August 2011 - A report by the White House Office of Management and Budget (OMB) claims that major federal regulations enacted between 2000 and 2010 are generating an estimated $70 billion to $611 billion in net annual benefits.
New rules for cranes and derricks in construction enacted in 2010 by the Occupational Safety and Health Administration (OSHA) were among the regulations reviewed. These new rules, detailed in 29 CFR 1926 Subpart CC, are expected to yield $46 million to $49 million in annual net benefits, based on estimated annual costs of $123 million to $126 million (in 2001 dollars) and benefits of $172 million.
This contrasts sharply with the $175 trillion annual cost of federal regulations calculated in a 2010 report commissioned by the Small Business Administration’s (SBA) Office of Advocacy. However, SBA reportedly only counted the costs of major rules, using agencies’ highest cost estimates, and did not include the offsetting benefits.
The regulations reviewed by OMB cost between $44 billion and $62 billion annually, but they resulted in benefits of $132 billion to $655 billion per year, OMB said. The OMB is required to submit a Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities every year.