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O'Rielly Says FCC Falls Far Short on Cost-Benefit Analysis Under Executive Orders

Commissioner Mike O'Rielly said the FCC fails to do cost-benefit analysis despite executive orders requiring agencies to do so issued by Presidents Barack Obama and Bill Clinton. "While other agencies seem to take seriously their obligation to evaluate objectively the…

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consequences of their actions, the FCC consistently falls short," O'Rielly said in a Friday speech to TPRC 44, a communications research conference, according to written remarks. A 2015 Office of Management and Budget report to Congress showed that out of 14 major FCC rules issued from 2005 to 2014, none included information on benefits or costs, he said. Though the commission is aware of the executive order requirements, it "rarely does anything remotely close to detailed cost-benefit analysis," he said. "More often than not, all that is contained within items is a couple of sweeping assertions that the costs will be minimal but the benefits considerable. They are the kind of statements that you would expect to find in a press release, not the work of a so-called expert agency that has oversight over one of the most dynamic markets in the U.S. economy. Moreover, I have yet to see an item that assessed the costs and benefits of regulatory alternatives, including the alternative of not regulating." He detailed why he found various FCC "excuses" unpersuasive and said his push for cost-benefit analysis, like his process reform efforts, isn't intended to thwart the chairman's agenda. "I fully acknowledge and accept that the Commission will still adopt policies that I may not agree with," he said. "But if it does so after a full and fair consideration of the costs and benefits, the policies are likely to be better tailored to solve the problem at hand and less burdensome to companies and consumers."