Overnight Regulation: House passes bill to curb costly regs

by Tim Devaney and Lydia Wheeler - 01/11/17 7:24 PM ET

Welcome to Overnight Regulation, your daily rundown of news from the federal agencies, Capitol Hill, the courts and beyond. It’s Wednesday evening here in Washington where there was a lot happening all at once.

Here’s the latest.

THE BIG STORY

Empowered by President-elect Donald Trump, Republicans lawmakers are moving to gut the vast regulatory powers federal agencies enjoyed during the Obama administration.

On Wednesday, the GOP-controlled House passed the Regulatory Accountability Act which puts a ceiling on the regulatory costs coming out of Washington by instructing federal agencies to craft the “least expensive” rules they possibly can. It passed 238-183 on a largely party line vote with five Democrats crossing the aisle.

This would give Congress more control over federal agencies.

“Some of the most significant decisions in Washington — those that most affect the lives of the public — are made by those who don’t stand for election,” House Majority Leader Kevin McCarthy (R-Calif.) said.

“What happens when the EPA imposes rules that deprive people of their property rights? Or when the Department of Health and Human Services tries to force nuns to violate their religion? Or when the VA perpetuates a system that lets veterans die while they wait for care?” McCarthy asked.

“The people can’t vote out the bureaucrats who write rules at the EPA or at the Department of Health and Human Services. They can’t vote out bad leaders at the VA,” he added. “And these bureaucrats know it.”

Regulatory reform is a key part of Trump’s economic agenda, and Republican lawmakers are working quickly to reshape the way in which regulations are developed before the president-elect takes office next Friday. McCarthy indicated the House would begin repealing specific regulations after the inauguration.

Since the beginning of the year, the House has passed three regulatory reform bills that limit the authority of federal agencies.

Last week, lawmakers approved the Midnight Rules Relief Act, which blocks the Obama administration from publishing expensive rules at the last-minute before Trump takes over next Friday. While the Regulations from the Executive in Need of Scrutiny (REINS) Act gives Congress the power to reject rules it dislikes with a simple majority vote.

With Trump about to enter the White House, Republicans are hopeful they can shove these regulatory reform bills through Congress. But they may run into resistance in the Senate, where Democrats could filibuster.

The other bills passed Wednesday along with the Regulatory Accountability Act, include:

–The Require Evaluation before Implementing Executive Wishlists (REVIEW) Act, which prevents federal agencies from issuing expensive regulations while they are facing court challenges. Once the legal battles are resolved, the rules could move forward.

–The Separation of Powers Restoration Act, which would prevent courts from deferring to the regulatory interpretations of federal agencies, making it easier for rules to be challenged. Goodlatte said the current law “rubber stamps” regulations.

–The All Economic Regulations are Transparent Act (ALERT) Act, which instructs federal agencies to publish costs estimates for rules they are working on while they are still in development.

–The Providing Accountability Through Transparency Act, which instructs federal agencies to publish “plain language” summaries of their rules online, so the “public can understand what the agencies are actually proposing to do.”

–The Small Business Regulatory Flexibility Improvements Act, which instructs federal agencies to account for not only the direct costs of their rules, but also the indirect costs and cumulative impacts they will have on small businesses.

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ON TAP FOR THURSDAY

The Senate Armed Services Committee will hold a hearing on the nomination of James Mattis to be secretary of Defense.

The Senate Banking, Housing and Urban Affairs Committee will hold a hearing to examine the nomination of Ben Carson to be the secretary of Housing and Urban Development.

The Senate Intelligence Committee will hold a hearing to examine the nomination of Rep. Mike Pompeo (R-Kan.) to be the director of the Central Intelligence Agency.

TOMORROW’S REGS TODAY

Here’s a sneak peak at Thursday’s edition of the Federal Register.

–The National Marine Fisheries Service (NMFS) will propose new protections for giant manta rays.

Giant manta rays are a threatened species, the agency said Wednesday.

“We have determined that the giant manta ray is likely to become an endangered species within the foreseeable future throughout a significant portion of its range,” the agency writes in the Federal Register.

But the agency declined to list reef manta rays as endangered or threatened.

The protections come in response to a petition from Defenders of Wildlife.

The public has 60 days to comment.

While manta rays are getting new protections, the agency decided against new measures to help Alabama shad fish.

The agency reviewed a petition from the Center for Biological Diversity (CBD) to protect these fish, but declined to do so.

“We conclude that the Alabama shad is not currently in danger of extinction throughout all or a significant portion of its range and is not likely to become so within the foreseeable future,” the agency says.

The finding goes into effect immediately.

–The State Department will propose new rules for foreign exchange students and their host families.

The rules would address the summer work travel program. Among other changes, they would limit the number of times foreign students can participate in exchange programs and require them to be placed with a host family before arriving.

The public has 45 days to comment.

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