Senate legislation to reform the regulatory process--introduced just prior to the Independence Day recess--has won guarded praise from industry groups but strong criticism from environmental groups.
The legislation, introduced by Senate Governmental Affairs Chairman Thompson and Sen. Carl Levin, D- Mich., would require cost-benefit analyses and risk assessments accompanying major new regulations.
Industry sources said they are pleased with the legislation even though it fails to address many of their major concerns. One source said regulatory reform will have to be won through incremental steps, such as those in the Thompson-Levin proposal.
The bill evolved from regulatory reform legislation the Senate debated in the last Congress but never voted on due to strong opposition by members concerned about the impact on environmental and health safety.
On the other side of the issue, Greg Wetstone, legislative director for the Natural Resources Defense Council, today said the analysis requirements in the bill would threaten regulations currently on the books as well as forthcoming protections, such as the FDA regulation of tobacco called for in the recent settlement between states and the tobacco industry.
Wetstone also said the judicial review provisions in the measure would allow courts to overturn regulations based on unreliable economic data.
But Levin--in introducing the measure--argued that only the failure of an agency to perform risk assessments or cost-benefit analyses would cause a court to invalidate regulations.
Thompson has said he will hold hearings on the bill, and committee sources confirmed Thompson has committed to squeezing one in the July schedule despite the panel's heavy workload with the campaign finance investigation.
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