, caps punitive damage awards, eliminates joint lia­bility for punitive damages

Regulatory activity. (H.R. 450, S. 219) Freeze federal rule-making activities retroactively to 11/20/94 and for­ward to 12/31/95

(H.R. 926, S. 100, 291, 343) Require agencies to follow three-step process when promulgating major rules and/ or prepare regulatory impact analyses for each rule, an­alyze alternative approaches

Risk assessment. (H.R. 1022, S. 291,343) Mandate rieor-ous assessment of how effectively a rule reduces puolic risks and cost-benefit analysis for any regulation whose cost exceeds a certain threshold

Securities litigation. (H.R. 1058, S. 240) Forbid reckless statements that could deceive investors, limit investors' ability to sue companies

Takings. (H.R. 925, S. 22,135, 239) Require government to compensate property owners if actions required by federal environmental laws lessen value of that proper­ty by 20% or more

Unfunded mandates. (H.R. 5, S. 1) Provide that state and local governments do not have to comply with new federal regulations costing $50 million or more unless the federal government picks up the tab

18 MARCH 20, 1995 C&EN

Page 2: Congress focuses on regulatory process

Conference House committee House floor Senate committee Senate floor action Outcome

Appropriations. Reported 2/10/95 (H. Rept. 104-29 and 104-30)

Folded H.R. 845 into H.R. 889, passed 2/22/95

Appropriations. Reported, amend­ed 3/2/95 (S. Rept. 104-12)

Began debate 3/7/95

Passed 1/4/95

Amended, passed 1/11/95

Signed 1/23/95 P.L. 104-1

Science. Ordered reported, amend­ed 2/10/95

Transportation & Infrastructure. Subcommittee on Water Resources & the Environment to begin mark­up 3/29/95

Energy & Natural Resources. Concluded hearings 3/6/95

Judiciary. Reported, amended 3/1/95 (H. Rept. 104-62)

Commerce. Reported, amended 3/1/95 (H. Rept. 104-63). Judicia­ry. Reported, amended 3/2/95 (H. Rept. 104-64)

Amended, passed 3/7/95

Amended, passed 3/10/95

Government Reform & Oversight. Reported, amended 2/16/95 (H. Rept. 104-39)

Judiciary. Reported, amended 2/23/95 (H. Rept. 104-48)

Amended, passed 2/24/95

Amended, passed 3/1/95

Governmental Affairs. Ordered reported, amended 3/9/95

Governmental Affairs. Began markup 3/15/95. Small Business. Held hearing 3/8/95

Commerce. Science. Reported, Amended, amended 2/15/95 (H. Rept. 104- passed 33, Pts 1 & 2) 2/28/95

Governmental Affairs. Began markup 3/15/95. Judiciary. Sub­committee on Administrative Oversight and the Courts began markup 3/14/95

Commerce. Reported, amended 2/24/95 (H. Rept. 104-50)

Amended, Banking, Housing & Urban Af-passed fairs. Subcommittee on Securities 3/8/95 held hearings 3/2/95

Judiciary. Reported, amended 2/23/95 (H. Rept. 104-46)

Amended, passed 3/3/95

Government Reform & Oversight. Amended, Rules. Reported, amended 1/13/95 passed (H. Rept. 104-1, Pts 1 & 2) 2/1/95

Budget. Reported, amended Amended, Report filed 1/12/95 (S. Rept. 104-2). Govern- passed 3/13/95 (H. mental Affairs. Reported, amend- 1/27/95 Rept. 104-76) ed 1/11/95 (S. Rept. 104-1)