The Basics of Informal Rulemaking: What You Need to Know

The Basics of Informal Rulemaking: What You Need to Know

If you’re unfamiliar with informal rulemaking, don’t worry – you’re not alone. While it’s a less formal process than formal rulemaking, it’s still important to understand the basics of this regulatory process.

What is Informal Rulemaking?

Informal rulemaking, also known as notice-and-comment rulemaking, is a regulatory process used by federal agencies to propose and implement new regulations. It’s a less formal process than formal rulemaking, which requires public hearings and judicial review.

In informal rulemaking, agencies publish a notice of proposed rulemaking (NPRM) in the Federal Register and allow for a comment period where the public can submit feedback and suggestions. After reviewing all comments, the agency may choose to make changes before finalizing the rule and publishing it in the Federal Register.

Why is Informal Rulemaking Important?

Informal rulemaking is important because it allows for public input and participation in the regulatory process. This transparency and democracy help ensure that new rules are fair and effective. It’s also a more efficient process than formal rulemaking, which can take years to complete.

Examples of Informal Rulemaking

One recent example of informal rulemaking is the Clean Power Plan proposed by the Environmental Protection Agency (EPA) in 2014. The plan aimed to reduce carbon emissions from power plants by 32% below 2005 levels by 2030. The EPA held a comment period where the public could submit feedback on the proposed rule. After reviewing the comments, the EPA made some changes before finalizing the rule in 2015.

Another example is the Department of Labor’s overtime rule proposed in 2016, which would have increased the salary threshold for employees to be exempt from overtime pay. The agency received over 300,000 comments during the comment period, leading to changes in the final rule. However, the rule was ultimately blocked by a federal court in 2017.

Conclusion

Informal rulemaking is a vital regulatory process that allows for public input and ensures fairness in new regulations. By understanding the process and its importance, individuals and organizations can effectively participate in the regulatory process and help shape future regulations.