Article pulled from National Associates of Realtors
The “one-in, two-out” section of the order requires agencies to remove two rules for every new one they publish. The regulatory budget would allow the president to cap regulations at a certain dollar amount per year. If agencies want to issue new rules, they would be required to offset the costs by deleting old ones.
While the EO requires federal regulatory agencies to follow this approach, it provides significant discretion to the Director of the Office of Management and Budget (OMB) to flesh out procedures for implementation and monitoring.
This Executive Order could have important implications for regulations that impact the real estate sector. NAR will continue to monitor and provide input as the details of this EO are refined and released.
While this EO contains innovative approaches to reduce regulatory burden and cost, the document also includes significant caveats that will limit its scope and impact.
First, the EO cannot override regulations that are promulgated in response to statutory requirements. If an agency is required by law to issue a rule, the order cannot prevent it from doing so. For example, National Ambient Air Quality Standards must be revisited and new regulations developed every five years. To prevent these type of required regulations, Congress would need to either change that specific provision or repeal the Clean Air Act.
The mandates of the order will therefore be most applicable to discretionary rulemaking, or rules agencies voluntarily promulgate. The Trump Administration has made it clear, though, that the intent of the EO to scale back regulations and discourage discretionary regulating.
Second, the order provides significant authority to the Director of the Office of Management and Budget (OMB) to flesh out procedures for implementation and monitoring. The EO does not stipulate whether all rules will be counted or only major or high-impact ones. It does not lay out how the costs of rules will be calculated, nor does it delineate the retrospective review process.