Despite all the rhetoric, efforts to reform environmental regulation in the United States offer little promise of relief. Incapacitating the US Environmental Protection Agency (EPA) and shifting responsibilities to the states hardly insures a less burdensome situation for the business community. At best, basic reform strategies merely add on various efficiency devices (bubbles, cost-benefit analyses, etc.) without addressing issues of overall regulatory performance. Moreover, none of the reform strategies, thus far, get at the underlying statutes and processes of environmental regulation which tend to generate a highly combative milieu. This discussion explores these weaknesses, and forwards an alternative approach, which is similar to regulatory processes in Europe and Canada (involving reduced litigation and increased negotiation).