Innovative Regulatory Approaches as Policy

1. Establish use of innovative regulatory approaches as administration
policy. (2)

The President should direct agency heads to use innovative regulatory
approaches whenever they are appropriate. This is consistent with the
new regulatory review executive order. Wider use of such approaches to
regulation can lower the costs of meeting regulatory goals by giving
regulated entities more flexibility and increasing the economic
efficiency of regulations. However, innovative approaches are not the
best solutions in some circumstances. Agencies should analyze the
strengths, weaknesses, and limits of particular approaches to match the
best regulatory approach to the problem.

Redirecting the regulatory system from the command- and-control end of
the regulatory spectrum toward more flexible and market-oriented
approaches will require strong leadership. The President should also
direct the Regulatory Coordinating Group to work with Congress and
policy makers to incorporate more innovative approaches in legislation
and regulation.  A standing task force on innovative approaches could
assist this effort, and would provide a good forum for communication
among government regulators.