PAC PAC Regulatory Policy & Compliance 1 — Questions and Answers
Question 1: Under the US Administrative Procedure Act (APA), what process must federal agencies generally follow before issuing a binding regulation?
- Obtain approval from the Office of Management and Budget only
- Publish a Notice of Proposed Rulemaking (NPRM) and provide a public comment period (Correct answer)
- Receive authorization from the relevant Congressional committee
- Conduct a public hearing presided over by a federal judge
Correct answer: Publish a Notice of Proposed Rulemaking (NPRM) and provide a public comment period
The APA's notice-and-comment rule-making process requires agencies to publish proposed rules in the Federal Register and allow public input before finalizing regulations.
Question 2: A regulation that requires businesses to maintain records, file reports, or display labels is classified as which type of regulatory instrument?
- Performance standard
- Disclosure and information requirement (Correct answer)
- Command-and-control standard
- Market-based incentive
Correct answer: Disclosure and information requirement
Disclosure requirements mandate that regulated entities provide information to government or the public, rather than directly controlling behavior through performance or design standards.
Question 3: Which regulatory analysis is required for all 'significant' federal rules under Executive Order 12866?
- Environmental Impact Statement
- Regulatory Impact Analysis (RIA) (Correct answer)
- Technology Assessment
- Racial Equity Impact Assessment
Correct answer: Regulatory Impact Analysis (RIA)
EO 12866 requires agencies to conduct a Regulatory Impact Analysis for significant rules, including a cost-benefit analysis reviewed by OIRA.
Question 4: What is the primary function of the Office of Information and Regulatory Affairs (OIRA)?
- To prosecute agencies that violate the APA
- To review significant federal regulations for consistency with law and the president's priorities, and to ensure cost-benefit analysis is adequate (Correct answer)
- To publish the Federal Register and Code of Federal Regulations
- To advise Congress on whether to overturn agency rules under the Congressional Review Act
Correct answer: To review significant federal regulations for consistency with law and the president's priorities, and to ensure cost-benefit analysis is adequate
OIRA, part of OMB, serves as the White House's regulatory review office, ensuring that significant regulations are analytically sound and aligned with presidential policy.
Question 5: Which of the following best describes a 'performance standard' in environmental regulation?
- A regulation specifying the exact technology a facility must install to control pollution
- A regulation setting a maximum allowable level of pollution output, leaving technology choice to the regulated entity (Correct answer)
- A cap-and-trade program that allows facilities to buy and sell pollution permits
- A voluntary industry agreement to reduce emissions without government mandate
Correct answer: A regulation setting a maximum allowable level of pollution output, leaving technology choice to the regulated entity
Performance standards set outcome targets (e.g., maximum emission levels) while allowing regulated entities flexibility in choosing how to achieve those targets.
Question 6: In US regulatory policy, the Congressional Review Act (CRA) allows Congress to:
- Require agencies to conduct additional public hearings on major rules
- Overturn final agency rules through a joint resolution of disapproval within a review period (Correct answer)
- Mandate that agencies rewrite rules that fail cost-benefit thresholds
- Extend the public comment period for any rule receiving more than 500 comments
Correct answer: Overturn final agency rules through a joint resolution of disapproval within a review period
The CRA gives Congress a window—typically 60 legislative days—to pass a joint resolution disapproving a final agency rule, which if signed by the president voids the rule.
PAC PAC Regulatory Policy & Compliance 1
Under the US Administrative Procedure Act (APA), what process must federal agencies generally follow before issuing a binding regulation?