Analysis - The Institute for Southern Studies

7E. Unfunded Mandates (UMRA) & Federalism Implications Analysis (Executive Order 13132)
UMRA
Among its other purposes and Federal agency rulemaking requirements, Title II of the 1995 Unfunded Mandates Reform Act (UMRA; 2
U.S.C. 1531-1538), requires Federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on State,
local, and tribal governments and on the private sector, to determine whether any proposed rulemaking:
“…is likely to result in promulgation of any rule that includes any Federal mandate that may result in the expenditure by State,
local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year.”
Section 202 of UMRA requires Federal agencies which propose rules that are likely to exceed this $100 million expenditure threshold on either
the private sector or on state/local/tribal governments, to prepare a “Written Statement” containing the following five components, and supply
the Written Statement to OMB as well as summarize it in the Federal Register notice (aka “preamble”) for the proposed rule:
1. Identification of the applicable authorizing Federal law
2. Qualitative and quantitative assessment of the anticipated costs and benefits of the rule including the costs and benefits to State, local,
and tribal governments or the private sector, and an analysis of whether Federal resources may be available to pay these costs
3. Estimates of future compliance costs and any disproportionate budgetary effects
4. Estimates of effects on the national economy such as productivity, economic growth, employment, job creation, international
competitiveness
5. Description and summary of agency’s prior consultation with elected representatives of the affected State, local and tribal governments.
Section 202 of UMRA allows Federal agencies to prepare the “Written Statement “in conjunction with or as a part of any other statement or
analysis. Accordingly, the purpose of this section of the RIA is to determine whether the regulatory options evaluated in this RIA exceed this
UMRA direct cost threshold.
Findings:
The private sector and the state/local government shares of direct compliance costs under each option are displayed below in
Exhibit 7L, which indicates that:
• Private sector cost test: All of the regulatory options are expected to result in expenditures of $100 million or more in the
aggregate for the private sector, in any one year (i.e., 139 companies and cooperatives of the total 200 owner entities).
• State/local/tribal government cost test: None of the regulatory options are expected to result in expenditures of $100
million or more for State, local, and tribal governments in the aggregate in any one year (there are 60 state/local
government owner entities identified in Exhibit 7M below, no known tribal owner entities, plus one Federal owner).
According to the private sector test finding, EPA has prepared an “UMRA Written Statement” which is attached to this RIA as Appendix P.
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