Environmental Policy under Reagan's Executive Order: The Role of Benefit-Cost Analysis

By V. Kerry Smith | Go to book overview

APPENDIX: TEXT OF EXECUTIVE ORDER 12291 *
By the authority vested in me as President by the Constitution and laws of the United States of America, and in order to reduce the burdens of existing and future regulations, increase agency accountability for regulatory actions, provide for presidential oversight of the regulatory process, minimize duplication and conflict of regulations, and insure well-reasoned regulations, it is hereby ordered as follows:
Section 1. Definitions . For the purposes of this Order:
A. "Regulation" or "rule" means an agency statement of general applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the procedure or practice requirements of an agency, but does not include:
1. Administrative actions governed by the provisions of Sections 556 and 557 of Title 5 of the United States Code;
2. Regulations issued with respect to a military or foreign affairs function of the United States; or
3. Regulations related to agency organization, management, or personnel.
B. "Major rule" means any regulation that is likely to result in:
1. An annual effect on the economy of $100 million or more;
2. A major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or
3. Significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States -- based enterprises to compete with foreign-based enterprises in domestic or export markets.
C. "Director" means the Director of the Office of Management and Budget.
D. "Agency" means any authority of the United States that is an "agency" under 44 U.S.C. 3502(I), excluding those agencies specified in 44 U.S.C. 3502(10).
E. "Task Force" means the Presidential Task Force on Regulatory Relief.
Sec. 2. General Requirements . In promulgating new regulations, reviewing existing regulations, and developing legislative proposals concerning regulation, all agencies, to the extent permitted by law, shall adhere to the following requirements:
A. Administrative decisions shall be based on adequate information concerning the need for and consequences of proposed government action;
B. Regulatory action shall not be undertaken unless the potential benefits to society for the regulation outweigh the potential costs to society;
C. Regulatory objectives shall be chosen to maximize the net benefits to society;
D. Among alternative approaches to any given regulatory objective, the alternative involving the least net cost to society shall be chosen; and
E. Agencies shall set regulatory priorities with the aim of maximizing the
____________________
*
Federal Register 46 ( 19 February 1981): 13193-98.

-241-

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