Maximize net benefits or provide explanation

(a) In general Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531 et seq.) is amended by striking section 205 (2 U.S.C. 1535) and inserting the following: 205. Maximize net benefits (a) Definition of cost In this section, the term cost has the meaning given the term in section 202(a). (b) Requirement Before promulgating any proposed or final major rule for which a regulatory impact analysis is required under section 202, an agency shall, from the alternatives identified and considered under section 202(c)(1)(B), select the alternative that maximizes net benefits, taking into consideration only the costs and benefits that arise within the scope of the statutory provision that authorizes the rulemaking. (c) Exceptions An agency may adopt an alternative other than as required under subsection (b) only if— (1) the Administrator of the Office of Information and Regulatory Affairs approves the adoption by the agency of the alternative; and (2) the alternative is adopted to— (A) account for costs or benefits that cannot be quantified, including costs or benefits relating to constitutional or civil rights, if the agency identifies all such costs and benefits and explains why those costs and benefits justify the adoption of the alternative; or (B) achieve additional benefits or cost reductions, if the agency— (i) identifies— (I) all such additional benefits and the associated costs of those benefits; and (II) all such cost reductions and the associated benefits of those cost reductions; and (ii) explains why— (I) the additional benefits justify the additional costs; or (II) the additional cost reductions justify any benefits foregone.. (b) Conforming amendments Section 206 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1536) is amended— (1) by striking statements each place the term appears and inserting analysis; and (2) in paragraph (2), by striking statement and inserting analysis.