l, social, environmental, and economic objectives through cooperative effort. Sec. 3. Federalism Policy making Criteria. In addition to adhering to the fundamental federalism principles set forth in section 2 of this order, agencies shall adhere, to the extent permitted by law, to the following criteria when formulating and implementing policies that have federalism implications: (a) There should be strict adherence to constitutional principles. Agencies should closely examine the constitutional and statutory authority supporting any Federal action that would limit the policy making discretion of States and local governments, and should carefully assess the necessity for such actions. (b) Agencies may limit the policy making discretion of States and local governments only after determining that there is constitutional and legal authority for the action.(c) With respect to Federal statutes and regulations administered by States and local governments, the Federal Government should grant States and local governments the maximum administrative discretion possible. Any Federal oversight of such State and local administration should not unnecessarily intrude on State and local discretion. (d) It is important to recognize the distinction between matters of national or multi-state scope (which may justify Federal action) and matters that are merely common to the States (which may not justify Federal action because individual States, acting individually or together, may effectively deal with them). Matters of national or multi-state scope that justify Federal action may arise in a variety of circumstances, including: (1) When the matter to be addressed by Federal action occursinterstate as opposed to being contained within one State's boundaries. (2) When the source of the matter to be addressed occurs in a State different from the State (or States) where a significant amount of the harm occurs. (3) When there is a need for uniform national...
