Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025
- Bill Number
- S. 2427
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2025-07-24: Read twice and referred to the Committee on Energy and Natural Resources.
- Last Updated
- 2026-02-27T18:30:57Z
AI-Generated Summary
Purpose
The "Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025" aims to reduce regulatory burdens on the energy sector by requiring certain federal agencies to add automatic expiration dates (known as "sunsets") to specific energy-related regulations. This forces periodic reviews to ensure regulations remain necessary, promoting a "zero-based" approach where regulations must be justified anew rather than assumed to continue indefinitely.
Key Provisions
- Covered Agencies and Regulations:
- Applies to the Department of Energy; specific offices in the Department of the Interior (Bureau of Land Management, Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, and Office of Surface Mining Reclamation and Enforcement); and the Federal Energy Regulatory Commission.
- Targets regulations issued under major energy laws, such as the Atomic Energy Act, Energy Policy Acts, Federal Land Policy and Management Act, Outer Continental Shelf Lands Act, Surface Mining Control and Reclamation Act, Federal Power Act, Natural Gas Act, and others. A "regulation" here means any part of a formal rule issued by these agencies.
- Sunset Requirements:
- Existing Regulations: Within 90 days of the bill's enactment, agencies must amend all current covered regulations to expire within 1 year.
- New Regulations: Those issued after enactment must expire within 5 years, unless the agency head waives this by determining it has a "net deregulatory effect" (meaning it reduces overall rules or burdens) and notifies the Office of Management and Budget.
- Extensions:
- Agencies can extend expirations up to 5 years at a time, but only after allowing public comment on costs and benefits and determining the extension is justified.
- Amendments with a net deregulatory effect can extend sunsets without full public review.
- Non-deregulatory amendments follow the existing sunset unless extended properly.
- Multiple extensions are allowed if each meets the criteria; public comment requests do not automatically delay expirations.
- Consequences of Expiration:
- Expired regulations lose all effect, cannot be enforced, and must be removed from the Code of Federal Regulations (the official compilation of federal rules) as soon as possible.
- Other Clauses:
- Severability: If any part is ruled unconstitutional, the rest remains in effect.
- Administrative Safeguards: Does not limit agencies' existing legal powers and creates no new enforceable rights for individuals or groups against the government.
Significant Changes to Existing Law
- Introduces mandatory sunset dates for energy regulations, which previously had no automatic expiration unless specified by Congress.
- Requires ongoing justification through public input and agency reviews, shifting from a "set it and forget it" model to one demanding periodic re-evaluation.
- Allows waivers and streamlined extensions for deregulatory actions, prioritizing reductions in regulatory load over maintaining status quo rules.
Potential Impacts
- On Government Agencies: Increases administrative workload for reviews, amendments, and public engagements; could lead to fewer active regulations if extensions are not granted, streamlining operations but requiring resources for compliance.
- On Citizens: May lower energy costs by reducing regulatory hurdles for production (e.g., oil, gas, mining), but could weaken environmental or safety protections, potentially affecting public health, land use, and energy reliability.
- On International Relations: Minimal direct impact, though eased domestic energy regulations could boost U.S. exports of oil, gas, or power, influencing global energy markets and trade with energy-dependent nations.
- Overall, promotes deregulation in energy sectors, possibly accelerating projects like offshore drilling or mining while risking unaddressed environmental concerns.
Main Stakeholders Affected
- Energy Industry: Producers, miners, and utilities (e.g., oil, gas, nuclear, renewable firms) benefit from potential reductions in compliance costs and faster approvals.
- Environmental and Safety Advocates: Groups focused on conservation, climate, or worker safety may face challenges as regulations expire without renewal, leading to weaker oversight.
- Government Agencies: Covered entities must adapt processes, potentially facing internal resistance or litigation over enforcement gaps.
- General Public and Taxpayers: Indirectly affected through changes in energy prices, job creation in energy sectors, and environmental quality.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces executive oversight via Office of Management and Budget notifications; the severability clause protects the bill's core from partial invalidation. Could invite lawsuits if agencies fail to meet deadlines or if sunsets disrupt ongoing legal proceedings.
- Constitutional: Balances agency rulemaking authority (under the Administrative Procedure Act) with congressional intent for oversight, but might raise separation-of-powers questions if seen as unduly limiting executive discretion. The savings provision preserves existing agency powers to mitigate this.
- Political: Advances a deregulatory agenda, likely appealing to pro-energy development interests; could spark partisan debate over environmental protections versus economic growth, especially in election cycles focused on energy independence.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-07-24: Read twice and referred to the Committee on Energy and Natural Resources.
- 2025-07-24: Introduced in Senate
Bill Versions
- Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025 — issued 2025-07-24 — PDF (9 pages)