The Small Business Administration's (SBA) Office of Advocacy has finalized a list of ten rules it will encourage federal agencies to modify. The Office of Advocacy compiled the list after receiving recommendations from small businesses and industry lobbyists.

The Office of Advocacy announced the list Feb. 28 as a part of its Regulatory Review and Reform Initiative (R3). The Office of Advocacy undertook the R3 initiative in 2007; the program is "designed to identify and address existing federal regulations that should be revised because they are ineffective, duplicative, or out of date."

The Office of Advocacy acts as a liaison between the business community and the federal government, particularly the executive branch. Although the Office of Advocacy purports to be the voice of small business in the federal government, it often appears to cater to the wishes of national trade groups and anti-regulatory lobbyists when it comes to regulatory issues.

The final list targets public health and safety regulations. Of the final ten rules, four are U.S. Environmental Protection Agency (EPA) rules, one is an Occupational Safety and Health Administration (OSHA) regulation, and one is a Mine Safety and Health Administration (MSHA) rule. The Office of Advocacy winnowed the final list from a preliminary tally of 82 rules nominated by small businesses, industry lobbying groups, and think tanks.

The Office of Advocacy recommended EPA update a rule that requires dry cleaners to test their machines for air pollutant emissions. According to the Office of Advocacy, "The testing method requires an operator to open the machine to sample the emissions. However, most modern machines are closed-loop machines that will automatically shut down if any of the components are disconnected." The Office of Advocacy also recommends EPA ease requirements on the devices that test dry cleaning machine emissions by reducing their sensitivity. Easing the requirement would make it more difficult for operators to discover the presence of air pollutants. The Small Business Environmental Assistance Program and Small Business Ombudsman National Steering Committee nominated the rule.

The Office of Advocacy also targeted a rule on community drinking water systems. The Office of Advocacy recommended EPA make it easier for small communities to receive an affordability variance from EPA. Affordability variances allow small communities to adopt alternative pollution control technologies in their drinking water systems. The National Rural Water Association nominated the rule.

The third EPA rule concerns the recycling of solid waste. Currently, solid waste deemed to be a hazardous material must undergo special treatment. EPA has been in the process of revising definitions for solid waste policy since 2003.

The Office of Advocacy is pushing EPA to adopt a definition of hazardous materials that is as narrow as possible, stating, "Currently many useful materials that could otherwise be reused are required to be handled, transported, and disposed of as hazardous wastes." EPA, the Office of Advocacy, and the White House Office of Management and Budget (OMB) have attempted to portray the rule change as environmentally friendly by claiming it would increase recycling.

Leading environmentalists are critical of the proposed definition change. According to the Sierra Club, "If the rule were adopted, an estimated three billion pounds of hazardous waste annually would no longer be regulated as waste under certain conditions." The group added, "If the waste is no longer regulated, it will be much easier for these still toxic substances to make it onto our land and into our waters."

An environmental consulting firm (iSi Environmental Services), the Synthetic Organic Chemical Manufacturers Association, and the National Paint and Coatings Association nominated the rule.

The fourth EPA rule concerns oil spill prevention. The Office of Advocacy is asking EPA to clarify the definition of oil under federal regulations that require facilities to adopt oil spill prevention and clean-up plans. According to the Office of Advocacy, "Many facilities are unsure whether a given product is considered 'oil' or not, and therefore whether the [prevention and clean-up] rules apply." The American Chemistry Council and the National Paint and Coatings Association nominated the rule.

The OSHA rule protects laboratory and medical workers from exposure to bloodborne pathogens by, for example, requiring facilities to reduce the risk of needlestick. The Office of Advocacy is asking OSHA to revise the rule to allow smaller facilities or facilities where the risk of blood exposure is low to be held to less stringent requirements. Scott George, president and CEO of the Mid-America Dental and Hearing Center in Missouri, nominated the rule.

The MSHA rule sets standards on the use of explosives in mines. According to the Office of Advocacy, MSHA has not updated the standards since 1996. The Office of Advocacy recommended MSHA update the standards to reflect industry best practices and to more closely resemble federal standards for general industry, which OSHA is currently in the process of updating. The Institute of Makers of Explosives and the International Society of Explosives Engineers nominated the rule.

Another nominated rule places restrictions on flights around the Washington, DC, metropolitan area. The Federal Aviation Administration (FAA) issued the rule as an interim rule in the wake of the September 11 attacks and plans to finalize it, according to the Office of Advocacy.

Of the remaining three rules, one is an IRS rule regarding home office deductions, and the other two relate to federal procurement and contracting.

The Office of Advocacy consulted with OMB's Office of Information and Regulatory Affairs (OIRA) in finalizing the list of rules. SBA's Office of Advocacy and the White House's OIRA often work together under a memorandum of understanding signed in 2002 in which both offices pledged to "achieve a reduction in unnecessary regulatory burden for small entities." Although the memorandum expired in 2005, the offices continue to work together closely. OIRA serves as the clearinghouse for most regulations developed by executive branch agencies. In President Bush's White House, OIRA has often sought to weaken or delay environmental and worker safety regulations.

The Office of Advocacy's attempt to push for agencies to review the rules duplicates a statutorily required process under the Regulatory Flexibility Act (RFA). Under RFA, agencies must review every ten years rules they find to impact small entities. A recent Government Accountability Office report found agencies often conduct regulatory reviews even more frequently under individual internal policies.

The Office of Advocacy will post and update the status of each rule on its website at www.sba.gov/advo/r3/.