EXECUTIVE OFFICE OF THE PRESIDENT 


OFFICE OF MANAGEMENT AND BUDGET 


WASHINGTON, D.C. 20503 


ADMINISTRATOR 


OFFICE OF 


INFORMATION AND 


REGULATORY 


AFFAIRS 


Janua~y 4,2012 

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES 

FROM: 	 Cass·R. Sunstein {, (\ ~ Administrator 


SUBJECT: 	 Clarifying Regulatory Requirements: Executive Summaries 

On January 18,2011, the President issued Executive Order 13563, "Improving 

Regulation and Regulatory Review," which states that regulations must be "accessible, 

consistent, written in plain language, and easy to understand." Executive Order 13563 also 

directs that regulations "shall be adopted through a process that involves public participation," 

including an "open exchange ofinformation and perspectives." Public participation cannot occur 

ifthe requirements ofrules are unduly complex and if members ofthe public are unable to obtain 

a clear sense ofthe content ofthose requirements. 

In accordance with Executive Order 13563 and OMB Circular A-4, regulations should be 

written clearly and simply. To promote public understanding and to ensure an "open exchange of 

information and perspectives," regulatory preambles for lengthy or complex rules (both proposed 

and final) should include straightforward executive summaries. These summaries should 

separately describe major provisions and policy choices. Such executive summaries should 

generally be placed at the start ofregulatory preambles. A suggested template is attached to this 

memo as an appendix. 

This guidance is effective immediately. 

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Appendix 


Suggested Template for Executive Summaries 


(generally 3-4 pages of a double-spaced Word document maximum, although unusually 


complex or lengthy regulatory actions may require longer executive summaries) 


I. 	 Purpose of the Regulatory Action 

a. 	 The need for the regulatory action and how the action will meet that need 

b. 	 Succinct statement of legal authority for the regulatory action 

(explaining, in brief, the legal authority laid out later in the preamble) 

II. Summary of the Major Provisions of the Regulatory Action In Question 

(Each major provision should be described clearly and separately, along with a brief 

justification) 

III. Costs and Benefits 

(For economically significant regulatory actions, please include a table summarizing the 

assessment of costs and benefits, both quantitative and qualitative I ) 

I See 2010 Rep0l1 to Congress on the Bemjits andCosts ofFederal Regulations and UrrfimdedMandates on State, Local. and mbalEntities, 

52, available at: http://www.whitehouse.gov/sitesldefuultifileslombllegislative/repol1sQO1 0 Benefit Cost Report,pdf (''For all economically 

significant regulatory actions, we recommend that agencies should clearly and prominently present, in the preamble and in the executive 

swnmruy ofthe regulatOly impact analysis, one ormon~ tables swnmruizing tile assessment ofcosts and benefits required Wlder Executive 

Order 12866 Section 6(aX3XCXi}{iii). The tables should provide atranspru-ent statement ofboth quantitative and qualitative benefits ruld costs 

oftile proposed or planned action as well as ofJ-easDnable altematives. TIle tables should include alll-elevant infonnation that can be qurultified 

ruld monetized, along witil mlevrult infOlmation that can be descnbed only in qualitative tenns. It will often be useful to accompany a simple, 

cleru' table ofaggI-egated costs and benefits witil a sepru'ate table offeJing disaggI-egated figw-es, showing the components ofthe aggI-egate 

figw-es. To the extent feasible in light ofthe natlU-e ofthe issue and the relevant data, all benefits and costs should be quantified and monetized. 

To commWlicate any uncertainties, we l-ecommend timt tile table should offer amnge ofvalues, in addition to best estimates, ruld itshould 

clearly indicate impacts that cannot be quantified or monetized.lfnonquantifiable vruiables am involved, they should be cleru'ly identified. 

Agencies should attempt, to the extent feasible, not mel-ely to identifY such vruiables but also to signifY their importance."). 

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