On April 5, 2017, the Office of Management and Budget (OMB) issued a memorandum that outlines the proper procedures for agencies to comply with Executive Order (EO) 13771.  EO 13771 was issued on January 30, 2017 with goals of reducing regulation and controlling regulatory costs, requiring agencies to eliminate two existing regulations for every new regulation.  The OMB memorandum supersedes the interim guidance issued in February and responds to questions and comments submitted during the public comment period.  The OMB memorandum is available here, and EO 13771 is available here.  The OMB’s interim guidance is available here.

Among other things, EO 13771 requires agencies to eliminate two regulations for every new regulation introduced that imposes total costs greater than zero.  The savings associated with the deregulatory actions must completely offset the cost of the proposed regulation.  According to the OMB memorandum, the requirement also extends to significant interpretive guidance that would impose costs.  Agencies must offset regulatory actions taken on or after January 20, 2017 at noon.  This includes rules finalizing a Notice of Proposed Rulemaking.  If an agency will not be in compliance with EO 13771 by the end of the Federal fiscal year, it must submit a report to the OMB with a plan for coming into compliance with EO 13771.