President Barack Obama’s recent call for withdrawal of a disastrous new ozone rule was a step in the right direction. The president can’t offer a serious jobs plan with one hand and expect it to succeed while his other hand tightens the regulatory grip on America’s job creators.
Since the Environmental Protection Agency first signaled its plans to voluntarily impose much stricter ozone rules — even though standards were just strengthened a few years ago — the business community has warned the administration of the dire economic consequences.
By the EPA’s own estimates, businesses would face up to $90 billion a year in compliance costs, leaving them less capital for hiring, business development and investment. Good jobs could disappear or move away. In fact, the rules could have cost a staggering 7.3 million jobs by 2020, according to private-sector studies.
The president wisely heeded these warnings. The elimination of the rule was an enormous victory for workers and job creators and will remove some of the uncertainty crippling business investment and expansion. But if the president has determined that costly, burdensome regulations are bad for growth and jobs, why stop at just the ozone rule?
While some regulations are necessary, many are excessive and will stifle economic growth and stunt job creation. As an encore to killing the ozone rule, the president should issue an executive order directing agencies not to issue any discretionary regulations that would have a substantial economic impact — until our economy is growing more robustly and more jobs are being created.
This would not impact regulations mandated by Congress or delay permits. It would, instead, provide more certainty to a business community that is hesitant to invest and hire.
Furthermore, the White House should insist that agencies fully and faithfully implement existing requirements, such as cost-benefit analyses, sound science and quality data. As the chief executive, the president has enormous control over federal agencies. He should use it.
For its part, Congress should pass legislation requiring an up-or-down vote before new major rules can take effect and mandate a higher standard of proof to justify regulations with a significant impact on economic growth and jobs.
Our country urgently needs commonsense regulatory reform that protects Americans’ health and safety without destroying their ability to earn a decent paycheck. Such reform is fundamental to spurring growth and putting our nation back to work.
— Tom Donohue is president and CEO of the U.S. Chamber of Commerce.
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