Mr. President, last month's dire economic news is a call to urgent action to get America working again. In August, our Nation produced no net new jobs. Productivity fell. Home sales fell. Construction spending fell. The manufacturing index…
Mr. President, last month's dire economic news is a call to urgent action to get America working again. In August, our Nation produced no net new jobs. Productivity fell. Home sales fell. Construction spending fell. The manufacturing index declined. Unemployment is stagnant at 9.1 percent, and consumer confidence is plummeting.
Businesses, our Nation's job creators and the engine of any lasting economic growth, have been saying for some time that the lack of jobs is largely due to a climate of uncertainty, most notably the uncertainty and cost created by new Federal regulations.
The Regulatory Time-Out Act, which I am introducing today with 16 of my colleagues, provides job creators with a sensible breather from these burdensome new regulations. This would give businesses time to get back on their feet, create the jobs that Americans so desperately need, and enhance the global competitiveness of American workers.
Let me make clear that we also need to reform the process for issuing regulations. Earlier this year I proposed the CURB Act, which stands for Clearing Unnecessary Regulatory Burdens. The CURB Act would require agencies to examine the costs and benefits of proposed rules, prohibit them from attempting to set rules through unofficial guidance documents--thus circumventing the public notice and comment period--and provide businesses with relief from first-time paperwork violations when no harm comes from the violation. Senators Barrasso and Roberts joined me in introducing this bill.
Indeed, as I am sure you are aware, many of our colleagues have recognized the need to reform the regulatory process and have introduced their own proposals. The Homeland Security and Governmental Affairs Committee has already held three hearings on regulatory reform this year, and I expect this issue will be a priority for our committee this fall.
But the fact is, our economy cannot wait for Congress to complete an overhaul of the regulatory process. If we want to create more jobs, we must act now. We must send a clear signal to the job creators that we have heard them. That is why I believe we must have a timeout from any significant new regulation that would have an adverse impact on jobs, the economy, or our international competitiveness.
Under my bill, no significant final rule that would have an adverse impact could go into effect during a 1-year moratorium. This timeout would cover major rules costing more than $100 million per year, and other rules that have been considered ``significant'' under Executive orders going back to President Clinton and followed by President George W. Bush and President Obama.
Let me give an example of a rule that would be covered by the 1-year moratorium I am proposing. A rule that would be covered by this definition is EPA's Boiler MACT rule. I am sure the Presiding Officer is familiar with this rule. This one regulation, if it were fully implemented, could cost Maine's employers alone hundreds of millions of dollars. In fact, as the Wall Street Journal has recently reported, a jobs study just released shows that Boiler MACT, along with other pending air regulations, could cause 36 pulp and paper mills around the country to close, putting more than 20,000 Americans out of work. That is 18 percent of that industry's workforce. That shows you the potent and terrible impact excessive regulation can have on job preservation and job creation.
And that is just for starters. Once these mills close, the businesses that supply them would also be forced to lay off workers. Estimates are that nearly 90,000 Americans would lose their jobs, wages would drop by $4 billion, and government at all levels would see revenues decline by a staggering $1.3 billion.
That is why, along with Senator Ron Wyden, I have introduced a Boiler MACT bill that 24 of our colleagues on both sides of the aisle have already cosponsored. Our bill has been endorsed by 292 employer organizations and individual businesses--292 businesses and organizations representing employers. That shows you how worried our job creators are about the impact of just this one set of rules. Their letter sums up the impact of the Boiler MACT rule very plainly. It says:
These rules place at risk tens of thousands of high-paying
manufacturing jobs that our Nation cannot afford to lose.
The Boiler MACT regulations are exactly the kind of significant rules that my Regulatory Time-Out Act is intended to reach. The moratorium applies to rules issued by independent regulatory agencies such as the National Labor Relations Board as well as executive branch departments.
The impact of the regulatory burden under President Obama can be seen in the pages of the Federal Register. As my colleagues know, the Federal Register is the publication for all Federal regulations. Last year alone, the Federal Register expanded by nearly 82,600 pages, a level higher than any year under President Bush. Worse yet, the Obama administration has 144 rules in the pipeline that would each cost the economy at least $100 million. This is
nearly twice as high as the number of such rules that were in the pipeline each year of the Bush administration.
Let me clarify that the legislation I am proposing exempts those rules that are needed in emergencies such as imminent threats to public health or safety, as well as rules that are necessary to enforce our criminal laws, and with respect to military or foreign affairs. I think it is important that I put that on the record.
It also exempts rules that would reduce the regulatory burden, in order to help the private sector create jobs and boost the ability of American workers to compete. Unfortunately, those rules that actually reduce regulatory burdens and promote jobs are few and far between.
Finally, my bill requires that within 10 days of passage, agencies and departments must submit to Congress and to the Office of Management and Budget the list of rules they believe are exempt from the 1-year moratorium. That is important to make sure the intent of the law is followed and that Congress and the administration can exercise appropriate oversight.
The intent of my bill is to lift the cloud of uncertainty that is causing employers to be cautious and to refrain from creating jobs-- jobs our economy desperately needs.
During the August recess, I asked employers throughout the great State of Maine what it would take to encourage them to add jobs. To a person, no matter what line of business these employers were in, no matter what the size of their workforce, each one of them replied that Washington needed to stop imposing crushing new regulations; that these job creators needed stable progrowth economic policies; that they needed an end to the uncertainty that was hampering their decisionmaking.
I am pleased that the Regulatory Time-Out Act has been endorsed by the NFIB, our Nation's largest small business advocacy group, and by the Small Business & Entrepreneurship Council. My bill has also been welcomed by the U.S. Chamber of Commerce, which has stated:
American businesses need immediate relief. A ``time out''
would allow both the regulators and the regulated to take a
deep breath and ensure that regulations are not destroying
jobs and economic growth.
I agree completely. I will ask that the letters from the NFIB, the SBEC, and the statement by the Chamber of Commerce, be printed in the Record at the conclusion of my remarks.
I am honored to have the following colleagues as cosponsors of this 1-year regulatory moratorium: Senators Alexander, Barrasso, Blunt, Boozman, Chambliss, Coats, Coburn, Cornyn, Hoeven, Hutchison, Isakson, Kirk, Kyl, Moran, Roberts and Thune.
I urge all of our colleagues to support the Regulatory Time-Out Act, which is a critical step toward easing the regulatory uncertainty and costs that are keeping our job creators from getting Americans back to work.
Mr. President, I ask unanimous consent that materials of support be printed in the Record.