Capitol Hill

A top concern of NRCA members is the alarming increase in new federal regulations. Recently, numerous regulations have been promulgated by the Department of Labor, Occupational Safety and Health Administration, National Labor Relations Board and other federal agencies that significantly affect employers in the roofing industry.

The cost of this expansion of regulations to the U.S. economy is significant. In 2011, the Small Business Administration estimated the total cost of compliance with all federal regulations was $1.75 trillion annually.

Moreover, the regulatory challenges employers face are likely to grow, especially as the Affordable Care Act, which imposes new mandates on employers with 50 or more full-time employees, becomes fully effective in 2015.

Given this reality, NRCA has made regulatory reform legislation a top focus of its government relations agenda. Such legislation would change the processes under which federal agencies develop regulations so there would be more opportunities for input from the business community. A more open, transparent process should provide more opportunities for stakeholders to work with agency officials to develop regulations that are effective for achieving desired public policy goals while minimizing adverse effects on employers.

Getting a foothold

During the 112th Congress in 2011 and 2012, NRCA supported several regulatory reform measures that were approved by the House of Representatives. Unfortunately, all these efforts died when the gridlocked Senate failed to consider them.

Although partisan gridlock remains a problem in the 113th Congress, NRCA and other business groups are renewing efforts to pass some kind of regulatory reform.

First, the Regulatory Accountability Act (H.R. 2122 and S. 1029) was introduced in the House and Senate with significant bipartisan support. This legislation is designed to reform the federal rulemaking process to lower costs and improve the quality of new regulations. It would require federal agencies to choose the lowest-cost rulemaking alternative that meets statutory objectives, improve agency fact-finding processes, require formal rulemakings in more situations to increase public input before regulations are proposed and fortify judicial review of new regulations.

This legislation is needed because the federal regulatory process has not been updated in more than 60 years. As a result, businesses are seeing a rising number of large, complex regulations that breed uncertainty, drive up costs, and stifle hiring and investment. The Regulatory Accountability Act will modernize the 66-year-old Administrative Procedures Act, updating and improving accountability in the rulemaking process in a reasonable, measured way.

NRCA believes another important approach to regulatory reform involves a process known as “sue and settle.” This tactic has been used by certain advocacy groups, often environmental organizations, to effectively bypass the normal rulemaking process by filing a lawsuit claiming the government failed to meet a statutory or regulatory requirement. The agency then is forced to argue the case in court or settle with the group to avoid litigation. This often results in a settlement that involves a new court-ordered regulation, circumventing the proper channels for developing regulations.

In recent years, NRCA and other business groups have grown increasingly alarmed about this practice. From 2009-12, 71 lawsuits were settled by federal agencies in a manner that resulted in new regulations. By using “sue and settle” tactics, certain advocacy groups basically are able to dictate federal agencies' policy agendas.

To address this problem, the Sunshine for Regulatory Decrees and Settlements Act has been introduced in the House and Senate (H.R. 1493 and S. 714). This legislation is designed to bring greater accountability and transparency to the regulatory process and allow for affected parties to have their voices heard before a regulation is issued.

A possibility

NRCA is encouraged the Regulatory Accountability Act has been introduced with bipartisan support. The Sunshine for Regulatory Decrees and Settlements Act, on the other hand, has received support only from Republicans to date. It is uncertain whether lawmakers can overcome the partisan gridlock that grips Capitol Hill to pass any regulatory reform legislation in 2013 or 2014, but bipartisan support will be essential given the divided nature of Congress.

NRCA will continue to make enactment of regulatory reform legislation a top priority within the constraints of the political environment to reduce the regulatory cost burden on the roofing industry.

Duane L. Musser is NRCA's vice president of government relations.