A study of the Barack Obama Administration’s recently released regulatory agenda for the coming year reveals that the President’s rule-making agenda could cost upward of $130 billion in compliance and implementation costs.
The review, conducted by the American Action Forum, said that the Presidential Administration’s overdue regulatory agenda contains thousands of possible new rules.
A number of the new rules the Administration plans to create relate to the healthcare and financial sectors and are tied, respectively, to the Dodd-Frank Wall Street reform and the Patient Protection and Affordable Care Act. There are also a series of odds and ends in accompanying Environmental Protection Agency regulatory efforts echoing stated goals of the President’s Climate Action Plan.
After looking over 40 planned regulatory rules — including 18 major new rules costing a total of $100 million — in the spring agenda, the AAF priced the President’s overall regulatory agenda at $133 billion.
Here are some of AFF’s Key findings from the report:
Greenhouse gas (GHG) regulation: EPA will re-propose GHG standards for new sources this September. EPA proposed similar standards in 2012 but later withdrew the measure. In addition to rules for new sources, which will supposedly not burden the economy, EPA will issue standards for existing power plants next June, which will undoubtedly impose significant costs. Strangely, EPA does not initially believe the regulation of existing power plants will cost $100 million.
Affordable Care Act (ACA) : with the administration racing, and in some instances retreating, to implement the ACA, there are plenty of regulations still to come in 2013. Originally, HHS planned to issue new rules for calorie labeling in April. The rules, with costs exceeding $1 billion combined, are now scheduled for September. Combined, scheduled ACA rulemakings could impose more than $4.4 billion in burdens.
Dodd-Frank: there are plenty of costs and paperwork burden hours associated with financial reform, but rarely are these burdens quantified and monetized. Below are seven Dodd-Frank rulemakings scheduled during the next few months (labeled in italics). Though they have few monetized costs, Basel III and new regulatory capital rules are all scheduled for July.
The regulations, especially those with environmental roots, may have impact beyond costs. Last year, the National Economic Research Associates (NERA) predicted that leftist regulatory efforts could kill up to 887,000 jobs per year, affecting mining and industrial regions most harshly.