Federal agencies are set to tweak dozens of regulations in the next few months as they follow President Obama's order to weed out unnecessary and overly burdensome requirements in their rulebooks.

The White House released progress reports last night for the 26 executive branch agencies and four independent agencies that are participating in Obama's regulatory reform effort. Regulatory czar Cass Sunstein estimated that the initiatives under way would result in more than $10 billion in savings.

"The effort to look back at existing rules, and to streamline, fix, or eliminate those that aren't working, is now becoming a regular part of agency practice," Sunstein wrote in a blog post. "One of the most important features of the current process is the continuing request for public suggestions -- for ideas about regulations that might be streamlined, improved, reformed, or eliminated. We are already eliminating billions of dollars in unjustified costs; as the plans are implemented, we expect to save a great deal more."

The effort began in January 2011 with an executive order, and the White House released agencies' draft plans last May (Greenwire, May 26, 2011). But Republicans have been unimpressed, accusing Obama of heading an administration that has produced an excessive number of costly regulations that hurt businesses.

Much of the reforms focus on rules that are outdated, often by requiring burdensome paper-based reporting or by addressing a problem that no longer exists. Yesterday's updates show agencies are close to releasing numerous rule proposals in the next six months.

EPA

In June, U.S. EPA plans to issue a final rule that would eliminate a requirement that local gasoline stations in most states have air pollution vapor recovery systems. Officials determined the systems were redundant, since some modern vehicles already prevent such air pollution.

The agency originally estimated that the change would save about $67 million annually, but the updated number is $87 million -- or about $440 million over five years.

Other proposed rules set for this year include simplifying water quality standards and eliminating redundant requirements for pesticide applicators.

The agency is also planning to soon propose a rule that would allow hazardous waste generators to use electronic reporting rather than carry around a paper manifest for "cradle to grave" records. Officials hope to develop a national system that would allow mobile devices to link to the system and exchange data.

Developing such a system would cost more than $11 million and cost about $3.6 million in annual operation and maintenance costs. The agency has asked Congress to begin funding that, and the administration has submitted a legislative proposal to collect user fees. According to EPA's status report, the change would save waste handlers and regulators between $76 million and $124 million annually.

EPA has also finished amending a rule that inadvertently required the dairy industry to comply with oil spill requirements -- a favorite example of the administration and Republicans alike on absurd rules. Annually, the change saves more than $145 million.

The agency also included actions it declined to take as part of its reform effort, including the decision to not finalize amendments to the Lead Renovation, Repair and Painting Rule that would have required contractors to additional lead-dust testing after renovations.

DOE

Many of the rule changes at the Department of Energy are related to easing the testing burdens that are associated with meeting testing and efficiency standards.

Some of the changes are narrowly targeted.

For example, DOE published a final rule last year that was meant to clarify when the use of new test procedures is required to certify walk-in coolers and freezers. That rule also provided for an extension of the date by which manufacturers, including importers, need to certify compliance to DOE of electrical ballasts for metal halide lamps.

DOE is also in the midst of creating a set of new national standards for certain battery chargers and external power supplies. While the standard would be a new rule to add to the books, DOE noted in its document today that it would be one rule that would replace many.

"These nationwide standards would be expected to eliminate industry burden in complying with a patchwork of state standards," DOE noted.

Other changes noted by DOE today are more far-reaching.

In October, DOE published a final rule to amended its National Environmental Policy Act regulations, adding 20 new "categorical exclusions" for categories such as small-scale renewable energy research projects, solar thermal systems and wind turbines. Before that effort, it had been 15 years since DOE updated its categorical exclusions.

DOE notes in its update today that the changes are expected to save as much as $100 million over 10 years and "provide greater transparency to the public as to the NEPA standards that DOE employs in analyzing particular technologies."

DOE is also working to develop a new method, perhaps including computer modeling, to determine the efficiency of certain types of consumer products and commercial and industrial equipment. DOE wrote that the effort, which is working its way through the rulemaking process after a request for information was released in April, is expected to reduce testing burden and eliminate as much as $500 million dollars of testing costs.

The effort "is particularly significant as industry has suggested that testing under the current rule could take several years to complete and undermine their research and development efforts," DOE wrote.

Interior

The Interior Department's main reform efforts focus on drilling safety and environmental standards.

The Bureau of Ocean Energy Management, Regulation and Enforcement released a draft rule in September that supplements the Safety and Environmental Management Systems rule that took place in November (Greenwire, Sept. 13, 2011).

A "hybrid" of performance-based standards and prescriptive standards will allow flexibility, saving an estimated $58.5 million, according to Interior's status report. The final rule is set to be published in June.

Interior also plans to release a proposed rule in October to update its method for calculating oil and gas royalties using market values. And the Bureau of Land Management will propose in April an amendment that allows the Interior secretary to revise royalty rates for new competitive leases. The department has not yet determined the savings that will come from those changes.

Regulations on tribal land leasing will also be updated, with a proposed rule due out next month. The long process of getting a lease approved by the Bureau of Indian Affairs has long plagued American Indian tribes hoping to capitalize on their lands for wind and solar development. The long-awaited rule change would remove the appraisal requirement, saving about $28 million annually.

Several reforms for the Endangered Species Act are also on the table, including revising implementing regulations to "improve conservation effectiveness, reduce administrative burden, enhance clarity and consistency for impacted stakeholders and agency staff, and encourage partnerships, innovation, and cooperation."

The department will also release a proposed rule in February to clarify the definition of the phrase "destructive or adverse modification" of critical habitat, which is used to determine which actions can and cannot occur in species' most important territory. The phrase has caused headaches for Western water users, ranchers, miners and oil and gas companies whose access can be thwarted by critical habitat designations.