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June
19, 2001
M-01-23
MEMORANDUM
FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
| FROM: |
Mitchell
E. Daniels, Jr.
Director |
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| SUBJECT: |
Improving
Regulatory Impact Analyses |
The Bush
Administration is committed to improving the quality of the Regulatory
Impact Analyses (RIAs) that departments and agencies prepare under
Executive Order 12866. Improved analysis will lead to more effective
and efficient regulation by providing the public and policy officials
with better information on the effects of these important rules.
As part of
this initiative, agencies should ensure that they use the "OMB
Guidelines to Standardize Measures of Costs and Benefits and the
Format of Accounting Statements" (M-00-08) in preparing their
RIAs. The Office of Management and Budget (OMB) issued the Guidelines
on March 22, 2000, after interagency comment and peer review.
Using economic analyses to improve regulatory results is also
required by several other laws and Executive Orders, in addition
to E.O. 12866. Examples include: Title II of the Unfunded Mandates
Reform Act of 1995, which requires agencies to provide qualitative
and quantitative assessments of the anticipated costs and benefits
of Federal mandates; Section 624 of the Consolidated Appropriations
Act of 2001, which requires agencies to prepare accounting statements
on the benefits and costs of regulations for submission to OMB;
and the Statement of Effects of Executive Order 13211, "Actions
Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use", which was issued on May 18, 2001 to
improve understanding of the effects of regulatory actions on
energy. Using the Guidelines to improve the analyses called for
by these requirements will result in more informed regulatory
decisions and better regulations.
Before an
agency submits a draft rule and RIA to OMB for review under EO
12866, the agency should assure that it has complied with the
Guidelines. This will avoid the need for the agency to conduct
additional analysis in the course of OMB review. If OMB determines
that more substantial work is needed, OMB will return the draft
rule to the agency for improved analysis.
The Guidelines
are on our web site at:
/omb/memoranda/m00-08.pdf
OMB's Office
of Information and Regulatory Affairs (OIRA) can answer any questions
that your agency may have about the Guidelines. OIRA's Deputy
Administrator, Don Arbuckle, may be reached at 395-5897.
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