Analysis - The Institute for Southern Studies

Chapter 1
Problem Statement: The Need for RCRA Regulation of CCR Disposal
1A. Institutional Context
For purpose of evaluating Federal regulations, the 1993 Executive Order 12866 “Regulatory Planning and Review” (Section 1(b)(1)) requires
each Federal regulatory agency to identify the problem that it intends to address, including where applicable, the failures of private markets or
public institutions that warrant new agency action, as well as to assess the significance of the problem. In line with this requirement, this
Chapter provides a problem statement consisting of the institutional context (i.e., prior EPA actions), significance of the problem (i.e., evidence
of environmental damages), and characterization of market failure.
In September 2003, the White House Office of Management and Budget (OMB) updated its guidance to federal agencies on the development
of regulatory analysis required under Section 6(a)(3)(c) of the 1993 Executive Order 12866 5 “Regulatory Planning and Review.” The updated
guidance is OMB’s September 17, 2003 “Circular A-4 Regulatory Analysis.” 6 Section A (Introduction) of Circular A-4 defines three key
elements of good regulatory analysis:
1. Statement of the need for the proposed regulation.
2. Examination of alternative approaches.
3. Evaluation of the benefits and costs (quantitative and qualitative) of the proposed regulation and the main alternatives.
Concerning the first basic element listed above (i.e., statement of the need for regulation), Section B of Circular A-4 requires federal agencies
to demonstrate that the proposed regulation is necessary. The Circular defines four categories of possible regulatory need:
1. Required by law: If the need results from statutory or judicial directive, agencies should describe the:
a. specific authority for the proposed regulation
b. extent of discretion available to the agency
c. regulatory instruments available
2. Necessary to interpret law.
3. Market failure: Three examples cited in Circular A-4 (pages 4 & 5) are:
a. externality, common property resources and public goods
b. non-competitive market power
c. inadequate or asymmetric information
4. Other social purposes: Six examples cited in Circular A-4 (page 5) are:
a. make government operate more efficiently
5 1993 Executive Order 12866 (11 pages) is available at: http://www.whitehouse.gov/OMB/inforeg/eo12866.pdf
6 2003 OMB Circular A-4 (48 pages) is available at: http://www.whitehouse.gov/OMB/Circulars/a004/a-4.pdf
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