S.Amdt. 1649

1. Adds SEC. ___. REDUCING REGULATION AND CONTROLLING REGULATORY COSTS wherever appropriate

   Adds a section

   Inserted: SEC. ___. REDUCING REGULATION AND CONTROLLING REGULATORY COSTS.

   Inserted: (a) Findings.--Congress finds the following:

   Inserted: (1) It is the policy of the Federal Government to be prudent and financially responsible in the expenditure of funds, from both public and private sources.

   Inserted: (2) 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.

   Inserted: (3) Toward that end, it is important that for each new regulation issued, not fewer than 2 prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.

   Inserted: (b) Definitions.--In this section:

   Inserted: (1) Agency.--The term "agency" has the meaning given the term in section 551 of title 5, United States Code.

   Inserted: (2) Director.--The term "Director" means the Director of the Office of Management and Budget.

   Inserted: (3) Executive order 12866.--The term "Executive Order 12866" means Executive Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and review), as amended, or any successor order.

   Inserted: (4) Rule.--The term "rule"--

   Inserted: (A) has the meaning given the term in section 551 of title 5, United States Code; and

   Inserted: (B) does not include--

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   Inserted: (i) any rule made with respect to a military, national security, or foreign affairs function of the United States;

   Inserted: (ii) any rule related to agency organization, management, or personnel; or

   Inserted: (iii) any other category of rule exempted by the Director.

   Inserted: (c) Regulatory Cap.--

   Inserted: (1) In general.--If an agency publicly proposes for notice and comment or otherwise promulgates a new rule, the agency shall identify not fewer than 2 existing rules to be repealed.

   Inserted: (2) Incremental cost.--For each fiscal year, the head of an agency shall ensure that the total incremental cost of all new rules, including repealed rules, to be finalized that fiscal year is not greater than zero, except as provided by the Director in specifying the total incremental cost allowance for the agency under subsection (d)(4)(A).

   Inserted: (3) Offset of new incremental costs.--

   Inserted: (A) In general.--In furtherance of the requirement under paragraph (1), an agency shall offset any new incremental costs associated with a new rule by the elimination of existing costs associated with not fewer than 2 prior rules.

   Inserted: (B) Procedures.--An agency shall eliminate existing costs associated with prior rules under subparagraph (A) in accordance with subchapter II of chapter 5 of title 5, United States Code, and any other applicable law.

   Inserted: (4) Guidance.--

   Inserted: (A) In general.--The Director shall provide the heads of agencies with guidance on the implementation of this subsection.

   Inserted: (B) Contents.--The topics addressed by the guidance provided under subparagraph (A) shall include--

   Inserted: (i) processes for standardizing the measurement and estimation of regulatory costs;

   Inserted: (ii) standards for determining what qualifies as new and offsetting rules;

   Inserted: (iii) standards for determining the costs of existing rules that are considered for elimination;

   Inserted: (iv) processes for accounting for costs in different fiscal years;

   Inserted: (v) methods to oversee the issuance of rules with costs offset by savings at different times or different agencies; and

   Inserted: (vi) emergencies and other circumstances that might justify individual waivers of the requirements of this subsection.

   Inserted: (C) Discretion of director.--The Director shall consider phasing in and updating the guidance provided under subparagraph (A).

   Inserted: (d) Annual Regulatory Cost Submissions to Office of Management and Budget.--

   Inserted: (1) In general.--Beginning with the Regulatory Plans required under Executive Order 12866 for fiscal year 2022, and for each fiscal year thereafter, the head of an agency shall--

   Inserted: (A) identify, for each rule that increases incremental cost, the offsetting rules described in subsection (c)(3); and

   Inserted: (B) provide the agency's best approximation of the total costs or savings associated with each new rule or repealed rule.

   Inserted: (2) Inclusion in the unified regulatory agenda.--Each rule approved by the Director during the process by which the President establishes a budget under section 1105 of title 31, United States Code, shall be included in the Unified Regulatory Agenda required under Executive Order 12866.

   Inserted: (3) Limitation on issuance.--An agency may not issue a rule if the rule was not included on the most recent version or update of the published Unified Regulatory Agenda as required under Executive Order 12866, unless the issuance of the rule was approved in advance in writing by the Director.

   Inserted: (4) Total incremental cost.--

   Inserted: (A) Determination by omb.--During the process by which the President establishes a budget under section 1105 of title 31, United States Code, the Director shall identify to agencies a total amount of incremental costs that will be allowed for each agency in issuing new rules and repealing rules for the next fiscal year.

   Inserted: (B) Prohibition.--An agency may not issue a rule during a fiscal year that causes the agency to exceed the total incremental cost allowance of the agency for that fiscal year under subparagraph (A) unless approved in writing by the Director.

   Inserted: (C) Total regulatory cost.--The total incremental cost allowance of an agency for a fiscal year may allow an increase or require a reduction in total regulatory cost for that fiscal year.

   Inserted: (5) Guidance.--The Director shall provide the heads of agencies with guidance on the implementation of the requirements under this subsection.

   Inserted: (e) General Provisions.--

   Inserted: (1) Rule of construction.--Nothing in this section shall be construed to impair or otherwise affect--

   Inserted: (A) the authority granted by law to an agency, or the head thereof; or

   Inserted: (B) the functions of the Director relating to budgetary, administrative, or legislative proposals.

   Inserted: (2) No substantive right conferred.--This section does not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

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As printed