Insight

Congrats to the Admin on 500 Major Regulations!

Some congratulations are in order for the Obama Administration. They have issued 500 “major” regulations at a pace that would make Dale Earnhardt Jr. blush. At that pace, the administration has averaged about one “major” regulation every work week. Tallying up all of the regulations with annual costs of over $100 million, the Obama Administration’s “major” regulations will cost more than $625 billion.

What makes a regulation “major?” A rule can be designated as “major” if it has an annual effect on the economy of $100 million or more, causes a “major” increase in prices for consumers, or changes an industry.

AAF’s RegRodeo.com has a total tally for all the regulations issued by the administration since taking office: more than 2,447 regulations costing $670.3 billion have been finalized

Here’s a list of the 9 most head scratching “major” regulations passed by this administration:

Driving Car Costs Up (2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions)

Agency: EPA

Cost: $156 billion

The most costly of all of the Obama Administration regulations comes in at a whopping $156 billion. This is one of a slew of regulations that are driving up the costs of consumer goods like cars to the tune of $9,150.

Don’t Burn the Popcorn! (Energy Conservation Standards for Standby Mode and Off Mode: Microwave Ovens)

Agency: Energy

Cost: $1.3 billion

Under this rule, the Department of Energy found a way to regulate your microwave, not while it is cooking, but rather when it is in “standby mode.” As with many regulations from the Department of Energy, the benefits depend heavily on the controversial, and imprecise, “social cost of carbon” calculation. According to the administration, the “social cost of carbon” savings could be anywhere between $255 million and $3.6 billion, a whopping 1,400 percent difference.

Chain Restaurant Tax (Food Labeling; Nutrition Labeling of Standard Menu Items in Restaurants)

Agency: HHS

Cost: $1.2 billion

At a cost of $275 per menu item, the nutrition labeling regulation could cost establishments $44,000 up front and an additional $5,000 in recurring costs. Misbranding could even result in prison time for those who don’t properly adhere to this Obamacare regulation.

Benefits are What? (Energy Conservation Standards for Automatic Commercial Ice Makers)

Agency: Energy

Cost: $411 million

Despite $411 million in costs, the Department of Energy pushed forward with the regulation. The DOE has a very wide estimate of the benefits: “…the net present monetary value of the carbon dioxide emissions reduction is between $0.08 and $1.11 billion…” According the agency the rule could have benefits of anywhere between the cost of a stick of gum and the GDP of a small island nation.

Net Neutrality (Protecting and Promoting the Open Internet)

Agency: FCC

Cost: $0*

This is the only rule that has $0 in costs listed, but will obviously have a major impact on innovation. AAF has found that the FCC’s reclassification of the Internet under Title II could put up to 174,000 jobs at risk in 2019, when the brunt of the rule is felt.

Driving Up Car Costs (Control of Air Pollution From Motor Vehicles: Tier 3)

Agency: EPA

Cost: $14.5 billion

The most amazing part of this rule is that the EPA decreased the cost by $20 billion between the proposed and final versions, and it is still one of the most costly from the administration.

The Best Websites Ever (PPACA; Establishment of Exchanges and Qualified Health Plans)

Agency: HHS

Cost: $3.5 billion

What can be said about Healthcare.gov and the individual state run sites that hasn’t already been said? All sites were mandated by this regulation to be “operational by January 1, 2014.” However, as 2014 was rung in, both the federal site and state sites continued to be over budget and when launched encountered operational problems. President Obama even at one point promised that it would be the “same way you’d shop for a plane ticket on Kayak or a TV on Amazon.”

Make Sure Your Dryer Meets These (Energy Conservation: Standards, Clothes Dryers, Air Conditioners)

Agency: Energy

Cost: $3.3 billion

Energy regulations pile on with this rule that makes sure your home air conditioner and dryer meet Department of Energy standards. This is one of the rules that can make air conditioners cost hundreds more for consumers in stores.

Just ask Siri (Food Labeling; Calorie Labeling Of Articles Of Food In Vending Machines)

Agency: HHS

Cost: $531.1 million

Besides costing hundreds of millions of dollars, the vending machine labeling rule would be extremely difficult to comply with and would answer questions that most people can just ask Siri or Cortana.

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