The President of the United States has issued an executive order aimed at reforming the regulatory landscape concerning energy production. The executive order, titled "Zero-Based Regulatory Budgeting to Unleash American Energy," emphasizes a reexamination of existing and new regulations to promote innovation and efficiency in the energy sector.
The President remarked on the current regulatory system, stating, "In our country, laws are supposed to provide the certainty and order necessary to foster liberty and innovation. Instead, our vast regulatory structure often serves to constrict ordered liberty, not promote it." The President further criticized the past administration, noting that it "added more pages to the Federal Register than any other in history," resulting in an energy sector burdened by outdated regulations.
The order mandates the incorporation of a sunset provision into regulations governing energy production. Agencies such as the Environmental Protection Agency (EPA), the Department of Energy (DoE), the Federal Energy Regulatory Commission (FERC), and several others within the Department of the Interior must review their regulations periodically to ensure they serve the public good. The President underscored the importance of this initiative, explaining that by rescinding outdated regulations, the country could "stimulate innovation and deliver prosperity to everyday Americans."
The order applies to numerous agencies involved in energy regulation and outlines specific statutes under which rules will be reexamined. Covered agencies are directed to implement a sunset rule effective by September 30, 2025, which will establish a Conditional Sunset Date for each regulation, expiring one year after the rule's effective date unless extended under specified conditions.
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