Informing Regulatory Decisions: 2003 Report to Congress on the Costs and Benefits of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities

Informing Regulatory Decisions:

2003 Report to Congress on the
Costs and Benefits of Federal Regulations
and Unfunded Mandates on
State, Local, and Tribal Entities

OMB 22sep03

2003
Office of Management and Budget
Office of Information and Regulatory Affairs

Mindfully.org note: Sections colored gray in Table of Contents are not included in this file.
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Table of Contents

EXECUTIVE SUMMARY
PART 1: REPORT TO CONGRESS ON THE COSTS AND BENEFITS OF FEDERAL REGULATIONS
CHAPTER I: THE COSTS AND BENEFITS OF FEDERAL REGULATIONS
A. Estimates of the Total Benefits and Costs of Regulations Reviewed by OMB
B. Estimates of Benefits and Costs of This Year’s "Major" Rules
C. Response to Public Comments
CHAPTER II: STATUS REPORT ON SPECIFIC REGULATORY REFORMS
A. Process for Reviewing Reform Nominations
B. Agency Categorization of Reform Nominations
C. New Reforms Planned or Underway
D. Reforms That Agencies Have Not Yet Decided to Pursue
E. Reforms That Agencies Have Decided Not to Pursue
F. Status Updates on Reforms Agencies Had Completed or Were Already Underway
G. Next Steps
CHAPTER III: U.S. APPROACHES TO MANAGEMENT OF EMERGING RISKS
A. Risk Management in the United States
B. Risk Assessment before Risk Management
C. Precautionary Approaches for Different Management Objectives
D. Preventing Excessive Precaution
E. Conclusion
CHAPTER IV: REGULATIONS RELATED TO HOMELAND SECURITY AND RECOVERY FROM THE ATTACKS OF SEPTEMBER 11, 2001
A. Summary of Federal Homeland Security and Recovery Activity
B. Response to Public Comments on the Analysis of Homeland Security
APPENDIX A: CALCULATION OF BENEFITS AND COSTS (10/92 – 3/95, 10/01 – 9/02)
APPENDIX B: AGENCY ESTIMATES OF BENEFITS AND COSTS (10/92 – 3/95)
APPENDIX C: STATUS OF THE 23 HIGH-PRIORITY RULES OMB SUGGESTED FOR REFORM IN 2001
APPENDIX D: OMB CIRCULAR A-4, REGULATORY ANALYSIS
APPENDIX E. RESPONSE TO COMMENTS ON THE DRAFT REGULATORY ANALYSIS GUIDELINES
APPENDIX F: COMPUTING AVERAGE RATES OF RETURN TO PRIVATE CAPITAL IN THE UNITED STATES: 1947-2001
APPENDIX G. UPDATE ON RETURN AND PROMPT LETTERS
APPENDIX H: NUMBER AND TIMING OF REGULATORY REVIEWS
APPENDIX I: LIST OF PEER REVIEWERS AND PUBLIC COMMENTS
APPENDIX J: THE REGULATORY RIGHT-TO-KNOW ACT
PART 2: EIGHTH ANNUAL REPORT TO CONGRESS ON AGENCY COMPLIANCE WITH THE UNFUNDED MANDATES REFORM ACT
INTRODUCTION
CHAPTER I: IMPACTS ON STATE, LOCAL, AND TRIBAL GOVERNMENTS
CHAPTER II: A REVIEW OF SIGNIFICANT REGULATORY MANDATES
APPENDIX: AGENCY CONSULTATION ACTIVITIES UNDER THE UNFUNDED MANDATES REFORM ACT OF 1995

EXECUTIVE SUMMARY

This final report to Congress on regulatory policy was prepared pursuant to the Regulatory Right-to-Know Act and the Unfunded Mandates Reform Act. The major features and findings of the Report include the following:

OMB reviewed 107 major Federal rulemakings finalized over the previous ten years (October 1, 1992 to September 30, 2002). The estimated total annual quantified benefits of these rules range from $146 billion to $230 billion, while the estimated total annual quantified costs range from $36 billion to $42 billion. The majority of the quantified benefits are attributable to a handful of clean-air rules issued by EPA pursuant to the 1990 amendments to the Clean Air Act. (Chapter I)

In order to achieve better regulations, OMB invited public nominations of specific regulatory reforms: additions, modifications or rescissions. Over 1,700 public commenters nominated 316 distinct rules, guidance documents, and paperwork requirements for reform. With the assistance of the Advocacy Office of the US Small Business Administration, OMB worked with agencies during the last year to evaluate these reform nominations. The agencies and OMB determined that (1) 109 of these reform nominations were recently addressed by agencies or were currently under review, (2) 51 of the reform nominations were directed at independent agencies, and (3) 156 of the reform nominations were ripe for consideration by Cabinet-level agencies and EPA. Of these 156 reform nominations, 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. (Chapter II)

In order to make continued improvements in regulatory analysis, OMB and the Council of Economic Advisors have finalized new guidance for agencies on regulatory analysis. Key features of the revised guidance include: (1) more emphasis on cost-effectiveness analysis as well as benefit-cost analysis; (2) formal probability analysis of future rulemakings with more than a billion-dollar impact on the economy; and (3) more systematic evaluation of qualitative as well as quantified benefits and costs. Appendix D contains the final regulatory analysis guidelines, which have been formally issued as "OMB Circular A-4, Regulatory Analysis". Appendix E includes a summary of the public comments on the draft revised guidance and OMB's response to those comments. Appendix F presents evidence supporting the discount rate recommended in Circular A-4.
With regard to emerging risks to public health, safety and the environment, an Interagency Work Group on Risk Management has described current U.S. approaches to risk assessment and management. The concept of precaution plays an important role in these approaches, but precaution, coupled with objective scientific analysis, needs to be applied wisely on a case-by-case basis. The Work Group was co-chaired by OMB and CEQ and used public comments to assist in the development of the risk management report in Chapter III.
In light of the significant interest in homeland security regulation, OMB sought public comment on how to effectively evaluate the benefits and costs of homeland security proposals. The challenges in measuring anti-terrorism benefits and the direct and indirect costs of anti-terrorism rules are discussed. Special concerns are raised about costs related to time, convenience, privacy and civil rights and liberties, and economic productivity. An updated listing of proposed and final rules related to homeland security is provided as well as a summary of recent legislative activity. (Chapter IV)

OMB surveyed agency consultation with State and local governments, a process critical to the development of sound regulatory policy. Federal departments such as Education, Health and Human Services and Agriculture are engaged in a wide range of intergovernmental consultation activities. For example, Education has undertaken extensive dialogue with State, local and tribal governments in support of implementation of the No Child Left Behind Act (NCLBA). The result was the development of rules implementing the NCLBA's provisions on academic standards and accountability. During the last year, Federal agencies issued five proposed or final rules that were subject to the reporting requirements of the Unfunded Mandates Reform Act. Although these rules imposed significant expenditures on the private sector, none of them involved rules where expected costs to State, local, or tribal governments were expected to exceed $100 million. (Part II).

This final report was issued in draft form in February of this year and was revised in response to public comment, external peer review, and interagency review. OMB has already begun to prepare the 2004 Report to Congress on the Costs and Benefits of Federal Regulations. OMB's objective is to publish the draft 2004 report as part of the President’s FY 2005 budget submission to Congress, which will be released in February 2004.

PART 1: Report to Congress on the Costs and Benefits of Federal Regulations

CHAPTER I: THE COSTS AND BENEFITS OF FEDERAL REGULATIONS

The "Regulatory Right-to-Know Act,"¹ requires OMB to submit "an accounting statement and associated report" including:

(1) an estimate of the total annual costs and benefits (including quantifiable and nonquantifiable effects) of Federal rules and paperwork, to the extent feasible:

(A) in the aggregate;
(B) by agency and agency program; and
(C) by major rule;

(2) an analysis of impacts of Federal regulation on State, local, and tribal government, small business, wages, and economic growth; and

(3) recommendations for reform.²

This chapter presents the accounting statement. Our new estimates are based on the major regulations reviewed by OMB over the last ten years. We revised the benefit-cost estimates in last year’s report by updating the estimates to the end of fiscal year 2002 (September 30, 2002) and including new estimates from October 1, 1992 to March 31, 1995.

All of the estimates presented in this chapter are based on agency information or transparent modifications of agency information performed by OMB. We have not provided new information on the impacts of Federal regulation on State, local, and tribal government, small businesses, wages, and economic growth in this report, because little new information has become available since last year’s report. The 2002 report includes discussions of these issues (see pages 41 to 46).

This chapter also includes a discussion of major rules issued by independent regulatory agencies, although OMB does not review these rules under Executive Order 12866. This discussion is based on data provided by these agencies to the General Accounting Office (GAO) under the Congressional Review Act.

[1] 31 U.S.C. § 1105 note, Pub. L. 106-554, ' 1(a) (3) [Title VI, ' 624], Dec. 21, 2000, 114 Stat. 2763, 2763A-161. The text of the Regulatory Right-to-Know Act is in Appendix J of this report.
[2] Recommendations for reform are discussed in Chapter II and Appendix C.

A. Estimates of the Total Benefits and Costs of Regulations Reviewed by OMB³

Table 1 presents estimates by agency of the benefits and costs⁴ of major rules⁵ reviewed by OMB over the past year (October 1, 2001 to September 30, 2002). OMB reviewed 31 final major rules over that period. These 31 rules represent less than ten percent of the 330 final rules reviewed by OMB and less than one percent of the 4,153 final rules published in the Federal Register during this 12-month period. However, OMB believes that the costs and benefits of major rules are quantitatively more important than all other rules combined.

Of the 31 rules, 25 implemented Federal budgetary programs, which caused income transfers from one group to another. The remaining six regulations were "social regulations", requiring substantial additional private expenditures and/or providing new social benefits.⁶ Four of these six "social regulations" imposed mandates on State and local entities or the private sector. The other two "social regulations" were enabling regulations that did not impose mandates.

Of the six "social regulations," we are able to present estimates of both monetized costs and benefits for three rules. ⁷We did not include the three other rules that did not have monetized estimates for either costs or benefits or both. Three agencies—DOE, DOT, and EPA—issued three major regulations adding a combined $2.4 billion to $6.5 billion in annual benefits and $1.6 billion to $2.0 billion in annual costs.

Table 1: Estimates of the Annual Benefits and Costs of Major Federal Rules, October 1, 2001 to September 30, 2002 (millions of 2001 dollars)

Agency 				Benefits 	Costs
Energy 				710 		636
Transportation 			409 to 944 	749 to 1,206
Environmental Protection	1,250 to 4,818	192 
Agency
Total 				2,369 to 6,472 	1,577 to 2,034

[3] In previous reports, OMB presented detailed discussions about the difficulty of estimating and aggregating the costs and benefits of different regulations over long time periods and across many agencies. Those discussions are not repeated here. Previous reports are on the OMB website (http://www.whitehouse.gov/omb/inforeg/regpol.html).
[4] In many instances, agencies were unable to quantify all benefits and costs. We attempted to capture the essence of these effects on a rule-by-rule basis in the columns titled "Other Information" in the various tables reporting agency estimates. However, the monetized estimates we present necessarily exclude these unquantified effects.
[5] The Federal Register citations for these major rules are found in Table 4.
[6] Rules that transfer Federal dollars among parties are not included in the benefit-cost totals because transfers are not social costs or benefits. If included, they would add equal amounts to benefits and costs.
[7] OMB used agency estimates where available. If an agency quantified estimates but did not monetize, standard assumptions were used to monetize as explained in Appendix A.

Table 2 presents an estimate of the total costs and benefits of all 107 regulations reviewed by OMB over the ten-year period from October 1, 1992 to September 30, 2002 that met two conditions. Each rule generated costs or benefits of at least $100 million annually, and a substantial portion of its costs and benefits were quantified and monetized by the agency or, in some cases, monetized by OMB. The estimates are therefore not a complete accounting of all the costs and benefits of all regulations issued by the Federal government during this period. We calculated Table 2 estimates by adding the estimates in Table 1 above and the estimates from Table 18 (in Appendix A of this report) and Table 8 (in the 2002 OMB report).

We have expanded the number of years covered by our estimates to ten from the six and one-half years presented in last year’s report. We provide estimates of the cost and benefits of social regulation (health, safety and environmental regulation) for each rule for the periods covering October 1, 1992 to March 31, 1995 and October 1, 2001 to September 30, 2002 in Appendix A.⁸ The estimates of the costs and benefits of Federal regulations over the period October 1, 1992 to September 30, 2002 are based on agency analyses subject to public notice and comments and OMB review under E.O. 12866. OMB has chosen a 10-year period for aggregation because pre-regulation estimates prepared for rules adopted more than ten years ago are of questionable relevance today.

Table 2: Estimates of the Total Annual Benefits and Costs of Major Federal Rules, October 1, 1992 to September 30, 2002 (millions of 2001 dollars)

Agency 				Benefits 		Costs
Agriculture 			3,094 to 6,176 		1,643 to 1,672
Education 			655 to 813 		361 to 610
Energy 				4,700 to 4,768 		2,472
Health & Human Services		9,129 to 11,710 	3,165 to 3,334
Housing & Urban Development	551 to 625 		348
Labor 				1,804 to 4,185 		1,056
Transportation 			6,144 to 9,456 		4,220 to 6,718
Environmental Protection Agency 120,753 to 193,163 	23,359 to 26,604
Total 				146,812 to 230,896	36,625 to 42,813

In last year’s report, the aggregate costs of regulations fell within the range of the estimated benefits – albeit at the lower end of the range. The aggregate benefits reported in Table 2, however, are roughly three to five times the aggregate costs and are substantially larger than the aggregate benefits reported in our 2002 report. There are two reasons for this. First, the additional rules cover a 10-year period that included EPA’s rule implementing the sulfur dioxide limits of the acid rain provisions in the 1990 Amendments to the Clean Air Act. This rule adds nearly $80 billion per year to the aggregate benefit estimate. Second, in reviewing our estimates, we inadvertently subtracted incorrect cost estimates for EPA’s rules establishing National

[8] Agency estimates of the cost and benefits of major regulations for October 1, 1992 to March 31, 1995 are provided in Appendix B. Appendix A contains estimates revised by OMB.

Ambient Air Quality Standards for ozone and particulate matter (PM). This correction reduces the aggregate cost of the rules covered over the 10-year period by roughly $20 billion per year.

It is important to note that of the 107 rules reviewed by OMB over the last ten years, four EPA rules – two rules limiting particulate matter and NO_x emissions from heavy duty highway engines, the Tier 2 rule limiting the emissions from light duty vehicles, and the Acid Rain rule cited above -- account for a substantial fraction of the aggregate benefits reported in Table 2. These four EPA rules have estimated benefits of $101 to $119 billion per year and costs of $8 to $8.8 billion per year.⁹ The aggregate benefits and costs for the other 103 rules are $41 to $107 billion and $29 to $34 billion, respectively.

Table 3 provides additional information on aggregate benefits and costs for select agency programs. The reader should not assume that the low (high) end of the benefits estimate corresponds to the low (high) end of the cost estimate. Thus, for example, it is possible that the net benefits of EPA’s water rules taken together could range from negative $2 billion to positive $5.7 billion per year.

Based on the information released in previous reports, the total costs and benefits of all Federal rules now in effect (major and non-major, including those adopted more than 10 years ago) could easily be a factor of ten or more larger than the sum of the costs and benefits reported in Table 2. More research is necessary to provide a stronger analytic foundation for comprehensive estimates of total costs and benefits by agency and program.

[9] These four EPA rules will reduce ambient levels of fine particulate matter by reducing direct PM emissions and/or the emissions of precursor pollutants like SO₂ and NO_x that contribute to the formation of secondary fine PM. Studies show an association between both short- and long-term exposure to fine PM and a variety of adverse health effects ranging from increases in the frequency of hospital admissions to premature mortality. There are, however, important uncertainties associated with translating this scientific evidence into benefit estimates. There are five key assumptions underlying the benefit estimates. These include the following:

The analysis assumes that inhalation of fine particles is causally associated with premature death at concentrations near those experienced by most Americans on a daily basis. Although studies have yet to establish the specific biological mechanisms responsible for such effects, the weight of the available epidemiological evidence supports an assumption of causality.

The analysis assumes that all fine particles, regardless of their chemical composition, are equally potent in causing premature mortality. This is an important assumption because fine particles from power plant emissions are chemically different from those directly emitted from both mobile sources and other industrial facilities. However, no clear scientific grounds exist at this time for supporting differential toxicity estimates by particle type.

The analysis assumes that the concentration-response function for fine particles is approximately linear within the range of outdoor concentrations under policy consideration. Thus, the analysis estimates health benefits from reducing fine particles in both attainment and non-attainment regions.

The analysis assumes that we have the ability to accurately forecast future emissions and associated air quality modeling.

The analysis assumes that the valuation of the estimated reduction in mortality risk is appropriately represented by studies of the tradeoff associated with wage premiums for workers facing fatality risks in the labor market.

Further information on these benefits estimates can be found at http://www.epa.gov/air/clearskies/tech_{_}adden.pdf, http://www.whitehouse.gov/omb/inforeg/costbenefitreport1998.pdf, and http://www.whitehouse.gov/omb/inforeg/2000fedreg-report.pdf

In order for comparisons or aggregation to be meaningful, benefit and cost estimates should correctly account for all substantial effects of regulatory actions, not all of which may be reflected in the available estimates. OMB has not made any changes to agency monetized estimates other than converting them to annual equivalents. Any comparison or aggregation across rules should also consider a number of factors that our presentation does not address. To the extent that agencies have adopted different methodologies —for example, different monetized values for effects, different baselines in terms of the regulations and controls already in place, different treatments of uncertainty—these differences remain embedded in Table 2. While we have relied in many instances on agency practices in monetizing costs and benefits, our citation of, or reliance on, agency data in this report should not be taken as an OMB endorsement of all the varied methodologies used to derive benefits and cost estimates.

Many of these major rules have important non-quantified benefits and costs. These qualitative issues are discussed in the agency rulemaking documents, in previous versions of this report, and in Table 4 of this report.

Table 3: Estimates of Annual Benefits and Costs of Major Federal Rules: Selected Programs and Agencies October 1, 1992-September 30, 2002 (millions of 2001 dollars)

Agency 						Benefits 		Costs
Energy
Energy Efficiency and Renewable Energy 		4,700-4,768 		2,472
Health & Human Services
Food and Drug Administration 			2,016-4,551 		481-651
Labor
Occupational Safety and Health Administration	1,804-4,185 		1,056
Transportation
National Highway Traffic Safety 		4,321-7,634 		2,791-5,288
Administration
Coast Guard 					72 			1,195
Environmental Protection Agency
Office of Air 					117,888-177,330 	17,861-20,561
Office of Water 				891-8,076 		2,418-2,931

B. Estimates of Benefits and Costs of This Year’s "Major" Rules

In this section, we examine in detail the benefits and costs of each "major" rule, as required by section 624(a) (1) (C). Our review covers those final regulations on which OMB concluded review during the 12-month period October 1, 2001 through September 30, 2002.

The statutory language that categorizes the rules we consider for this report differs from the definition of "economically significant" in Executive Order 12866 (section 3(f)(1)). It also differs from similar statutory definitions in the Unfunded Mandates Reform Act and subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996—Congressional Review of Agency Rulemaking. Given these varying definitions, we interpreted section 624(a)(1)(C) broadly to include all final rules promulgated by an Executive branch agency that meet any one of the following three measures:

rules designated as "economically significant" under section 3(f)(1) of Executive Order 12866;

rules designated as "major" under 5 U.S.C. ' 804(2) (Congressional Review Act); and

rules designated as meeting the threshold under Title II of the Unfunded Mandates Reform Act (2 U.S.C. ' 1531 - 1538)

Of the 31 rules received by OMB, USDA submitted four; the Veterans Administration, DOE, EPA, OMB, the Social Security Administration, and SBA each submitted one; HHS submitted eight; the Departments of Interior, Justice, Defense, and FEMA each submitted two; and DOT submitted five.

Social Regulation

Of the 31 economically significant rules reviewed by OMB, six are regulations requiring substantial additional private expenditures and/or providing new social benefits. Table 4 summarizes the costs and benefits of these rules and provides other information taken from rule preambles and agency RIAs. Of the six regulations received by OMB, EPA and DOE each submitted one, and DOI and DOT each submitted two. Agency estimates and discussion are presented in a variety of ways, ranging from a mostly qualitative discussion (e.g., the NHTSA light truck corporate average fuel economy (CAFE) standard) to a more complete benefit-cost analysis (e.g., DOE’s central air conditioner rule).

1. Benefits Analysis.

Agencies monetized at least some benefit estimates for five of the six rules. In the case of EPA’s recreational engines rule, the agency provides some monetized benefit estimates, but discusses other benefits qualitatively. In one case—NHTSA’s tire pressure monitoring systems (TPMS) rule—the agency did not monetize all of the quantified benefits. In another case— NHTSA’s CAFE rule—the agency did not report any quantified or monetized benefit estimates.

2. Cost Analysis.

For three of the six rules, agencies provided monetized cost estimates. These include DOE’s air conditioner rule, NHTSA’s TPMS rule, and EPA’s recreational vehicle rule. For the remaining three rules (both DOI migratory bird hunting rules and NHTSA’s CAFE rule), agencies did not estimate costs.

3. Net Monetized Benefits.

Three of the six rules provided at least some monetized estimates of both benefits and costs.¹⁰ Of these, the estimated monetized benefits of both the DOE air conditioner rule and the EPA recreational engine rule exceed the estimated monetized costs. The magnitude of the net benefits varies from $75 million per year for the air conditioner rule to as much as $4.6 billion per year for the recreational engine rule. One rule, NHTSA’s TPMS rule, has negative net monetized benefits ranging from approximately $706 to $862 million per year.

4. Rules Without Quantified Effects.

One rule, NHTSA’s CAFÉ rule, is classified as economically significant even though the agency did not provide any quantified estimates of its effects.

[10] See Table 4 for the discussion of benefits and costs that the agency did not monetize.

Table 4. Summary of Agency Estimates for Final Rules October 1, 2001 to September 30, 2002 (As of Date of Completion of OMB Review)

AGENCY	RULE	BENEFITS	COSTS	OTHER INFORMATION
DOE	Energy Conservation Standards for Central Air Conditioners and Heat Pumps (67 FR 36367)	$9.1 billion (present value) in energy savings between 2006 and 2030	$7.3 billion (present value) for purchases between 2006 and 2030	Monetized benefit and cost values are obtained from the "National Energy Savings/Net Present Value/Shipments" spreadsheet, available on DOE's web site: http://www.eren.doe.gov/buildings/codes_standards/ applbrf/central_air_conditioner_3.html DOE projects a cumulative reduction in nitrogen oxide emissions of 119.3 thousand metric tons (undiscounted) over the period 2006-2030 and a cumulative reduction in carbon dioxide equivalent emissions of 53.8 million metric tons (undiscounted) over the period 2006-2030 [DOE Technical Support Document Appendix M, Table M.9].
DOI	Early-Season Migratory Bird Hunting Regulations 2002-2003 (66 FR 44009)	$50 million to $192 million/yr.	Not estimated	The analysis was based on the 1996 National Hunting and Fishing Survey and the U.S. Department of Commerce's County Business Patterns, from which it was estimated that migratory bird hunters would spend between $429 million and $1,084 million at small businesses [67 FR 54704]. The listed benefits represent estimated consumer surplus.
DOI	Late-Season Migratory Bird Hunting Regulations 2002-2003 (66 FR 49477)	$50 million to $192 million/yr.	Not estimated	The analysis was based on the 1996 National Hunting and Fishing Survey and the U.S. Department of Commerce's County Business Patterns, from which it was estimated that migratory bird hunters would spend between $429 million and $1,084 million at small businesses [67 FR 54704]. The listed benefits represent estimated consumer surplus.
DOT	Light Truck Average Fuel Economy Standard, Model Year 2004 (67 FR 16052)	Not estimated.	Not estimated	"…[T]he agency has been operating under a restriction on the use of appropriations for the last six fiscal years. The restriction has prevented the agency from gathering and analyzing data relating to fuel economy capabilities and the costs and benefits of improving the level of fuel economy. Particularly since that restriction was lifted only on December 18, 2001, the agency has been unable to prepare a separate economic analysis for this rulemaking. The agency notes, however, that the standard it is setting for the 2004 model year will not make it necessary for the manufacturers with a substantial share of the market to change their product plans." [67 FR 16059]
DOT	Tire Pressure Monitoring Systems (TPMS) (67 FR 38703)	79 – 124 fatalities and 5,176 -8,722 injuries prevented per year; $43 - $344 million per year in fuel savings and reduced tire wear	$749 -$1,206 million/yr	Unquantified Benefits: "The agency cannot quantify the benefits from a reduction in crashes associated with hydroplaning and overloading vehicles. The primary reason that the agency has been unable to quantify these benefits is the lack of crash data indicating tire pressure and how often these conditions are the cause or contributing factors in a crash. The agency does not collect tire pressure in its crash investigations. NHTSA also has not been able to quantify the benefits associated with reductions in property damage and travel delays that will result from fewer crashes or reductions in the severity of crashes." [67 FR 38739] Unquantified Costs: "The agency anticipates that there may be other maintenance costs for both direct and indirect TPMS. For example, with indirect TPMSs, there may be problems with wheel speed sensors and component failures. With direct TPMSs, the pressure sensors may be broken off when tires are changed. The agency requested comments on this issue in the NPRM, but received none. Without estimates of these maintenance problems and costs, the agency is unable to quantify their impact. The agency also notes that in order to benefit from the TPMS, drivers must respond to a warning by re-inflating their tires. To accomplish this, most drivers will either make a separate trip to a service station or take additional time to inflate their tires when they are at a service station for fuel. The process of checking and re-inflating tires is relatively simple, and probably would take from three to five minutes. The time it would take to make a separate trip to a service station would vary depending on the driver's proximity to a station at the time he or she was notified." [67 FR 38741]
EPA	Control of Emissions From Nonroad Large Spark-Ignition Engines, and Recreational Engines (67 FR 68241)	$410 million/yr. in reduced engine operation costs; $900 million to $7.88 billion in air quality benefits in calendar year 2030	$192 million/yr	EPA also lists a variety of other benefit categories that it was not able to quantify or monetize, ranging from infant mortality to damage to urban ornamental plants.

Transfer Regulations

Of the 31 economically significant rules reviewed by OMB, Table 5 lists the 25 that implement Federal budgetary programs. The budget outlays associated with these rules are "transfers" to program beneficiaries. Of the transfer rules, HHS promulgated eight rules, most of which implement Medicare and Medicaid policy. Four are USDA rules. Of the four, three are crop assistance and disaster aids for farmers and one is a food stamp program rule. The Department of Transportation issued three transfer rules. The Departments of Defense, Justice, and the Federal Emergency Management Administration issued two each. The Social Security Administration, Veterans Administration, Small Business Administration, and Office of Management and Budget each promulgated one rule.

Table 5. Agency Transfer Rules October 1, 2001 to September 30, 2002 (As of date of completion of OMB review.)

Office of Management and Budget (OMB)
	Regulation for Air Carrier Guaranteed Loan Program
Dept. of Agriculture (USDA)
	2000 Crop Agricultural Disaster and Market Assistance
	2002 Farm Bill Regulations: Sugar Program
	Peanut Quota Buyout Program
	Work Provisions of the PRWORA of 1996 and the Food Stamp Provisions of the Balance
		Budget Act of 1997
Dept. of Defense
	CHAMPUS/TRICARE: Partial Implementation of Pharmacy Benefits Programs; NDAA for FY 2001
	TRICARE: Sub-Acute Care Program; Uniform Skilled Nursing Benefit; Home Healthcare Benefit;
	Medicare Payment Methods for Skilled Nursing Facilities
Dept. of Health and Human Services (HHS)
	Contraception and Infertility Research Loan Repayment Program
	Medicare Program: Revisions to Payment Policies and 5-Year Review and Adjustments to the
		Relative Value Units Under the Physician Fee Schedule for CY 2002
	Medicare Program: Prospective Payment System for Hospital Outpatient Services for CY 2002
		and Pro Rata Reduction on Transitional Pass-Through Payments.
	Medicaid Program: Modification of the Medicaid Upper Payment Limit for Non-State, Government
		Owned or Operated Hospitals
	Medicare Program: Modifications to Managed Care Rules Based on Payment Provisions in BIPA
		and Technical Corrections.
	Medicare Program: Notice of Modification of Beneficiary Assessment Requirements for Skilled
		Nursing Facilities
	Changes to Hospital Inpatient Prospective Payment Systems and FY 2003 Rate
	Medicaid Managed Care; New Provisions
Social Security Administration
	Revised Medical Criteria for Determination of Disability Musculoskeletal System and
		Related Criteria
Department of Justice
	Claims Under the Radiation Exposure Compensation Act Amendments of 2000
	September 11 Victim Compensation Fund of 2001
Dept. of Transportation
	Procedures for Compensation of Air Carriers
	Imposition and Collection of Passenger Civil Aviation Security Fees in the Wake of September 11
	Aviation Security Infrastructure Fees
Veterans Administration
	Diseases Specific to Radiation-Exposed Veterans
Federal Emergency Management Administration
	Assistance to Firefighters Grant Program
	Disaster Assistance; Federal Assistance to Individuals and Households
Small Business Administration
	Disaster Loan Program

Major Rules for Independent Agencies

The congressional review provisions of the Small Business Regulatory Enforcement Fairness Act (SBREFA) require the General Accounting Office (GAO) to submit reports on major rules to the committees of jurisdiction, including rules issued by agencies not subject to Executive Order 12866 (the "independent" agencies). We reviewed the information on the costs and benefits of major rules contained in GAO reports for the period of October 1, 2001 to September 30, 2002.

GAO reported that three independent agencies issued eight major rules during this period. Two agencies did not conduct benefit-cost analyses. One agency considered benefits and costs of its rules. OMB lists the agencies and the type of information provided by them (as summarized by GAO) in Table 6. The Securities and Exchange Commission consistently considered benefits and costs in their rulemaking processes while the Federal Communications Commission and the Nuclear Regulatory Commission did not prepare benefit-cost analyses.

In comparison to the agencies subject to E.O. 12866, the independent agencies provided relatively little quantitative information on the costs and benefits of the major rules. As Table 6 indicates, three of the eight rules included some discussion of benefits and costs. Three of the eight regulations had monetized cost information; one regulation monetized benefits. OMB does not know whether the rigor and the extent of the analyses conducted by the independent agencies are similar to those of the analyses performed by agencies subject to the Executive Order because OMB does not review rules from independent agencies.

Table 6. Rules for Independent Agencies October 1, 2001 to September 30, 2002 Agency Rule Information on Monetized Monetized Benefits or Costs Benefits Costs

Agency	Rule	Information on Benefits or Costs	Monetized Benefits	Monetized Costs
FCC	Broadcast Services; Digital Television	No	No	No
FCC	Ultra-Wideband Transmission Systems	No	No	No
FCC	Assessment and Collection of Regulatory Fees for Fiscal Year 2002	No	No	No
FCC	Order to Permit Operation of NGSO FSS Systems Co-Frequency with GSO and Terrestrial Systems in the Ku-Band Frequency Range; Authorize Subsidiary Terrestrial Use of the 12.2-12.7 GHz Band by Direct Broadcast Satellite Licensees and Their Affiliates; and in Re-Applications of Broadwave USA, PDC Broadband Corporation, and Satellite Receivers, Ltd. in the 12.2-12.7 GHz Band	No	No	No
NRC	Revision of Fee Schedules; Fee Recovery for FY 2002	No	No	No
SEC	Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934	Yes	Yes	Yes
SEC	Certification of Disclosure in Companies’ Quarterly and Annual Reports	Yes	No	Yes
SEC	Acceleration of Periodic Report Filing Dates and Disclosure Concerning Web Site Access to Reports	Yes	No	Yes

C. Response to Public Comments

Many comments on the draft report pertained to Chapter I, which presented estimates of costs and benefits of major rules. In general, these comments addressed either (1) the scope/coverage of the rules considered in the report, or (2) the quality of agency or OMB analysis.

Comments on Scope/Coverage

One commenter (12) stated that the report should provide more information—even if only gross estimates—on the effects of Federal regulation on States and municipalities. OMB notes that this report includes the annual report to Congress on Unfunded Mandates on State, local, and tribal entities. Information on rules reviewed by OMB that impose such mandates is included.

One commenter (284) urged OMB to provide information on the benefits and costs of regulations issued by independent agencies. OMB agrees that it is important to assess the benefits and costs of independent agency regulatory actions. Currently, OMB relies on GAO reports as the primary data source to do so. A simple analysis of the GAO reports, however, may not be adequate in all cases. OMB encourages independent agencies to conduct benefit-cost analyses that conform to the OMB's guidelines for regulatory analysis and to submit those analyses of major rules to OMB.

Two commenters (307, 327) recommended that the report should include estimates of the benefits and costs of regulations issued prior to 1992. OMB does not believe that the estimates of the costs and benefits of regulations issued over ten years ago are very reliable or very useful for informing current policy decisions. In future annual reports, OMB will report a rolling total of the benefits and costs of rules for the previous 10 years.

One commenter (327) believed the report should include benefit and cost estimates for non-major rules. OMB believes that major (economically significant) rules account for the vast majority of the total costs of Federal regulation, even though most Federal rules are not considered major.

One commenter (251) asserted that the draft report inappropriately excluded deregulatory actions. OMB notes that the final report includes all final rules reviewed by OMB over a tenyear period from October 1, 1992 to September 30, 2002 that met two conditions: each rule generated costs or benefits of at least $100 million annually, and a substantial portion of its costs and benefits were quantified and monetized by the agency or OMB. All regulations that fit these conditions are included in the final report, even if they are deregulatory.

Several commenters (3, 251, 307, 352) recommended that OMB should provide a better accounting of transfer rules. OMB believes there is merit to this request and is considering the feasibility of providing such information in future reports.

One commenter (251) stated that the draft report inappropriately excludes certain rules with large net benefits. Specifically, this commenter identified three EPA emission rules, OSHA’s ergonomics rule, FDA’s regulation of tobacco, and EPA’s revised national ambient air quality standards for ozone and particulate matter. In this report and in previous reports, OMB has provided a reasoned explanation for the exclusion of certain rules. With respect to the three emission rules (the 1995 municipal waste combustors rule, the 1997 emission standards for new locomotives, and the 1998 emission standards for non-road diesel engines) included previously (see Tables 5 and 6 of the 2002 report), OMB decided not to include their monetized estimates because of the significant uncertainties associated with benefits transfer described in more detail elsewhere in this report. OMB did not include OSHA’s ergonomics rule because it was overturned by Congress. OMB did not include FDA’s tobacco rule because it was overturned by the Supreme Court. As noted in last year’s report, OMB removed EPA’s NAAQS for ozone and particulate matter to prevent double counting of benefits and costs.

Comments on Quality of Analysis

Two commenters (307, 331) questioned estimates of the benefits and costs of several rules, and recommended that OMB rely on an independent analysis of the benefits and costs of regulations, rather than rely on agency estimates. OMB recognizes the importance of objective, expert analysis of regulatory impacts, and has several mechanisms in place to improve and ensure the quality of agency analysis. For example, through the issuance of guidelines, OMB aims to improve the quality of information and analysis that supports rulemaking. In conjunction with the Council on Economic Advisors, OMB recently revised its guidelines and subjected the revised guidelines to interagency review, peer review, and public comment. As a result of this process, OMB has issued its guidelines as Circular A-4, Regulatory Analysis. Appendix D contains this Circular, and Appendix E presents OMB’s response to public comments on the revised guidelines.

Through the rule review process, OMB identifies and, where warranted, seeks improvement of agency analysis of regulatory impacts. To ensure consistency in the context of this annual report, OMB adjusts Agency estimates of costs and benefits. Although such procedural steps do not ensure accuracy, they do improve the quality of the analysis supporting rulemaking, while leveraging the data and expertise of the agency issuing the rule.

Two commenters raised issues about the accuracy of pre-regulation estimates of costs and benefits. Commenter 327 stated that the report should account for outcomes known to differ from the agency’s original estimates. Commenter 335 recommended that OMB review past estimates of the costs of environmental compliance and compare them with actual costs. OMB agrees that it is useful to compare actual with predicted estimates. In situations where OMB becomes aware of information more reliable than the agency’s original estimates, OMB will use such information. Think tanks and universities may be in the best position to undertake this kind of exercise, and OMB encourages such efforts.

One commenter (328) suggested that the report should acknowledge the uncertainty inherent in benefit and cost estimates and should quantify uncertainty in future years’ summary reports. OMB notes that the report contains substantial discussion of key uncertainties and will attempt to quantify these uncertainties in future reports in those cases where sufficient data are available. In addition, OMB’s revised regulatory analysis guidelines (Circular A-4) includes a recommendation for agencies to undertake formal probability analysis for rules involving threshold annual costs or benefits greater than $1 billion.

One commenter (352) noted that interagency differences in regulatory analysis methods make it difficult to compare results between agencies. This commenter believes that the revised guidelines should help in this regard, and suggests that OMB could standardize the results across agencies using common methods and values. OMB believes the best way to address this issue will be through its revised guidelines (i.e., Circular A-4, Regulatory Analysis), which are designed to promote consistent analytical approaches.

One commenter (251) asked that OMB clarify the reasons for the differences between estimates of annual benefits and costs presented in Tables 7 and 8 and the corresponding original agency estimates for the same rules in Tables 4, 9, 10, and 11. In this final report, we clarified the nature of the differences between the two sets of estimates. The estimates presented in Tables 4, 9, 10, and 11 reflect what agencies reported in their Regulatory Impact Analyses. These estimates are not consistent in several respects. For example, some agencies reported discounted present values over several years, whereas others reported average annual effects. As explained in the text and on a rule-by-rule basis in the tables, in order to improve comparability, OMB made three types of adjustments. (1) All values were adjusted to year 2001 dollars. (2) Quantified but non-monetized estimates were monetized (consistent with agency past practices). (This explains why, for example, the monetized benefits for the acid rain rule in Table 7 are larger than those in Table 9.) (3) Estimates of net present value were amortized or "annualized" (i.e., converted to average annual effects) to provide an annualized stream of benefits and costs.

One commenter (346) suggested that OMB reevaluate the methodology underlying, and the application of, the adjustment to the value of a statistical life for the age of the affected population. OMB has revised the estimates in this chapter to be consistent with the OIRA Administrator’s May 30, 2003 memorandum to the President’s Management Council. (A copy can be found on the OMB web site: http://www.whitehouse.gov/omb/inforeg/pmc_benefit_cost_memo.pdf

One commenter (319) recommended that OMB use a value of $120,000 per barrel as an estimate of the social cost of a spilled barrel of oil. OMB has asked the Coast Guard to review this recommendation and will address this issue in next year’s report.

One commenter (3) suggested insertion of language regarding the importance of the quantification of benefits and costs to help inform the public and decision makers. OMB has included such language in the final report.

One commenter (12) suggested that the report should provide a case study of a well-done benefit-cost analysis of a regulation. OMB will consider including such a case study in its next annual report.

One commenter (20) stated that the report should note the wide range of benefits estimates for EPA’s Office of Water regulations (Table 3). According to this commenter, it is possible that the actual costs of compliance are on the high end of the range presented and the corresponding benefits are on the low end, which would result in negative net benefits. OMB has noted this possibility in the report.

One commenter (284) recommended that the final report include summary information on OMB’s regulatory oversight activities, such as return and prompt letters. (284) OMB concurs with this comment, and has provided such information in Appendix G to this report.

OMB received a comment from the Nuclear Regulatory Commission. The commenter believed that Table 6 and the accompanying discussion could lead to the erroneous conclusion that the Nuclear Regulatory Commission (NRC) does not provide benefit and cost information on its rules. OMB does not believe that Table 6, or the accompanying discussion, states or implies that the NRC does not analyze its health and safety rules.

CHAPTER II: STATUS REPORT ON SPECIFIC REGULATORY REFORMS

In last year’s report, OMB responded to the Regulatory Right-to-Know Act’s requirement that we include recommendations for regulatory reform. We began the process of developing reform recommendations by requesting public nominations of regulatory reforms in the March 2002 draft report. OMB encouraged the public to consider problematic paperwork and guidance document requirements, along with regulatory requirements.

In order to encourage broad public participation and to expand on the response received in 2001, OMB conducted outreach activities to a wide variety of groups. As a result, OMB received approximately 1,700 public comments nominating specific regulations and guidance documents for reform. OMB conducted a preliminary review of the public comments and identified 267 rules and 49 guidance documents nominated for reform by one or more commenters for a grand total of 316 distinct reform nominations.¹¹

This chapter provides an overview of how OMB worked with agencies to review the public nominations and describes the follow-up activities that are now underway in the agencies.

A. Process for Reviewing Reform Nominations

In our review of the 316 nominations, OMB found that the rules and guidance documents fell into three categories: (1) issues already subject to recent or current review by Cabinet agencies (and EPA); (2) issues concerning independent agencies; and (3) issues that warranted consideration by Cabinet agencies (and EPA) as reform candidates. This review was based on information available to OMB at the time the public nominations were processed (summer 2002).

A chief purpose of the reform process was to focus agency attention on issues that are not already under active review. OMB found that 92 rules and 12 guidance documents had recently been issued or were already under agency review. This category included some of the nominations designated by OMB in the 2001 report as "high priority review" candidates.¹² Decisions about these issues had been made, or were in the process of being made. OMB did not believe it would be fruitful to ask agencies to consider these rules and guidance documents to be new reform candidates. Accordingly, we simply asked that agencies provide OMB with status updates on the rules and guidance documents in this category.

The second category included 49 rules and 2 guidance documents that raised issues concerning the following independent agencies: the Equal Employment Opportunity Commission, the Federal Communications Commission, the Federal Energy Regulatory Commission, the Federal Reserve Board, the Federal Trade Commission, and the Securities and Exchange Commission. In a memorandum dated January 22, 2003, OMB requested that these agencies consider the public nominations for which they were responsible and, for those they consider to be possible candidates for reform, place their evaluations on their websites.

[11] The public comments suggesting candidates for reform—and OIRA’s summaries of them—are available on OMB’s website at http://www.whitehouse.gov/omb/inforeg/regpol-reports_congress.html. [12] Appendix C provides updates on the 23 high-priority regulations that OIRA suggested for reform in 2001.

The remaining 126 rules and 35 guidance documents made up a third category of nominations that OMB referred to agencies for their evaluation as possible reforms.¹³ During the development of this final report, OMB determined that four of these rules and one guidance document should not have been referred to agencies because they were already under active consideration. In Tables 15 and 16, status updates on these four rules and one guidance document are provided along with the other rules and guidance documents that, at the time we issued the 2002 final report, had recently been issued or were already under agency review.¹⁴

OMB’s decision to refer public nominations to agencies for their consideration marked a shift in the approach we adopted in 2001. In the 2001 report, OMB "ranked" the public recommendations for reform and identified a number of "high priority review" candidates. Last year, we decided to change our approach and use an agency-initiated process to evaluate the nominations. We did this for two reasons: (1) the large volume of nominations (316 in 2002 compared to 71 in 2001) strained OMB’s ability to develop an informed list of priority nominations for consideration by agencies and (2) giving agencies the task of evaluating the nominations allowed them to bring to bear their extensive knowledge and resources and encouraged them to develop a sense of ownership about reform.

OMB worked with agencies to identify reform opportunities during our interagency consultation process. OMB also asked SBA’s Office of Advocacy (Advocacy) to review all of the public nominations and identify for agencies those that it thought offered the potential to reduce unjustified regulatory burdens on small businesses.¹⁵ In response to OMB’s request, the Office of Advocacy reviewed the rules and guidance documents listed on Tables 13 and 14 of OMB’s FY 2002 report, as well as the rules and guidance documents concerning selected independent agencies. While acknowledging that reform of many, if not all, of the regulations and guidance documents would achieve benefits for small business, Advocacy identified a subset of 21 rules, 6 guidance documents, and 3 rules and guidance documents of independent agencies as high priorities for reform for small business.¹⁶ Advocacy made its determinations based on the comments submitted to OMB, input received from small businesses in preparing Advocacy’s May 28, 2002, comment¹⁷ on OMB’s draft report, and Advocacy’s direct involvement in agency rulemaking affecting small business.¹⁸ In consultation with OMB, Advocacy sent letters directly to each agency and followed up to offer its expertise and assistance with their review of the regulations and guidance documents identified by Advocacy as high priorities for reform for small business.

[13] The regulations and guidance documents that OMB referred to agencies are listed in Tables 13 and 14, respectively, of the 2002 Final Report (pp. 78 and 82).
[14] The four rule nominations are Use of the OASIS for Home Health Agencies (#35), Electronic Storage of I-9 Forms (#71), Forms I-140 and I-485 (#73), and Motor Vehicle Emission Standards for Greenhouse Gases (#180). The one guidance document nomination is HHS Discrimination against Persons with LEP (#7).
[15] The Small Business Administration's Office of Advocacy (Advocacy) funded research to address the proportion of the Federal regulatory burden falling on small business. The research was conducted by Drs. Mark Crain and Thomas Hopkins in 2001. The researchers concluded that considering all federal regulations and all business sectors, federal regulations cost firms with fewer than 20 employees nearly $7,000 per employee per year. Regulations cost medium-size firms about $4,300 and large firms $4,500 per year per employee. Costs per employee thus appear to be 55 to 60 percent higher in small firms than in medium-size and large firms. See Crain, MW and Hopkins, TD (2001), The Impact of Regulatory Costs on Small Firms, Office of Advocacy, U.S. Small Business Administration. Advocacy is currently committed to updating these figures in 2004.
[16] Advocacy’s February 6 letter to OIRA is available on the Office of Advocacy’s website at http://www.sba.gov/advo/laws/comments/omb03_0206.html. Certain high-priority reforms identified by Advocacy are not identified in this final report. Specifically, three guidance documents from independent agencies are not identified.
[17] Advocacy’s letter is available on the Office of Advocacy’s website at http://www.sba.gov/advo/laws/comments/omb03_0604.html
[18] The Office of Advocacy of the U.S. Small Business Administration (SBA) was created in 1976 to represent the views and interests of small business in Federal policy making activities. Pub. L. No. 94-305 (codified as amended at 15 U.S.C. §§634a-g, 637). Because the Office of Advocacy is an independent office within SBA, the views of the Chief Counsel do not necessarily represent the views of the SBA or the Administration.

B. Agency Categorization of Reform Nominations

As explained in the 2002 final report, OMB sought to ensure that the agency review of nominations was objective, consistent, and grounded in the regulatory principles codified in Executive Order 12866 and the statutory authority of the agencies. To help guide agency review of the public nominations, OMB suggested that agencies rely on three criteria: efficiency, fairness, and practicality. We defined these criteria as follows:

Efficiency. Agencies should give consideration to reforms that present an opportunity to increase regulatory efficiency by maximizing net benefits, including potential quantitative and qualitative improvements to the economy, environment, and public health and safety.

Fairness. In addition to assessing overall costs and benefits, agencies should take into consideration nominations with the potential to increase fairness through desirable distributive impacts and process considerations.

Practicality. Agencies should give greater weight to nominations that (1) they have discretion to implement under existing statutory authority (although potential reforms should not be eliminated simply because implementing them would require new statutory authority) and (2) are judged to be important relative to other regulations and programs under consideration for review. OMB is sensitive to the practicalities (including agency resources) of pursuing certain nominations at this time.

OMB understood that agency assessments of reform nominations would necessarily take into account budgetary considerations, statutory mandates, and other relevant factors. OMB also does not expect agencies to necessarily agree with the analysis or solutions presented by commenters, even for those nominations they identified as reform candidates.

For the 126 rules and 35 guidance documents that OMB viewed as potential reform candidates—and that we explicitly referred to agencies for their consideration—we requested that agencies place them into one of three categories:

(1) the nominated regulation or guidance document is a viable reform candidate that the agency is, or soon will be, working on;

(2) the nominated regulation or guidance document warrants further study as a possible reform candidate; or

(3) the nominated regulation or guidance document is either a low priority given other agency activities or is considered to be resolved.

After reviewing the public nominations and consulting with OMB and with the Office of Advocacy, agencies identified 34 rules and 11 guidance documents as "new" reform candidates. These were rules and guidance documents that had not been the focus of recent or current agency reform efforts. They included 8 rules and 2 guidance documents identified by Advocacy as high priorities for reform for small business. These 8 rules and 2 guidance documents—as well as the other Advocacy high priorities—will be noted in the tables that appear throughout this chapter. Agencies are undecided about pursuing reforms of another 26 regulations and 4 guidance documents, but they plan to study them further to determine whether or not they should be reformed. The remaining 62 rules and 19 guidance documents were considered by agencies to address issues that were unnecessary or were lower priority, given the other competing demands on their resources.

Table 7 provides an agency-by-agency summary of how agencies categorized the regulations that OMB referred to them for their review. Collectively, agencies decided to take action on 34 of the rule nominations that OMB explicitly referred to them, with DOT identifying ten and EPA identifying eight rules to reform.

Table 7. Agency Categorization of Nominated Reforms – Regulations

Agency	New	Completed or Ongoing	Undecided	Low Priority or Unnecessary	Total
Agriculture	3	7	1	5	16
Commerce	0	1	0	0	1
Education	0	2	0	1	3
Energy	0	1	0	1	2
HHS	6	8	4	14	32
HUD	0	0	0	2	2
Interior	0	10	0	1	11
Justice	0	5	0	2	7
Labor	5	15	4	6	30
State	0	0	0	1	1
Transportation	10	17	13	13	53
Treasury	2	4	0	5	11
EPA	8	25	3	7	42
NARA	0	0	1	0	1
OPM	0	0	0	1	1
SBA	0	1	0	0	1
Army Corps	0	0	0	2	2
USPS	0	0	0	1	1
Total	34	96	26	62	218

Table 8 summarizes how agencies categorized the guidance documents that OMB referred to them. Agencies decided to take action on nearly one-quarter of these guidance documents. In identifying nine guidance documents as worthy of reform, EPA has taken the lead in reforming its guidance.

Table 8. Agency Categorization of Nominated Reforms – Guidance Documents

Agency	New	Completed or Ongoing	Undecided	Low Priority or Unnecessary	Total
Agriculture	0	1	0	0	1
HHS	0	1	1	6	8
Interior	0	0	0	1	1
Justice	0	0	0	1	1
Labor	1	3	1	0	5
Transportation	1	0	0	1	2
Treasury	0	0	1	0	1
Access Board	0	0	1	0	1
EPA	9	5	0	8	22
OMB	0	2	0	1	3
SBA	0	0	0	1	1
Army Corps	0	1	0	0	1
Total	11	13	4	19	47

C. New Reforms Planned or Underway

When OMB asked agencies to tell us which regulations and guidance documents they believed were promising reform candidates, we requested that they provide us with information about their plans to pursue nominations within the next year. When possible, agencies told us which actions they had planned (e.g., advanced notice of proposed rulemaking, or ANPRM) and when they expected to take them.

The information that agencies gave OMB about the expected next steps for new reforms planned or underway is provided in Tables 9 and 10. Summary information about these regulations and guidance documents, as well as a listing of commenters and the issues they raised, is available in a document that OMB issued with the 2002 final report: "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents."¹⁹

19This document is available on the OMB website at www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf.

Table 9. New Reforms Planned or Underway – Regulations

Agency	Regulation	Next Step(s)	Ref. Number*
Agriculture	Salmonella Performance Standards	FSIS expects to begin regulatory activity in late 2003 or early 2004. FSIS is considering a petition on posting Salmonella testing results for firms by name. The petition is to be published for comment, with a decision in 2003.	6
Agriculture	Phytosanitary Certificates for Seeds	APHIS will propose to amend the nursery stock regulations by allowing the importation of small lots of seed under an import permit with specific conditions, instead of requiring a phytosanitary certificate from the government of the exporting country.	12
Agriculture	Swine Production Contract Library	USDA is in the process of implementing the swine contract library. OMB recently concluded review on the final rule. USDA has developed an electronic system to receive and summarize information and provide public reports. This system will be operated when the rule is published.	13
HHS/CMS	75% Rule	This issue was discussed at a Town Hall meeting on 5/19/03. CMS obtained information from affected entities and is using the information to develop an NPRM.	26
HHS/CMS	One-Hour Restraint Rule	In October 2002, CMS convened a Town Hall Meeting with affected industry groups, professional organizations, and advocates to gain input regarding reducing burden while maintaining patient protections. CMS is using this information to develop an NPRM to be published in 2003.	31SBA
HHS/FDA	Standard of Chemical Quality – Arsenic	FDA is considering how to best address this issue.	38
HHS/FDA	Standard of Chemical Quality – Uranium	FDA published a final rule on March 3, 2003.	39
HHS/FDA	Labeling of Carmine	FDA will address this issue in the Fall 2004 Unified Agenda.	47
HHS/FDA	Labeling of Food Allergens	FDA is considering how best to address this issue.	50
Labor	Medical Certification	ESA is considering changes to the FMLA medical certification form as part of the ongoing FMLA regulatory review.	77
Labor	FLSA Administrative Exception	ESA is including changes to the administrative exemption in the comprehensive NPRM on the 29 C.F.R. Part 541 regulations, which was published for comment March 31, 2003.	80 SBA
Labor/OSHA	Explosives and Process Safety Management	OSHA added this issue (standards improvement) to the Semiannual Regulatory Agenda in December 2002. OSHA plans to publish an NPRM by July 2004.	90
Labor/OSHA	Sling Standard	OSHA has underway a project to update standards that are based upon or refer to outdated voluntary consensus standards. This standard is part of that project. OSHA plans to publish an NPRM and/or direct final rule by September 2004.	96 SBA
Labor/OSHA	Bloodborne Pathogens Standard	OSHA will be initiating the next cycle of review this year for this standard.	100
DOT/FAA	Improved Flammability Standards for Thermal/Acoustic Material	OMB concluded its review of this rule in April 2003. DOT anticipates issuing the rule in 2003.	112
DOT/FHWA	Contract Requirements for Minor Transportation Projects	FHWA has already published transportation enhancement program guidance. The guidance included several memoranda which exempt transportation enhancement (TE) projects from several highway requirements, and these are highlighted at www.fhwa.dot.gov/environment/te_meas.htm FHWA is exploring legislative options to streamline administrative procedures for TE activities.	113
DOT/FHWA	Historic Preservation Regulations	The issues raised by the commenter are actively under consideration as FHWA develops its legislative reauthorization proposal.	114
DOT/FHWA	Traffic Operations	Final rule is scheduled for October 2003.	117
DOT/FHWA	Highway Work Zone Safety	DOT issued an NPRM in May 2003.	118
DOT/NHTSA	Roof Crush	NHTSA is developing a comprehensive plan to address rollover, including roof crush. In October 2001, NHTSA issued a request for comments to assist in upgrading the requirements of FMVSS No. 216. The notice asked the public for its views and comments on what changes, if any, are needed to the roof crush resistance standard. The agency has completed its review of the comments submitted in response to that notice and expects to publish an NPRM in early 2004.	137
DOT/NHTSA	Door Locks	NHTSA is currently preparing an NPRM that will propose to upgrade the existing FMVSS No. 206. As a part of an international committee under the auspices of the United Nations/Economic Commission for Europe, NHTSA is currently working with other governments’ experts to develop a global standard for the performance of door, door retention components and door locks. NHTSA expects to incorporate its international work with its own work on this subject and issue a proposed upgrade of its door latch and lock standard by 2004.	139
DOT/NHTSA	Bumper Strength	Evaluation of the bumper standard is approximately 15 years old. Based on the length of time that has passed, NHTSA believes it may be appropriate to reevaluate the existing bumper standard.	148
DOT/NHTSA	Side-Impact Protection	The agency has initiated a new rulemaking to require enhanced head, chest, and abdominal protection in side impacts under FMVSS No. 214.	152
DOT/RSPA	Hazardous Materials Training	RSPA anticipates submitting the draft final rule to OMB in 2003.	158 SBA
Treasury/IRS	Flexible Spending Accounts	The Administration has proposed statutory modifications that would address concerns about unnecessary year-end purchases of medical care to avoid forfeiture. These proposals would allow (1) up to $500 in unused benefits in a FSA to be carried forward to the next year and (2) up to $500 in unused benefits in a FSA to be transferred to a 401(k), 403(b), 457(b) SARSEP, SIMPLE IRA, and/or MSA.	162 SBA
Treasury/IRS	Mortgage Revenue Bond Purchase Price Limits	Treasury is currently researching different options to address this issue.	167
EPA	Regulatory Reform for Handling Refrigerants	EPA plans to issue an "Alternate Refrigerants" final rule in 2003; a "Split System" final rule in 2004, and Limited "Field Reclamation" final rule in 2003.	170
EPA	Chemical Plant Safety Standards	EPA will determine an approach to collecting information from facilities that have deregistered or changed their RMP and establish a mechanism for information collection. EPA will collect and analyze information in June 2004 and issue the results in September 2004.	171
EPA	Protections for Farm Children from Pesticide Exposures	EPA’s response to the petition filed pursuant to the Agency’s hearing and objections process under FFDCA is expected in late 2003.	178
EPA	Definition of Volatile Organic Compound	Possible revision to policy on control of VOCs–ANPRM is planned in 2003.	179
EPA	TRI Alternate Reporting Threshold (Form A)	EPA plans a stakeholder outreach process to evaluate issues relating to the alternative threshold and the Form A Certification Statement. EPA will issue a discussion paper on the Stakeholder Dialog Phase 2 for a 60-day comment period in 2003 and then determine next steps (e.g., development and publication of proposed rule).	188 SBA
EPA	Export Notification Requirements	EPA is considering how best to address this issue.	190 SBA
EPA	Storage for Reuse	At the present time, EPA is working with the regulatory community to identify appropriate ways to minimize the potential burden resulting from these regulations. EPA will seek public comment in 2003.	192 SBA
EPA	TRI Form R Reporting	EPA has published a notice soliciting public comment on form changes designed to address concerns regarding the categorization and aggregation of release and waste management data; appropriate changes will be reflected in the ICR renewal, expected for review at OMB in September 2003; as part of the Stakeholder Dialog discussed under Form A above, EPA will also explore burden reduction options that may affect Form R, such as alternate year reporting for small businesses.	209

* Refers to numbers assigned to nominations in Section I of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf).^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

Table 10. New Reforms Planned or Underway – Guidance Documents

Agency	Guidance Document	Next Step(s)	Ref. Number*
Labor/OSHA	Multi-Employer Citation Policy	OSHA’s longstanding enforcement policy was clarified in a 1999 directive. OSHA has initiated discussions with several organizations (including the petitioners) on developing additional guidance to further clarify the responsibilities of the general contractor.	16
DOT/Coast Guard (note: Coast Guard is now part of newly formed DHS)	Marine Safety Manual	The Department is continuing to review this nomination.	18
EPA	EPA Index of Applicability Decisions	EPA’s action on this issue was completed with the publication of a notice on February 13, 2003.	21
EPA	"Once In, Always In" Policy	The NPRM was issued in May 2003, and the final rule is expected in May 2004.	23
EPA	TRI Reporting Forms and Instructions	EPA’s initial evaluation will be focused on reform of the TRI Alternate Reporting Threshold (Form A) and TRI Form R Reporting.	26 SBA
EPA	TRI Reporting Questions and Answers	EPA is currently reviewing and updating the 1998 Q&A guidance document. It expects to publish an updated Q&A guidance document in 2003.	27 SBA
EPA	Waterborne Diseases	In summer 2003, EPA plans to issue a notice on the Status of Waterborne Disease epidemiological studies that are underway and/or nearing completion. In fall 2003, EPA will publish the results of two of the research studies. In fall 2004, EPA plans to publish the Waterborne Disease Estimate by EPA and CDC.	28
EPA	Integrated Risk Information System	EPA expects to hire 10 new IRIS staff and complete 13 assessments in FY 2003. New/updated assessments for 5 chemicals were added to the IRIS data base through March 2003. Assessments for another 8 chemicals are projected to be completed in FY 2003. An EPA Science Advisory Board (SAB) review for these assessments is scheduled for 2003, and a contractor report is expected in 2003 for approximately 160 IRIS chemicals. Summary results of literature screening is expected to be entered into the IRIS data base by 2003.	30
EPA	Economic Benefit of Noncompliance in Civil Penalty Cases	EPA expects to complete peer review of proposed changes to the BEN Model in 2003 and publish a notice in 2003.	32
EPA	Site-Specific Risk Assessments in RCRA	EPA will issue a memo to regional offices reiterating the appropriate use of (1) the SSRA policy and technical guidance and (2) requesting review of regional documents to ensure that such documents do not imply mandatory requirements. EPA will also propose a response to the CKRC Rulemaking Petition in the MACT Phase I Replacement Standards/Phase II. An NPRM is expected no later than the end of 2003/early 2004. EPA will make a final decision on the CKRC Rulemaking Petition no later than the MACT Phase I Replacement Standards/Phase II Final Rule no later than June 2005.	35
EPA	Submetering Water Systems	EPA distributed a briefing paper to Regional Offices to get comments on options for addressing issues. Further action(s) will be determined by EPA.	40

*Refers to numbers assigned to nominations in Section II of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf). ^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

Since OMB’s guidance to agencies did not require that they agree with the analysis or solutions presented by commenters, the specific reforms that agencies implement may or may not be consistent with the recommendations made by the public. This outcome is based, in part, on the fact that some rules and guidance documents were nominated for reform by multiple commenters who advocated opposing views and solutions. It also reflects the emphasis OMB placed on the ability of agencies to decide which issues merited priority and what types of reforms were most appropriate. With respect to the implementation of regulatory reforms, of course, agencies will continue to involve the public through the formal notice and comment rulemaking process.

D. Reforms That Agencies Have Not Yet Decided to Pursue

As agencies reviewed the public nominations of rules and guidance documents that OMB referred to them, there were many cases in which they could not make a final determination about whether or not to pursue a reform. Frequently, agencies were undecided simply because they did not have sufficient information to accept or reject a specific nomination. In these cases, we asked that agencies conduct further research into the issues raised by commenters so that they could decide if the nominated regulation or guidance document merited reform. To the extent possible, agencies provided OMB with their specific plans over the next year for investigating the viability of these possible reforms.

Tables 11 and 12 list the rules and guidance documents, respectively, that agencies will be examining. They also indicate what specific next steps are planned.

Table 11. Undecided Reforms – Regulations

Agency	Regulation	Next Step(s)	Ref. Number*
Agriculture	Animal Identification	USDA plans to study animal identification and traceback procedures and consider updating them to ensure they provide the most meaningful information in the interest of fair trade, animal health, and public health.	3
HHS/CMS	Medicare Secondary Payer Provision	CMS will continue to review whether to require hospitals to complete the MSP instrument for reference lab services.	24
HHS/CMS	Physician Certification for Non-Emergency Ambulance Services	A review to ensure that there are no legal obstacles to the removal of this requirement will be completed in 2003. CMS has developed an internal task force to address this issue.	25
HHS/CMS	Converted Bed Rule	CMS will conduct a study of the impact on utilization, and on beneficiary access to services, of the implementation of the inpatient rehab PPS.	27
HHS/CMS	Exemption Date Rule	CMS will conduct a study of the impact on utilization, and on beneficiary access to services, of the implementation of the inpatient rehab PPS.	28
Labor	SCA Wage Increases and Benefit Improvements	ESA believes addressing this concern may require regulatory change. The Wage and Hour Division likely will not be able to address SCA issues until 2004 or 2005 due to resource constraints and other priorities.	84
Labor	Explosives	MSHA agrees there are inconsistencies between MSHA and DOT definitions for explosives, detonators, and blasting agents. MSHA expects to reach a decision soon as to whether to include this item on the next Regulatory Agenda.	88
Labor/OSHA	Hazard Communication	OSHA already explicitly recognizes electronic availability of MSDSs as satisfying the requirement for employee access. The agency is preparing additional compliance assistance materials, and plans to request public comment on issues related to MSDSs, including that raised by the comment, later this year.	92
Labor/OSHA	Lead in Construction	OSHA notes that the provisions would not apply where no lead exists. OSHA will initiate a 610 review under the Regulatory Flexibility Act as soon as it completes one of the 610 reviews on its current agenda.	93SBA
DOT/FAA	General Definitions	DOT/FAA is continuing to review this issue.	107
DOT/FHWA	Commercial Size and Weight	The FHWA considered the need to revise reporting requirements for State certification of their enforcement of Federal and State size and weight statutes and regulations and issued an NPRM in September 2000. Recommendations from the May 2002 National Research Council report have broadened the discussion of possible reform needed to both Federal and State truck size and weight programs. In light of recommendations in this report, the FHWA terminated the rulemaking proceeding.	119
DOT/FMCSA	Inspection, Repair, and Maintenance	DOT/FMCSA is continuing to review this issue	121
DOT/NHTSA	Passenger Vehicle Compatibility	The agency recently established an integrated project team to consider all aspects of compatibility and develop an agency plan to address them. On June 18, 2003, NHTSA published a notice requesting comments on possible measures to address vehicle compatibility problems.	135
DOT/NHTSA	Lamps, Reflective Devices and Associated Equipment	NHTSA is thoroughly evaluating this standard. Part of the review is a safety problem assessment.	143
DOT/NHTSA	Commercial Vehicle Operator Visibility	NHTSA is currently preparing a request for public comment on existing and future object detection systems.	144
DOT/NHTSA	On-Board Crash Recorders	Over the past several years, NHTSA has been actively involved with Event Data Recorders (EDRs) in motor vehicles. The agency has sponsored two working groups, and is using data from EDRs as part of its crash investigations and in research and development. Since both working groups have completed their work, NHTSA is considering what future role the agency should take related to the continued development and installation of EDRs in motor vehicles. NHTSA has issued a request for comments on this technology. A determination on whether any future action is merited will be made after NHTSA has had an opportunity to evaluate those comments.	145
DOT/NHTSA	Driver Distractions	NHTSA has been conducting research for several years on driver distractions in general and specific distractions associated with in-vehicle displays and other technologies. This work has been funded in part by the Intelligent Vehicle Initiative program and involves use of the National Advanced Driver Simulator in some instances. Based on this research, NHTSA may ultimately decide to move forward with regulations designed to address driver distractions.	146
DOT/NHTSA	Pedestrian Crash Protection	NHTSA has agreed to work with the international community in developing a Global Technical Regulation that addresses pedestrian injuries. Current data do not allow NHTSA to issue a regulation that effectively addresses the risk of injury. Accordingly, regulatory action in this sphere may be several years away.	147
DOT/NHTSA	Commercial Vehicle Brakes	NHTSA is engaged in preliminary research assessing new technologies that may help reduce the risk of rollover in heavy trucks.	149
DOT	Commercial Vehicle Rollover	The FHWA and NHTSA are awaiting results of current passenger vehicle rollover testing to discern whether the same principles could apply to commercial motor vehicles. The Agencies will continue to address new rollover technologies as they become available.	151
DOT	Commercial Vehicle Design Compatibility	NHTSA is actively monitoring heavy vehicle compatibility as part of its compatibility initiative. However, given the preliminary nature of this review, regulatory activity in this area may be several years distant.	155
DOT/RSPA	Emergency Preparedness Grants	DOT will provide information on this issue in the next Regulatory Agenda.	157SBA
EPA	PCB Spill Cleanup Policy	EPA is currently conducting an internal review of its PCB program, which it expects to complete by late 2003. EPA will provide an opportunity for public review and comment on any changes to its PCB policies resulting from this review.	191
EPA	Spill Prevention Plans	EPA issued a final rule in April 2003 extending compliance dates and outreach. EPA plans to conduct outreach.	194
EPA	Removal Credits for POTWs	EPA will develop an issue paper on options to remove perceived impediments to POTWs’ use of removal credits in 2003. EPA expects to finalize the issue paper and brief management on pros and cons of issuing guidance in late 2003.	203
NARA	Disposition of Federal Record	NARA, in partnership with stakeholders, will survey small businesses to assess their ability to meet the current standard to determine if amending the standard is necessary.	253SBA

*Refers to numbers assigned to nominations in Section I of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf). ^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

Table 12. Undecided Reforms – Guidance Documents

Agency	Guidance Document	Next Step(s)	Ref. Number*
HHS/CMS Medicare	Carrier Manual/Medicare Intermediary Manual	A review to ensure that there are no legal obstacles to the removal of this requirement will be conducted.	2
Labor	Coordination of FMLA with other Leave Policies	ESA notes that existing FMLA rules provide some guidance, and EEOC, which administers the ADA, has issued technical guidance. Revisions to FMLA regulations are planned. Further guidance on coordination with ADA could be issued thereafter.	12^SBA
Treasury/IRS	Low-Income Housing Tax Credit	The commenter suggests that the IRS issue regulations regarding certain issues addressed in the identified Technical Advice Memoranda (TAMs). Issuance of formal guidance on these issues is not necessary because the positions taken in the TAMs generally are based on general tax principles. Nonetheless, the Service is considering publishing a revenue ruling addressing these issues.	19
Access Board	ADA/ABA	Guidelines The Board is reviewing a draft proposal.	20

* Refers to numbers assigned to nominations in Section II of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf). ^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

E. Reforms That Agencies Have Decided Not to Pursue

In their review of the public reform nominations, agencies had to assess the relative merits of each nomination, using the OMB-recommended criteria of efficiency, fairness, and practicality. Since agencies do not have the resources to pursue reforms of all of the rules and guidance documents nominated for reform, they had to prioritize and determine which ones to not pursue, given the competing demands on their resources and the potential of particular nominations to lead to substantive improvements in regulatory policy. Tables 13 and 14 list, respectively, the nominated regulations and guidance documents that agencies decided not to pursue.

Table 13. Reforms that Agencies Decided Not To Pursue – Regulations

Agency	Regulation	Ref. Number*
Agriculture	Child Nutrition Program	1
Agriculture	National Organic Program	7
Agriculture	Badge as Identification of Inspectors	10
Agriculture	National Forests Land Use: Special Uses	14
Agriculture	Low Cost Timber Sales and Grazing Fees	16
Education	Title IX and Collegiate Sports Participation	18
Energy	Energy Conservation Standards for Clothes Washers	21
HHS/CMS	Special Treatment: Direct Graduate Medical Education Payments	23
HHS/CMS	Medical Director Rule	29
HHS/CMS	Minimum Staffing Standards for Nursing Homes	30
HHS/CMS	Revisions to Medicare Payment Policies	32 SBA
HHS/CMS	Certificates of Medical Necessity	33 SBA
HHS/CMS	Clinical Laboratory Improvement Act Rules	36
HHS/FDA	Labeling Genetically Modified Foods	41
HHS/FDA	Hormones in the Food Supply	42
HHS/FDA	Antibiotics in Food Supply	43
HHS/FDA	Food Identity Standards	44
HHS/FDA	Medical Drug and Device Regulations	45
HHS/FDA	Labeling of Sorbitol	48
HHS/FDA	Labeling of Caffeine Content	49
HHS/FDA	Investigational New Drug (IND) Regulations	51
HUD	Predatory Lending	55
HUD	Insured Ten-Year Protection Plans	56
Interior	National Landscape Conservation System	62
Justice	Hemp Food Products	68 SBA
Justice/INS	Driver's Privacy Protection Act	70
Labor	Computer Professional Exemption under FLSA	78 SBA
Labor	SCA/Wage Determination Process/Wage Surveys	82
Labor	FLSA Medical Leave	85
Labor/OSHA	Process Safety Management/Highly Hazardous Chemicals	99
Labor/OSHA	Metalworking Fluids	101
Labor/EBSA	Claims Procedures	104
State	Flight Simulators	105 SBA
DOT	Disadvantaged Business Enterprise Program	106 SBA
DOT/FAA	Design and Construction	108
DOT/FAA	Seats, Berths, Safety Belts, and Harnesses	110
DOT/FHWA	Outdoor Advertising Control	115
DOT/FHWA	Highway Design	116
DOT/FTA	Buy America Pre-Award and Post Delivery Certification	125
DOT/FTA	Set-Aside for Intercity Bus	126
DOT/MARAD	Vessel Financing Assistance	127
DOT/NHTSA	Lower Interior Front Impact Protection	134
DOT/NHTSA	Passenger Vehicle Brakes	138
DOT/NHTSA	Glazing Materials and Crash Avoidance	142
DOT/NHTSA	Consumer Information	150
DOT	Emergency Response and Auto Crash Notification	154
Treasury	Currency and Foreign Financial Accounts	159
Treasury/IRS	Employer Identification Numbers	161
Treasury/IRS	Monthly Tax Deposits	166 SBA
Treasury/IRS	Partnership Investments in Small Business Stock	168 SBA
Treasury/IRS	Business Use of Home	169
EPA	Withdrawal of State Delegations	184
EPA	Collection of Health Screening Data	189
EPA	NPDES and Sewage Sludge Monitoring Reports	195
EPA	Stormwater Phase I	201
EPA	Stormwater Phase II	202
EPA	Drinking Water Standards for Radionuclides	207
EPA	TRI: Lowering Reporting Thresholds for PBT Chemicals	210 SBA
OPM	Federal Employees Health Benefits	254
US Army Corps	Nationwide Permits	265
US Corps, EPA	Definition of Fill Material	266
USPS	Commercial Mail Receiving Agencies	267 SBA

* Refers to numbers assigned to nominations in Section I of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf). ^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

Table 14. Reforms that Agencies Decided Not To Pursue – Guidance Documents

Agency	Guidance Document	Ref. Number*
HHS/CMS	Signature on File Requirement for Ambulance Services	3
HHS/CMS	Payment to Health Care Delivery System	4
HHS/CMS	Individual Health Insurance Rules	5
HHS/CMS	Guidance to Surveyors -Long Term Care	6
HHS/FDA	Nine-Compounds Monitoring	8
HHS/FDA	Coverage of Personal Importations	9
Interior	Endangered Species Act Survey Protocols	10
Justice	Guidance on Federal Prison Industries	11 SBA
DOT/FAA	General Operating and Flight Rules	17
EPA	Improving Air Quality Through Land Use Activities	24
EPA	Food Quality Protection Act Policy Papers	29
EPA	Investigating Title VI Administrative Complaints	31
EPA	TRI Lead Reporting	33
EPA	Pesticide Registration Notices	34
EPA	RCRA Spent Catalyst Policy	37
EPA	Superfund Indirect Costs	38
EPA	Ecoregional Nutrient Criteria Documents	39
OMB	Cost Accounting Standards for Educational Institutions	47
SBA	Guidance on Credit Unions	48 SBA

* Refers to numbers assigned to nominations in Section II of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf). ^SBAThis nomination was identified by SBA’s Office of Advocacy as a high priority.

F. Status Updates on Reforms Agencies Had Completed or Were Already Underway

As mentioned above, OMB wanted agencies to focus their attention on reforms of regulations and guidance documents that had not been recently reviewed or were in the process of being reviewed. This was necessary given the large number of public nominations of regulations and guidance documents that, as of the December 2002 release of OMB’s final report, were already the subject of recent or ongoing agency review. OMB is, however, providing status information on these rules and guidance documents, which agencies provided to us at our request. Tables 15 and 16 present this information.

Table 15. Status Updates on Reforms Completed or Ongoing as of December 2002: Regulations

Agency	Regulation	Status	Ref. Number*
Agriculture	Pathogen Reduction and Hazard Analysis and Critical Control Point (HACCP) Systems	FSIS has refrained from mandating critical control points in its HACCP regulations. The issue of defining when a product leaves an establishment’s control was dealt with in an administrative instruction to filed inspection personnel issued in 2001. In 2002, FSIS published policy notices and issued administrative instructions to its field personnel that, among other things, addressed the relationship between sanitation standard operating procedures and other prerequisite programs or good manufacturing practices and an establishment’s HACCP plans. The agency believes this issue is on its way to resolution.	2
Agriculture	Post Mortem Inspection: Extent and Time of Post Mortem Inspection -Staffing Standards	FSIS is testing a new HACCP-based system of inspection in volunteer plants. The new system is intended to accommodate new technologies and allow increased operational efficiencies. If the results of the testing justify a new system, FSIS will consider appropriate amendments to its regulations. Regarding inspector overtime, FSIS is legally authorized to collect fees from establishments for overtime and holiday inspection work. Because of current budgetary exigencies, FSIS is likely to continue to collect such fees.	4
Agriculture	Zero Tolerance for Listeria monocytogenes and Performance Standards	FSIS aired the scientific and other issues relating to Listeria as a contaminant of processed products in a November 14, 2002, public meeting. The agency is studying options for proceeding on this matter and expects to be in position to publish a decision in 2003.	5
Agriculture	Nutrition Labeling of Ground or Chopped Meat and Poultry Products	On January 18, 2001, FSIS published a proposed rule to require nutrition information either on labels or at the point-of-purchase for the major cuts of single-ingredient, raw meat and poultry products, unless an exemption applies. FSIS also proposed to require nutrition labels on all ground or chopped meat and poultry products, unless an exemption applies. FSIS has been considering the comments received in response to the proposal and expects to publish its decision on this matter by December 2003.	8
Agriculture	Plant Pest Regulations	The issue identified by the commenter regarding restrictions on butterflies was part of a proposed rule. APHIS intends to address comments on the proposed rule in the final rule.	9
Agriculture	Mad Cow Disease	On January 17, 2002, the agency published a notice announcing the availability of its current thinking paper on measures that could be implemented to minimize human exposure to materials that could potentially contain the BSE agent. A rulemaking addressing equipment and procedures used at some slaughterhouses that could result in contamination of carcasses with BSE risk materials is under consideration within USDA. USDA has asked Harvard University to re-evaluate its 2001 BSE risk assessment in light of the single case of BSE in Canada.	11
Agriculture	Roadless Area Conservation	USDA is enjoined from implementing this rule.	15
Commerce	Annual Capital Expenditures Survey	During OMB’s review of this survey under the Paperwork Reduction Act, OMB confirmed that the information collected on this survey cannot be obtained from IRS.	17
Education	Title IX and Single-Sex Schools	The Department is considering changes to the regulations implementing title IX of the Education Amendments of 1972. The Department anticipates publishing a notice of proposed rulemaking in November 2003.	19
Education	Federal Family Education Loan Program	In developing the Federal Family Education Loan Program regulations through the negotiated rulemaking process, ED developed a list of proposed regulatory changes from advice and recommendations submitted by individuals and organizations in response to a May 24, 2001 request for recommendations on improving the Title IV student assistance programs from Representatives Howard "Buck" McKeon and Patsy Mink. ED’s intent in amending these regulations was to reduce administrative burden for program participants, to provide benefits to students and borrowers, and to protect taxpayers’ interests. The final regulations for the rules that were proposed in both of the negotiated NPRMs were published on November 1, 2002.	20
Energy	Energy Conservation Standards for Central Air Conditioners and Heat Pumps	The Department issued a final rule on May 23, 2002 that withdrew its previous final rule and increased the minimum energy efficiency levels by 20 percent. No further changes to the standard are planned.	22
HHS	Medicare Program Prospective Payment System for Hospital Outpatient Services	A final rule (to amend existing regulations implementing the Emergency Treatment and Active Labor Act of 1998) has been sent to OMB for review	34
HHS/CMS	Use of the OASIS for Home Health Agencies	CMS has streamlined the OASIS instrument. As a result of these changes, the number of items in the OASIS was reduced by 28%. The amount of time to complete the OASIS was reduced by 25%.	35
HHS	Health Insurance Portability and Accountability Act Claims Processing Standards	HHS does not agree that health plans must accept a HIPAA-compliant claim as a "clean claim" for purposes of contractual provisions with other entities under HIPAA, and for State and Federal prompt-pay requirements. HHS views the requirements of HIPAA statue and regulations as separate and distinct from various State and Federal "clean claim" requirements. The requirements of one do not necessarily fulfill the requirements of the other. Further action is therefore unlikely.	37
HHS/FDA	Standard of Microbiological Quality—Total Coliform	The 1993 proposal to establish standards for coliform was cited in an April 22, 2003 notice announcing FDA’s intent to withdraw 84 regulatory proposals whose publications dates were five years ago or longer. Public comments were solicited on this set of withdrawals, and the comment period closed on July 21, 2003. Currently, FDA is considering the merits of re-proposing the establishment of coliform standards, taking advantage of scientific information that has emerged since the 1993 proposal.	40
HHS/FDA	Premarket Notice for Bioengineered Foods	This rulemaking has been withdrawn, as announced in Spring 2003 Regulatory Agenda.	46
HHS/FDA	Pediatric Rule	The rule was overturned, as exceeding FDA’s statutory authority, by court decision on October 17, 2002, and is no longer in effect.	52
HHS	Individually Identifiable Health Information	HHS is constantly issuing guidance on implementation of the privacy rules that went into effect on April 17, 2003. Changes in the codified text of the rules are, however, not currently contemplated.	53
HHS	Protection of Human Subjects	The rule is still under consideration within the agency.	54
Interior	Digital Aircraft Radios	The agency has decided to delay the implementation of the requirement to switch to a digital narrow band radio to January 1, 2008. The agency expects the cost of these radios to decline over the next few years.	57
Interior	Conservation Use in Grazing	The BLM has issued an ANPRM soliciting comments on removing this provision from its grazing regulations.	58
Interior	Surface Management of Mining Claims	Both the definition of "unnecessary and [sic] undue degradation" and the 2000 performance standards were amended in 2001. The BLM went through a rulemaking process in 2001 to make both changes which the commenter criticizes. Interior did so because the definition of unnecessary or undue degradation may well have exceeded BLM=s authority and because the 2000 performance standards, in some cases, went beyond that which is necessary to allow environmentally safe exploration and development.	59
Interior	Endangered Species Act	This rule (50 CFR Part 17) is codified, and the agency believes it does not require reform.	60
Interior	Endangered Species Act Delisting	The Service proposed the bald eagle for delisting in 1999. There has been a delay in issuing the final rule due to processing the large amount of information and comments that were generated during the public comment period. The Service has finalized the reclassification of the wolf to threatened and identified three Distinct Population Segments (DPS). An Advanced Notice of Proposed Rulemaking was published in the Federal Register announcing Interior’s intention to publish a proposed rule to de-list the Eastern Distinct Population Segment (DPS) of the gray wolf. The Eastern DPS includes the Great Lakes region. The grizzly bear is federally listed as threatened throughout its entire range in the lower 48 United States.	61
Interior	Possessory Interest Assets	The current regulations do not reference the term "book value" for determining the value of capital improvements by a concessioner. The current legislation implemented in 1998 provides for Leasehold Surrender Interest (LSI) for reimbursement of capital improvements. The NPS believes that using book value would be a clearer method of determining reimbursement value but is held to language included in the legislation. Nonetheless, the NPS has created an interdisciplinary workgroup to listen to concerns about LSI from the NPS Hospitality Association and others and try to resolve those concerns. The legislation provides that in 2007 the NPS will be able to readdress the issue of LSI with Congress and potentially modify how reimbursements for capital improvements are valued.	63
Interior	Snowmobiles in Yellowstone and Grand Teton National Parks and the John D. Rockefeller, Jr. Parkway	The NPS has selected a preferred alternative in the March 2003 Record of Decision that would require the public and commercial businesses to utilize best available engine technology for snowmobiles entering the parks (to help minimize impacts from emissions on air, sound and water), to require operators be accompanied by a guide (to help minimize conflicts between machines and animals and improve visitor safety) and to set maximum numbers of visitors to enter the park at various points (to disperse use). Most significantly, this alternative provides for adaptive management so that any one element of the alternative can be adjusted to further reduce impacts to the parks, if necessary. The NPS is expected to issue a proposed rulemaking addressing snowmobile access to the Parks in summer 2003.	64
Interior	Snowmobiles in the Rocky Mountain National Park	The NPS began consultation with the City of Grand Lake, snowmobile users and environmental groups early on in the development of this proposed rule and EA.	65
Interior	Wild and Scenic Rivers—Water Resources Projects	The agency published proposed rules regarding water resource projects. The Wild and Scenic Rivers Act conveys authority to the Department of the Interior, and in some circumstances the USDA Forest Service, to make final determinations on Section 7 of the Act.	66
Interior	Cooperative Conservation Initiative	The FY 2003 budget, as enacted, increases funding to existing programs cost share programs rather than create new programs as requested in the President’s budget. The submission in 2004 is expected to be similar to what Congress has enacted. Thus, no agency action is needed.	67
Justice	List of Terrorist Organizations	The agency does not believe that reform of this rule is necessary.	69
Justice	Electronic Storage of I-9 Forms	A final rule is under development.	71§
Justice	Admission Period for B-1/B-2 Visitors	Withdrawn by agency on June 3, 2002. No further action will be taken on this rule.	72
Justice	Forms I-140 and I-485	The agency published an interim final rule on July 31, 2002.	73§
Justice	I-9 Employment Verification	The proposed rule was published on February 2, 1998. The final rule is pending at the agency.	74
Labor	Birth and Adoption Unemployment Compensation	DOL has issued an NPRM to repeal the Birth and Adoption UC rule. The final rule has been submitted to OMB.	75
Labor	Family and Medical Leave Act (FMLA) Regulations	DOL has conducted stakeholder meetings and is drafting a NPRM for submission to OMB.	76
Labor	White Collar Exemption	DOL has conducted stakeholder meetings and drafted an NPRM, which was published March 31, 2003.	79
Labor	Permanent Labor Certification	ETA is currently reviewing comments received on the NPRM and developing final regulations.	81
Labor	Davis Bacon Act/Service Contract Act B Inclusion of Pension and Benefit Plans	ESA notes the $2,000 threshold is a statutory rather than a regulatory issue. Current SCA and DBA regulations do not prohibit the use of self-insured fringe benefit programs.	83
Labor	Across the Board Penalties	ESA is considering changes to the existing FMLA categorical penalty provisions as part of the ongoing FMLA regulatory review.	86
Labor	H-1B LCA	ESA’s Wage and Hour Division is evaluating the comments received in response to the interim final rule.	87
Labor	Affirmative Action and EO Survey	OFCCP has engaged an outside contractor to study the EO Survey. At the conclusion of the study, anticipated to be in 2004, the Department will determine the best course of action for the EO Survey.	89
Labor/OSHA	Hexavalent Chromium	OSHA is under a court order to publish a final rule by 2006. They plan to initiate a SBREFA Panel in January 2004.	91
Labor/OSHA	Payment for Personal Protective Equipment	OSHA is considering how to address this issue.	94
Labor/OSHA	Exposure to Crystalline Silica	OSHA plans to initiate a SBREFA panel for this rule in September 2003.	95
Labor/OSHA	Tuberculosis (TB) Standard	OSHA does not plan to address this issue through rulemaking.	97
Labor/OSHA	Walking/Working Surfaces	OSHA published a Notice of Reopening of the Rulemaking Record in the Federal Register in April 2003.	98
Labor/OSHA	Recordkeeping for Work-Related Injuries, Illnesses and Fatalities	OSHA published a final rule addressing recordkeeping requirements for MSDs on June 30, 2003.	102
Labor/OSHA	Ergonomics Standard	OSHA does not plan to address this issue through rulemaking. OSHA is working on industry-specific guidelines to address occupational ergonomic hazards.	103
DOT/FAA	Standards for Approval for High Altitude Operation of Subsonic Transport Airplanes	DOT/FAA is continuing to review this issue.	109
DOT/FAA	Emergency Landing Dynamic Conditions	DOT/FAA is continuing to review this issue.	111
DOT	Transportation Planning and Environmental Review Procedures	Environmental streamlining is a priority for FHWA and FTA. The Department has taken a number of actions to help streamline the environmental review of highway and transit projects. On September 20, 2002, FHWA and FTA partially withdrew the proposed rulemaking amending requirements on State and metropolitan planning. A final rule will be issued in 2003. After reauthorization occurs, the agencies will reconsider the need to revise their regulations.	120
DOT	Background Checks for Truckers Hauling Hazardous Materials	DOT is continuing to review this issue.	122
DOT	Commercial Vehicle Cross-Border Safety	DOT is continuing to review this issue.	123
DOT	Hours of Service for Truckers	FMCSA issued a final rule on April 28, 2003.	124
DOT/NHTSA	Corporate Average Fuel Economy (CAFE) Standards	On March 31, 2003, NHTSA issued a final rule setting new fuel economy standards for model year (MY) 2005-2007 light trucks. NHTSA has expressed its intent to consider reforms to the CAFE system, applicable to both passenger cars and light trucks, consistent with its statutory authority. Possible higher levels and/or program restructuring for CAFE for future year rulemakings will be considered, based on these criteria and other statutory provisions, as well as the impact on safety and American jobs.	128
DOT/NHTSA	Head Restraints	The agency has taken a comprehensive look at occupant protection in rear crashes. As part of this, NHTSA wants to ensure that the head restraint rule is coordinated with our planned proposal to upgrade seat back requirements. We anticipate publication of the final rule in 2003.	129
DOT/NHTSA	Tire Pressure Monitoring Systems	A federal appellate court recently ruled that the statute mandating this rule requires a TPMS system capable of detecting significant under-inflation in any tire. The court vacated the final rule. The agency is conducting expedited rulemaking towards issuance of a final rule consistent with the court’s opinion.	130
DOT/NHTSA	Advanced Airbags	Since the agency has only recently reviewed and rejected the proposals raised by the submitters, it does not consider this issue suitable for either review or reform at this time.	131
DOT/FHWA	Fuel System Safety Standard B Vehicle Fires	NHTSA expects that the final rule will be published in 2003.	132
DOT/NHTSA	Occupant Crash Protection	In the summer of 2003, the agency plans to issue a request for comment notice on the proposal for amending FMVSS No. 208 to include a high-speed frontal offset crash test requirement. This notice will discuss the results of preliminary tests that the agency has conducted to assess the possibility of disbenefits of the requirement, and seek comment on alternative strategies that could be coupled with a high-speed frontal offset crash test requirement. This rulemaking was the subject of an OMB prompt letter sent to NHTSA in December 2001. On May 12, 2000, NHTSA published a final rule that amended FMVSS No. 208, "Occupant Crash Protection," to upgrade the maximum belted full-frontal rigid barrier crash test requirement up to 35 mph (56 km/h) for the 50th percentile adult male test dummy beginning with MY 2008 vehicles. At that time, NHTSA indicated that it intended to initiate rulemaking that would increase the maximum belted test speed for the 5th percentile adult female test dummy in time to have both dummies tested at the higher speed starting in 2007. NHTSA is currently reviewing a draft NPRM proposing such a change to the existing requirements. The agency anticipates publishing the NPRM in 2003.	133
DOT/NHTSA	Rollover Protection	Rollover is one of NHTSA's four top priority areas for which Integrated Project Teams have been established. Proposals for additional actions to prevent rollover crashes and protect occupants will be published for public comment in spring 2003. In the TREAD Act, Congress required NHTSA to provide consumer information about vehicle performance in driving conditions. We expect to publish the final notice on this by the end of FY 2003 and begin providing information to the public for 2004 model year vehicles. As a part of an international committee under the auspices of the United Nations/Economic Commission for Europe, NHTSA is currently working with other governments’ experts to try to develop a global standard for the performance of door, door retention components and door locks. NHTSA expects to incorporate this international work with its own work on this subject and issue a proposed upgrade of its door latch and lock standard. We expect that the proposed upgrade will be published by early 2004.	136
DOT/NHTSA	Child Restraints	NHTSA is currently considering several regulatory solutions designed to address the risks experienced by children between the ages of four and ten.	140
DOT/NHTSA	Tire Safety	On June 26, 2003, NHTSA published a final rule to upgrade its tire performance requirements for light vehicles.	141
DOT/NHTSA	.08 Alcohol Incentive Program	NHTSA believes the submitter is unaware of all the provisions of the applicable regulation. NHTSA has called the submitter to explain the scope of the relevant regulation. The submitter, Wisconsin Department of Transportation, stated that NHTSA appears to be applying the compliance criteria of the interim final rule rather than the regulatory text adopted in the subsequent final rule. It noted that the interim final rule states under the 5th compliance criteria that a State must establish a 0.08 BAC per se level under its criminal code. This criteria did not appear in the regulatory text adopted under the final rule. In a subsequent telephone call with agency personnel, the Wisconsin DOT acknowledged that its concerns had already been addressed by a letter sent to it by NHTSA in July 2002. The Wisconsin DOT has no further concerns on this issue.	153
DOT/RSPA	Collection of Annual Registration Fees	On January 9, 2003, RSPA published a final rule reducing registration fees beginning July 1, 2003, to levels that should eliminate the unexpended balance in the Hazardous Materials Emergency Preparedness Grants Fund by 2006 and thereafter produce total receipts equivalent to the annual grants authorized by Congress.	156
Treasury	Alcohol Labeling	Final rule published on March 3, 2002.	160
Treasury/IRS	Government Fleet Fuel Cards	The IRS and Treasury Priority Guidance Plan for the year ending June 30, 2003, includes a project to develop proposed regulations regarding claims for gasoline tax. These proposed regulations are expected to be published in the summer of 2003. The claimant suggests that the issuer of the fleet fueling card be permitted to sell the fuel tax free by reducing its future fuel tax obligation. An alternative approach would be to permit the retailer or wholesale distributor to sell the fuel at a tax-excluded price and claim a refund for the fuel tax paid.	163
Treasury/IRS	Interest Reporting Requirements	Treasury has issued two NPRMs on reporting on interest paid to non-resident aliens.	164
Treasury/IRS	Domestic Relations Tax Reform Act Rules	Treasury Decision 9035, January 13, 2003, finalized the regulation. The final regulation applies to redemptions of stock on or after January 13, 2003, that are pursuant to instruments in effect after January 13, 2003. The final regulation also applies to redemptions before January 13, 2003, or that are pursuant to instruments in effect before January 13, 2003, if the spouses or former spouses execute a written agreement on or after August 3, 2001, that satisfies the requirements of section 1.1041-2(c)(1) or (2) of the final regulations. The effective date provision in the final regulation permits taxpayers to avail themselves of the clarifying relief provided by the regulation if the taxpayers enter into an agreement as contemplated by the proposed and final regulation to specify the tax treatment agreed to by the spouses. Applying the provisions of the proposed and final regulations to taxpayers who have not entered into an agreement as contemplated by the regulations would not be consistent with sound tax administration and might result in adverse consequences to taxpayers.	165
EPA	Risk Management Plans (Worst Case Scenario)	EPA published the final rule on August 4, 2000.	172
EPA	Definition of Solid Waste	EPA expects to issue an NPRM in 2003.	173
EPA	RCRA Burden Reduction Initiative	EPA expects to issue a final rule in September 2003.	174
EPA	RCRA Subtitle C Hazardous Waste Regulations	EPA is evaluating how to address this issue given that many different regulations are involved.	175
EPA	Best Available Retrofit Technology	Revisions to the regional haze rule will address concerns raised by DC Circuit regarding best available retrofit technology. Final rule expected April 2005.	176
EPA	1997 EPA Standards for Ozone and Particulate Matter	Regarding the Ozone NAAQS rule, EPA responded to remand on potential health benefits and issued a final rule on January 6, 2003. Regarding the implementation rule for 8-hour ozone NAAQS, EPA issued an NPRM on June 2, 2003 and a final rule is expected December 2003. Regarding the implementation rule for PM2.5 NAAQS, EPA expects to issue an NPRM in September 2003 and the final rule in September 2004.	177
EPA	Motor Vehicle Emission Standards for Greenhouse Gases	In October 1999, 19 groups petitioned EPA to regulate mobile source emissions of four greenhouse gases – CO2, methane, nitrous oxide, and hydroflourocarbon – to reduce the risk of climate change. EPA published a request for public comment on the petition in January 2001. The Agency received almost 50,000 comments. Agency officials are considering how to respond to the petition.	180§
EPA	Heavy-Duty Engines and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements	Final rule was published January 18, 2001.	181
EPA	Protection from Pollution from Diesel Engines	Final rule was published January 18, 2001.	182
EPA	Proposed Tier 2 Motor Vehicle Emission Standards and Sulfur Gasoline Control Requirements	Final rule was published February 10, 2000.	183
EPA	New Source Review	EPA published the Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR): Baseline Emissions Determination, Actual-to-Future-Actual Methodology, Plantwide Applicability Limitations, Clean Units, Pollution Control Projects Final Rule and the Prevention of Significant Deterioration (PSD) and Non-attainment New Source Review (NSR): Routine Maintenance, Repair and Replacement Proposed Rule on December 31, 2002. EPA received several petitions for reconsideration of the final NSR rule and is currently preparing a response. The comment period for the proposed rule closed on May 2, 2003, and EPA is currently working to draft a final Routine Maintenance, Repair and Replacement rule.	185
EPA	Risk Assessment for Rodenticides	These comments have already been addressed as part of the public comment process for this preliminary risk assessment. Under the Reregistration Process, which includes several opportunities for public comments, and stakeholder meetings, EPA expects other revisions will be made before the risk assessment will be finalized and used in decision-making. Pesticide reregistration decisions will be made based on the final risk assessment, which is also presented for public comment as part of the public review process for the IRED & RED documents. OPP schedules for REDs are posted on the internet.	186
EPA	Ban on Chromated Copper Arsenate (CCA)	On March 17, 2003, EPA granted the cancellation and use termination requests affecting virtually all residential uses of CCA-treated wood and has issued the cancellation orders to the registrants for CCA. After December 30, 2003, CCA products cannot be used to treat lumber intended for most residential settings, including play structures, decks, picnic tables, landscaping timbers, residential fencing, patios and walkways/boardwalks. A Federal Register notice announcing the cancellation orders will be published in 2003.	187
EPA	RCRA Cement Kiln Dust (CKD)	Final rule expected in September 2003.	193
EPA	Watershed Rule (Total Maximum Daily Load)	EPA expects to issue its proposed watershed rule in 2003 and the final rule in June 2004.	196
EPA	TRI Lead	Final rule was promulgated in January 2001.	197
EPA	Arsenic in Drinking Water	The arsenic final rule was issued on January 22, 2001, and became effective on May 22, 2001.	198
EPA	Concentrated Animal Feeding Operations	On January 12, 2001, EPA published a proposed rule changing the Clean Water Act permitting requirements for concentrated animal feeding operations (CAFOs) and strengthening the effluent guidelines for those facilities. On February 12, 2003, EPA published the final rule on CAFOs.	199
EPA	Stormwater Construction General Permit	EPA expects to issue the final General Permit in 2003.	200
EPA	Sanitary Sewer Overflows	EPA expects to issue the proposed SSO rule in December 2003 and final rule in December 2005.	204
EPA	Effluent Guidelines for Metal Products and Machinery	EPA issued the proposed MP&M rule on January 3, 2001. The final MP&M Rule was issued in April 2003.	205
EPA	Drinking Water Standards for Emerging Contaminants	The preliminary notice was issued on June 3, 2002. The final notice is expected in 2003.	206
EPA	Radon in Drinking Water	EPA issued the proposed radon rule on November 2, 1999. The final radon rule is expected in December 2004.	208
EPA	Groundwater Rule	EPA issued the proposed rule on May 10, 2000. The final rule is expected in December 2003.	211
EPA	Disinfection Byproducts Rule	EPA expects to issue the proposed rule in 2003 and the final rule in July 2004.	212
SBA/FAR	Contract Bundling	The proposed rule was published on January 31, 2002. The comment period ended on April 1, 2003. SBA expects to issue a final rule by the end of the year. The proposed changes would revise the definition of bundling to expressly include multiple award contract vehicles and task and delivery orders under such contracting vehicles; require procuring activities to coordinate with the Small Business Specialist (SBS) proposed acquisition strategies or plans contemplating award of a contract or order above specified dollar thresholds and require the SBS to notify the agency Office of Small and Disadvantaged Business Utilization (OSDBU) when those strategies include contract bundling that is unnecessary, unjustified, or not identified as such by the procuring activity; reduce the threshold and revise the documentation required for "substantial bundling;" require contracting officers to provide bundling justification documentation to the agency OSDBU when "substantial bundling" is involved; and require agency OSDBUs to perform certain oversight functions.	264

* Refers to numbers assigned to nominations in Section I of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf).

§ OMB initially referred these nominations to agencies for their consideration as reform candidates. OMB has since learned that agencies had already concluded or began review of these rules at the time OMB issued its 2002 final report. OMB is therefore providing status updates on them in this report.

Table 16. Status Updates on Reforms Completed or Ongoing as of December 2002: Guidance Documents

Agency	Guidance Document	Next Step(s)	Ref. Number*
USDA	Policy on Beef Contaminated with E. coli O157:H7	OSHA’s longstanding enforcement policy was clarified in a 1999 directive. Later this year, the Agency will provide additional examples in the directive to further clarify the responsibilities of the general or controlling contractor.	1
HHS	Discrimination Against Persons with LEP	A revised draft guidance was published in 2003.	7SBA
DOL	Guidance on Equal Employment Opportunity	OFCCP is reviewing whether there is contradictory guidance on collection of ethnicity information between OFCCP and the U.S. Equal Employment Opportunity Commission.	13
DOL/OSHA	Inspection Procedures and Interpretive Guidance for Control of Hazardous Energy (Lockout/Tagout)	OSHA is working on an updated manual on Lockout/Tagout. Part I of the manual will be available for stakeholder input by the end of 2003.	14
DOL/OSHA	OSHA Directive CPL 2.100, Application of the Permit-Required Confined Spaces (PRCS) Standards	OSHA does not plan to revise the guidance at this time.	15
EPA	New Source Review	On December 31, 2002, EPA published a Prevention of Significant Deterioration (PSD) and Non-attainment New Source Review (NSR): Routine Maintenance, Repair and Replacement Proposed Rule. The comment period for the proposed rule closed on May 2, 2003, and EPA is currently working to draft a final rule.	22
EPA	Improving Air Quality Using Economic Incentive Programs	EPA issued guidance on January 19, 2001, and the States are now using the guidance in developing economic incentive programs.	25
EPA	Cancer Risk Assessment Guidance	The issue is being resolved. Proposed for final comment: March 3, 2003. Finalization by the end of 2003.	36
EPA	Drinking Water Affordability	FACA Committee (NDWAC) has submitted recommendations on how to proceed. EPA is evaluating these recommendations.	41
EPA	Clean Water Act Jurisdiction ("SWANCC Decision")	ANPRM: January 15, 2003.	42
OMB	OMB Analytic Guidance	OMB’s revised final guidelines are being issued as Circular A-4 (see Appendix D).	45
OMB	Performance of Commercial Activities	OMB published a draft revision to Circular A-76 in the Federal Register on November 19, 2002. OMB issued the final revision on May 29, 2003.	46
U.S. Army Corps	Wetlands Delineation Guidance Documents	The Corps, in conjunction with the Environmental Protection Agency, the Fish and Wildlife Service, and the Natural Resources Conservation Service, is updating and clarifying its 1987 Wetland Delineation Manual to provide more regionally specific guidance resulting in more precise and consistent wetland delineations.	49

* Refers to numbers assigned to nominations in Section I of "Summaries of Public Suggestions for Reform of Regulations and Guidance Documents" (www.whitehouse.gov/omb/inforeg/summaries_nominations_final.pdf).

G. Next Steps

Over the next year, agencies will take the steps outlined above to implement new reforms of regulations and guidance documents, as well as explore the possibility of reforming other nominated rules and guidance documents. Periodically, OMB will ask agencies for updates on their progress.

source: http://www.whitehouse.gov/omb/pubpress/2003-38.pdf (2.4 MB) 27sep03

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