Regulatory Impact Analysis Order

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. 

The nature of the Regulatory Impact Analysis (RIA) is specified in Section 3 of the Executive Order. In general, such analyses are required only for rules which the issuing agency determines are major rules. The order defines a major rule as any regulation likely to result in... 

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. 

An environmental impact analysis will almost certainly reveal areas where improvement can be made. In many instances it may show up points at which urgent improvement must be made in order to conform with local regulatory requirements. 

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