Report finds that EPA & FCC regulations are costing Americans big time

Every major government agency is responsible for setting regulations that often times cause Americans and American businesses to incur unnecessary costs. But two federal agencies stand out about the rest for their regulatory might: the Environmental Protection Agency (EPA) and the Federal Communications Commission (FCC).

Between the EPA and the FCC, government regulations are costing Americans close to the tune of $495 billion, according to a new report from the Competitive Enterprise Institute (CEI). CEI ranks the EPA as by far the most costly rulemaking agencies at $353 billion. The the Department of Health and Human Services comes in second with $184 billion, and the FCC in third with $142 billion.

The term for these monetary mishaps is “compliance costs.” It refers to the time or money it takes to comply with government regulations. For example, to comply with environmental regulations, businesses often have to spend money and time to ‘go green.’ That often hampers innovation and drives up prices for consumers.

The EPA is historically one of the most active regulatory agencies. According to CEI’s report, “Title 40 of the Code of Federal Regulations, which covers environmental protection, has at least 88,852 specific regulatory restrictions.”

The EPA recently passed one of the most expensive regulations in history. The MACT rule, designed to lower emissions from coal fire plants, has an estimated annual cost of $9.6 billion. That’s more than the total compliance costs wrought by the U.S. Department of Agriculture.

The FCC has similar problems.

Lack of a mechanism for effectively evaluating regulations leads to a constantly expanding number of regulations. This means, according to the report, that “the FCC’s total regulatory burden tends to increase from year to year.” Between 2000 and 2012, the cumulative number of FCC rules has grown more than five-fold, from less than 500 to slightly more than 2,500.

There are also “economically significant” regulation issues that impose at least $100 million in economic impact in a given year. “Net neutrality” policies and possible restrictions on “wireless spectrum auctions” are two of the FCC’s most damaging regulations, the report says.

Calculating compliance costs is not easy, though, nor are the numbers accurate down to the dollar. Ryan Young, the report’s author relates a maxim, “All regulatory estimates are wrong.”

In fact, very little research has been done to analyze agencies on this topic. But Young is hopeful his report will get start a discussion with the EPA, FCC, and other analysts. “If all these estimates are wrong,” he says, “then somebody give me the numbers that are right.”

While Washington’s eyes are trained on the coming sequester deadline, Young and his colleagues will continue to look into the cost of government agencies. Next they’ll be digging into the HHS, which is responsible for the implementation of Obamacare – a policy expected to significantly increase heath related compliance costs.

Comments

Comments

  1. Roger Mitchell says:

    The EPA was about the dumbest idea Richard Nixon ever had I really by todays standards see no problem with water gate compared to the level of deceit of what we now have in power But the EPA and the DEA are 2 agencies that need to be put on a little shorter chain. The crap the EPA comes up with is just crazy . Like the little fart last yr said we will be like the Romans we walk in to a village take a few heads and stick them up on poles to get the others attentions that entire agency is corrupt.. and out of control I myself have know DEA agents to sell weed that never made it to impound and they lived a little above their Paychecks also just saying.. But Sequestration is a good idea and should start right here then the IRS HLS and about 50 others need to be chained up.. The FCC is a total waste of money.. the way they started to strong arm ans extor their power into local T.V stations 40 yrs ago to get their points across and PBS is a total waste and would be far better if privatized if there is a market . And Big Bird could help pay for the operating cost out of his billions of profits . Not to mention the 180K a yrs the person in the feathers gets paid a yr..

  2. Sam says:

    Yes and without the EPA industry would go back to destroying our water supply and polluting the air. Want to know what it would be like without the EPA? Google “air pollution in China”

    The only people complaining about the EPA are those who are forced to regulate the pollution out what they produce. The EPA may not be perfect but without it we would all fall victim to corporate voracity for profit.

    Capitalism without regulation promotes greed.

    1. Claudia Joanne Renshaw says:

      I posted this before, but have not seen it, so I am redoing.
      It is just a fact that there are too many people who cannot be trusted. Yahoo’s reasons for ending telecommuting by employees is a prime example of why people must be controlled and have eyes-on supervision. When people are “let loose” they will usually “let loose”. So, that is why we are all held responsible when too many people break the trust. It is why when too many gun owners kill other human beings, all gun owners must be held responsible; thus new laws enacted and enforced. It is why when some corporations become greedy and reckless with others’ resources (money, environment, jobs and welfare), all corporations must be held responsible; thus government regulations to protect the public interests.
      The “sequestration” will potentially cause the quality of our food to be affected (so it is being reported). Why? Because if the FDA budget is cut, inspections will decrease and when the FDA is not looking, food producers will cheat.
      I remember when there was no EPA. The air and water quality in my area was putrid from the manufacturing plants. The number of eagles, some hawks, and many other birds was diminishing because of chemicals that were killing them and causing the egg shells to be too thin to sustain the chicks.
      Profits, freedoms, clean environment, etc., require personal responsibility from EVERYONE. When too many step out of line and threaten the life and freedoms of too many others, then CIVILIZATION requires that EVERYONE must abide by rules and laws.
      …even Popes are not immune.

  3. Claudia Joanne Renshaw says:

    It is just a fact that there are too many people who cannot be trusted. Yahoo’s reasons for ending telecommuting by employees is a prime example of why people must be controlled and have eyes-on supervision. When people are “let loose” they will usually “let loose”. So, that is why we are all held responsible when too many people break the trust. It is why when too many gun owners kill other human beings, all gun owners must be held responsible; thus new laws enacted and enforced. It is why when some corporations become greedy and reckless with others’ resources (money, environment, jobs and welfare), all corporations must be held responsible; thus government regulations to protect the public interests.
    The “sequestration” will potentially cause the quality of our food to be affected (so it is being reported). Why? Because if the FDA budget is cut, inspections will decrease and when the FDA is not looking, food producers will cheat.
    Sam, you are absolutely correct. I remember when there was no EPA. The air and water quality in my area was putrid from the manufacturing plants. The number of eagles, some hawks, and many other birds was diminishing because of chemicals that were killing them and causing the egg shells to be too thin to sustain the chicks.
    Profits, freedoms, clean environment, etc., require personal responsibility from EVERYONE. When too many step out of line and threaten the life and freedoms of too many others, then CIVILIZATION requires that EVERYONE must abide by rules and laws.

Polititainment

George Will to Colbert: Liberals don't want change

Conservative commentator and hapless Chicago Cubs fan George Will swung by "The Colbert Report" Tuesday to plug his new book, "A Nice Little Place on the North Side," but naturally, the conversation didn't stick to baseball.

Clay Aiken: voters 'might wonder' about candidacy

Former "American Idol" runner-up Clay Aiken concedes that voters "might wonder" about his candidacy for Congress for a new ad.

Los Angeles GOP #StandingWithSriracha

Forget #StandWithRand -- the GOP is now choosing to #StandWithSriracha.

WH responds to 'Deport Justin Bieber' petition

Despite the pleas of more than 270,000 Americans to deport Justin Bieber, the White House has chosen not to weigh in on the issue. However, the Obama administration did use a petition calling on the White House to revoke the pop artist's visa to plug President Barack Obama's plan for immigration reform.

Secret Service once threatened Mr. Met

Mr. Met sure has a lot of fans in New York. But the larger-than-life mascot definitely doesn't have one in the Secret Service, who threatened to shoot and kill him if he approached President Bill Clinton, according to a firsthand account.

White House

Donald Trump is really upset with the way Obama walks

President Barack Obama just can't seem to do anything right, especially in the eyes of real estate mogul Donald Trump.

Obama misses 67 percent of his shots playing basketball at Easter event

President Barack Obama went 1-for-3 shooting baskets at a White House Easter event Monday, prompting basketball scouts to question the leader of the free world's scoring ability ahead of this June's NBA Draft.

PETA is peeved with Michelle Obama and used little girls to tell her about it

First Lady Michelle Obama has earned the ire of three young girls. But they're not upset with her less-than-filling "Let's Move!" school lunches. Instead, these youngins are upset about the real eggs used in the White House Easter Egg Roll.

Jay Carney: “Never been a more transparent administration”

Despite consistent objections by journalists that the White House overly restricts press access, Press Secretary Jay Carney believes that there has "never been a more transparent administration."

Jay Carney: Toughest interview for Obama in 2012 was with Jon Stewart

Give comedian Jon Stewart a gold star sticker. The host of The Daily Show was President Barack Obama's toughest interviewer during the 2012 election cycle, White House Press Secretary Jay Carney said on Thursday.

Congress

Arkansas US Sen. John Boozman having surgery

LITTLE ROCK, Ark. (AP) — U.S. Sen. John Boozman is undergoing surgery at an Arkansas hospital.

Republicans are winning the Twitters this year

Congrats, Congressional Republicans -- you're winning the Twitters so far in 2014!

Rep Black: GOP budget makes a path to a bright future

Our nation is $17.4 trillion in debt and out of control Washington spending has no end in sight. In fact, the nonpartisan Congressional Budget Office estimates that on our current trajectory we will return to $1 trillion annual budget deficits by the year 2022.

Cruz: Impeach Holder

Sen. Ted Cruz (R-Texas) pulled no punches when criticizing Attorney General Eric Holder on Thursday, as he called on Congress to impeach the Department of Justice head.

Pelosi: GOP not acting on immigration because of race

House Minority Leader Nancy Pelosi (D-Calif.) pulled the race card when speaking about Republicans' inaction in passing comprehensive immigration reform and said "race has something to do" with the GOP not bringing such legislation to the House floor.