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Attachment 2 Economic Analysis in the Rulemaking Process

By Environmental Protection Agency

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Book Id: WPLBN0000026959
Format Type: PDF eBook
File Size: 0.1 MB
Reproduction Date: 2007
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Title: Attachment 2 Economic Analysis in the Rulemaking Process  
Author: Environmental Protection Agency
Language: English
Subject: Ecology, Natural resource issues, Environemtal protection
Collections: Environmental Awareness Library Collection
Publication Date:
Publisher: United States Environmental Protection Agency


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Agency, E. P. (n.d.). Attachment 2 Economic Analysis in the Rulemaking Process. Retrieved from

Excerpt: I. Various statutes and other new mandates require agencies to conduct economic analyses of environmental regulations. These analyses must consider a wide range of economic and social issues that are potentially affected by environmental regulations. Mandates requiring the economic analyses of regulatory policies include: < Executive Order 12866, “Regulatory Planning and Review” requires analysis of benefits and costs for all significant regulatory actions. E.O. 12866 requires a statement of the need for the proposed action, examination of alternative approaches, and analysis of social benefits and costs. E.O. 12866 also states that the distributional and equity effects of a rule should be considered, including distribution by income group, race, sex and industrial sector. Where thought to be important, these effects should be quantified to the extent possible. < The Unfunded Mandates Reform Act of 1995 (PL 104-4) directs agencies to assess the effects of Federal regulatory actions on State, local and tribal governments, and the private sector, and to obtain meaningful input from State, local and tribal governments for rules containing “significant Federal intergovernmental mandates.” These are Federal mandates which may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. < The Regulatory Flexibility Act of 1980 (RFA) requires that Federal agencies conduct a screening analysis to determine whether a regulation will have a significant impact on a substantial number of small entities, including small businesses, governments and organizations. If the screening analysis finds that a regulation will have such an impact, agencies must prepare a regulatory flexibility analysis, and comply with a number of procedural requirements to solicit and consider flexible regulatory options that minimize adverse economic impacts on small entities. < The Small Business Regulatory Enforcement Fairness Act of 1996 (PL 96-354) (SBREFA) strengthened the analytical and procedural requirements of the Regulatory Flexibility Act. EPA has prepared Interim Guidance on complying with the RFA and SBREFA requirements. In addition, the Small Business Administration has issued guidance on compliance with the RFA.

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