Independent Regulatory Commissions Rulemaking and Cost-Benefit Analysis Issues

Federal agencies regularly adopt rules, which have the force of law, to implement the statutes and programs authorised by Congress. Unless a statute directs otherwise, agencies generally must follow the requirements of the Administrative Procedure Act to promulgate rules. However, beginning with President Reagan, Presidents have maintained a centralised review process for "significant regulatory actions." Currently, Executive Order (EO) 12866, issued by President Clinton, imposes additional procedures agencies must follow before a rule can be finalised. This includes requiring agencies to submit proposed regulatory action to the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) for review. Although EO 12866 applies to executive agencies, independent regulatory commissions (IRCs) are not required to submit their rules to OIRA for review. In the 112th Congress, Senator Rob Portman introduced S.3468, the Independent Regulatory Agency Analysis Act of 2012. Under this bill, the President could issue an executive order establishing centralised review procedures for IRCs. This book discusses the constitutionality and the legal effects of extending centralised review of rulemaking to IRCs.