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This bill — known as the Regulatory Relief Act — would require that for each new regulation or rule proposed by a federal agency, the agency identify at least two prior regulations to eliminate. Each fiscal year agency heads would have to ensure that the total incremental cost of all new rules and regulations is no greater than zero by offsetting new costs with savings from the repeal of existing regulations, unless otherwise required by law.

Starting with the Regulatory Plans for fiscal year 2018 and for each fiscal year thereafter, agency heads would be required to identify each rule that increases incremental cost, offsetting rules, and provide an approximation of the total costs or savings associated with each new or repealed rule. Each approved rule would be included in the Unified Regulatory Agenda (as part of the president’s budget proposal), and rules couldn’t be issued unless they were published in the agenda or approved in advance by the Director of the Office of Management and Budget (OMB).

During the presidential budgeting process, OMB would provide agencies with a total amount of incremental costs that will be allowed for each new agency in issuing new and repealing rules for the next fiscal years. No rules exceeding the agency’s total incremental cost allowance would be permitted unless required by law or approved in writing by the OMB Director. The total incremental cost allowance may allow an increase or require a reduction in total regulatory cost.

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One In, Two Out: Repealing Two Federal Regulations For Each New One