Reducing Regulation and Controlling Regulatory Costs

Executive Order 13771 of January 30, 2017

Reducing Regulation and Controlling Regulatory
Costs

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Budget and Accounting Act of
1921, as amended (31 U.S.C. 1101 et seq.), section 1105
of title 31, United States Code, and section 301 of
title 3, United States Code, it is hereby ordered as
follows:

Section 1. Purpose. It is the policy of the executive
branch to be prudent and financially responsible in the
expenditure of funds, from both public and private
sources. In addition to the management of the direct
expenditure of taxpayer dollars through the budgeting
process, it is essential to manage the costs associated
with the governmental imposition of private
expenditures required to comply with Federal
regulations. Toward that end, it is important that for
every one new regulation issued, at least two prior
regulations be identified for elimination, and that the
cost of planned regulations be prudently managed and
controlled through a budgeting process.

Sec. 2. Regulatory Cap for Fiscal Year 2017. (a) Unless
prohibited by law, whenever an executive department or
agency (agency) publicly proposes for notice and
comment or otherwise promulgates a new regulation, it
shall identify at least two existing regulations to be
repealed.

    (b) For fiscal year 2017, which is in progress, the
heads of all agencies are directed that the total
incremental cost of all new regulations, including
repealed regulations, to be finalized this year shall
be no greater than zero, unless otherwise required by
law or consistent with advice provided in writing by
the Director of the Office of Management and Budget
(Director).
    (c) In furtherance of the requirement of subsection
(a) of this section, any new incremental costs
associated with new regulations shall, to the extent
permitted by law, be offset by the elimination of
existing costs associated with at least two prior
regulations. Any agency eliminating existing costs
associated with prior regulations under this subsection
shall do so in accordance with the Administrative
Procedure Act and other applicable law.
    (d) The Director shall provide the heads of
agencies with guidance on the implementation of this
section. Such guidance shall address, among other
things, processes for standardizing the measurement and
estimation of regulatory costs; standards for
determining what qualifies as new and offsetting
regulations; standards for determining the costs of
existing regulations that are considered for
elimination; processes for accounting for costs in
different fiscal years; methods to oversee the issuance
of rules with costs offset by savings at different
times or different agencies; and emergencies and other
circumstances that might justify individual waivers of
the requirements of this section. The Director shall
consider phasing in and updating these requirements.

Sec. 3. Annual Regulatory Cost Submissions to the
Office of Management and Budget. (a) Beginning with the
Regulatory Plans (required under Executive Order 12866
of September 30, 1993, as amended, or any successor
order) for fiscal year 2018, and for each fiscal year
thereafter, the head of each agency shall identify, for
each regulation that increases incremental cost, the
offsetting regulations described in section 2(c) of
this order, and provide the agency's best approximation
of the total costs or savings associated with each new
regulation or repealed regulation.

    (b) Each regulation approved by the Director during
the Presidential budget process shall be included in
the Unified Regulatory Agenda required under Executive
Order 12866, as amended, or any successor order.
    (c) Unless otherwise required by law, no regulation
shall be issued by an agency if it was not included on
the most recent version or update of the published
Unified Regulatory Agenda as required under Executive
Order 12866, as amended, or any successor order, unless
the issuance of such regulation was approved in advance
in writing by the Director.
    (d) During the Presidential budget process, the
Director shall identify to agencies a total amount of
incremental costs that will be allowed for each agency
in issuing new regulations and repealing regulations
for the next fiscal year. No regulations exceeding the
agency's total incremental cost allowance will be
permitted in that fiscal year, unless required by law
or approved in writing by the Director. The total
incremental cost allowance may allow an increase or
require a reduction in total regulatory cost.
    (e) The Director shall provide the heads of
agencies with guidance on the implementation of the
requirements in this section.

Sec. 4. Definition. For purposes of this order the term
“regulation” or “rule” means an agency statement of
general or particular applicability and future effect
designed to implement, interpret, or prescribe law or
policy or to describe the procedure or practice
requirements of an agency, but does not include:

    (a) regulations issued with respect to a military,
national security, or foreign affairs function of the
United States;
    (b) regulations related to agency organization,
management, or personnel; or
    (c) any other category of regulations exempted by
the Director.

Sec. 5. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or
the head thereof; or

(ii) the functions of the Director relating to budgetary, administrative,
or legislative proposals.

    (b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.

    (c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.

    (Presidential Sig.)

THE WHITE HOUSE,

    January 30, 2017.