Office of Advocacy saves small businesses $4.4 billion in 2001

American small business saved $4.4 billion in foregone regulatory compliance costs in fiscal year 2001, due to the efforts of the Office of Advocacy. This finding is detailed in the "Annual Report of the Chief Counsel for Advocacy on Implementation of the Regulatory Flexibility Act, Year 2001."

These savings resulted from the Office of Advocacy working with federal agencies to implement the Regulatory Flexibility Act to reduce the negative effects of proposed regulations on small business. The savings were achieved without sacrificing the important goals of environmental quality, travel safety, worker protection and family financial security.

President Bush, as part of his Small Business Agenda, issued an Executive Order giving Advocacy the power to compel agencies that fail to comply with the RFA to explain their failure in writing. With this increased power, Advocacy expects to reduce the number of agencies noted as "Ongoing RFA Compliance Concerns" in subsequent reports.

"The president has delivered on his pledge to support small business," said Thomas M. Sullivan, chief counsel for advocacy. "By helping federal agencies to proactively consider the unique needs of small business, the president's directive will save small business even more in foregone regulatory compliance costs," he said.

He continued, "It's clear that by considering small business early in their rule-making process, agencies can find ways to meet their goals without harming small business. And since small business employs most Americans, and generates more than two-thirds of the new jobs, that's an important achievement."

The $4.4 billion in foregone regulatory compliance costs in 2001 include:

$877 million saved annually through the Bureau of Land Management reducing the bonding requirements on small hard-rock miners.

$266 million saved through the Environmental Protection Agency modifying reporting regulations for lead, sulfur in diesel fuel, and emissions from mobile sources.

$3 billion saved through Congress overturning, based on data from Advocacy, the Occupational Safety & Health Administration proposed ergo-nomics standard.

For more information, and a complete copy of the report, visit the Office of Advocacy Web site at www.sba.gov/advo.