[SUBCOMMITTEE PRINT]

THE NUMBER OF FEDERAL EMPLOYEESENGAGED IN REGULATORY ACTIVITIES

STAFF PAPER

PREPARED FOR THE

SUBCOMMITTEE ON OVERSIGHTAND INVESTIGATIONS

OF THE

COMMITTEE ON INTERSTATE ANDFOREIGN COMMERCE

HOUSE OF REPRESENTATIVES

BY THE

CONGRESSIONAL BUDGET OFFICE

AUGUST 1976

U.S. GOVERNMENT PRINTING OFFICE

78-740 WASHINGTON : 1976

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman

JOHN E. MOSS, CaliforniaJOHN D. DINGELL, MichiganPAUL G. ROGERS, FloridaLIONEL VAN DEBRLIN, CaliforniaFRED B. ROONEY, PennsylvaniaJOHN M. MURPHY, New YorkDAVID E. SATTERFIELD III, VirginiaBROCK ADAMS, WashingtonW. S. (BILL) STUCKEY, JR., GeorgiaBOB ECKHARDT, TexasRICHARDSON PKEYER, North CarolinaJAMES W. SYMINGTON, MissouriCHARLES J. CARNEY, OhioRALPH H. METCALFE, IllinoisGOODLOE E. BYRON, MarylandJAMES H. SCHEUER, New YorkRICHARD L. OTTINGER, New YorkHENRY A. WAXMAN, CaliforniaROBERT (BOB) KRUEGER, TexasTIMOTHY E. WIRTH, ColoradoPHILIP R. SHARP, IndianaWILLIAM M. BRODHEAD, MichiganJAMES J. FLORID, New JerseyANTHONY TOBY MOFFETT, ConnecticutJIM SANTINI, NevadaANDREW MAGUIRE, New JerseyMARTIN A. RUSSO, Illinois

SAMUEL L. DEVINE, OhioJAMES T. BROYHILL, North CarolinaTIM LEE CARTER, KentuckyCLARENCE J. BROWN, OhioJOE SKUBITZ, KansasJAMES M. COLLINS, TexasLOUIS FREY, JB., FloridaJOHN Y. McCOLLISTER, NebraskaNORMAN F. LENT, New YorkH. JOHN HEINZ III, PennsylvaniaEDWARD R. MADIGAN, IllinoisCARLOS J. MOORHEAD, CaliforniaMATTHEW J. RINALDO, New JerseyW. HENSON MOORE, Louisiana

W. E. WILLIAMSON, ClerkKENNETH J. PAINTEB, Assistant Clerk

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

JOHN E. MOSS, California, Chairman

RICHARD L. OTTINGER, New YorkROBERT (BOB) KRUEGER, TexasANTHONY TOBY MOFFETT, ConnecticutJIM SANTINI, NevadaW. S. (BILL) STUCKEY, JR., GeorgiaJAMES H. SCHEUER, New YorkHENRY A. WAXMAN, CaliforniaPHILIP R. SHARP, IndianaANDREW MAGUIRE, New JerseyHARLEY 0. STAGGERS, West Virginia

(Ex Offlcio)MICHAEL R. LEMOV, Chief CounselTHOMAS GREENE, Counsel to the ChairmanJAMES NELLIGAN, Operations DirectorFRANCES WHITE, Deputy Chief CounselLOWELL DODGE, Special CounselKIRK C. SMITH, Special Assistant

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JAMES M. COLLINS, TexasNORMAN F. LENT, New YorkMATTHEW J. RINALDO, New JerseyW. HENSON MOORE, LouisianaSAMUEL L. DEVINE, Ohio (Ex Offlcio)

LETTER OF TRANSMITTAL

CONGRESS OF THE UNITED STATES,HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS,COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, B.C., August 16, 1976.Hon. HARLEY O. STAGGERS,Chairman, Committee on Interstate and Foreign Commerce,U.S. House oj Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: I am transmitting herewith a CongressionalBudget Office (CBO) Report entitled "Estimate of the Number ofFederal Employees Engaged in Regulatory Activities." The CBOStudy, conducted for the Subcommittee at my request, concludes:"Under a refined definition to determine positions more directly re-lated to regulation by excluding program support positions not directlyinvolved in regulation, the estimate of the number of Federal regula-tors would be 84,773." Even when the CBO adds 7,399 positions notdirectly related to regulation such as public information, consumereducation, legislative liaison, and research, the total still falls signifi-cantly short of recent claims that there are over 100,000 regulatorsemployed by the Federal Government.

The 84,773 figure is small compared to the total number of Federalworkers. 4,561,400 persons are employed by the Federal Government,according to the President's proposed 1977 budget. Thus, about 2%of all Federal workers are directly, but not exclusively, involved inregulation. Approximately, 45% of all Federal workers are in militaryuniform. The 84,773 figure is also small when compared to personsemployed by one of America's leading manufacturers, GeneralMotors, which now has 756,000 persons on its payroll.

The CBO recognizes that there "is no single accepted definition ofwhat constitutes regulation by the Federal Government." To deter-mine a reasonable basis for identifying Federal employees engaged inregulatory activities, the CBO started with its broadest definition byincluding activities which:

Impact [on] the operating business environment of broadsectors of private enterprise, including market entry and exit;rate, price, and profit structures; and competition;

Impact [on] specific commodities, products, or services throughpermit, certification, or licensing requirements; and

Involve the development, administration, and enforcement ofnational standards, violations of which could result in civil orcriminal penalties, or which result in the types of impact describedabove.

The report calls this "the CBO general definition." For a more refineddefinition, the CBO excluded support positions not directly related toregulation. The positions excluded are those of persons engaged

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IV

primarily in: (1) public information, consumer education, legislativematters, complaint processing, business and consumer advice orassistance, and research; and (2) data gathering and economic analysisfunctions not directly and primarily related to regulatory activity.

There were thirty-three departments and agencies which fell withinthe scope of the CBO general definition. Most of the Federal regulatorswere found in Executive Departments (63%) and the remainder inindependent regulatory agencies (37%).

In terms of the types of regulatory activities under the CBO generaldefinition, the four categories and their percentages of the total are:

PercentEconomic regulation of commerce, transportation, agriculture, and

communications : 17Health, safety, and environmental and consumer protection regulation 58Regulation of banking and financial activities •_ 14Employment and civil rights regulation 11

Total 100

As you know, throughout the past year, the Subcommittee on Over-sight and Investigations has conducted an extensive study of the needand means for reform of the regulatory process. The subcommittee hasobtained the views from those in business, government, the academiccommunity, and the public at large. It has conducted hearings on nineagencies within our jurisdiction: the Interstate Commerce Commis-sion, Federal Trade Commission, Federal Communications Commis-sion, Federal Power Commission, Securities and Exchange Commis-sion, Environmental Protection Agency, Food and Drug Administra-tion, National Highway Traffic Safety Administration, and theConsumer Product Safety Commission.

The subcommittee expects to complete the first of several parts ofits report on regulatory reform shortly. Towards that effort, theCongressional Budget Office report will be of considerable value to thesubcommittee and to the Congress.

Sincerely,JOHN E. Moss,

Chairman, Oversight and Investigations Subcommittee.

SUMMARYBackground

Chairman John, E. Moss of the Subcommittee on Oversight andInvestigations of the House Committee on Interstate and ForeignCommerce requested the assistance of the Congressional BudgetOffice in the subcommittee's review of regulatory agencies. Specifically,the Chairman asked that the CBO provide its best estimate of thenumber of federal employees engaged in regulatory activities.Defining regulation

There is no single accepted definition of what constitutes regulationby the federal government. The broadest definition would include allgovernmental activities which somehow affect the operations of privateindustry or the lives of private citizens. Such a definition would resultin the identification of most federal activities as regulatory. Develop-ing staffing estimates for fedeial agencies involves the identification ofpositions needed for direct program operations, program support, andadministrative support. In the regulatory agencies program supportpositions include those involved in public information, consumereducation, legislative matters, complaint processing, business andconsumer advice or assistance, and research. Also, there are personsengaged in data gathering and economic analysis functions notdirectly and primarily related to regulatory activity in agencies withregulatory functions.

Because of the broadly varying views of what constitutes regulation,the CBO analysis used a general definition which would provide a"reasonable" basis for identifying federal employees engaged in regu-latory activities. The CBO general definition included activities which:

impact the operating business environment of broad sectors ofprivate enterprise, including market entry and exit; rate, price,and profit structures; and competition;

impact specific commodities, products, or services throughpermit, certification, or licensing requirements; and

involve the development, administration, and enforcement ofnational standards, violations of which could result in civil orcriminal penalties, or which result in the types of impact de-scribed above.

The CBO staffing estimateThirty-three departments and agencies are involved in activities which

appear to come within the scope oj the GBO general definition of regulation.These agencies are devoting 92,172 man-years oj effort during fiscal year1976 to these activities. Under a refined definition to determine positionsmore directly related to regulation by excluding program support positionsnot directly involved in regulation, the estimate of the number of federalregulators would be 84,773.

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VI

SUMMARY OF FISCAL YEAR 1976 REGULATORY MAN-YEARS, BY AGENCY

Department or agency

Agriculture. _ _ _, _ .

DefenseHealth Education and Welfare

Labor

Commodity Futures Trading Commission _ __

Environmental Protection Agency

Federal Communications Commission.. _ _ .

Federal Home Loan Bank Board _ _ .Federal Maritime Commission - _ _

Interstate Commerce Commission . - _

National Labor Relations Board . . _ _

Nuclear Regulatory Commission ,Occupational Safety and Health Review Commission

Total

Numberunder CBO

generaldefinition

20,4702,260

7898,023

1663,5611,1617,0559,3175,028 ..

708302450935

6,9382, 5842,0183,2651,8241,205

3211,398

2771,6782,142

6022,570

105386

2,33517990

2,030

92,172

Numberexcludingprogramsupport

positions

2,582

789

84602

287

29121265

2,02922

17319

127621114

2039

1311

6179

51

53

7,399

Total'

17, 8882,260

7897,234

1663,4771,1616,4539,0305,028

679290438870

4,9092,5621,8453,2461,6971,143

3101,384

2771,4752,133

5892,559

105380

2,15617489

1,977

84, 773

1 CBO general definition less program support.

As shown below, more man-years are being expended in the areas ofhealth, safety, and environmental and consumer protection regulationthan in any of the other principal categories identified. Of the total of92,172 man-years, 57,830 are in departments and 34,342 in independentagencies.

Summary of fiscal year 1976 man-years devoted to regulatory activities under CBOgeneral definition

Economic regulation of commerce, transportation, agriculture, andcommunications 15, 422

Health, safety, and environmental and consumer protection regulation 53, 729Regulation of banking and financial activities 13, 193Employment and civil rights regulation 9, 828

Total 92, 172

The CBO budgetary cost estimateThe fiscal year 1976 estimated budgetary cost of the activities

covered by the CBO general definition of regulation is $2.9 billion.Of the $2.9 billion in outlays, $2.1 billion is associated with 7 of the

33 departments and agencies:

VII

Fiscal year 1976 oittlays for regulatory activities by agency (millions of dollars)

Department of Agriculture 500Environmental Protection Agency 444Department of Transportation 402Department of Health, Education, and Welfare 265Department of Labor 226Nuclear Regulatory Commission 200Department of Treasury 102

Subtotal 2, 139All others 715

Total 2,854

CONTENTS

Chapter I—Introduction 1Chapter II—Survey Results 3Chapter III—Budgetary Costs of Regulation 8Appendix A—Analytical Approach 9Appendix B—Manpower Documentation 14Appendix C—Budgetary Cost Documentation 16

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75-740—T6

THE NUMBER OF FEDERAL EMPLOYEES ENGAGED INREGULATORY ACTIVITIES

CHAPTER I

INTRODUCTION

BACKGROUND

The Subcommittee on Oversight and Investigations of the HouseCommittee on Interstate and Foreign Commerce is engaged in aregulatory reform review of nine agencies within its jurisdiction.Chairman John E. Moss requested the assistance of the CongressionalBudget Office (CBO) in developing information for the Subcommittee.Specifically, the Chairman requested CBO's best estimate of the num-ber of federal employees engaged in regulatory activities. The results ofthe analytical effort undertaken to develop the estimate follow. Amore detailed description of the analytical approach is provided inAppendix A.

DEFINING REGULATION

There is no single accepted definition of what constitutes regulationby the federal government; and definition is the critical element indeveloping any staffing estimate. A "traditional" definition wouldinclude those activites which impact major aspects of private enter-prise operations, such as market entry and exit; rate, price, and profitstructures; and competitive environment. This definition would—ata minimum—cover the oldest and some of the best known independentregulatory agencies; e.g., the Interstate Commerce Commission,Federal Trade Commission, Federal Communications Commission,Federal Power Commission, and the Securities and Exchange Com-mission. Many activities of the federal government in the areas ofhealth, safety, environmental and consumer protection, and employ-ment standards have significant regulatory impact on private enter-prise operations. The broadest definition of federal regulation wouldinclude all governmental activities which somehow affect the opera-tions of private industry or the lives of private citizens. Such a defini-tion would result in the identification of most federal activities asregulatory.

CBO GENERAL DEFINITION OF REGULATION

Because of the broadly varying views of what constitutes regulation,the CBO analysis used a general definition which would provide a"reasonable" basis for identifying federal employees engaged inregulatory activities. The CBO general definition included activitieswhich—

Impact on the operating business environment of broad sectorsof private enterprise, including market entry and exit; rate, price,and profit structures; and competition;

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Impact on specific commodities, products, or services throughpermit, certification, or licensing requirements; and

Involve the development, administration, and enforcement ofnational standards, violations of which could result in civil orcriminal penalties, or which result in the types of impact describedabove.

There are other activities found in several agencies which aredifficult to categorize as regulatory, nonregulatory, or something inbetween. The CBO estimate would be much higher if staffing forthese activities were included. A description of these "borderline"activities is included in the chapter on survey results.

The scope of the definition did not include certain major govern-mental program areas: national defense and foreign policy activities;law enforcement activities; revenue collection activities (e.g., theInternal Revenue Service); the internal management of the federalgovernment (e.g., the Civil Service Commission); and economic policy^

CHAPTER II

SURVEY RESULTS

OVERVIEW

Thirty-three departments and agencies are involved in activitieswhich appear to come within the scope of the CBO general definitionof regulation. These agencies are devoting 92,172 man-years of effortduring fiscal year 1976 to these activities. As shown below, more man-years are being expended in the areas of health, safety, and environ-mental and consumer protection regulation than in any of the otherprincipal categories identified. Of the total of 92,172 man-years,57,830 are in departments and 34,342 are in independent agencies.

Summary of fiscal year 1976 man-years devoted to regulatory activities under CBOgeneral definition

Economic regulation of commerce, transportation, agriculture, andcommunications 15, 422

Health, safety, and environmental and consumer protection regulation _. 53, 729Regulation of banking and financial activities 13, 193Employment and Civil Rights Regulation 9, 828

Total 92, 172

A more refined definition of administrative and program supportpositions identified to regulatory program activities would reducethe estimate of 92,172 by 7,399 to 84,773. The excluded positions arethose of persons engaged primarily in: (1) public information, consumereducation, legislative matters, complaint processing, business andconsumer advice or assistance, and research; and (2) data gatheringand economic analysis functions not directly and primarily related toregulatory activity.

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Exclusion of certain administrative and program support-type positions—Number ofpositions in activities to be excluded

Department or agencyAgriculture 1 2, 582CommerceDefenseHealth, Education, and Welfare 789Housing and Urban DevelopmentInterior 84JusticeLabor 602Transportation 287TreasuryCivil Aeronautics Board 29Commission on Civil Rights 12Commodity Futures Trading Commission 12Consumer Product Safety Commission 65Environmental Protection Agency 2, 029Equal Employment Opportunity Commission 22Federal Communications Commission 173Federal Deposit Insurance Corporation 19Federal Energy Administration 127Federal Home Loan Bank Board 62Federal Maritime Commission 11Federal Power Commission 14Federal Reserve BoardFederal Trade Commission 203Interstate Commerce Commission 9National Credit Union Administration 13National Labor Relations Board 11National Mediation BoardNational Transportation Safety Board 6Nuclear Regulatory Commission 179Occupational Safety and Health Review Commision 5Postal Rate Commission 1Securities and Exchange Commission 53

Total 7, 399

ECONOMIC REGULATION OF COMMERCE, TRANSPORTATION, AGRICULTURE,AND COMMUNICATIONS

The economic regulation of commerce, transportation, agriculture,and communications includes market entry and exit; price, rate, andprofit structures; and competitive environment. In fiscal year 1976,15,422 man-years were devoted to this category.

Fiscal year 1976 man-years for economic regulation by agency

Department of Agriculture 3, 014Department of Commerce 2, 260Federal Communications Commission 2, 018Federal Energy Administration 1, 824Federal Power Commission 1, 398Federal Trade Commission 862Interstate Commerce Commission 2, 142All others 1, 904

Total 15, 422

Fiscal year 1976 man-years for economic regulation by activity

Award of franchises and other rights 4, 723Rate, price, and profit structure 3, 406Antitrust promotion of competition 1, 742Financial condition and procedures 503Other 5, 048

Total 15, 422

All of the man-years for the Department of Commerce (2,260)are for the issuance of patents (Award of Franchises and OtherRights). Of the Department of Agriculture's 3,014 man-years, 1,277are for inspection, grading, classing, and standardization of certainagricultural products; and 844 are for tobacco and peanut acreageallotments and marketing quotas.

Major activities in the independent agencies include:1,127 man-years in the Federal Communications Commission

for licensing activities and 455 man-years for enforcement ofrules and regulations related to radio services.

775 man-years in the Federal Trade Commission for activitiesrelated to anti-trust and promotion of competition.

509 man-years in the Federal Power Commission for the issu-ance of permits and licenses for non-Federal hydroelectric powerprojects and for certificates for interstate gas sales and construc-tion and operation of interstate pipeline facilities; 499 man-yearsfor regulation of rates in interstate wholesale transactions inelectric power and natural gas.

1,658 man-years in the Federal Energy Administration relatedto rates and prices for crude oil, petroleum products, and otherenergy resources.

HEALTH, SAFETY, AND ENVIRONMENTAL AND CONSUMER PROTECTIONREGULATION

Of the 53,729 man-years devoted to health, safety, and environ-mental and consumer protection regulation, 50,178 or 93 percent arein seven agencies.

Fiscal year 1976 man-years for health, safety, and environmental and consumerprotection regulation by agency

Department of Agriculture 17, 456Department of Health, Education, and Welfare 8, 023Department of the Interior 3, 561Department of Labor 2, 570Department of Transportation 9, 317Environmental Protection Agency 6, 938Nuclear Regulatory Commission 2,313All others 3, 551

Total 53,729

The largest single bloc of man-years (11,547) is expended in meatand poultry inspection by the Department of Agriculture. Agriculturealso devotes 4,683 man-years to animal and plant disease and pestcontrol. Most of the man-years of the Department of Health, Educa-tion, and Welfare's regulatory total are chargeable to the activities of

6

the Food and Drug Administration. The majority (3,134) of theman-years for the Department of the Interior are related to miningsafety. In the Department of Labor the man-years are for occupationalsafety and health activities.

The Department of Transportation devotes 5,043 man-years toaviation safety (Federal Aviation Administration) and 2,842 man-years to water safety (U.S. Coast Guard). The man-years for theEnvironmental Protection Agency do not include its constructiongrants program and certain other functions not related directly toregulatory activities.

Of the total of 53,729 man-years, the majority are devoted to publichealth and safety (26,175) and consumer health and safety (12,537).

REGULATION OF BANKING AND FINANCIAL ACTIVITIES

This category includes federal chartering, insuring of deposits, andfinancial oversight of banking and financial institutions, includingnational banks, insured State banks, credit unions, and savings andloan institutions. A total of 8,059 man-years are devoted to theseactivities in the Federal Reserve, Federal Deposit Insurance Corpora-tion, Federal Home Loan Bank Board, Comptroller of the Currency,and National Credit Union Administration. The monetary policyresponsibilities of the Federal Reserves Board have been excluded.

This category also includes the Securities and Exchange Commission(2,030 man-years), the Commodity Futures Trading Commission(450 man-years), and activities of the Departments of the Treasuryand Labor related to employee pension plans (1,188 and 578 man-years respectively).

EMPLOYMENT AND CIVIL EIGHTS REGULATION

This category covers governmental activities which pertain toemployment opportunity and other civil rights activities, compensa-tion, and labor relations. A total of 9,828 man-years were devoted tothis category in fiscal year 1976. Major activities include:

3,791 man-years for employment opportunity and other civilrights activities (Departments of Justice and Labor, EqualEmployment Opportunity Commission, and Commission onCivil Rights).

3,534 man-years for labor relations (Department of Labor,National Labor Relations Board, and National MediationBoard),

2,379 man-years for the administration of federal laws per-taining to compensation (Department of Labor).

-'GRAY AREA" ACTIVITIES

FEDERAL GRANT, CONTRACT, AND ENTITLEMENT PROGRAMS

Federal programs providing assistance and transfer payments inareas such as education, training, unemployment, health, and incomesecurity have regulations which determine eligibility requirementsand benefit levels. Federal grantees and contractors must conformwith certain regulations as a requirement associated with doing

business with the federal government. Arguments can be made proand con about the "regulatory" nature of any of these programs.These activities were not included in the CBO estimate because therequirements involved deal primarily with the administration ofprograms whose primary objectives are not to regulate private

^sector operations but to achieve different public policy goals.

CERTAIN GOVERNMENT OPERATED OR MANAGED ACTIVITIES

Federal programs for managing public lands, national parks, and•similar resources involve the Bureau of Land Management, the ForestService, the National Park Service, the Geological Survey, and theOcean Mining Administration. These activities can impact private•business significantly through the Government's control of access tothe resources involved. The programs have been excluded from theCBO estimate because their primary objective is to manage thepublic domain. Also excluded are activities such as the St. LawrenceSeaway Development Corporation, the Tennessee Valley Authority,and the Bonneville Power Administration. In these programs theFederal Government is operating as a business enterprise rather thanjregulating private enterprise operations.

INFORMATION GATHERING ACTIVITIES

Many Federal departments and agencies conduct information

f athering activities not related directly to a regulatory responsibility,uch activities have not been included in the CBO estimate, even

: though they may place a "paperwork" requirement on an industry,State or local government, or private individual. The following indi-cates the staffing of major information gathering activities not relatedto regulatory responsibilities.

.Estimate, 1976, of principal Federal statistical programs—permanent positions byagency

^Department of Agriculture, Statistical Reporting Service 1, 235Department of Commerce:

Bureau of the Census 4, 385Bureau of Economic Analysis 517

Department of Health, Education, and Welfare:National Center for Education Statistics 191National Center for Health Statistics 522

^Department of Labor: Bureau of Labor Statistics 1, 774

Total „- 8,624;Source: Special Analysis G; Budget of the United States Government; Fiscal Year 1977.

CHAPTER III

BUDGETARY COSTS OF REGULATION

The fiscal year 1976 estimated budgetary cost of the activitiescovered by the CBO general definition of regulation is $2.9 billion.

The estimate includes the total outlays for the independent agenciesand departmental bureaus whose entire mission is identified as regu-latory plus an average cost of $20,000 per regulatory man-year inother agencies. The outlay figures do not reflect offsetting receiptsfrom user charges.

Of the $2.9 billion in outlays, $2.1 billion is associated with 7 ofthe 33 departments and agencies:

Fiscal year 1976 outlays for regulatory activities by agency (millions of dollars)

Department of Agriculture 500Environmental Protection Agency 444Department of Transportation 402Department of Health, Education, and Welfare 265Department of Labor 226Nuclear Regulatory Commission 200Department of the Treasury 102

Subtotal. 2, 139All others 715

Total 2,854

APPENDIX A

ANALYTICAL APPROACH

Four steps were taken in developing an estimate of the number offederal employees engaged in regulatory activities. They were:

Development of a working definition of regulation to providea basis for identifying federal employees engaged in regulatoryactivities;

The initial identification of departments and agencies withactivities which appeared to come within the scope of thedefinition;

Collection of staffing data from the identified departments andagencies; and

Analysis of the data.

DEFINING REGULATION

Because of the varying views of what constitutes regulation, theCBO analysis used a general definition which would provide a reason-able basis for identifying federal employees engaged in regulatoryactivities. The CBO definition included activities which:

Impact the operating business environment of broad sectorsof private enterprise, including market entry and exit, rate,price, and profit structures;

Impact specific commodities, products, or services throughpermit, certification, or licensing requirements; and

Involve the development, administration, and enforcement ofnational standards, violations of which could result in civil orcriminal penalties, or which result in the types of impact describedabove.

Not considered within the scope of the definition were certain majorgovernmental program areas: national defense and foreign policyactivities; law enforcement activities; revenue collection activities(e.g., Internal Revenue Service); internal management of the federalgovernment (e.g., the Civil Service Commission); and economicpolicy.

IDENTIFICATION OF REGULATORY ACTIVITIES

A review of functional descriptions and mission statements foundin the United States Government Organization Manual, the Budgetof the United States, and other relevant documents resulted in theidentification of 33 departments and agencies within the executivebranch with activities which appear to come within the scope of theCBO definition of regulation (see listings at end of appendix). Ex-cluded from the review were the Executive Office of the Presidentand certain boards, committees, and commissions. The ExecutiveOffice of the President was excluded because of its primary role as astaff support organization for the President. The boards, committees,

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10

and commissions were excluded because of the absence of any meaning-ful concentration of positions and the marginal impact of their.operations. Also excluded were advisory committees, quasi-official.agencies, multilateral organizations; and bilateral organizations.

COLLECTION OF STAFFING DATA

Staffing data for fiscal year 1976 were requested from the 33 de-partments and agencies having identified regulatory activities. The;data were requested in terms of man-years to adjust for other thanfull-time employment and for positions which are split betweenregulatory and non-regulatory activities. No distinction was madebetween clerical and professional positions. Administrative andprogram support positions were prorated to program activities in thecompilation of data under the general definition without further

. distinction as to the kinds of support positions counted.In most cases the agencies were able to supply the information as

requested, although in some instances slight adjustments were madedue to particular budget or organizational idiosyncrasies. Theseadjustments did not affect the overall results of the survey.

ANALYSIS OF THE DATA

The data submitted by the departments, and agences were compiledby major type of regulation (e.g., economic regulation, health andsafety, etc.) and by subcategory within major type. There were,however, certain areas of governmental activity which were difficultto categorize as regulatory, non-regulatory, or something in-between.The CBO estimate would be much higher if staffing for these ac-tivities were included. A description of these "borderline" activitieshas been included in the report.

EXECUTIVE BEANCH ORGANIZATIONS WITH REGULATORY ACTIVITIES

DepartmentsAgricultureCommerceDefense (Corps of Engineers)Health, Education, and WelfareHousing and Urban DevelopmentInteriorJusticeLaborTransportationTreasury

Independent agencies

Board of Governors of the Federal Reserve SystemCivil Aeronautics BoardCommission on Civil RightsCommodity Futures Trading Commission

. Consumer Product Safety CommissionEnvironmental Protection AgencyEqual Employment Opportunity CommissionFederal Communications Commission

11Federal Deposit Insurance CorporationFederal Energy AdministrationFederal Home Loan Bank BoardFederal Maritime CommissionFederal Power CommissionFederal Trade CommissionInterstate Commerce CommissionNational Credit Union AdministrationNational Labor Relations BoardNational Mediation BoardNational Transportation Safety BoardNuclear Regulatory CommissionOccupational Safety and Health Review CommissionPostal Rate CommissionSecurities and Exchange Commission

Executive branch organizations not having regulatory activities

Department of StateACTIONAdministrative Conference of the United StatesAmerican Battle Monuments CommissionAmerican Revolution Bicentennial AdministrationAppalachian Regional CommissionCanal Zone GovernmentCommission on Fine ArtsCommunity Services AdministrationDistrict of ColumbiaEnergy Research and Development AdministrationExport-Import Bank of the United StatesFarm Credit AdministrationFederal Election CommissionFederal Mediation and Conciliation ServiceForeign Claims Settlement Commission of the U.S..General Services AdministrationIndian Claims CommissionInter-American FoundationNational Aeronautics and Space AdministrationNational Foundation on the Arts and Humanities.National Science FoundationOverseas Private Investment CorporationPanama Canal CompanyPension Benefit Guaranty CorporationRailroad Retirement BoardRenegotiation BoardSelective Service SystemSmall Business AdministrationSmithsonian InstitutionTennessee Valley AuthorityU.S. Arms Control and Disarmament AgencyU.S. Civil Service CommissionU.S. Information AgencyU.S. International Trade CommissionU.S. Postal ServiceVeterans Administration

12T

Organizations not included in survey

Legislative branchJudicial branchExecutive Office of the PreisdentQuasi-Official Agencies:

National Academy of SciencesNational Railroad Passenger Corporation (Amtrak)The American Red Cross

Multilateral International OrganizationsBilateral OrganizationsAdvisory CommitteesSelected Boards, Committees, and Commissions

Administrative Committee of the Federal RegisterAdvisory Commission on Intergovernmental RelationsBoard of Foreign ScholarshipsBoard on Geographic NamesCommission on Presidential ScholarsCommittee for Purchase from the Blind and Other Severely

HandicappedDelaware River Basin CommissionDistinguished Civilian Service Awards BoardExport Administration Review BoardFederal Advisory Council on Regional Economic DevelopmentFederal Council for Science and TechnologyFederal Fire CouncilFederal Labor Relations CouncilFederal Library CommitteeFederal Records CouncilFederal Safety Advisory CouncilFederal Service Impasses PanelForeign-Trade Zones BoardFranklin Delano Roosevelt Memorial CommissionIndian Arts and Crafts BoardInteragency Classification Review CommitteeInterdepartment Radio Advisory CommitteeInterdepartmental Committee on the Status of WomenInterdepartmental Savings Bonds CommitteeInterim Compliance PanelMarine Mammal CommissionMigratory Bird Conservation CommissionMississippi River CommissionNational Advisory Council on the Education of Disadvantaged

ChildrenNational Advisory Council on International Monetary and Finan-

cial PoliciesNational Archives Trust Fund BoardNational Capital Planning CommissionNational Commission on Libraries and Information ScienceNational Commission on Water Quality-National Forest Reservation CommissionNational Historical Publications and Records CommissionNational Park Foundation

13

National Review Board for the Center for Cultural and Tech-nical Interchange Between East and West

Permanent Committee for the Oliver Wendell Holmes DevisePresident's Commission on Personnel InterchangePresident's Committee on Employment of the HandicappedPresident's Economic Policy BoardPresident's Foreign Intelligence Advisory BoardRegional Action Planning CommissionsSusquehanna River Basin CommissionTrade Expansion Act Advisory CommitteeUnited States Advisory Commission on International Educational

and Cultural AffairsUnited States National Commission for UNESCOUnited States Territorial Expansion Memorial CommissionVeterans Day National CommitteeWater Resources Council

APPENDIX B

MANPOWER DOCUMENTATIONECONOMIC REGULATION OF COMMERCE, TRANSPORTATION, AGRICULTURE, AND COMMUNICATIONS'

[Fiscal year 1976 man-years]

Award offranchises Rate priceand other and profit

Department or agency rights structure

AgricultureCommerce _JusticeCivil Aeronautics BoardFederal Communications Commission..Federal Energy AdministrationFederal Maritime CommissionFederal Power Commission

Interstate Commerce Commission

Postal Rate Commission

Total .

152,260

2721,127

120123509

297

4,723

38

176192

1,658179499

87487

90

3,406

Antitrust;promotion Financial

of competi- health andtion procedures

67

8016410

775

" 22*

1,742

93

99

311

503

Other-

2,894

8468943

291

1,047

5,048

Total;

3,0142.260/

801689

2,0181,824

3021,398

8622,142

2290

15,422

HEALTH, SAFETY, AND ENVIRONMENTAL AND CONSUMER PROTECTION REGLUATION

[Fiscal year 1976 man-years)

Public Worker Consumerhealth health health and Consumer

Department or agency and safety and safety safety protection

AgricultureDefenseHealth, Education, and WelfareInterior _Housing and Urban DevelopmentLabor..Transportation _TreasuryCivil Aeronautics BoardConsumer Product Safety Commission. ...Environmental Protection AgencyFederal Maritime CommissionFederal Trade CommissionNational Transportation Safety Board..Nuclear Regulatory CommissionOccupational Safety and Health Review

Commission

Total

REGULATION

Department or agency

TreasuryLabor. _Federal Reserve BoardFederal Deposit Insurance CorporationFederal Home Loan Bank BoardNational Credit Union Administration.Commodity Futures Trading CommissionSecurities and Exchange Commission

Total

11,789

7,257 7603,314

2,5708, 981 205

39

6,93812

3862,313

179

26,715 7,028 12,

547 160

6

34 132

12 120319

935

79 807

537 1, 335

Other

5,749

247

118

6,114

Totah

17,456789'

8, 0233,561

1662,570«9,317

24219

9356,938

19816386

2, 313

179

53,729

OF BANKING AND FINANCIAL ACTIVITIES

[Fiscal year 1976 man-years]

Regulationof banks and

financial.institutions

2,710

2773,2651,205 ....

602 ....

8,059

Otherfinancial

regulation

2,076578

4502,030

5,134

Total-

4,786578277

3,2651,205

602450

2, 030'

13, 193i

(14)

15EMPLOYMENT AND CIVIL RIGHTS REGULATION

[Fiscal year 1976 man-years)

Employmentopportunity

and other Compensation LaborDepartment or agency civil rights and benefits relations Other Total

Justice 360 360'tabor 545 2,379 859 124 3,907Commission on Civil Rights 302 302'Equal Employment Opportunity Comis-

sion....... 2,584 2,584'National Labor Relations Board 2,570 2,570National Mediation Board 105 105

Total 3,791 2,379 3,534 124 9,828

REGULATORY MAN-YEARS BY AGENCY

[Fiscal year 1976 man-years]

Economic Safety andregulation health and Banking and Employment

of commerce, related financial and civilDepartment or agency etc regulation activities rights Total

Agriculture 3,014 17,456 20,470Commerce 2,260 _ — 2,260Defense 789 789Health, Education, and Welfare 8,023 8,023Housing and Urban Development 166 166Interior 3,561 3,561Justice 801 360 1,161labor 2,570 578 3,907 7,055Transportation 9,317 _ 9,317Treasury- 242 4,786 5,028•Civil Aeronautics Board 689 19 708Commission on Civil Rights 302 302

•Commodity Futures Trading Commission 450 450Consumer Product Safety Commission... 935 935•Environmental Protection Agency 6,938 6,938Equal Employment Opportunity Commission 2,584 2,584'Federal Communications Commission 2,018 2,018Tederal Deposit Insurance Corporation _ _. 3,265 3,265Federal Energy Administration.— 1,824 1,824federal Home Loan Bank Board 1,205 1,205Tederal Maritime Commission 302 19 321Federal Power Commission 1,398 — — 1,398Federal Reserve Board - 277 277Federal Trade Commission 862 816 _ 1,678Interstate Commerce Commission 2,142 2,142'National Credit Union Administration 602 .... 602National Labor Relations Board _ 2,570 2,570National Mediation Board 105 105National Transportation Safety Board 386 ._ 386Nuclear Regulatory Commission 22 2,313 2,335Occupational Safety and Health Review Commission 179 179Postal Rate Commission 90 - 90

'Securities and Exchange Commission 2,030 ... 2,030

Total . 15,422 53,729 13,193 9,823 92,172

APPENDIX C

BUDGETARY COST DOCUMENTATION '[Dollars in millions]

Departments:Agriculture 500Commerce : 84Defense (Corps of Engineers) 16Health, Education, and Welfare 265Housing and Urban Development . 3Interior _ 90Justice 32Labor 226Transportation 402Treasury . 102

Subtotal 1, 720Independent agencies:

Board of Governors of the Federal Reserve System (2)Civil Aeronautics Board 3 19Commission on Civil Rights 8Commodity Futures Trading Commission 12Consumer Product Safety Commission 48Environmental Protection Agency 444Equal. Employment Opportunity Commission 63Federal Communications Commission 51Federal Deposit Insurance Corporation (2)Federal Energy Administration 36Federal Home Loan Bank Board (2)Federal Maritime Commission , 8Federal Power Commission 38Federal Trade Commission 47Interstate Commerce Commission 52National Credit Union Administration (2)National Labor Relations Board 72National Mediation Board 3National Transportation Safety Board 12Nuclear Regulatory Commission 200Occupational Safety and Health Review Commission 6Postal Rate Commission 3Securities and Exchange Commission 12

Subtotal 1, 134

Total 2,8541 Costs do not reflect offsetting receipts from user charges.a These are self-supporting activities which do not require appropriation of U.S. Treasury

funds.3 Payments to air carriers are not included.

(16)

O