Category Archives: regulation

CEI’s Battered Business Bureau: The Week in Regulation

It was a short work week due to the Fourth of July holiday, but agencies still managed to issue new rules covering everything from stormwater to seatbelts.

On to the data:

  • Last week, 50 new final regulations were published in theFederal Register, after 137 the previous week.
  • That’s the equivalent of a new regulation every one hour and 14 minutes.
  • With 1,859 final regulations published so far in 2016, the federal government is on pace to issue 3,548 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 1,293 new pages were added to the Federal Register, after 2,051 pages the previous week.
  • Currently at 44,693 pages, the 2016 Federal Register is on pace for 85,292 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 19 such rules have been published so far in 2016, none in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.82 billion to $6.02 billion.
  • 141 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 354 new rules affect small businesses; 53 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and@RegoftheDay on Twitter.

CEI’s Battered Business Bureau: The Week in Regulation

Maybe the recently-passed Congressional Review Act deadline I wrote about previously hasn’t had much effect on midnight regulators. The Federal Registeronce again topped 2,000 pages last week, and included a year-high 137 final regulations, ranging from eggs to groupers.

On to the data:

  • Last week, 137 new final regulations were published in the Federal Register, after 77 the previous week.
  • That’s the equivalent of a new regulation every one hour and 14 minutes.
  • With 1,809 final regulations published so far in 2016, the federal government is on pace to issue 3,561 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 2,051 new pages were added to the Federal Register, after 1,343 pages the previous week.
  • Currently at 43,200 pages, the 2016 Federal Register is on pace for 85,001 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 19 such rules have been published so far in 2016, two in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.82 billion to $6.02 billion.
  • 140 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 340 new rules affect small businesses; 53 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and@RegoftheDay on Twitter.

Toward a Regulatory Budget

How much should the U.S. government spend on defense? How much on health care? Or energy, or technology? Every year, the U.S. federal government is supposed to publish a spending budget to answer these sorts of questions. But there is no equivalent budget for regulations. Why not? My colleague Wayne Crews’ newest study asks exactly that question.

Why is this a problem? Suppose the Labor Department doesn’t have the money in its budget for some job-training program it has in mind. It can get around the problem by simply issuing a regulation requiring private companies to run the same program, at their expense. People have to pay for it either way. But the regulatory way doesn’t show up on the federal spending ledger.

A regulatory budget, on the other hand, would prevent regulatory agencies from doing darn near anything they want. People like you and me have to prioritize our spending. If I buy a new television, that’s money I can’t put into my child’s college fund. Money you spend on a new car is money you can’t put into your retirement account.

Regulatory agencies, with their multi-billion dollar budgets, do not face the same tradeoffs that people like you and I do. A regulatory budget would help agencies behave more like people.

As it is now, if the Environmental Protection Agency issues a new power plant regulation adding $9.6 billion to people’s electricity bills every year, so what? It can, and will, pass additional regulations affecting everything from air conditioners to refrigerators, further adding to the damage. Federal regulations make it harder for people to pay their mortgages, student loans, and other bills.

The EPA hurts people, to the tune of at least $353 billion per year, on just an $8 billion budget. A regulatory budget would force the agency to publicly recognize that nearly 40-fold difference. Not to pick on the EPA specifically, but they do have a transparency problem. So do most of the 60-plus other rulemaking agencies that issue more than 3,400 new regulations every year. Their combined efforts cost consumers and entrepreneurs about $1.88 trillion every year.

A regulatory budget, similar to the spending requests agencies make every year, would go a long way toward making the public more aware of how much agencies like the EPA, FCC, SEC, and others actually cost. A regulatory budget is not be a panacea, but it would be better than what we have now.

For more see Wayne’s regulatory budget paper here.

CEI’s Battered Business Bureau: The Week in Regulation

The 2016 Federal Register surpassed 40,000 pages last week, with new rules ranging from lights on farm equipment to grading raisins.

On to the data:

  • Last week, 77 new final regulations were published in the Federal Register, after 93 the previous week.
  • That’s the equivalent of a new regulation every two hours and 11 minutes.
  • With 1,672 final regulations published so far in 2016, the federal government is on pace to issue 3,426 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 1,343 new pages were added to the Federal Register, after 1,802 pages the previous week.
  • Currently at 41,149 pages, the 2016 Federal Register is on pace for 84,322 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 16 such rules have been published so far in 2016, one in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.70 billion to $5.62 billion.
  • 132 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 331 new rules affect small businesses; 49 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and@RegoftheDay on Twitter.

Why Shouldn’t the Energy Department Run the Entire Economy?

New Energy Department standards for dehumidifiers promise massive benefits. Depending on which set of numbers you prefer (the link goes to the Energy Department’s own numbers), they will cost somewhere between $110 million and $190 million annually. Estimated annual benefits range from $2.0 billion to $3.6 billion. If these numbers are accurate, this regulation will cause a net benefit to consumers between 18- and 19-fold.

Not 18 or 19 percent, mind you, but 18- or 19-fold. That’s 1,800 or 1,900 percent. The stocks that comprise the Dow Jones Industrial Average yield returns of around 8 percent, or 1/225th as much. The U.S Department of Energy, according to the U.S Department of Energy, can create some very impressive returns.

Which brings up an obvious question: Why not just have the Energy Department run the entire economy?

The reason is that entrepreneurs in every sector of the private economy constantly have their ideas put to a profit-and-loss test. The Energy Department only obeys political winds, which blow differently from year to year. Private entrepreneurs must create value for other people; political entrepreneurs need only create value for the right people.

Despite the massive improvement in living standards that entrepreneurs’ market-tested betterment has brought to most of the world for two centuries and counting, they have only brought a 2 or 3 percent rate of growth over that long time, on average. The Energy Department promises 1,800 percent. That is at least 600 times as much as market-tested entrepreneurs, and 225 times as much as the mercenary Dow Jones.

Again: if Energy Department officials are smarter than entrepreneurs, to the point of being able to earn a 225-fold greater return—why not have the Energy Department run the entire economy? Why don’t Energy Department officials enter the private sector, where their ideas could make enormous profits, and do enormous social good?

As Deirdre McCloskey asked many years ago, “If You’re So Smart, Why Ain’t You Rich?” These are serious questions which deserve serious answers. Energy Department officials could learn much from her intellectual humility.

CEI’s Battered Business Bureau: The Week in Regulation

The number of new regulations for the year exceeded the 1,500 mark last week, with new rules covering everything from seatbelts to suckerfish.

On to the data:

  • Last week, 97 new final regulations were published in the Federal Register, after 61 the previous week.
  • That’s the equivalent of a new regulation every one hour and 44 minutes.
  • With 1,502 final regulations published so far in 2016, the federal government is on pace to issue 3,283 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 1,920 new pages were added to the Federal Register, after 1,895 pages the previous week.
  • Currently at 38,004 pages, the 2016 Federal Register is on pace for 84,831 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 15 such rules have been published so far in 2016, none in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.59 billion to $5.43 billion.
  • 123 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 297 new rules affect small businesses; 45 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and@RegoftheDay on Twitter.

CEI’s Battered Business Bureau: The Week in Regulation

Last week’s Federal Register fell short of 2,000 pages, mainly because it was a four-day work week due the Memorial Day holiday. While the Federal Register continues its record pace, there were no economically significant rules last week (costing $100 million-plus per year), after four the previous week. It’s still too early to tell if the Congression Review Act-related midnight rush was real or not, but early indications are that it may be. New rules from the last week range from portable air conditioning to the Death Master File.

On to the data:

  • Last week, 61 new final regulations were published in the Federal Register, after 70 the previous week.
  • That’s the equivalent of a new regulation every two hours and 46 minutes.
  • With 1,405 final regulations published so far in 2016, the federal government is on pace to issue 3,283 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 1,895 new pages were added to the Federal Register, after 2,013 pages the previous week.
  • Currently at 36,084 pages, the 2016 Federal Register is on pace for 84,309 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 15 such rules have been published so far in 2016, none in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.59 billion to $5.43 billion.
  • 120 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 270 new rules affect small businesses; 45 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

Regulation in the News

An otherwise-excellent Daily Caller writeup by Michael Bastach cites some of my research on the recent surge in regulatory activity.

CEI’s Battered Business Bureau: The Week in Regulation

The Congressional Review Act deadline for the possible midnight regulation rush has now likely passed, though the Federal Register once again topped 2,000 pages last week. That makes four weeks out of the last five the page count has gotten that high, which is unusual. If there is a slowdown in the next few months, we’ll know if the midnight rush was real or not. For now, it’s too early to tell. In the meantime, new regulations in the last week ranged from food labels to selling electricity.

On to the data:

  • Last week, 70 new final regulations were published in the Federal Register, after 68 the previous week.
  • That’s the equivalent of a new regulation every two hours and 24 minutes.
  • With 1,344 final regulations published so far in 2016, the federal government is on pace to issue 3,262 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 2,013 new pages were added to the Federal Register, after 2,065 pages the previous week.
  • Currently at 34,189 pages, the 2016 Federal Register is on pace for 82,984 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 15 such rules have been published so far in 2016, four in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $3.59 billion to $5.43 billion.
  • 113 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 261 new rules affect small businesses; 43 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

CEI’s Battered Business Bureau: The Week in Regulation

As mentioned earlier, something of a regulatory midnight rush is happening right now. The Federal Register topped 2,000 pages for the third time in four weeks—a rare accomplishment. It is now on pace to break last year’s all-time record. New rules range from flight simulators to the EPA’s in-house rules for corporate handouts.

On to the data:

  • Last week, 68 new final regulations were published in the Federal Register, after 58 the previous week.
  • That’s the equivalent of a new regulation every two hours and 28 minutes.
  • With 1,274 final regulations published so far in 2016, the federal government is on pace to issue 3,250 regulations in 2016. Last year’s total was 3,406 regulations.
  • Last week, 2,065 new pages were added to the Federal Register, after 2,170 pages the previous week.
  • Currently at 32,131 pages, the 2016 Federal Register is on pace for 81,967 pages. This would exceed the 2015 Federal Register’s all-time record adjusted page count of 81,611.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 11 such rules have been published so far in 2016, none in the last week.
  • The running compliance cost tally for 2016’s economically significant regulations ranges from $1.21 billion to $2.20 billion.
  • 105 final rules meeting the broader definition of “significant” have been published this year.
  • So far in 2016, 250 new rules affect small businesses; 40 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and@RegoftheDay on Twitter.