Lincoln Chafee: “the regulatory reform bill now pending before the Senate would, if enacted, bring sweeping changes to the regulations…”

“the regulatory reform bill now pending before the Senate would, if enacted, bring sweeping changes to the regulations that protect the health and safety of the American people and of our natural environment. What am I talking about? Let us take a look at this cost-benefit analysis business. Perhaps the most important feature of this bill is the new role for cost-benefit analysis in evaluating health, safety and environmental rules. Under S. 343, which is the bill before us, the Dole-Johnston bill, every major rule issued by a Federal agency must be accompanied by a study setting forth the costs that will be imposed by the rule and the benefits that will be experienced when the rule is fully implemented. In other words, you figure the costs on one side and figure the benefits on the other. This is not exactly a new development. That has been required by Executive order since the beginning of President Reagan's administration. There are, however, two new twists to this, in this legislation. First, there is a prohibition on the issuance of any rule, unless the Federal agency can certify that the benefits of the rule justify the costs. And, second, the opportunity exists for extensive court review of the scientific and economic studies that form the basis for the agency's certification.”