U.S. Chamber Praises House Passage of Legislation to Reduce Red Tape

Urges Senate to Swiftly Follow Suit

WASHINGTON, D.C. – The U.S. Chamber of Commerce today praised House passage of the Red Tape Reduction and Small Business Job Creation Act (H.R. 4078), comprehensive regulatory reform legislation that would streamline the time consuming permitting process, bring transparency to rules issued by agencies as a result of an out of court agreement, and prohibit agencies from issuing a cascade of regulations when a change of administrations occurs.

“There are millions of jobs that are never created because of a dysfunctional permitting system that allows for endless challenges and appeals on all issues no matter how minor,” said Bill Kovacs, the Chamber’s senior vice president for Environment, Technology and Regulatory Affairs. “This legislation would create a streamlined process to make many of these projects a reality.”

In addition to removing unnecessary and costly barriers obstructing critical projects by streamlining the permitting process, H.R. 4078 incorporates the provisions contained in the “Sunshine for Regulatory Decrees and Settlements Act of 2012.”  Through what is referred to as “sue and settle” rulemaking, agencies do an end-run around the legal protections ensuring that the public has a say in the development of regulations.  The bill would create a transparent process and give the public the meaningful voice it is supposed to have in the first place.

“While settlements often can be an efficient use of court resources, the settlement process shouldn’t be regularly used as a way for agencies and environmental advocacy groups to engage in behind-the-scenes policymaking and the issuance of rules based on an agreement between a federal agency and a special interest organization,” Kovacs stated.

“We commend House members for passing comprehensive reform that simplifies a regulatory system that has been growing at a very rapid rate for decades, and we urge the Senate to follow suit,” Kovacs added.

Regulatory reform is a key component of the Chamber’s 2012 Jobs and Growth Agenda. Kovacs testified before a House Judiciary Subcommittee in April on the RAPID Act, and last month he testified before a House Oversight and Government Reform Subcommittee on sue and settle.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.