The Facts
* Texas does not currently require state agencies to estimate the compliance costs of proposed regulation or to perform a cost-benefit analysis for new regulations in most circumstances.
* A current requirement that regulatory impact analysis be performed for “major” new environmental rules has been invoked only once in 14 years.
* During the 82nd Legislative Session, Rep. Ken Legler introduced HB 125, which would have required regulatory impact analysis for new TCEQ regulations. HB 125 passed the House, but did not make it to the Senate floor in time for passage. During the 83rd Legislative Session, Senator Glen Hegar’s SB 467 to require a similar regulatory analysis passed the Senate but did not leave committee in the House.
Recommendations
* Prior to imposing new regulations, all Texas agencies should be required to do a three-step regulatory impact analysis that: (1) identifies the problem the rule is intended to address, (2) estimates the rule’s environmental effectiveness, and (3) estimates the financial cost directly on regulated entities and indirectly on Texas citizens.
* In conducting this analysis, actual monitored data (credible, representative measures of actual air quality) should trump modeled data (computer simulations of projected air quality).
* Performance measures for regulatory agencies should include measured outcomes (i.e., measurable improvement in air quality, water quality) and not merely outputs (i.e., number of permits, enforcement actions).