‘One for two’ order seeks to cap, reduce regulations
Jan. 30, 2017 -- Any new, proposed federal regulation would have to be offset by repeal of “at least two” existing regulations under an executive order signed by President Donald Trump today.
The order notes that certain categories of regulation will be exempt from the new policy, including those dealing with the military and national security, or those dealing with an agency’s organization, management or personnel. The order does not mention federal financial institution regulatory agencies, or the CFPB.
However, the director of the Office of Management and Budget (OMB) would have the power to exempt any other category of regulations.
Additionally, according to the order (titled “Reducing Regulation and Controlling Regulatory Costs”), for fiscal year 2017 “the total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero,” the order states, unless otherwise required by law or “consistent with advice provided in writing by the Director of the Office of Management and Budget (OMB) (Director),” the order states.
For fiscal years 2018 and beyond, the order states, each agency is required to identify -- for each regulation that increases incremental cost -- the offsetting regulations that will be repealed, and “provide the agency's best approximation of the total costs or savings associated with each new regulation or repealed regulation.”
The order also requires that any new, incremental costs associated with new regulations must be offset by eliminating existing costs associated with at least two prior regulations.
The order directs the OMB Director (who, if approved by the Senate, will be Trump nominee Rep. Mick Mulvaney, R-S.C.), to provide the heads of agencies with guidance on implementing the order. The guidance, the order states, shall include 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 OMB director may also consider phasing in and updating the requirements, the order states.