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Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy” rule (2025)

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Significant regulatory action is a term used to describe an agency rule that has had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. As part of its role in the regulatory review process, the Office of Information and Regulatory Affairs (OIRA) determines which rules meet this definition.


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Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy”
Agency: Federal Energy Regulatory Commission
Action: Final rule
Type: Economically significant
Federal code: 18 CFR Parts 2, 5, 36, 131, 153, 156, 157, 287, 300, 366, 375, and 385
Estimated cost:[1] $0
Estimated benefit:[1] $0
Policy topics: Energy

The Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy” rule is a significant rule issued by the Federal Energy Regulatory Commission (FERC) designed to go into effect on December 5, 2025, that sunsets various existing rules that FERC has identified as outdated and unnecessary.[2]

FERC is an independent agency. Under Executive Order 12866, issued by President Bill Clinton (D) in 1993, the Office of Management and Budget (OMB) must review economically significant regulations issued by non-independent agencies for costs and benefits before the regulation can take effect. This requirement was extended to independent agencies by a February 18, 2025 executive order issued by President Donald Trump (R).XX

Timeline

The following timeline details key rulemaking activity:

  • December 5, 2025

    The rule will go into effect, unless the agency receives significant adverse public comments.[2]

  • November 20, 2025

    The comment period is scheduled to end.[2]

  • October 21, 2025

    FERC published the rule as a direct final rule, meaning that it will automatically go into effect unless the agency recieves significant adverse public comments.[2]

Background

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On April 9, 2025, President Donald Trump (R) issued Executive Order 14270, "Zero-Based Regulatory Budgeting To Unleash American Energy," which directed agencies with energy-related energy responsibilities to identify and sunset existing regulations identified as unnecessary. The text of this FERC rule identifies it as fulfilling the requirements of this executive order. FERC created the rule as a direct final rule, meaning that unless the agency receives significant adverse comments during the public comment period, the rule will automatically go into effect.

Summary of the rule

The following is a summary of the rule from the rule's entry in the Federal Register:[2]

“ Through this action, the Commission responds to Executive Order (E.O.) 14270, “Zero-Based Regulatory Budgeting to Unleash American Energy,” and sunsets outdated and unnecessary regulations to eliminate unwarranted regulatory burdens and better harmonize the Commission's regulations with its underlying statutory authorities.[3] ”

Summary of provisions

The following is a summary of the provisions from the rule's entry in the Federal Register:[2]

“ In this direct final rule, the Federal Energy Regulatory Commission (Commission) inserts, into the specific regulations identified herein, a sunsetting provision that establishes a conditional sunset date that is one year after the effective date of this rule, and provides an opportunity to comment on the costs and benefits of the regulations to be conditionally sunset prior to the sunset date. Following the sunset date, the Commission will consider sunset regulations to no longer be effective, will not seek to enforce sunset regulations, and will remove the sunset regulations from the Code of Federal Regulations and make necessary conforming changes.[3] ”

Economic significance

See also: Significant regulatory action

Executive Order 12866, issued by President Bill Clinton (D) in 1993, directed the Office of Management and Budget (OMB) to determine which agency rules qualify as significant rules and thus are subject to OMB review.

Significant rules have had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. Executive Order 12866 further defined an economically significant rule as a significant rule with an associated economic impact of $100 million or more. E.O. 14215, issued on February 18, 2025, by President Donald Trump (R), required independent agencies to comply with all aspects of OMB review, including review by the Office of Information and Regulatory Affairs (OIRA). Because the Federal Energy Regulatory Commission is an independent agency, this rule is subject to OMB review under E.O. 14215.

The text of the rule states that OMB deemed this rule significant, but not economically significant:

“ The Office of Information and Regulatory Affairs (OIRA) has determined this regulatory action is a “significant regulatory action,” under section 3(f) of E.O. 12866, as amended, though not economically significant under section 3(f)(1). Accordingly, OIRA has reviewed this regulatory action for compliance with the analytical requirements of E.O. 12866.[3] ”

Text of the rule

The full text of the rule is available below:[2]

See also

External links

Footnotes

  1. ↑ 1.0 1.1 Note: Estimated costs and estimated benefits here refer to estimated quantitative costs represented by dollar amounts. The estimates are a required part of the rulemaking process and are provided in the rule text. For qualitative costs or benefits, see the summaries of rule purpose and provisions.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Federal Register, "Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy” rule," accessed November 7, 2025
  3. ↑ 3.0 3.1 3.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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