Regulatory Update – White House Issues Memo Asking Agencies to Consider the Cumulative Effects of Regulations


Last week, Cass Sunstein, Administrator of the White House Office of Information and Regulatory Affairs issued a memorandum to the heads of federal departments and agencies asking them to consider the cumulative effects of regulations. In a blog post announcing the initiative, Administrator Sunstein said, “Taken in isolation, a new rule may seem perfectly sensible, but it may overlap with existing requirements when considering new rules. The sheer accumulation of regulations can cause real harm, especially for small businesses and startups.” The memorandum directs agencies to take steps to reduce cumulative costs including early consultation with stakeholders, consideration of the cumulative effects of regulations on small businesses and start-ups, and consideration in the cost benefit analysis of the relationship between the new and existing regulations. Click here for the full blog post and here for a copy of the memorandum. This is the latest action under Executive Order 13563, Improving Regulation and Regulatory Review, issued by the President in January, 2011. Unfortunately, despite these initiatives, the chemical distribution industry continues to face an unprecedented harsh regulatory climate.