EO 13771 (Reducing Regulation and Controlling Regulatory Costs)

Federal Register / Vol. 82, No. 22 / Friday, February 3, 2017 / Presidential Documents

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Presidential Documents

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identify at least two existing regulations to be repealed.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repealed regulations, to be finalized this year shall be no greater than zero,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).

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(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.

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(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

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(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.

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(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.

THE WHITE HOUSE,
January 30, 2017.
[FR Doc. 2017–02451
Filed 2–2–17; 11:15 am]

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