The April 1st week saw the long-awaited Opening Day for baseball. Federal agencies also issued a number of regulations that were quite active. The 17 rulemakings that had some quantifiable economic effect included a number of energy and environmental policies. The most significant regulatory moves were made by the Environmental Protection Agency (EPA), which proposed ozone emissions. A set of efficiency rules by the Department of Energy was also included. Agency rulemakings resulted in $15.8 billion in net costs and an additional 594,833 hours of paperwork.
REGULATORY TOPLINES
- Proposed Rules: 45
- Final Rules: 68
- 2022 Total Pages – 20,969
- 2022 Final Rule Costs -$5.5 Billon
- Proposed Rule Costs for 2022: $48.1 billion
REGULATORY ACTIONS NOT SUFFICIENT
The EPA’s proposed rule regarding Federal Implementation Plan for Regional Ozone Transport in the 2015 Ozone National Ambient Quality Standard was the most important rulemaking of the week. The proposal seeks to update Federal Implementation Plan (FIP) requirements to address twenty-six states’ obligations to eliminate significant contribution to nonattainment, or interference with maintenance, of the 2015 ozone National Ambient Air Quality Standard (NAAQS) in other states. EPA is now in second place in the competition to be the 2022’s most expensive rule. This distinction was made just one week after EPA claimed first place. According to the proposals analysis, affected entities could face $14Billion in total costs.
Another notable development was a trio rulemakings by DOE on energy efficiency standards, which yielded a total of $1.8 billion in upfront compliance costs. The most costly was the Proposed ruleEnergy Conservation Standards for Room Air conditioners. This brought $2.1 billion in new costs. One of the three produced net cost savings in terms direct compliance costs. The ruleBaseline Energy Efficiency Standard Update for New Federal Commercial Buildings and Multi-Family High-Rise Residence Buildings brings $410,000,000 in total savings, mainly due to lower HVAC equipment cost for certain building types.
TRACKING THE ADMINISTRATIONS
As we’ve seen from executive orders, memos, and other documents, the Biden Administration is sure to provide many contrasts with Trump’s on the regulatory front. The expectation is that the new administration will try to restore Obama-esque regulatory action, but there will be areas where it takes a different course. Since the American Action Forum, (AAF). RegRodeoThe data can be accessed back to 2005 and weekly updates can be provided on how President Bidens regulatory record compares with that of his two previous predecessors. The following table shows the cumulative totals for final rules that have some quantified economic impact from each administration up to this point in their respective terms.
The total cost of the Biden administration fell by $271 million. This net reduction was primarily due to the DOE rule on efficiency standards for new federal buildings. The Trump figures did not change across the other administrations. However, there was some movement in the Obama Administration’s figures with almost $181 million in new expenses. But2.89 million fewer hours of paperwork. The Department of Transportation was the primary supporter of both these trends. MeasureElectronic On-Board Recorders For Hours-of-Service Compliance – This increased costs by $139,000,000 but cut annual paperwork by 3.13 million hours.
THIS WEEKS REGULATORY TICTURE
The Title 42, a COVID-19-related border program, was ended by the Biden Administration this week.
The Centers for Disease Control and Prevention (CDC), published the Federal Register on April 6, a Public Health Determination, and Order Regarding Suspending Certain Persons From Countries With a Quarantinable Communicable Disease. The OrderOn April 1, Rochelle Walensky (CDC Director) signed the agreement. It will end a policy in which certain migrants are expelled from the United States and no immigration processing is required.
Title 42 is the name of the order because of the title of U.S. Code that gives it its underlying authority. The CDCs order allows Customs and Border Patrol to expel migrants who have not provided proper documentation. They can also expel them immediately and not be held in congregate settings where COVID-19 could have been spread. The order allows the expulsion of asylum-seekers who would otherwise be guaranteed consideration under federal law.
The Trump Administration issued the first such order regarding the COVID-19 pandemic on March 20, 2020. It was then updated in October 2020. The Biden Administration amended the order to exempt unaccompanied minors upon their arrival, but continued to extend this policy, most recently in August 2020.
The controversial orders and their revocation were controversial. Many people saw the Trump Administration’s first order as an attempt at using the pandemic to push for a stricter immigration policy. This view has pushed the Biden Administration into revoking the policy. Others argue that the policy was necessary and that it will result in a surge in migrants trying to enter the United States.
There have been many lawsuits against Title 42, as with any controversial policy. Title 42 was challenged during its implementation. The Biden Administration’s most recent action has already drawn legal challenges in at least three states: Arizona, Louisiana and Missouri. This raises doubts about whether or not the policy will be allowed for to end next month.
TOTAL BURDENS
The federal government has published $42.7Billion in total net costs since January 1st. This includes $5.5B in new cost savings through finalized rules, and 20.4M hours of net annual burden increases (with 3,000,000 hours due to final rules).
