be no greater than zero, or consistent with a waiver pro-
vided 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 exist-
ing costs associated with at least two prior regulatory ac-
tions. To the extent feasible, the two prior regulatory ac-
tions 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 meas-
urement and estimation of regulatory costs. 
(B) Standards for determining what quali-
fies as new and offsetting regulatory actions. 
(C) Standards for determining the costs of 
existing regulatory actions that are considered 
for elimination. 
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(D) A process for accounting for costs in 
different fiscal years. 
(E) Methods to oversee the issuance of sig-
nificant 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 re-
quirements 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 Di-
rector, which shall include a list of the following: 
(1) Each new regulation to be finalized or pro-
posed 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 fis-
cal year— 
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(A) any regulatory action identified for re-
peal to offset the incremental cost of such sig-
nificant regulatory action pursuant to section 
4(c); 
(B) the agency’s best approximation of the 
total cost or savings associated with new signifi-
cant 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 ac-
tion, 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 consid-
ered. 
(b) REGULATIONS APPROVED BY THE DIRECTOR.— 
Each regulation approved by the Director during the Pres-
idential budget process shall be included in the Unified 
Regulatory Agenda required under Executive Order 
12866, any successor thereto, or other similar order or 
directive. 
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(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 sig-
nificant regulatory action was approved in advance in writ-
ing 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 agen-
cy’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 in-
cremental 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 
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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 re-
porting, recordkeeping, or disclosure requirements. 
(e) GUIDANCE.—Not later than 90 days after the 
date of the enactment of this Act, the Director shall pro-
vide the heads of each agency with additional guidance 
on the implementation of the requirements in this section, 
including a reasonable standard or methodology for esti-
mating the reduction in incremental cost achieved by re-
pealing 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 re-
quirements of section 3 or 4, or both, if the Director deter-
mines 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 
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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 oppor-
tunity cost to society. 
(3) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Management and Budg-
et. 
(4) INCREMENTAL
COST.—The term ‘‘incre-
mental cost’’ means, in the case of a rule, the dif-
ference between the direct incremental economic 
benefit to business and the direct incremental eco-
nomic cost to business. 
(5) REGULATION; RULE.—The term ‘‘regula-
tion’’ or ‘‘rule’’ has the meaning given the term 
‘‘rule’’ in section 551 of title 5, United States Code. 
(6) REGULATORY ACTION; SIGNIFICANT REGU-
LATORY
ACTION.—The terms ‘‘regulatory action’’ 
and ‘‘significant regulatory action’’ have the mean-
ing given those terms in Executive Order 12866. 
Æ 
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