Executive Order costs

The problem of increasing cost of solid waste management within the Navy is not the same as in the private sector. When the Navy is directed to meet specific requirements of new regulations or executive orders, Congress often does not appropriate additional funds or allocate new manpower to accomplish the new requirements. Increased costs cannot be passed on to the consumer since the Navy is the consumer. Expenses must be absorbed into the existing Navy budget thereby diverting funds from the primary mission. 

Thus, the Executive Order requires that agencies affected by the order employ cost-benefit criteria in developing and issuing regulations. The tool to be applied for that purpose is the Regulatory Impact Analysis. 

CMA also supports the cost-effectiveness requirement of Executive Order 12291. It believes that regulatory agencies should analyze the potential costs and benefits of reasonable alternatives for achieving regulatory goals. Non-regulatory approaches, such as economic incentives, can be more effective and less costly than regulations. 

The issuance of Executive Order 12291 has now made cost-benefit analysis a necessary part of the issuance of some federal rules. At this time, bills in both houses of Congress are being considered to expand the scope of cost-benefit analysis and to elevate it to legislative status. 

Some conclusions can nevertheless be drawn. It seems clear from the survey research data that the American public is concerned over the increase in social regulation, and that there is growing interest in introducing the cost factor into agency considerations. It can reasonably be concluded that, so long as Executive Order 12291 requires regulatory impact analysis, cost-benefit analysis will play that function. Nevertheless, the nature of the debate is very likely to change in ways not yet anticipated by the present participants. 

Chranleal Manufacturers Association cost-benefit analysis, position, 170 cost-effectiveness requirement of Executive Order 12991, support, 171... 

Any form of exclusive marketing may have negative consequences, such as noncompetitive pricing. To date, however, there has been insufficient experience with the implementation of the statute to judge whether an optimal be benefit-cost balance has been attained. It is clear, nonetheless, that these incentives have been highly successful in contributing to the development and approval of orphan drugs that would not otherwise have been developed. Thus, in the FDA s view, the essential benefit-cost considerations of Executive Order 12291 have been satisfied in favor of the rule as here published. 

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