Recommendation 2013-2, “Benefit-Cost Analysis at Independent Regulatory Agencies,” highlights a series of best practices directed at independent regulatory agencies in the preparation of benefit-cost analyses that accompany proposed and final rules.
Benefit-Cost Analysis at Independent Regulatory Agencies
Project Stages:1. Gather ideas - Completed
2. Select ideas - Completed
3. Council approval - Completed
4. Picking a researcher - Completed
5. Committee consideration - Completed
6. Back to the council - Completed
7. Consideration by the full conference - Completed
8. Implementation - Current
Background Information: Though independent regulatory agencies are not subject to the benefit-cost analysis requirements of Executive Orders 12866 and 13563, several such agencies undertake benefit-cost analysis in connection with their regulatory activities. For instance, the Federal Communications Commission and the Securities and Exchange Commission regularly conduct benefit-cost analysis in their rulemakings. In addition, in Executive Order 13579, the Obama Administration has asked independent regulatory agencies to engage in retrospective review of existing regulations in accordance with the principles of Executive Order 13563, a process that presumably entails analysis of the costs and benefits of these existing rules. Finally, several recent cases have concerned the adequacy of benefit-cost analyses conducted in connection with independent regulatory agency rulemakings. See, e.g., Bus. Roundtable v. Sec. & Exch. Comm’n, 647 F.3d 1144 (D.C. Cir. 2011). This project examined the use of benefit-cost analysis at independent regulatory agencies and highlighted certain innovative practices those agencies have developed.