§1535 Least Burdensome Option or Explanation Required

Summary

Before a federal agency issues a rule that needs a written cost statement, the agency must look at a reasonable set of alternatives and pick the one that meets the rule’s goals while costing the least or placing the smallest burden. This applies when a rule creates mandates for state, local, or tribal governments or for the private sector. Two exceptions apply: the agency head may publish with the final rule a written reason for not choosing the least-cost option, or the requirement can be set aside if it would conflict with another law. No later than 1 year after March 22, 1995, the Director of the Office of Management and Budget must report in writing to Congress about agency compliance and name agencies and rules that did not comply.