publish a notice of initiation of rulemaking to invite interested parties to propose alternatives and ideas that accomplish the agency's objectives and benefit the public;
allow persons interested in high-impact or certain major rules to petition for a public hearing with oral presentation, cross-examination, and the burden of proof on the proponent of the rule;
adopt the most cost-effective rule among reasonable alternatives that meet statutory objectives, unless additional benefits justify additional costs; and
publish a framework and metrics for measuring the effectiveness of the rule on an ongoing basis.
The bill defines:
a "high-impact rule" as a rule likely to cause an annual effect on the economy of $1 billion or more; and
a "major rule" as a rule likely to cause an annual effect on the economy of $100 million or more, a major increase in costs or prices, or significant adverse effects on competition, employment, investment, productivity, innovation, public health and safety, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.
Agencies proposing a rule must notify the Office of Information and Regulatory Affairs (OIRA) and publish a notice of proposed rulemaking that includes: (1) a text of the proposed rule; (2) rulemaking considerations; and (3) for any major rule or high-impact rule, a discussion of alternatives and a preliminary explanation of how the rules meets statutory objectives and how benefits justify costs. When adopting a rule, an agency must publish a notice of final rulemaking that explains its determinations and responds to comments.
To obtain public comment on whether rules adopted at the end of a presidential administration should be amended or rescinded, agencies may delay rules that have not yet become effective before the inauguration of a new President.
OIRA must establish rulemaking guidelines for: (1) assessing costs and benefits, economic issues, and risk assessments; and (2) avoiding inconsistency or duplication with other agency rules.
The bill revises the scope of judicial review to: (1) establish a substantial evidence standard for high-impact rules, (2) allow courts to remand a matter to an agency without setting aside the agency's action, and (3) prohibit review of a determination of whether a rule is a major rule based on an increase in costs or adverse effects.
Agencies issuing guidance are: (1) prohibited from foreclosing consideration of issues, (2) required to state that guidance is not legally binding, and (3) required to confer with OIRA on major guidance.