&EPA
United States Office of Policy, EPA233-F-01-001
Environmental Protection Economics and August 2001
Agency Innovation
(1606A)
FACT SHEET
WHAT SMALL ENTITIES
SHOULD KNOW ABOUT
EPA AND THE SMALL
BUSINESS REGULATORY
ENFORCEMENT FAIRNESS
ACT
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Why should I be
interested in
RFA/SBREFA?
What is
SBREFA?
EPA has an ongoing commitment to minimize the burden of our
regulations on small entities to the extent we can while still meeting
our statutory requirements. The Regulatory Flexibility Act (RFA), as
amended by Small Business Regulatory Enforcement Fairness Act
(SBREFA), provides small entities with an expanded opportunity to
participate in the development of certain regulations.
SBREFA was signed into law on March 29, 1996, and contains five
distinct sections:
• Subtitle A-Regulatory Compliance Simplification: Among
other things, requires the agency to publish Small Entity
Compliance Guides that are written in plain language and
explain the actions a small entity must take to comply with a
rule or group of rules.
Subtitle B-Regulatory Enforcement Reforms: Requires
agencies to support the rights of small entities in enforcement
actions, specifically providing for the reduction, and in certain
cases, the waiver of civil penalties for violations by small
entities.
Subtitle C-Equal Access to Justice: Provides small
businesses with expanded authority to go to court to be
awarded attorneys' fees and costs when an agency has been
found to be excessive in enforcement of federal regulations.
• Subtitle D-Regulatory Flexibility Act Amendments:
Provides small entities with expanded opportunities to
participate in the development of certain regulations.
• Subtitle E: Congressional Review of Agency Rulemaking:
Agencies generally must provide Congress and the General
Accounting Office with copies of all final rules and supporting
analyses. Congress may decide not to allow a rule to take
effect.
How does
SBREFA affect
EPA
rulemaking?
What does
RFA/SBREFA
require for
proposed rules?
SBREFA established certain formal procedural and analytical
requirements {outlined below) for rules with the potential to impose a
significant economic impact on a substantial number of small
entities. But EPA also considers the concerns of small entities in the
more frequent cases where impacts on small entities are more
modest, even though SBREFA doesn't require it.
Initial Regulatory Flexibility Analysis. Generally, the RFA
requires EPA to prepare an Initial Regulatory Flexibility Analysis
(IRFA) for each proposed rule unless the rule will not have a
significant economic impact on a substantial number of small
entities. A regulatory flexibility analysis examines the type and
number of small entities potentially subject to the rule,
recordkeeping and compliance requirements, and significant
regulatory alternatives, among other things.
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What does RFA/
SBREFA require
for final rules?
Small Business Advocacy Review Panel. When an IRFA is
required, EPA must also convene a Small Business Advocacy
Review Panel before proposing a rule, EPA's Small Business
Advocacy Chair convenes each Panel, which includes
representatives from the Small Business Administration, the Office
of Management and Budget, and EPA. A Panel conducts its own
outreach to small entity representatives likely to be subject to the
rule and prepares a report to the Administrator of EPA on ways to
reduce the potential impact of the rule on small entities. Each
Panel's report becomes part of the rulemaking record for the
proposed rule.
Final Regulatory Flexibility Analysis. When EPA issues a rule
that may have a significant impact on a substantial number of small
entities, we must prepare a Final Regulatory Flexibility Analysis
(FRFA). The elements of a FRFA are similar to those of an IRFA,
outlined above. In addition, each FRFA must summarize the
significant issues raised by public comments on the IRFA, assess
these issues, and describe any changes made in response to the
comments,
Small Entity Compliance Guide. When a FRFA is required, EPA
must also publish Small Entity Compiiance Guides that are written in
plain language and explains the actions a small entity must take to
comply with a rule or group of rules.
What is the
progress to
date?
EPA has completed over 20 SBAR Panels in cooperation with
SBA and OMB. In each case, the Panel recommended
changes to the rule that would reduce impacts on small entities.
In July 2000, EPA launched a new RFA/SBREFA website:
www.epa.qov/sbrefa. The primary purpose of the site is to
provide public access to information and documents produced
for, or directly related to, the Agency's implementation of
SBREFA.
Small Entity Compliance Guides are available on the
RFA/SBREFA website.
EPA tracks all rules affecting small entities. This data is
available from the Small Business Advocacy Chair staff, or
from the RFA/SBREFA website at www.epa.goy/sbrefa.
In March 1998, EPA delivered to Congress reports on SBREFA
Section 223 - Penalty Reduction Program for Small Entities and
SBREFA Section 213 - Informal Guidance Program. These
reports are also available from the SBAC staff or from the
RFA/SBREFA website.
To date, EPA has submitted over 2,500 documents to
Congress under the Congressional Review Act.
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Where Can I aet ^or more information on EPA's small business activities, check out
**
www.epa.gov/smallbusiness. This webpage provides information on
environmental technical assistance, environmental laws and
regulations and financial assistance. You should also check EPA's
RFA/SBREFA Website at www.epa.gov/sbrefa to find documents
related to RFA/SBREFA and links to other sites of interest to small
entities. Or contact:
Small Business Advocacy Chair
Tom Kelly
(202) 564-4000
Small Business Advocacy Chair Staff
Stuart Miles-McLean (Team Leader)
(202) 564-6581, miles-mclean.stuart@epa.gov
Jennifer Vernon
(202) 564-6573, vemon.jennifer@epa.gov
Patrick Easter
(202) 564-6566, easter.patrick@epa.gov
Patricia Grim
(202) 564-6583, grim.patricia@epa.gov
RFA/SBREFA Website
www.epa.gov/sbrefa
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