SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Lessening 
Regulatory Costs and Establishing a Federal Regulatory Budget Act of 
2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress; purpose.
Sec. 3. Regulatory reform officers.
Sec. 4. Regulatory reform task forces.
Sec. 5. Accountability.
Sec. 6. Regulatory cap.
Sec. 7. Annual regulatory cost submission to the Office of Management 
                            and Budget.
Sec. 8. Waiver.
Sec. 9. Definitions.

SEC. 2. SENSE OF CONGRESS; PURPOSE.

    (a) Sense of Congress.--It is the sense of Congress that the 
Federal Government should 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.
    (b) Purpose.--The purpose of this Act is--
            (1) to remove unnecessary and outdated regulations when a 
        new significant regulation is issued; and
            (2) to prudently manage and control the cost of planned 
        regulations through an annual budgeting process.

SEC. 3. REGULATORY REFORM OFFICERS.

    (a) In General.--Except as provided for under section 8, not later 
than 60 days after the date of the enactment of this Act, the head of 
each agency shall designate an employee or officer of the agency as the 
Regulatory Reform Officer (in this Act referred to as the ``agency 
RRO''). Each RRO shall oversee the implementation of regulatory reform 
initiatives and policies for the agency to ensure that the agency 
effectively carries out regulatory reforms, consistent with applicable 
law. These initiatives and policies include the following:
            (1) Executive Order 13771 (82 Fed. Reg. 9339; relating to 
        reducing regulation and controlling regulatory costs), 
        regarding offsetting the number and cost of new regulations.
            (2) Executive Order 12866 (5 U.S.C. 601 note; relating to 
        regulatory planning and review), regarding regulatory planning 
        and review.
            (3) Executive Order 13563 (5 U.S.C. 601 note; relating to 
        improving regulation and regulatory review), regarding 
        retrospective review.
            (4) The termination, consistent with applicable law, of 
        programs and activities that derive from or implement Executive 
        orders, guidance documents, policy memoranda, rule 
        interpretations, and similar documents, or relevant portions 
        thereof, that have been repealed or rescinded.
    (b) Consultation Required.--Each agency RRO shall periodically 
report to the head of the agency and regularly consult with agency 
leadership.

SEC. 4. REGULATORY REFORM TASK FORCES.

    (a) In General.--The head of each agency shall establish a 
Regulatory Reform Task Force composed of the following:
            (1) The agency RRO.
            (2) The agency Regulatory Policy Officer designated under 
        section 6(a)(2) of Executive Order 12866.
            (3) A representative from the agency's central policy 
        office or equivalent central office.
            (4) For each agency listed in section 901(b)(1) of title 
        31, United States Code, at least three additional senior agency 
        officials involved in the development of rulemaking at the 
        agency as determined by the head of the agency.
    (b) Chair.--Unless otherwise designated by the head of the agency, 
the agency RRO shall chair the Regulatory Reform Task Force of the 
agency.
    (c) Joint Task Forces.--Each Federal regulatory entity staffed by 
officials of multiple agencies, such as the Chief Acquisition Officers 
Council, shall form a joint regulatory reform task force composed of at 
least one official described in subsection (a) from each constituent 
agency's Regulatory Reform Task Force. Joint regulatory reform task 
forces shall implement this Act in coordination with the regulatory 
reform task forces of their members' respective agencies.
    (d) Tasks.--Each Regulatory Reform Task Force shall evaluate 
existing regulations and make recommendations to the head of the agency 
regarding repeal, replacement, or amendment, consistent with applicable 
law. The task force shall complete a review of each regulation issued 
by the agency not later than 5 years after the establishment of the 
task force. For each regulation reviewed, the task force shall estimate 
the cost savings that would be achieved if the agency followed the 
recommendation from the task force. Each regulatory reform task force 
shall identify regulations that--
            (1) eliminate jobs or inhibit job creation;
            (2) are outdated, unnecessary, or ineffective;
            (3) impose costs that exceed benefits;
            (4) create a serious inconsistency or otherwise interfere 
        with regulatory reform initiatives and policies;
            (5) are inconsistent with the requirements of section 515 
        of the Treasury and General Government Appropriations Act, 2001 
        (Public Law 106-554; 44 U.S.C. 3516 note), or the guidance 
        issued pursuant to that section, including any rule that relies 
        in whole or in part on data, information, or methods that are 
        not publicly available or that are insufficiently transparent 
        to meet the standard for reproducibility; or
            (6) were made pursuant to or to implement Executive orders 
        or other Presidential directives that have been subsequently 
        rescinded or substantially modified.
    (e) Consultation With Stakeholders.--In performing the evaluation 
described in subsection (d), each Regulatory Reform Task Force shall 
seek input and other assistance, from entities significantly affected 
by Federal regulations, including State, local, and Tribal governments, 
small businesses, consumers, non-governmental organizations, and trade 
associations. In the discretion of the task force, the task force may 
incorporate specific suggestions from stakeholders in the list of rules 
to be repealed.
    (f) Report.--Not later than 90 days after the date of the enactment 
of this Act, and not later than April 1 of each year thereafter, each 
Regulatory Reform Rask Force shall submit to the head of the agency a 
report (which shall be posted by such head on a publicly accessible 
website) on the following:
            (1) A description of any improvement made toward 
        implementation of regulatory reform initiatives and policies 
        described under section 3(a).
            (2) For each regulation reviewed by the task force, a 
        detailed description of the review.
            (3) An inventory of each regulation the task force 
        recommends the agency consider for repeal, replacement, or 
        modifications.

SEC. 5. ACCOUNTABILITY.

    (a) Incorporation in Performance Plans.--
            (1) In general.--Each agency listed in section 901(b)(1) of 
        title 31, United States Code, shall incorporate in the annual 
        performance plan of the agency (required under section 1115(b) 
        of title 31, United States Code) performance indicators that 
        measure progress implementing this Act.
            (2) OMB guidance.--Not later than 60 days after the date of 
        the enactment of this Act, the Director of the Office of 
        Management and Budget shall issue guidance regarding the 
        implementation of this subsection.
    (b) Performance Assessment.--The head of each agency shall consider 
the progress implementing this Act in assessing the performance of the 
Regulatory Reform Task Force of the agency and those individuals 
responsible for developing and issuing agency rules.

SEC. 6. REGULATORY CAP.

    (a) Identification of Rules.--During fiscal year 2018, before an 
agency may publish a notice of proposed rulemaking under section 553(b) 
of title 5, United States Code, for a significant regulatory action or 
otherwise publicly propose promulgating a significant regulatory 
action, the head of the agency, in consultation with the Regulatory 
Reform Task Force of the agency, shall identify not less than 2 
regulatory actions issued by the agency that are appropriate for 
repeal. In identifying regulatory actions for repeal, the head of each 
agency shall prioritize those regulatory actions that the Regulatory 
Reform Task Force of the agency identified under section (4)(d)(2). For 
each regulatory action identified, the head of the agency must confirm 
that the agency can continue to achieve regulatory objectives (such as 
health or environmental protection) if the identified regulatory 
actions were to be repealed.
    (b) Total Incremental Cost for 2018.--For fiscal year 2018, the 
total incremental cost of all new significant regulatory actions at 
each agency and any repealed regulatory action, to be finalized in 
fiscal year 2018 shall be no greater than zero, or consistent with a 
waiver provided by the Director of the Office of Management and Budget.
    (c) Offset of New Incremental Costs.--Any new incremental cost 
associated with a new significant regulatory action shall be offset by 
the elimination of existing costs associated with at least two prior 
regulatory actions. To the extent feasible, the two prior regulatory 
actions shall be eliminated before or on the same schedule as the new 
significant regulatory action. Any savings of the two eliminated 
regulatory actions shall offset the costs of the new significant 
regulatory action.
    (d) Guidance by OMB.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Director shall establish and 
        issue guidance on how to comply with the requirements of this 
        section. Such guidance shall include the following:
                    (A) A process for standardizing the measurement and 
                estimation of regulatory costs.
                    (B) Standards for determining what qualifies as new 
                and offsetting regulatory actions.
                    (C) Standards for determining the costs of existing 
                regulatory actions that are considered for elimination.
                    (D) A process for accounting for costs in different 
                fiscal years.
                    (E) Methods to oversee the issuance of significant 
                regulatory actions with costs offset by savings at 
                different times or different agencies.
                    (F) Emergencies and other circumstances that might 
                justify individual waivers of the requirements of this 
                section.
            (2) Update to guidance.--The Director shall update the 
        guidance issued pursuant to this section as necessary.

SEC. 7. ANNUAL REGULATORY COST SUBMISSION TO THE OFFICE OF MANAGEMENT 
              AND BUDGET.

    (a) Annual Regulatory Plan.--The head of each agency shall submit 
an annual regulatory plan to the Director, which shall include a list 
of the following:
            (1) Each new regulation to be finalized or proposed by the 
        agency during that fiscal year.
            (2) The incremental cost associated with each regulation to 
        be proposed or finalized by the agency during that fiscal year.
            (3) For each significant regulatory action to be proposed 
        or finalized by the agency during that fiscal year--
                    (A) any regulatory action identified for repeal to 
                offset the incremental cost of such significant 
                regulatory action pursuant to section 4(c);
                    (B) the agency's best approximation of the total 
                cost or savings associated with new significant 
                regulatory action and regulatory actions recommended 
                for repeal under section 4; and
                    (C) any estimate of the economic effects of the 
                significant regulatory action, including any estimate 
                of the net effect that such action will have on the 
                number of jobs in the United States, that was 
                considered in drafting the action, or, if such estimate 
                is not available, a statement affirming that no 
                information on the economic effects, including the 
                effect on the number of jobs, of the action has been 
                considered.
    (b) Regulations Approved by the Director.--Each regulation approved 
by the Director during the Presidential budget process shall be 
included in the Unified Regulatory Agenda required under Executive 
Order 12866, any successor thereto, or other similar order or 
directive.
    (c) No Significant Regulatory Action To Be Made Unless Included in 
Unified Regulatory Agenda.--Unless otherwise required by law, a 
significant regulatory action may not 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, any 
successor thereto, or other similar order or directive, unless the 
issuance of such significant regulatory action was approved in advance 
in writing by the Director. The Director's written approval shall be 
made publicly available online.
    (d) Incremental Cost Allowance.--During the Presidential budget 
process, the Director shall set a net amount of incremental costs 
allowed for each agency in issuing new significant regulatory actions 
and repealing regulatory actions for the next fiscal year. If the 
Director does not set a net amount of incremental costs allowed for an 
agency, the net incremental cost allowed shall be zero. No significant 
regulatory actions exceeding the agency's total incremental cost 
allowance may be made in that fiscal year, unless required by law or 
approved in writing by the Director. If an agency does not exhaust all 
the incremental cost allowance for a fiscal year, that remaining 
balance may be included in the incremental allowance for the subsequent 
fiscal year, in addition to the allowance otherwise available for the 
subsequent fiscal year. An agency's net incremental cost allowance 
may--
            (1) require an increase, decrease, or no change to the 
        total regulatory costs;
            (2) include any existing regulatory action that imposes 
        costs and the repeal or revision of which will produce verified 
        savings; and
            (3) include meaningful burden reduction through the repeal 
        or streamlining of mandatory reporting, recordkeeping, or 
        disclosure requirements.
    (e) Guidance.--Not later than 90 days after the date of the 
enactment of this Act, the Director shall provide the heads of each 
agency with additional guidance on the implementation of the 
requirements in this section, including a reasonable standard or 
methodology for estimating the reduction in incremental cost achieved 
by repealing a regulatory action.

SEC. 8. WAIVER.

    Upon the request of an agency head, the Director of the Office of 
Management and Budget may waive the requirements of section 3 or 4, or 
both, if the Director determines that the agency generally issues very 
few or no rules. The Director may revoke such a waiver at any time. The 
Director shall maintain a publicly available list of each agency that 
is operating under a waiver issued under this section. A waiver is not 
in effect unless it is available on the publicly available list.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551 of title 5, United States Code.
            (2) Costs.--The term ``costs'' means opportunity cost to 
        society.
            (3) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (4) Incremental cost.--The term ``incremental cost'' means, 
        in the case of a rule, the difference between the direct 
        incremental economic benefit to business and the direct 
        incremental economic cost to business.
            (5) Regulation; rule.--The term ``regulation'' or ``rule'' 
        has the meaning given the term ``rule'' in section 551 of title 
        5, United States Code.
            (6) Regulatory action; significant regulatory action.--The 
        terms ``regulatory action'' and ``significant regulatory 
        action'' have the meaning given those terms in Executive Order 
        12866.
Lessening Regulatory Costs and Establishing a Federal Regulatory Budget Act of 2017 This bill requires federal agencies to: (1) designate regulatory reform officers to oversee reduction, cost control, planning, review, and termination of regulatory programs; and (2) establish task forces to recommend, within a five-year period, the repeal or amendment of regulations that eliminate or inhibit jobs, impose costs exceeding benefits, create inconsistency, interfere with regulatory reform, are inconsistent with Paperwork Reduction Act guidelines, were made to implement executive orders or presidential directives subsequently rescinded or modified, or are outdated, unnecessary, or ineffective. Any new incremental cost of a new significant regulatory action must be offset by the elimination of existing costs associated with at least two prior regulatory actions.   The Office of Management and Budget (OMB) must set a net amount of incremental costs allowed for each agency in issuing new significant regulatory actions and repealing regulatory actions for the each fiscal year. If an agency does not exhaust all the incremental cost allowance for a fiscal year, that remaining balance may be included in the incremental allowance for the subsequent fiscal year. Before proposing a significant regulatory action during FY2018, an agency must identify at least two regulatory actions for repeal. Total incremental cost of all such new significant regulatory actions and any repealed regulatory action must be: (1) no greater than zero, or (2) consistent with an OMB waiver. Agencies must submit an annual regulatory plan to the OMB about: (1) the costs of proposed or finalized regulations, and (2) the economic effects and the net effect on jobs considered when drafting significant regulatory actions.  The bill prohibits issuance of a significant regulatory action if it was not included in the most recent version of the published unified agenda of regulations under development or review, unless it was approved by the OMB.
Lessening Regulatory Costs and Establishing a Federal Regulatory Budget Act of 2017