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 ifmembers 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.

1Appendix 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 oflegal authority for the regulatory action (explaining, in brief, the legal authority laid out later in the preamble) II. Summary ofthe 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 ofcosts and benefits, both quantitative and qualitative I )

I See 2010Rep0l1 to Congress on the Bemjits andCosts of FederalRegulations and UrrfimdedMandates onState, Local. andmbalEntities, 52, available at: http://www.whitehouse.gov/sitesldefuultifileslombllegislative/repol1sQO 1 0 Benefit Cost Report,pdf (''For all economically significantregulatory actions, we recommend that agencies should clearly and prominentlypresent, in the preamble and in the executive swnmruy of the regulatOly impactanalysis, one**ormon~** tables swnmruizing tile assessment ofcosts and benefits required WlderExecutive Order 12866 Section 6(aX3XCXi}{iii). The tables should provide atranspru-entstatementof both quantitative and qualitative benefits ruld costs of

tile proposed orplanned action as well as of J-easDnable altematives. TIle tables should include alll-elevant infonnation that can be qurultified ruld monetized, along witil mlevrultinfOlmation thatcan be descnbed only in qualitative tenns. Itwill often be useful to accompany a simple, cleru'table ofaggI-egated costs andbenefits witil a sepru'atetable offeJing disaggI-egated figw-es, showing the components of the aggI-egate figw-es. To the extent feasible in lightof the natlU-e of the issue and the relevantdata, all benefits and costs should be quantified and monetized. To commWlicate any uncertainties, we l-ecommend timttiletable should offer amnge of values, in addition to bestestimates, ruld itshould clearly indicate impacts thatcannotbe quantified ormonetized.lfnonquantifiable vruiables am involved, they shouldbe cleru'ly identified. Agencies should attempt, to the extentfeasible, notmel-ely to identifY such vruiables but also to signifY their importance.").

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