Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025
- Sponsor
- Sen. Risch, James E. [R-ID]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Jul 24, 2025
Bottom line
This bill implements a 'zero-based' approach to energy-related federal regulations, requiring agencies to periodically re-justify the continued existence of their rules, with the aim of reducing regulatory burdens.
What it actually does
This bill mandates that specific federal agencies, including the Department of Energy, certain bureaus within the Department of the Interior, and the Federal Energy Regulatory Commission, impose expiration dates on their 'covered regulations.' Existing regulations would expire within approximately one year of the bill's enactment, while new regulations would expire after five years. Agencies can extend these sunset dates for up to five years at a time, but generally only after providing an opportunity for public comment on the regulation's costs and benefits.
Proponents argue
Proponents would argue that this bill promotes regulatory efficiency and accountability by ensuring that all regulations are regularly reviewed for their necessity and impact, thereby eliminating outdated or unduly burdensome rules. They contend that this approach will foster American energy production, stimulate economic growth, and streamline the regulatory environment by forcing agencies to justify their continued regulatory actions.
Opponents contend
Opponents might contend that this bill creates an unsustainable administrative burden for federal agencies, leading to the arbitrary expiration of critical environmental, safety, or operational regulations if agencies lack the resources or time for timely review. They could also argue that it introduces significant regulatory uncertainty for industries and the public, potentially undermining long-term planning and stability.
The bill is concise and its core mechanism is clearly articulated, making it relatively straightforward for an informed reader to understand its primary intent and operational framework.
Section 1
Short Title
This section establishes the official short title of the Act as the 'Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025.' This name signals the bill's primary intent to reform regulatory processes related to energy, emphasizing a focus on reducing regulatory burdens to promote energy development.
Supporters argue
Supporters would argue that a clear and descriptive short title helps communicate the bill's purpose and priorities to the public and other stakeholders, framing it as a measure to enhance energy production and reduce regulatory obstacles.
Critics contend
No specific opposition is typically raised against short title provisions, as they are primarily for identification and do not contain substantive policy changes.
Tradeoffs
None inherent in the short title itself, as it serves an identification function.
Section 2
Definitions of Covered Agency and Covered Regulation
This section precisely defines which federal agencies and which types of regulations are subject to the bill's requirements. 'Covered agencies' include the Department of Energy, specific bureaus within the Department of the Interior (Bureau of Land Management, Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, Office of Surface Mining Reclamation and Enforcement), and the Federal Energy Regulatory Commission (FERC). 'Covered regulations' are those promulgated by these agencies under specific energy, land management, and environmental statutes, such as the Atomic Energy Act, Energy Policy Acts, Federal Land Policy and Management Act, Outer Continental Shelf Lands Act, and Surface Mining Control and Reclamation Act.
Section 3(a)(1)
One-Year Sunset for Existing Covered Regulations
This provision mandates that within 90 days of the bill's enactment, the head of each covered agency must amend every 'covered regulation' already in effect to include an expiration date one year after the effective date of that amendment. This means that all regulations currently enforced by the specified agencies under the specified laws will automatically expire within approximately 15-18 months of the bill's passage unless actively extended through the prescribed process.
Section 3(a)(2)
Five-Year Sunset for New Covered Regulations
For any 'covered regulation' promulgated on or after the bill's enactment date, the head of the applicable agency must ensure that the regulation expires not later than five years after its effective date. However, the agency head may exempt a new regulation from this five-year sunset requirement if they determine that the regulation has a 'net deregulatory effect' and notify the Director of the Office of Management and Budget (OMB) of this determination.
Section 3(b)
Process for Extending Sunset Dates
The head of a covered agency may extend an expiration date for a covered regulation for up to five years at a time. Before extending, the agency must provide an opportunity for public comment on the costs and benefits of the regulation and, based on those comments, determine that an extension is warranted. An exception exists: if an amendment to a regulation has a 'net deregulatory effect,' it can extend the expiration date without the public comment process, though it is still limited to a five-year extension. Amendments without a deregulatory effect are subject to the existing sunset date unless the full public comment process is followed. Agencies can extend regulations multiple times, provided they follow these requirements each time.
Section 3(c)
Consequences of Regulation Expiration
If the expiration date of a covered regulation is not extended in accordance with the bill's requirements, the regulation automatically ceases to have any legal effect as of that date. The applicable covered agency is prohibited from enforcing the expired regulation, and its head must remove the regulation from the Code of Federal Regulations as soon as practicable after its expiration.
Defines 'regulation' to mean 'each part, subpart, or individual provision of a rule (as defined in section 551 of title 5, United States Code) promulgated by a covered agency.'
Section 2(3)
Why it matters:This is standard legislative practice to define terms precisely to ensure legal clarity. However, in this context, the specificity of applying sunsets to individual provisions rather than whole rules significantly expands the operational impact of the bill in a way that might not be obvious to a casual reader.
Case for: Supporters would argue that applying sunsets to individual provisions ensures a thorough, granular review, preventing agencies from simply re-upping an entire rule when only parts of it remain justified. This promotes true 'zero-based' regulation and targets specific burdens.
Case against: Critics would contend that this level of granularity creates an unmanageable administrative burden, requiring agencies to review and justify countless individual provisions rather than focusing on the overall efficacy of rules. It significantly increases the likelihood of essential provisions expiring due to resource constraints or procedural delays.
Estimated impact: This definition dramatically increases the number of distinct regulatory elements that covered agencies must review and justify for extension, potentially by orders of magnitude compared to reviewing only entire rules. This amplifies the administrative workload and the risk of regulatory lapse.