April 9, 2025 Zero-Based Regulatory Budgeting to Unleash American Energy - Executive Order
- Fact Seeker
- Jul 27
- 2 min read
Purpose
The executive order seeks to roll back outdated and burdensome energy-related regulations by establishing a system of automatic sunset provisions (expiration dates) for rules issued by specific federal agencies. The goal is to periodically reassess regulations to ensure they are justified, up-to-date, and aligned with current innovation and economic needs—particularly in the energy sector.
Key Agencies Affected
The order applies to a wide range of agencies and subcomponents involved in energy production and environmental regulation, including:
EPA (Environmental Protection Agency)
DOE (Department of Energy)
FERC (Federal Energy Regulatory Commission)
NRC (Nuclear Regulatory Commission)
Subcomponents within the Department of the Interior:
Office of Surface Mining Reclamation and Enforcement (OSMRE)
Bureau of Land Management (BLM)
Bureau of Ocean Energy Management (BOEM)
Bureau of Safety and Environmental Enforcement (BSEE)
U.S. Fish and Wildlife Service (FWS)
U.S. Army Corps of Engineers (ACE)
Each agency must identify which regulations fall under this order based on various foundational energy and environmental laws dating from 1872 to 2007.
What the Order Directs
Sunset Provisions:
All covered regulations will be assigned a Conditional Sunset Date (expiration) unless affirmatively extended.
Existing regulations: Must be reviewed and given a sunset date 1 year after the rule takes effect (by Sept. 30, 2025).
New regulations: Must sunset within 5 years unless extended through a formal review process.
Public Review Required:
Before extending any regulation, agencies must allow public comment and conduct a cost-benefit review.
Extensions are not automatic and must be justified. No regulation can be extended more than 5 years at a time.
Zero-Based Approach:
Regulations are not presumed necessary. Instead, agencies must justify keeping each rule.
This order is separate from (and does not count toward) the “ten-for-one” deregulatory ratio established under EO 14192.
Potential Reasons for Ending or Sunsetting Regulations
Some regulations may be considered for repeal or expiration under this framework for the following reasons:
Reason | Explanation |
Outdated or Duplicative | Many rules were written under older technological assumptions and may no longer reflect industry best practices. |
Economic Burden | If a rule imposes high costs on innovation, job creation, or production without proportional benefit, it may be sunset. |
Scientific/Technological Advances | Evolving energy technologies may render older safety or efficiency standards obsolete. |
Redundancy with State Law | Federal rules overlapping with robust state-level regulations may be removed to reduce complexity. |
Overreach Beyond Statutory Intent | Rules that stretch the interpretation of Congressional statutes may be scaled back or removed. |
Exceptions and Notes
Does not apply to permitting regimes required by statute.
OMB (Office of Management and Budget) oversees implementation.
The order allows for exemptions if a rule has a “net deregulatory effect.”
Legal and Administrative Notes
The order includes a severability clause ensuring that if one part is invalidated, the rest remains in effect.
It does not create private legal rights or allow lawsuits against the government based on this order.
Writer's Note: Summary made with the use of AI tools for editing and quick processing, facts checked against the order before publishing.
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