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

Celebs gin up youth votes for midterms
THE HILL – With young voters more apathetic about voting and government than ever, several organizations are trying to woo the “selfie generation” to the polls this fall. “About half of those who vote in presidential elections do not vote in midterms,” explained Andy Bernstein, executive director of HeadCount, a non-partisan organization that partners with musicians […]
Maher to Cheney: light yourself on fire

As Hunter S. Thompson despised Richard Nixon with every drug-influenced fiber of his being, so Bill Maher carries on the torch for media provocateurs.

Colbert announces plan to defeat ISIS
President Barack Obama might not have a strategy for defeating ISIS in Syria, but never fear,  comedian Stephen Colbert has him covered. Colbert announced a unique plan Thursday night that involves raising Ronald Reagan from the grave, a captive radio audience and Monty Python-esque horse sound effects. “Remember in 1938 the radio broadcast of ‘War […]
Brand: ISIS better than conservatives
Actor Russell Brand took to Youtube Wednesday to compare terrorist group ISIS to conservatives, eventually coming to the conclusion that conservatives in power were worse than ISIS. Brand was recording yet another video aimed at attacking Fox News when he made the statements about ISIS. He was responding to Fox host Greg Gutfeld’s comments about Brand’s […]
Biden congratulates 'Veep' on Emmy win
From one Vice President to another… Vice President Joe Biden took to Twitter Tuesday to congratulate actress Julia Louis-Dreyfus on her Emmy win. Louis-Dreyfus snagged her third consecutive Outstanding Actress in a Comedy series win Monday for her portrayal of a fictional vice president on HBO’s “Veep.” Last year, the VP picked up the phone […]

White House

White House scrambles to control the fallout from Obama’s ‘We don’t have a strategy yet’ comment
It’s hard to imagine that there was any other reaction than full panic from White House staffers after President Obama uttered a fateful gaffe Thursday afternoon, “We don’t have a strategy yet.” The line quickly exploded on Twitter and on television — though not quite as much as the president’s tan suit — as it […]
GOP: ‘He’s not a king’
THE HILL – Whether lamenting the so-called vacationer-in-chief’s swing of a golf club or criticizing his handling of the healthcare rollout, Republicans are getting in the habit of comparing President Obama to a monarch. “It’s one thing after another. You know he says he has no choice but to act. He says he has a pen […]
Obama’s Democratic fundraising just might ruin Labor Day weekend for the rest of us

Barely having returned from a 15-day vacation on Martha's Vineyard, Massachusetts, Obama will spend is Labor Day weekend traveling to support his Democratic friends. The problem is, this means that Americans planning to take seaplanes to East Hampton, Montauk, Martha's Vineyard or Nantucket won't be able to travel themselves.

White House flirt Joe Biden turns on the charm for 108-year-old veteran Lucy Coffey

Joe Biden continues to brand himself the White House flirt. In a recently released video of Biden's July 25 meeting with Lucy Coffee, the vice president kisses the 108-year-old war veteran on the cheek and hand and tells her, "I'm the guy that loves you."

Congress

Cruz highlights issues for 2014, 2016 elections
Sen. Ted Cruz (R-Texas) elicited huge cheers from the audience at the Americans For Prosperity’s “Defending the American Dream Summit” Saturday when he vowed Republicans would take back control of the U.S. Senate and “retire” Senate Majority Leader Harry Reid. “I’m convinced we’re going to win in 2014 and 2016 is going to be even better,” […]
IRS says Lerner's Blackberry 'destroyed'

A senior IRS lawyer has said in a sworn declaration that Lois Lerner's BlackBerry was intentionally destroyed after Congress had begun to investigate her involvement in IRS targeting of conservative groups.

Youth impact reason enough to pass jobs bills
The U.S. House Committee on Ways and Means is in the midst of releasing 40 reasons over the course of 40 days that the Senate should take up the 40 jobs bills the House has already passed. While most of their reasons have focused on general unemployment and economic growth statistics, they turned their attention […]
UNEARTHED: Archival footage of Harry Reid smiling

From appearances, Senate Majority Leader Harry Reid derives little pleasure from his job, perhaps a deputy to the paragon of joylessness. But Red Alert Politics has dug into the archives to demonstrate that it wasn't always like this.

Rubio: Obama action would kill immigration reform
Sen. Marco Rubio (R-Fla.) is urging President Barack Obama to forego taking executive action on immigration, warning that would kill any chance for comprehensive immigration reform. “If indeed you move forward on such a decision, I believe it will close the door to any chance of making progress on immigration reform for the foreseeable future,” […]