H.R. 572: Regulations Evaluated to Determine The Anticipated Price and Effect Act

This bill, officially known as the Regulations Evaluated to Determine The Anticipated Price and Effect Act, or the RED TAPE Act, aims to change how federal agencies assess the impacts of their proposed rules and regulations. Here are the key components:

Goals of the Bill

• The bill seeks to ensure that federal agencies focus on quantifiable monetary benefits when evaluating new regulations.
• It promotes the idea that any regulatory action should provide clear financial advantages to the public or private sectors while reducing unnecessary costs associated with regulations.

Prohibitions on Regulatory Analyses

• Agencies are prohibited from considering any factors that cannot be quantified in monetary terms when conducting a regulatory impact analysis or benefit-cost analysis.
• The Office of Management and Budget (OMB) is not allowed to authorize any guidance that endorses the use of non-monetized or unquantified factors in these analyses.
• Additionally, the OMB cannot consider such factors from analyses conducted by other agencies.

Public Transparency Requirements

For each proposed rule, final rule, or interim final rule, agencies must publish:

• A summary of the regulatory impact and benefit-cost analyses conducted.
• The full text of these analyses, explaining the methodology used to estimate economic impacts and the reasoning behind those impacts.
• Any additional information deemed relevant to the analyses, including details about the agency's decision-making process.

Guidance and Compliance

The bill mandates that the Director of the Office of Management and Budget must provide revised guidance to ensure that agencies comply with the new requirements within 90 days of the bill's enactment.

Legal Consequences

• Any party affected by a rule that improperly considered non-monetized or unquantified factors can challenge the rule in a U.S. District Court.
• If a court finds that an agency violated this prohibition, it will declare the rule invalid.

Effective Date

The regulations introduced in this bill will take effect 30 days after it is enacted.

Relevant Companies

None found