Regulatory Reform

This testimony discusses reviews GAO has undertaken of agency compliance with procedural and analytical requirements in federal rulemaking. GAO's evaluations paint a mixed picture. Although its findings may not be representative of all rulemakings, in some cases, GAO found inadequate data, methodologies, or assumptions. In other cases, GAO found noncompliance with statutory requirements or executive orders. Some GAO reviews have helped to ensure better adherence to regulatory requirements. On the other hand, GAO's reviews sometimes did not disclose a failure to comply with rulemaking requirements but provided Congress with factual detail and a better understanding of the agencies' procedures and decision making. Other reviews established that the agencies were acting within allowable discretion to determine that some requirements were inapplicable or that the requirements themselves were narrowly tailored and had little effect on rulemaking. GAO also found instances in which regulations considered burdensome by the regulated community were required by the statute being implemented.

GAO noted that: (1) GAO's congressionally-requested evaluations have produced a mixed result; (2) while they may not have been representative of all rulemakings, in some cases GAO disclosed inadequate data, methodologies, or assumptions, and in other disclosed noncompliance with statutory requirements or executive orders; (3) there are examples in which GAO's reviews have helped ensure better adherence to applicable regulatory requirements; (4) on the other hand, sometimes GAO's reviews did not disclose a failure to comply with rulemaking requirements, but provided Congress with factual detail and a better understanding of the agencies' procedures and decision making; (5) in other cases, GAO's reviews established that the agencies were acting within allowable discretion to determine that certain requirements were inapplicable, and in others, that the requirements themselves were narrowly tailored and had little effect on rulemaking; and (6) GAO also found cases where regulations that were considered burdensome by the regulated community were required by the statute being implemented.