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Dairy Facts 2016
 
 

Administration Seeks to Reduce Regulatory Burden

Feb 08, 2017

President Donald Trump last week issued an executive order that will require federal agencies and executive departments to identify at least two existing regulations for repeal whenever a new regulation is proposed or finalized.

The order applies to regulations or rules defined as any agency statement that implements, interprets or prescribes law or policy. It also applies to statements that describe agency procedure or practice requirements. However, rules related to military, natural security, foreign affairs and agency management are excluded from the order, as are “any other category of regulations” exempted by the director of the Office of Management and Budget (OMB).

Specifically, the order requires that during fiscal year 2017 the cost of each new rule proposed or finalized be offset by the elimination of the cost associated with the repeal of two existing regulations. There also may be no net increase in costs for the regulations finalized or repealed in 2017.

Beginning in fiscal year 2018, the director of OMB will set a cap for each agency that reflects the total net increase in costs for new and repealed regulations or OMB may require a reduction in net costs.
 
At this time, it is unclear what regulations will fall under the order, but it has the potential to slow the pace of regulation as agencies evaluate it and work to comply with its requirements. OMB is currently developing guidance for agencies to determine how to implement this rule.

Presidential Memorandum on Manufacturers’ Regulatory Burden

The president also recently issued a memorandum that seeks to streamline the multiple permitting requirements, such as building permits, that federal agencies require some manufacturers to have and to reduce regulatory burdens for domestic manufacturing. The memorandum instructs the Secretary of Commerce to work with domestic manufacturing stakeholders and federal agencies to better understand the effect of federal regulation on the sector. Following this coordination, the secretary must submit a report to the president that outlines how federal permitting can be better streamlined and the regulatory burden on domestic manufacturers can be reduced.  

Members may log in to read a memorandum from IDFA's outside legal counsel, Hogan Lovells US LLP, that summarizes the executive order and memorandum in detail.

Members with questions may contact Emily Lyons, IDFA director of regulatory affairs and counsel, at elyons@idfa.org.

 
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