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DENR Rulemaking: Impact Analysis (formerly Fiscal Notes). The Keys Statutory requirements OSBM State Budget Manual DENR guidance. Objective of Impact Analysis. The objective of an impact analysis is to estimate change due to the proposed rules Content: Identify affected parties

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Denr rulemaking impact analysis formerly fiscal notes

DENR Rulemaking: Impact Analysis (formerly Fiscal Notes)

The Keys

Statutory requirements

OSBM State Budget Manual

DENR guidance


Objective of impact analysis
Objective of Impact Analysis

The objective of an impact analysis is to estimate change due to the proposed rules

Content:

  • Identify affected parties

  • Estimate types and amounts of expenditures

  • Describe purpose and benefits

  • Explain estimation procedures and sources of data


An impact analysis is not a benefit cost study
An Impact Analysis is NOT a Benefit/Cost Study

Impact analysis as practiced by NC standards

  • is usually limited to five years

  • focuses on increases or decreases in costs or revenues

  • affected parties summarize to local governments, state agencies, federal agencies, and the private sector

  • benefit estimation is recommended but not required


  • The current condition is the Baseline

  • The proposed rules describe the future state

  • The analysis is prepared to estimate the difference or the increment

  • *Impact analysis explanations should be simple yet complete enough so a lay person can follow your methods, logic, assumptions, and data*


Data tips
Data Tips

  • Surveys to collect data are not required

  • Consult field staff or regulated parties for cost estimates

  • Examine division data bases to characterize affected parties

  • Borrow federally developed data, making it NC specific

  • Best Professional Judgement is acceptable

  • *Admit inability to estimate an impact rather than ignore it*

  • Prepare a summary table that transfers directly to the DENR Rulemaking Impact Analysis Form


Organizing the analysis
Organizing the Analysis

  • Can be organized around affected parties or by rule

  • My preference: use the paragraph format with headings

    • Basic Information

    • Introduction

    • Purpose of Rule

    • Affected Parties

    • Estimate Costs

    • Describe Benefits

    • Summary Table

    • Substantial Impact Declaration


Points of emphasis
Points of Emphasis

  • DOT, DOT, DOT! For Environmental Permitting Rules:

    • Recognize DOT as a separate affected party

    • Insert the heading “DOT Impacts” in the cost estimation section

    • Maintain DOT identity in the summary table

  • Fee Increases and Gov Ops:

    • 90 day option: safety valve for EVERY fee

    • Prepare and submit fee information form via BPA at the time of filing


What s new
What’s New?

  • OSBM Guidelines effective July 1, 2007

  • Requires added analysis for rule sets judged to be “significant”

  • Small business impacts

  • Suggests analysis of alternatives

  • Emphasizes quantifying benefits when feasible

  • Less scrutiny of small, routine, not significant filings

  • Section 7.0, page 174 of the State Budget Manual


Two final points concerning fiscal notes
Two Final Points Concerning Fiscal Notes

  • Submissions must be in electronic format; impact analysis, DENR Impact Analysis Form, and any attachments

  • Start the fiscal note as soon as you have the rules drafted. Call me to set up a consultation/training meeting.

    • Doug Lewis 733-1710

    • [email protected]


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