
Commerce Dept. Calls for More Regulatory Rollbacks
by Guest Blogger, 1/22/2004
The Commerce Department released a report Jan. 16 on U.S. manufacturing that calls on the Office of Management and Budget (OMB) to review existing regulations and implement reforms “on a priority basis” to reduce costs on manufacturers.
Curiously, the report does not mention that OMB actually did this during the first two years of the Bush administration, using its annual report to Congress on federal regulation to identify and weaken a host of significant standards, such as controls on power-plant emissions.
In this past year’s report, OMB did not solicit new recommendations on specific rules, as the administration was still evaluating the whopping 267 recommendations submitted the previous year. Instead, OMB issued new guidance on regulatory analysis that raises the bar for promulgating new health, safety and environmental standards. The Commerce Department urges OMB to “rigorously apply” this guidance “to any proposed rules that would influence the costs imposed on the manufacturing sector, particularly as they affect small and medium-sized businesses.”
In making these recommendations, Commerce cites a study commissioned by the Small Business Administration’s Office of Advocacy that misleadingly suggested small businesses are being strangled in a sea of regulation without providing any corresponding review of the benefits of health, safety and environmental protection. (OMB’s latest report by contrast found that the benefits of environmental regulation swamp the costs.) Indeed, going by Commerce's report, the primary objective should be to reduce regulatory costs no matter the consequences.
