Bill Aims to Reduce ‘Regulatory Whiplash’

May 3, 2024
The bipartisan bill would require federal agencies to identify the problem a rule intends to address and evaluate existing regulations' contributions to the problem.

The American Chemistry Council (ACC) supports the bipartisan introduction of the “Regulatory Early Notice and Engagement Act” by Reps. Guy Reschenthaler, R-Pa.; Don Davis, D-N.C.; and Tim Burchett, R-Tenn. 

The act would require that, within one week after initiating a new rulemaking activity, a federal agency would have to make public on its website and send to Congress a regulatory early notice, which must: 

  • Identify the problem the rule is intended to address and state whether the rule is required by law, necessary to interpret law, or made necessary to address a compelling public need, such as a material failure of private markets.
  • State whether existing regulations (or other laws) have created, or contributed to, the problem that a new regulation is intended to correct.
  • State whether the agency identified and assessed available alternatives to direct regulation, including the alternative of not regulating. 

It also mandates the Government Accountability Office (GAO) to maintain a database and report on agency compliance. 

ACC President Chris Jahn emphasizes the importance of reducing regulatory uncertainty, fostering domestic innovation, and maintaining U.S. competitiveness. The bill intends to provide transparency and efficiency in federal rulemaking, ensuring that regulations align with national priorities without unnecessarily burdening industries and consumers.

“As rules are enacted, reversed, and restored with administration changes, the industry is left to navigate a sea of regulatory uncertainty and unable to plan for long-term investments. This regulatory whiplash impedes our ability to produce these chemicals at home and pushes manufacturing to other countries, like China,” Jahn said in a May 2 news release.

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