FR 2021-01866

The document titled "Modernizing Regulatory Review," published in the Federal Register, is a presidential memorandum that addresses updates to the regulatory review processes used by the Office of Management and Budget (OMB). This directive reaffirms previous executive orders and outlines steps to modernize how regulations are reviewed, with the goal of advancing policies that benefit public health, safety, economic growth, and social welfare. It also highlights the importance of addressing racial justice and environmental issues.

General Summary

The memorandum instructs the Director of the OMB to spearhead efforts alongside various federal agencies to propose improvements to the regulatory review process. These improvements aim to ensure that regulations effectively promote values like public health and safety and are equitable in addressing challenges faced by marginalized communities. It emphasizes the need for the review process to capture the full scope of regulatory benefits, even those difficult to quantify. Additionally, it suggests that regulatory reviews should be more efficient, transparent, and inclusive, and it seeks to redefine OIRA's role in collaborating with agencies on beneficial regulatory initiatives.

Significant Issues or Concerns

There are several areas of concern identified within the document:

• Lack of Specific Timelines: The absence of defined timelines for implementing the proposed recommendations could delay progress and diminish the urgency of the review process improvements.
• Broad Recommendations: The general nature of the recommendations may benefit from further specification. Proposing concrete examples or pilot programs could provide clearer guidance and facilitate implementation.
• Public Engagement Details: While the memorandum emphasizes the need for public engagement in shaping the recommendations, it lacks detail on the methods for involving stakeholders and incorporating their feedback effectively.
• Constraints on Regulatory Flexibility: The directive to avoid anti-regulatory or deregulatory effects could limit flexibility in making meaningful regulatory reforms, potentially stifling innovative regulatory changes.
• Complex Language: Some sections of the memorandum use complex policy jargon, which could present challenges for individuals without a policy background to fully grasp its implications.

Impact on the Public and Stakeholders

The potential impacts of the memorandum are broadly significant:

• General Public Impact: By focusing on regulations that enhance public health, safety, and welfare, the directive is aligned with improving the overall quality of life for the American people. Ensuring equitable regulatory outcomes could result in broader public benefits, especially for vulnerable communities.

• Specific Stakeholders:

• Disadvantaged Communities: The emphasis on accounting for the distributional impacts of regulations suggests a positive shift toward policies that benefit marginalized groups rather than placing additional burdens on them.
• Regulatory Agencies: These bodies might experience increased pressure to adhere to more inclusive and transparent review processes, potentially requiring additional resources to comply with new standards outlined in the recommendations.
• Industry Stakeholders: Companies and industries impacted by regulatory changes could face uncertainty if the recommendations lead to significant shifts in regulatory landscapes, particularly if the constraints on anti-regulatory actions limit their operational flexibility.

Overall, the memorandum sets the stage for modernizing the regulatory review process with goals of fairness, inclusivity, and effective governance. However, the success of these initiatives will depend on the clarity of the recommendations and the commitment to implementing them within a reasonable timeframe.