Regulatory Cost Reduction Act of 1981

Regulatory Cost Reduction Act of 1981 - Directs the President to establish: (1) methods for determining the costs of compliance with Federal rules and regulations; and (2) methods of comparing the cost effectiveness of alternative ways of achieving regulatory objectives. Requires the President to submit such information to the head of each Executive agency after review by the public and specified offices.

Requires each agency head to use the most cost effective method for achieving a regulatory goal whenever alternative methods exist.

Directs each agency head to prepare for each proposed and existing rule a regulatory impact analysis which includes: (1) a description of the economic and social consequences of each alternative proposal; (2) a justification of the selection of the final rule; and (3) the paperwork requirements, economic impact, conflicting rules, and a cost-benefit analysis of the final rule. Requires each agency to develop procedures for public participation and comments regarding the regulatory analysis.

Requires each agency head to review existing rules within five years of the date of enactment of this Act. Urges the agency head to: (1) eliminate unnecessary rules; (2) clarify rule language; and (3) modify rules where necessary to adjust to technological or economic changes which have occurred since promulgation of the rule.

Directs each agency head to publish a draft and, after approval of the President, a final report on the actions taken by the agency to implement this Act. Specifies the contents of the report which include estimates of the annual costs of compliance with the rules of each agency.

Requires the Comptroller General to monitor the implementation of this Act and to report to Congress and the President on its effectiveness.