Category Archives: regulation

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  82 new final rules were published last week, up from 76 the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 2 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,790 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,853 new rules.
  • 1,753 new pages were added to the 2012 Federal Register last week, for a total of 58,648 pages.
  • At its current pace, the 2012 Federal Register will run 79,685 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 39 such rules published so far in 2012 have compliance costs of at least $17.4 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • 3 economically significant rules were published last week.
  • So far, 280 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 535 final rules affect small business. 75 of them are significant rules.

Highlights from final rules published last week:

  • The Fish and Wildlife Service issued three more economically significant rules for migratory bird hunting. Using the same economic analysis from 2008 that the previous rules used, the first, second, and third rule each estimate $205 million to $270 million in consumer surplus, for a total of $615 to $810 million. But they say nary a word about compliance costs, so I’m scoring them as zero-cost in our running tally.
  • On October 22, new regulations for Indian casino games will take effect. The rules affect “minimum internal control standards for Class II gaming under the Indian Gaming Regulatory Act to provide comprehensive and updated standards for all aspects of Class II gaming.”  A separate rule sets minimum technical standards for class II gaming systems and equipment.
  • Bailouts have reached the world of fruit. If you own trees that caught plum pox, a new regulation from the Animal Plant Health Inspection Service might make you eligible for compensation.
  • If you were waiting for the September 19 expiration of import restrictions on archaeological material from Mali, I have bad news. They have been extended for five years.
  • The federal government maintains a National Priorities List. The EPA published a new rule on Tuesday updating it.
  • The next time you have to serve somebody a legal document, you just might be able to do it electronically.

For more data, go to TenThousandCommandments.com.

Regulation Roundup


Some of the stranger recent regulatory happenings:

Beware of Unaudited Benefit Analyses

One of the first things people learn when they move to Washington is that government agencies are just as self-interested as the rest of us. They have an eternal incentive to expand their missions and grow their budgets, and they behave accordingly. One consequence of this is that their cost-benefit analyses cannot be trusted. Because the analyses are done in-house instead of by an independent third party, you can bet that cost estimates will be understated, and benefit estimates will be overstated. Over at Investor’s Business Daily, Wayne Crews and I expand on that theme:

The biggest problem lies in the simple question: Benefits compared with what? Government is hardly the only regulator; governance doesn’t always require government. Competitive markets have disciplinary mechanisms — including reputation, loss, insurance, and liability — to punish bad actors. Consumers are harsh sovereigns. Private organizations like Underwriters Laboratory set high standards for its sought-after product certifications.

If a new government regulation codifies best practices for an industry, a common result is stasis. Technology and on-the-ground best practices evolve much more quickly than the Code of Federal Regulations does. When regulations hold back advances, they wipe out many potential benefits to consumers and producers alike.

Read the whole thing here. Also see Wayne’s new working paper, “Tip of the Costberg.”

Regulatory Costs Exceed Official Estimates 20-Fold

Paul Bedard summarizes Wayne Crews’ new working paper “Tip of the Costberg.” You can read the latest draft here.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  76 new final rules were published last week, up from 51 the previous (holiday-shortened) week.
  • That’s the equivalent of a new regulation every 2 hours and 13 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,708 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,842 new rules.
  • 1,571 new pages were added to the 2012 Federal Register last week, for a total of 55,324 pages.
  • At its current pace, the 2012 Federal Register will run 79,463 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 36 such rules published so far in 2012 have compliance costs of at least $17.4 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • 1 economically significant rule was published last week.
  • So far, 272 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 521 final rules affect small business. 72 of them are significant rules.

Highlights from final rules published last week:

  • Last week’s economically significant regulation comes from the EPA. It has set new performance standards for oil refineries under five years old. Estimated compliance costs are $79 million. This is short of the $100 million threshold; it counts as an economically significant rule because EPA estimates benefits ranging from $200 million to $1.9 billion. Something to keep in mind: if an estimate’s range covers nearly a factor of ten, it is usually a fancy way of saying “we have no idea what the benefits will be.”
  • The EPA published a more humble rule on Tuesday concerning paper mill emissions. It estimates $5.9 million in capital costs and $2.1 million in annually recurring costs, and wisely declines to quantify benefits, because “we were unable to quantify the emissions reductions associated with the new requirements in the final rule.”
  • You may have heard the term “policing for profit,” in which police departments and other agencies take property from people who have not been convicted of crimes. The DEA, a longtime leader of the policing for profit movement, has updated its seizure and forfeiture regulations.
  • The federal government regulates where wine producers may say their wine comes from. Last week Alcohol and Tobacco Tax and Trade Bureau established the Innwood Valley region in California and the Middleburg Virginia region.
  • Updated FAA airworthiness directives for Glasflugel gliders.

For more data, go to TenThousandCommandments.com.

Quantifying Regulation

The Daily Caller‘s Michael Bastasch with a nice writeup of some of the research Wayne Crews and I have been working on.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  51 new final rules were published during the Labor Day-shortened week, down from 74 the previous week.
  • That’s the equivalent of a new regulation every 3 hours and 17 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,632 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,839 new rules.
  • 1,641 new pages were added to the 2012 Federal Register last week, for a total of 55,324 pages.
  • At its current pace, the 2012 Federal Register will run 79,489 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 35 such rules published so far in 2012 have compliance costs of at least $17.3 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • 4 economically significant rules were published last week.
  • So far, 266 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 964 final rules affect small business. 71 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

Regulation of the Day 228: Peyton Manning’s Jersey

Suspected gang member Konnor Vanatta.

When the Indianapolis Colts released star quarterback Peyton Manning this spring after 14 years of faithful service (and a Super Bowl victory), the Denver Broncos eagerly picked him up. Coloradoans rejoiced, and have made Manning’s number 18 jersey the best-selling in the NFL since April.

Konnor Vanatta, 8, of Greeley, Colorado, owns one of the new jerseys. He can’t wait for Manning to make his Denver debut this Sunday against the Pittsburgh Steelers. Like many football fans his age, Konnor was eager to show his allegiance by wearing his Manning jersey to school. The trouble is that he is not allowed to. His jersey has what local school officials call a “gang number” on it, with possible ties to a gang in Los Angeles.

Greeley and Los Angeles are 1,069 miles apart.

I’d never heard of gang numbers before, so I went to the FBI’s website at fbi.gov and ran a few searches for terms like “Peyton Manning gang affiliation,” “Denver Broncos,” “gang numbers,” and the like. About all I found out was that the FBI does not consider the Broncos a gang, nor is Peyton a suspected gang member. Neither is Konnor, who is a third grader.

Still, zero tolerance means zero tolerance. Any clothing with the number 18 on it is verboten in Weld County’s public school system. Other suspected gang numbers are 13 and 14, along with all three numbers in reverse – 31, 41, and 81.

Which means Peyton isn’t the only Bronco who isn’t welcome in Greeley, Colorado schools. Young fans of wide receivers Tyler Grisham (13) and Brandon Stokley (14), cornerback Omar Bolden (31), and tight end Joel Dreessen (81) will also have to leave their jerseys at home. And baseball fans shouldn’t even think about wearing their Drew Pomeranz (13) Rockies jerseys come springtime.

Unlike school officials, Konnor’s mother appears to have common sense. She told a local CBS affiliate:

“I knew that Greeley had a gang problem but I didn’t think in any event it should affect someone that’s in third grade,” Vanatta said.

Vanatta said she appreciates that school leaders want to be cautious, but she worries maybe they are just “giving the gangs what they want.”

“When they are counting and when they’re learning their numbers, are they going to make them skip 14, 13, 41, 81, 18 when they are counting? It’s getting ridiculous,” she said.

Good points all. Even the NFL weighed in, with NFL.com editor Gregg Rosenthal correctly describing the policy as “idiocy.”

CEI Podcast for September 6, 2012: Modernizing Air Traffic Control


Have a listen here.

America’s air traffic control system can be charitably described as an antique. Land-use and Transportation Policy Analyst Marc Scribner describes some of the problems the FAA has encountered in its attempt to move from the vacuum tube to GPS, and suggests a better path to modernization.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  74 new final rules were published last week, down from 76 the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 16 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,581 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,872 new rules.
  • 2,086 new pages were added to the 2012 Federal Register last week, for a total of 53,683 pages.
  • At its current pace, the 2012 Federal Register will run 78,946 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 31 such rules published so far in 2012 have compliance costs of at least $16.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • Two economically significant rules were published last week.
  • So far, 258 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 484 final rules affect small business. 68 of them are significant rules.

Highlights from final rules published last week:

  • Both of last week’s economically significant rules come from the Fish and Wildlife Service, which sets the rules for hunting migratory birds. The cost analysis in both cases is lacking; they claim that hunters will spend $1.2 billion at businesses in hunting areas, which is well and good. Of course, they would have spent the money elsewhere if they didn’t go hunting, meaning the net effect on GDP is near-zero. And there is nary a word about compliance costs or paperwork hours. As such, I have no choice but to score these rules as zero-cost on the running tally of this year’s economically significant rule compliance costs.
  • New federal reporting requirements for cranberry growers in Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island.
  • The Consumer Safety Product Safety Commission, in accordance with the Danny Keysar Child Product Safety Notification Act, passed a new regulation for children’s play yards.
  • The Agricultural Marketing Service is raising its assessment on imported cotton to the same level charged for domestic cotton. The federal government shouldn’t be marketing farm products. That’s what trade associations are for. But if they’re going to do it, at least they’re trying not to give preferential treatment to some producers over others.

For more data, go to TenThousandCommandments.com.