Our economic analyses support proposed rules and permits, as well as a number of other projects and publications. We use real-world data, often collected directly from stakeholders, to comprehensively analyze and model economic impacts from changes in environmental policies and regulations in Washington.
This page provides an overview of Ecology’s economic processes and publications.
Overview
Our economists analyze potential economic impacts and benefits from proposed rules, permits, and other projects. Our economics team assists agency environmental programs on a number of projects from legislative reports to responding to information requests.
As part of our analysis, we talk to communities and businesses who might be impacted by Ecology regulations. We collect data (quantitative and qualitative) during these conversations to help us better understand the potential impacts of proposed regulations. By working directly with stakeholders, we increase the accuracy of our economic assessments. Our team uses a variety of tools and models to analyze data and report the results of our economic analyses.
In April of 2017, we restructured our economic analyses conducted for rulemaking, combining a number of previously separate documents into one single publication called regulatory analyses. Similarly, economic impact analyses for permits have been restructured and are now called small business economic impact analyses.
Our economists use real-world economic data and comprehensive analysis and modeling to examine potential impacts from changes in environmental policies and regulations in Washington. Our team regularly reaches out directly to potentially impacted stakeholders to assist in data collection and fact-checking. We also consult published literature and other state, federal, and local agencies during data collection and analysis.
Ecology completes economics for rulemakings, permits, and other projects. The analyses examine compliance costs and benefits as well as costs and benefits to the environment and human health. Our economic analyses fall into three publication types:
Regulatory analyses – related to rulemakings
Small business economic impact analyses – related to general permits
Other analyses – (e.g., legislative reports, Chemical Action Plans, and other projects)
Our economic analyses may include the following sections:
The Administrative Procedures Act requires us to conduct a cost benefit analysis (CBA) to determine if the benefits from a proposed rule outweigh the costs of implementation. We may also complete CBAs for proposed policies or regulations other than rules.
In CBAs, our economics team evaluates full-scope environmental benefits and costs to potentially impacted industries and communities resulting from new or updated policies. Our economics team works with Ecology environmental teams, parties covered under the regulation, and potentially impacted communities to understand the impacts of the proposed changes in relation to baseline situations.
The small business impact statement (SBEIS) is developed for proposed rules that impact businesses and will impose more than minor costs to businesses as required by the Regulatory Fairness Act. The purpose of the SBEIS is to look at how a rule might impact small businesses compared to large businesses. When these impacts are identified, we must try to find ways to mitigate those impacts if legal and feasible.
The SBEIS, when required, is included in the regulatory analyses document as Regulatory Fairness Act Compliance and is published in the Washington State Register. SBEISs include a description of the:
Compliance requirements in the proposed rule.
Estimated costs of compliance.
Comparison of compliance costs between small businesses and the largest businesses covered under the proposed rule.
Legal and feasible methods for mitigation of economic impacts.
We complete small economic impact analyses (SBEIA) for all general permits intended to directly cover small businesses, excluding non-profits and government institutions. This is a requirement of chapter 173-226 WAC, Waste Discharge General Permit Program. We issue the SBEIA at the same time that the draft permit is issued for public comment and review. The SBEIA is similar to the small business economic impact statement (for rulemaking) and is completed in an effort to better understand and mitigate economic impacts on small businesses. SBEIAs include a description of the:
Compliance requirements in the permit.
Estimated costs of compliance.
Comparison of compliance costs between small businesses and the largest businesses covered under the permit.
Legal and feasible methods for mitigation of economic impacts.
Least-burdensome alternative analyses (LBA) are completed for rules. The Administrative Procedures Act requires us to determine whether a version of a proposed rule is the least burdensome way to achieve the goals of the law. To complete this analysis, our economists consider the proposed rule and alternatives suggested by stakeholders or staff during the development of the rule and comment periods. The adopted rule must be the least burdensome for those who are required to comply with the rule while still achieving the goals and objectives of the law being implemented.
The Adminstrative Procedures Act requires state agencies to make a number of determinations before adopting a rule, which are included in the regulatory analyses. These determinations are related to:
The general goals and objectives of the statute that the rule implements and why the rule is needed to implement those goals and objectives.
Alternatives to doing a rulemaking (as opposed to other regulatory actions or agreements), consequences of not adopting a rule, and whether the rule is the least-burdensome alternative for those required to comply (see least-burdensome alternative analysis description above).
The availability of a cost-benefit analysis that shows that probable benefits outweigh probable costs, using both qualitative and quantitative methods.
Any differences between requirements for public and private entities.
How the rule interacts with existing state and federal laws.
Which agencies have the authority to regulate the subject of the rule.
How Ecology coordinates the rule with other federal, state, and local agencies’ rules and laws.
Our economists also analyze economic impacts related to Chemical Action Plans, other projects, and requests by the Governor’s office and the state Legislature. These analyses follow a similar methodology and structure as those completed for rulemakings and permits.
