On December 9,  2020, the U.S. Environmental Protection Agency (EPA) finalized a procedural rule to improve the rulemaking process under the Clean Air Act by establishing requirements to ensure consistent, high-quality analyses of benefits and costs are provided to the public for significant rules. This final rule codifies best practices for benefit-cost analysis in rulemaking, and  will provide clarity for states, local communities, industry, and other stakeholders regarding EPA’s rulemaking considerations.  

Background:

In 2018, EPA issued an Advance Notice of Proposed Rulemaking to solicit public input on whether and how to change the way it considers benefits and costs in making regulatory decisions.  

In response to comments received, in May 2019, Administrator Wheeler sent a memo directing agency leadership to develop rules for notice and comment that outline how benefit-cost considerations will be applied to future rulemakings in a more consistent and transparent manner.

On June 11, 2020, EPA issued a proposal to establish enforceable standards for consistently high-quality analyses of benefits and costs for all significant future rulemakings promulgated under the Clean Air Act. EPA held a public hearing  on July 1, 2020.  EPA reviewed input from the Science Advisory Board, as well as nearly 25,000 public comments received, in the development of the final rule. 

Related Documents:

• 6/7/2018 - Advance Notice of Proposed Rulemaking: Increasing Consistency and Transparency in Considering Costs and Benefits in the Rulemaking Process
• 6/7/2018 - News Release: EPA Administrator Pruitt Proposes Cost-Benefit Analysis Reform
• 5/13/19 - Administrator Wheeler Memorandum: Increasing Consistency and Transparency in Considering Benefits and Costs in the Rulemaking Process (May 13, 2019)

Proposal Documents:

• 6/4/2020 - Proposed Rule: Increasing Consistency and Transparency in the Clean Air Act 
• 6/19/2020 - Increasing Consistency and Transparency in Considering Benefits and Costs in the Clean Air Act Rulemaking Process; Extension of Comment Period and Public Hearing

Public hearing:

7/1/2020 - See information about the public hearing, view agenda, and see list of pre-registered speakers

Final Rule:

• Final Rule (Prepublication Version): Increasing Consistency and Transparency in Considering Benefits and Costs in the Clean Air Act Rulemaking Process (PDF)(113 pp, 728 K, December 9, 2020)
• Fact Sheet - Final Rule: Increasing Consistency and Transparency in Considering Benefits and Costs in the Clean Air Act Rulemaking Process (PDF)(2 pp, 72 K, December 9, 2020)