From the Library of Fred Malek: Deputy Director OMB
Fred Malek Papers
Nov 14
A sound regulatory regime is based upon a firm foundation which describes the effectiveness of the program; in doing so it is data-centric. OIRA is the organization at the helm of whether to require that the ESG regulatory regime be data based because it has explicit authority to address this matter by mobilizing the following instruments:
(1) Executive Orders on Centralized Regulatory Review
(2) The Paperwork Reduction Act
The aforementioned instruments are enhanced through the availability of this Interactive Public Docket.
Here is a representative meeting with OMB on Department of Labor ESG regulation.
An early action taken by the Biden Administration was to rescind the ESG rule issued by the Trump Administration in its last days in office. The Biden Administration began work immediately on its issuance of a proposed rule to replace the Trump Rule.
As required by a number of Executive Orders issued by a number of Administrations the Department of Labor had to submitted the proposed rule to OIRA before it is published in the Federal Register.
The Biden Administration is working on a regulation which will reverse a Trump regulation which restricted the ESG program.
The forthcoming Biden regulation is a pacesetter because:
- It is a formal rulemaking issued by the Department of Labor
- Virtually every major player will submit comments, and
- Most importantly there is a private sector enforcement mechanism which could keep the participants honest.
Private Sector Enforcement Mechanism
Here is the textbook definition of an ESG Investment Fund: