Sunshine for Regulatory Decrees and Settlements Act of 2015

Floor Speech

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Mr. COLLINS of Georgia. Mr. Chairman, I rise in support today of H.R. 712, the Sunshine for Regulatory Decrees and Settlements Act.

I would like to thank Chairman Goodlatte, who will be coming along shortly, as my chairman on the Judiciary Committee for his support and work, and the Judiciary Committee staff. I would also like to thank the chairman of the Oversight and Government Reform Committee, my friend, Mr. Chaffetz, a committee which I have served on that continues to do great work, along with the ranking member. It is good to be with you today.

This is legislation--to me, especially H.R. 712--that addresses a problem and has been passed by the House on three separate occasions to address sue and settle practices that serve special interests at the expense of the American people. This is something I have been dealing with since I have been in Congress because it goes to the heart of what I have spoken to many times about the Republican majority and our interest in fairness and our interest in making the court system work for people.

What this bill actually does is actually--the heart and the core of it--goes after sue and settle litigation, consent decrees, that are taken behind closed doors without, many times, those that are affected even having the ability to give input into those and then being affected by that.

So, if I had a problem with someone and I couldn't resolve it, I would just go to the agency, such as the EPA or others who may have sympathetic leanings, and I say, ``You are not doing what you are supposed to be doing.'' I threaten to sue. We get behind closed doors. We settle something. The judge makes a consent order, and then I take it back to the areas that are affected, and they have no input into that. That is just not fair, inherently not fair.

This bill simply is about transparency. To be against this bill is to be against transparency. To be against this legislation is to say that we believe it is okay to cut people out when they are affected.

Just to let you know how this is affected, between 2009 and 2012, 71 lawsuits were settled as sue and settle cases and directly led to the issuance of more than 100 new Federal Rules--100 new Federal Rules--out of consent decrees, including several with a compliance cost--listen to this. We want to talk about small business, we want to talk about local governments being burdened. Listen to this compliance cost: $100 million in excess.

This issue is not partisan. Cass Sunstein, President Obama's former regulatory czar, called the idea of reforming the sue and settle process excellent.

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Mr. COLLINS of Georgia. He stated: ``In some cases, agencies don't really disagree but have refrained from acting in part because of political constraints.''

He is right. Agencies use sue and settle to skirt potentially political issues.

This is about fairness. This is about simplicity. This is a bill that is brought forward to take care of the American people and the burdensome regulations--not to stop it, but to simply get our country working again. January 6, 2016.

To the Members of the U.S. House of Representatives: The 250 undersigned groups strongly support efforts by the House of Representatives to make federal agencies more accountable to the American public and improve the transparency of agency actions. The federal rulemaking process was founded on principles of open government and public participation.

We are pleased, therefore, that the House is voting on a comprehensive regulatory reform bill, H.R. 712, the ``Sunshine for Regulatory Decrees and Settlements Act,'' which would take important steps to stop the abusive practice known as ``sue and settle'' and give the public and affected parties a greater ability to know about potential rulemakings and to participate.

H.R. 712 embodies several major principles of accountability, transparency, and fairness, drawn directly from three regulatory reform bills:

Title I--the ``Sunshine for Regulatory Decrees and Settlements Act.'' Behind closed doors, organizations and agencies enter into consent decrees or settlement agreements compelling the agencies to issue rules on an expedited timeframe. The states and the public are not given notice of the lawsuits, nor do they have a meaningful voice in the process, despite the adverse impact that rushed, sloppy regulations have on them. This title would improve the ``sue and settle'' process by requiring agencies to give early notice and take public comment on proposed settlement agreements obligating agencies to initiate a rulemaking or take other action on a specified timetable. These settlement agreements allow interest groups to commandeer an agency's agenda and regulatory priorities. The bill would allow affected parties to get notice of draft settlements and provide some opportunity to participate.

Title II--the ``All Economic Rules are Transparent (ALERT) Act.'' This title would require agencies to disclose rulemakings the agency plans to propose or finalize to OMB's Office of Information and Regulatory Affairs (OIRA). OIRA would disseminate information about these planned rules to the public, including their estimated costs and benefits.

Title III--the ``Providing Accountability Through Transparency Act.'' This title would require federal agencies to notify the public of proposed rules each month by posting a brief, plain-English summary of each proposed regulation on regulations.gov.

Taken together, these reforms would help Congress to reassert control over federal regulatory agency actions that have become opaque, unaccountable, and often unfair. Congress must perform its critical role as overseer of the federal agencies.

The undersigned groups strongly support H.R. 712, the ``Sunshine for Regulatory Decrees and Settlements Act,'' and its comprehensive approach to regulatory reform. We urge you to pass this important bill. Sincerely,

Alabama: Alabama Forestry Association, Business Council of Alabama, Mobile Area Chamber of Commerce.

Alaska: Alaska Chamber, Greater Fairbanks Chamber of Commerce.

Arizona: Arizona Chamber of Commerce and Industry, Arizona Mining Association, Gilbert Chamber of Commerce, Greater Phoenix Chamber of Commerce, Lake Havasu Area Chamber of Commerce, Marana Chamber of Commerce, Tucson Metro Chamber.

Arkansas: Arkansas Independent Producers & Royalty Owners Association (AIPRO), Arkansas State Chamber of Commerce, Associated Industries of Arkansas.

California: American Concrete Pressure Pipe Association, California Asphalt Pavement Association (CalAPA), California Association of Boutique & Breakfast Inns, California Hotel & Lodging Association, Cerritos Regional Chamber of Commerce, Far West Equipment Dealers Association, Gateway Chambers Alliance, Los Angeles Area Chamber of Commerce, Milk Producers Council, Motorcycle Industry Council, Orange County Business Council, Plumbing-Heating-Cooling of California, San Diego Regional Chamber of Commerce, San Gabriel Valley Economic Partnership.

Colorado: Associated General Contractors of Colorado, Colorado Business Roundtable, Colorado Timber Industry Association, Home Builders Association of Northern Colorado, Western Energy Alliance.

Connecticut: Connecticut Business & Industry Association, Gasoline & Automotive Service Dealers of America, Inc.

Delaware: Rehoboth Beach-Dewey Beach Chamber of Commerce & Visitor Center.

Florida: Associated Industries of Florida, Florida Chamber of Commerce, Florida Transportation Builders' Association Orlando, Inc.

Georgia: Georgia Chamber, Georgia Mining Association, Georgia Paper & Forest Products Association, Southeastern Lumber Manufacturers Association.

Idaho: Associated Logging Contractors, Inc.--Idaho, Idaho Trucking Association.

Illinois: American Foundry Society, Greater Oak Brook Chamber of Commerce, ISSA--The Worldwide Cleaning Industry Association, Land Improvement Contractors of America (LICA), Mason Contractors Association of America, National Roofing Contractors Association, Non-Ferrous Founders' Society, North American Association of Food Equipment Manufacturers (NAFEM), North American Die Casting Association, Property Casualty Insurers Association of America, STI/SPFA, The Illinois Chamber of Commerce, Western DuPage Chamber of Commerce.

Indiana: Indiana Cast Metals Association (INCMA), Indiana Chamber of Commerce, Indiana Motor Truck Association.

Iowa: Ames Chamber of Commerce, Mason City Chamber of Commerce.

Kansas: Kansas Chamber of Commerce.

Kentucky: Greater Louisville Inc., Kentucky Chamber of Commerce, Kentucky Coal Association, Kentucky Forest Industries Association, Kentucky Petroleum Marketers Association.

Louisiana: Houma-Terrebonne Chamber of Commerce, Louisiana Association of Business and Industry (LABI), Louisiana Landowners Association, Louisiana Oil & Gas Association.

Maryland: Flexible Packaging Association, Maryland Asphalt Association, Inc., National Ready Mixed Concrete Association.

Massachusetts: Metro South Chamber of Commerce.

Michigan: AGC of Michigan, Associated Wire Rope Fabricators, Foundry Association of Michigan, Michigan Chamber of Commerce.

Minnesota: Associated General Contractors of Minnesota, Grand Rapids Area Chamber of Commerce.

Mississippi: Mississippi Petroleum Marketers and Convenience Stores Association, Mississippi Propane Gas Association.

Missouri: Equipment Dealers Association, Missouri Chamber, Missouri Grocers Association, Missouri Pest Management Association, National Corn Growers Association, Western Equipment Dealers Association.

Montana: Billings Chamber of Commerce, Kalispell Chamber of Commerce, Montana Chamber of Commerce, Montana Petroleum Marketers & Convenience Store Association.

Nebraska: Lincoln Chamber of Commerce, Nebraska Chamber of Commerce & Industry.

Nevada: Carson Valley Chamber of Commerce, The Chamber of Reno, Sparks, and Northern Nevada.

New Jersey: Morris County Chamber of Commerce, New Jersey Business & Industry Association, New Jersey Motor Truck Association, New Jersey State Chamber of Commerce.

New Mexico: New Mexico Cattle Growers' Association, New Mexico Wool Growers, Inc.

New York: Buffalo Niagara Partnership, North Country Chamber of Commerce, Northeastern Retail Lumber Association.

North Carolina: Motor & Equipment Manufacturers Association, North Carolina Manufacturers Alliance.

North Dakota: Bismarck-Mandan Chamber of Commerce, Bismarck-Mandan Home Builders Association, Dickinson Area Builders Association, Forx Builders Association, Greater North Dakota Chamber, Home Builders Association of Fargo- Moorhead, Minot Association of Builders, North Dakota Association of Builders, Williston Area Builders Association.

Ohio: Cellulose Insulation Manufacturers Association, Forging Industry Association, Heating, Air-Conditioning & Refrigeration Distributors International (HARDI), Industrial Fasteners Institute, National Tooling and Machining Association, Ohio Cast Metals Association (OCMA), Ohio Chamber of Commerce, Ohio Forestry Association, Ohio Trucking Association, Precision Machined Products Association, Precision Metalforming Association, Youngstown/Warren Regional Chamber.

Oklahoma: Gas Processors Association, Greater Oklahoma City Chamber, Oklahoma Independent Petroleum Association, The State Chamber of Oklahoma, Tulsa Regional Chamber.

Oregon: Associated Oregon Industries, Associated Oregon Loggers, Inc., Klamath County Chamber of Commerce, Oregon Retail Council, Roseburg Area Chamber of Commerce, The Chamber of Medford/Jackson County.

Pennsylvania: Chester County Chamber of Business & Industry, Pennsylvania Chamber of Business and Industry, Pennsylvania Forest Products Association, Pennsylvania Foundry Association, Pennsylvania Independent Oil & Gas Association, Printing Industries of America, Schuylkill Chamber of Commerce, The Pennsylvania Corn Growers Association Inc.

South Carolina: Charleston Metro Chamber of Commerce, Myrtle Beach Area Chamber of Commerce, North Myrtle Beach Chamber of Commerce, CVB South Carolina Timber Producers Association.

South Dakota: Black Hills Forest Resource Association, Intermountain Forest Association.

Tennessee: Johnson City, TN Chamber of Commerce, National Cotton Council, Tennessee Cattlemen's Association, Tennessee Chamber of Commerce & Industry, Tennessee Paper Council.

Texas: American Loggers Council, Consumer Energy Alliance, Electronic Security Association (ESA), Laredo Chamber of Commerce, Longview Chamber of Commerce, McAllen Chamber of Commerce, Texas Association of Business, Texas Cast Metals Association, Texas Mining and Reclamation Association (TMRA), Texas Wildlife Association.

Utah: Salt Lake Chamber, Utah Mining Association.

Virginia: American Composites Manufacturers Association, American Feed Industry Association, American, Subcontractors Association, Inc., American Trucking Associations, American Wood Council, AMT--The Association For Manufacturing Technology, Automotive Recyclers Association, Brick Industry Association, Construction Industry Round Table (CIRT), Council of Industrial Boiler Owners, Global Cold Chain Alliance. Independent Electrical Contractors, Meat Import Council of America, National Association of Chemical Distributors, National Association of Convenience Stores, National Renderers Association, National Rural Electric Cooperative Association, National Stone, Sand and Gravel Association, Outdoor Power Equipment Institute.

Petroleum Marketers Association of America, Small Business & Entrepreneurship Council, Truck Renting and Leasing Association, Virginia Chamber of Commerce, Virginia Forest Products Association.

Washington: American Exploration & Mining Association, Greater Yakima Chamber of Commerce, Washington Cattle Feeders Association, Washington Retail Association.

Washington D.C.: Agricultural Retailers Association, American Coatings Association, American Coke and Coal Chemicals Institute, American Council of Engineering Companies, American Forest & Paper Association, American Fuel & Petrochemical Manufacturers, American Highway Users Alliance, American Iron and Steel Institute, American Petroleum Institute, American Public Gas Association, American Road & Transportation Builders Association, Associated Builders and Contractors, Building Owners and Managers Association (BOMA) International, Independent Petroleum Association of America, Industrial Energy Consumers of America, Industrial Minerals Association--North America, Institute of Makers of Explosives, National Association of Home Builders, National Association of Manufacturers.

National Association of Wholesaler-Distributors, National Black Chamber of Commerce, National Council of Textile Organizations, National Federation of Independent Business, National Grain and Feed Association, National Industrial Sand Association, National Lumber and Building Material Dealers Association, National Mining Association, National Oilseed Processors Association, North American Meat Institute, SPI: The Plastics Industry Trade Association, Treated Wood Council, U.S. Chamber of Commerce, United States Hide, Skin and Leather Association, Vinyl Building Council, Vinyl Institute, Window and Door Manufacturers Association.

West Virginia: West Virginia Chamber, West Virginia Oil Marketers and Grocers Association.

Wisconsin: Greater Green Bay Chamber, Midwest Food Processors Association, Wisconsin Cast Metals Association, Wisconsin Grocers Association, Wisconsin Industrial Energy, Wisconsin Manufacturers & Commerce.

Wyoming: Petroleum Association of Wyoming, Wyoming Rural Electric Association, Wyoming Stock Growers Association. ____ Associated Builders and Contractors, Inc., Washington, DC, January 6, 2016. House of Representatives, Washington, DC.

Dear Representative: On behalf of Associated Builders and Contractors (ABC), a national construction industry trade association with 70 chapters representing nearly 21,000 chapter members, I am writing in regard to the Sunshine for Regulatory Decrees and Settlements Act (H.R. 712) introduced by Rep. Doug Collins (R-GA).

ABC supports increased transparency and opportunities for public feedback in situations where agencies promulgate rulemakings via consent decrees and settlement agreements, and opposes regulation through litigation. The Sunshine for Regulatory Decrees and Settlements Act (H.R. 712) would promote enhanced openness and transparency in the regulatory process by requiring early disclosure of proposed consent decrees and regulatory settlements.

The practice of regulation through litigation (or ``sue and settle'' as it is sometimes described) is used and often abused by advocacy groups in order to initiate rulemakings when they feel federal agencies are not moving quickly enough to draft and issue these policies. Organizations routinely file lawsuits against federal agencies claiming they have not satisfied particular regulatory requirements, at which point agencies can opt to settle. When settlements are agreed to, they often mandate that rulemakings go forward and frequently establish arbitrary timeframes for completion--without stakeholder review or public comment. These settlements are agreed to behind closed doors and their details kept confidential. Agencies release their rulemaking proposals for public comment after the settlement has been agreed upon, but this is often too late for adequate and meaningful feedback.

H.R. 712 would require agencies to solicit public comment prior to entering into a consent decree with courts, which would provide affected parties proper notice of proposed regulatory settlements, and would make it possible for affected industries to participate in the actual settlement negotiations.

Thank you for your attention on this important matter and we urge the House to pass the Sunshine for Regulatory Decrees and Settlements Act when it comes to the floor for a vote. Sincerely, Kristen Swearingen, Senior Director, Legislative Affairs. ____ Small Business & Entrepreneurship Council, Vienna, VA, January 4, 2016. Hon. Doug Collins, Washington, DC.

Dear Representative Collins: On behalf of the Small Business & Entrepreneurship Council (SBE Council) and its 100,000 members, I am writing to express our strong support for H.R. 712, the ``Sunshine and Regulatory Decrees and Settlement Act of 2015.'' SBE Council is grateful for your ongoing leadership in calling attention to and working to fix the sue-and-settle game played by special interests groups and federal government agencies. H.R. 712 is an important solution that will lift the veil on a process that is unjust and hurts small businesses.

Americans feel disconnected from a regulatory process that does not consider their views or the real world impact of regulation. A recent survey conducted by our Center for Regulatory Solutions (CRS) found that 72% of Americans believe regulations are ``created in a closed, secretive process,'' with 68% saying that federal rules are created by ``out-of-touch'' people pushing a political agenda. As is the case with ``sue-and-settle,'' special interest groups conspire with federal agencies and file lawsuits against them alleging that an action has been unlawfully delayed or unreasonably withheld. In many cases, the outcome of these legal actions--the ``settle''--is excessive and unreasonable regulation.

Small business owners and their employees are hardest hit by these burdensome federal regulations, which, again, are the end product of a closed, one-sided process. In a report published by CRS, we document egregious ``sue-and-settle'' cases and their costly outcomes. It is unconscionable that federal agencies act in secret with the very special interests that favor giving them more power.

H.R. 712 would require federal agencies to publish and give notice of these actions, and provide the public with more rights in reviewing, participating in and commenting on them. As such, H.R. 712 provides the openness, fairness and access to the federal regulatory process that it currently lacks.

SBE Council is again pleased to support you and your colleagues in your efforts to advance this reform into law. Thank you for your leadership, and support of small business owners and entrepreneurs. Sincerely, Karen Kerrigan, President and CEO. ____ Industrial Energy Consumers of America, Washington, DC, January 4, 2016. Re IECA Supports H.R. 712, the Sunshine for Regulatory Decrees and Settlements Act of 2015. Hon. Doug Collins, House of Representatives, Washington, DC.

Dear Congressman Collins: On behalf of the Industrial Energy Consumers of America (IECA), we support passage of H.R. 712, the ``Sunshine for Regulatory Decrees and Settlements Act of 2015.'' The legislation would take important steps to stop the abusive practice known as ``sue and settle'' and give the public and affected parties a greater ability to know about potential rulemakings and to participate. The bill would help Congress to reassert control over federal regulatory agency actions that have become opaque, unaccountable, and often unfair. Congress must perform its critical role as overseer of the federal agencies.

IECA is a nonpartisan association of leading manufacturing companies with $1.0 trillion in annual sales, over 2,900 facilities nationwide, and with more than 1.4 million employees worldwide. IECA membership represents a diverse set of industries including: chemical, plastics, steel, iron ore, aluminum, paper, food processing, fertilizer, insulation, glass, industrial gases, pharmaceutical, building products, brewing, automotive, independent oil refining, and cement.

Mounting EPA regulatory costs and abuse of the legal system through actions such as ``sue and settle'' have made it very difficult for manufacturing companies to compete with global competitors, thereby impacting U.S. jobs. For example, while China's manufacturing jobs have increased by 31.5 percent since 2000, U.S. manufacturing jobs have declined by 21.6 percent. Furthermore, the 2014 U.S. manufacturing trade deficit stands at $524 billion and 70 percent of the deficit is with one country, China.

We thank you for your leadership on this important legislation and look forward to working with you. Sincerely, Paul N. Cicio, President. ____ American Fuel & Petrochemical Manufacturers, Washington, DC, January 7, 2016. Hon. Paul Ryan, Speaker of the House, Washington, DC.

Dear Speaker Ryan: The American Fuel & Petrochemical Manufacturers (AFPM) writes in support of H.R. 1155, the Searching for and Cutting Regulations that are Unnecessarily Burdensome (SCRUB) Act of 2015, and H.R. 712, the Sunshine for Regulatory Decrees and Settlements Act of 2015. AFPM is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life. AFPM members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support 2 million American jobs.

The U.S. is in the midst of an energy and manufacturing renaissance that promises to increase our energy security and create high quality jobs for years to come. AFPM members are playing an important role in this renaissance as they continue to invest billions of dollars in facility upgrades needed to handle our increasing domestic production of oil and natural gas. In addition to bolstering economic growth, these investments ensure that American fuel and petrochemical manufacturers can continue to provide consumers with ample and affordable supplies of transportation fuels and other vital products. America's energy and manufacturing renaissance, however, is threatened by a maze of increasingly costly and unworkable federal regulations. Indeed, domestic manufactures face a total federal regulatory burden of at least $1.88 trillion, jeopardizing their global competitiveness and increasing costs to consumers.

H.R. 1155 and 712 would improve our broken regulatory process and mitigate some of the burdens on domestic manufacturers. AFPM specifically welcomes the regulatory ``cut-go'' provisions of H.R. 1155, which would create a mechanism for getting excessively complex, costly, and contradictory regulations under control. Additionally, H.R. 712 would significantly limit the growing abuses associated with the ``sue-and-settle tactic'' deployed by certain organizations.

Meaningful reform is critical for our country. We appreciate your leadership on this issue and urge the immediate passage of H.R. 1155 and 712. Sincerely, Chet Thompson, President. ____ National Association of Manufacturers, January 7, 2016.

Dear Representatives: The National Association of Manufacturers (NAM), the largest manufacturing association in the United States representing manufacturers in every industrial sector and in all 50 states, urges you to support H.R. 712, Sunshine for Regulatory Decrees and Settlements Act of 2015, introduced by Representative Doug Collins (R-GA).

Manufacturers and other stakeholders are often subject to significant federal regulatory actions mandated through consent decrees and settlement agreements. However, the public can be excluded from the promulgation of rules as agencies and litigants negotiate behind closed doors, determining when and how regulators must act.

Public participation and transparency in the regulatory process is a universal principle of sound rulemaking. H.R. 712 would enhance the regulatory process by increasing public participation in shaping rules before they are proposed. The bill would require agencies to provide timely and more relevant information to the public of lawsuits attempting to force regulatory action and to publish proposed consent decrees or regulatory settlements. Importantly, H.R. 712 would require agencies to consider public comments prior to entry of consent decrees or settlement agreements with the court.

Agency actions to develop significant regulations without public participation contradict the sound regulatory principles that are the foundation of our regulatory system and ensure fairness and due process for all affected entities. H.R. 712 would provide necessary transparency to the rulemaking process and preserve the ability of the public to engage with their government.

The NAM's Key Vote Advisory Committee has indicated that votes on H.R. 712, including procedural motions, may be considered for designation as Key Manufacturing Votes in the 114th Congress.

Thank you for your consideration. Sincerely, Aric Newhouse, Senior Vice President, Policy and Government Relations.

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