Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025

#2427 | S Congress #119

Policy Area: Energy
Subjects:

Last Action: Read twice and referred to the Committee on Energy and Natural Resources. (7/24/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025" is a legislative proposal aimed at reforming how certain federal regulations are managed by specific agencies. The key provisions of this bill include:

1. **Sunset Provisions**: All existing regulations from designated agencies, including the Department of Energy and various bureaus within the Department of the Interior, must include a built-in expiration date. Existing regulations will automatically expire one year after the amendment, while new regulations will have a maximum lifespan of five years unless exempted.

2. **Regulatory Renewal Process**: Covered agencies can extend the expiration date of a regulation for an additional five years, but this requires a public comment period to assess the regulation's costs and benefits. If an amendment to a regulation is deemed to have a deregulatory effect, it can be extended without the public comment requirement.

3. **Enforcement and Compliance**: If a regulation is not extended as stipulated, it will cease to be enforceable, and the agency must remove it from the Code of Federal Regulations.

4. **Administrative Provisions**: The Act clarifies that it does not create enforceable rights against the United States or its agencies and maintains existing authorities granted by law to executive departments.

Overall, the legislation seeks to streamline regulatory processes and potentially reduce regulatory burdens in the energy sector by mandating regular review and expiration of regulations.

Possible Impacts

The "Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025" could affect people in a variety of ways. Here are three examples:

1. **Impact on Environmental Protections**: The legislation could lead to the expiration of existing environmental regulations that are deemed restrictive or burdensome. For individuals living near energy production sites (like oil and gas fields or mining operations), this could result in increased pollution and environmental degradation. As regulations expire without extensions, there may be less oversight to mitigate adverse environmental impacts, potentially affecting air and water quality, public health, and local ecosystems.

2. **Changes in Energy Costs and Access**: By potentially streamlining or reducing regulatory burdens on energy production, the legislation might lead to lower energy costs for consumers if companies can operate more efficiently and pass those savings on. However, it could also create volatility in energy markets, as the lack of regulation might lead to overproduction or underproduction of energy resources, affecting availability and prices for consumers. This could disproportionately affect low-income households that spend a larger percentage of their income on energy.

3. **Public Involvement and Accountability**: The requirement for public comment before the extension of regulations could empower citizens and advocacy groups to have a voice in regulatory processes. However, if agencies do not adequately consider public input or if they find ways to circumvent the public comment process (e.g., by classifying certain regulations as having a "net deregulatory effect"), there may be a perception of reduced accountability and transparency in government decision-making. This could lead to public disillusionment with regulatory agencies and a sense that the interests of citizens are not adequately represented in energy policy decisions.

These effects highlight the balance between regulatory oversight and economic development, illustrating the complex implications of such legislation for different stakeholders.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2427 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 2427

   To require certain agencies to impose extendable sunset dates on 
              certain regulations, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2025

   Mr. Risch introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To require certain agencies to impose extendable sunset dates on 
              certain regulations, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Zero-Based Regulatory Budgeting to 
Unleash American Energy Act of 2025''.

SEC. 2. DEFINITIONS; STATUTORY IDENTIFICATION.

    In this Act:
            (1) Covered agency.--The term ``covered agency'' means each 
        of the following:
                    (A) The Department of Energy.
                    (B) Each of the following offices within the 
                Department of the Interior:
                            (i) The Bureau of Land Management.
                            (ii) The Bureau of Ocean Energy Management.
                            (iii) The Bureau of Safety and 
                        Environmental Enforcement.
                            (iv) The Office of Surface Mining 
                        Reclamation and Enforcement.
                    (C) The Federal Energy Regulatory Commission.
            (2) Covered regulation.--The term ``covered regulation'' 
        means--
                    (A) with respect to the Department of Energy, any 
                regulation promulgated by the Department of Energy 
                under or pursuant to--
                            (i) the Atomic Energy Act of 1954 (42 
                        U.S.C. 2011 et seq.);
                            (ii) the Energy Independence and Security 
                        Act of 2007 (42 U.S.C. 17001 et seq.);
                            (iii) the Energy Policy Act of 1992 (42 
                        U.S.C. 13201 et seq.);
                            (iv) the Energy Policy Act of 2005 (42 
                        U.S.C. 15801 et seq.); or
                            (v) part B of title III of the Energy 
                        Policy and Conservation Act (42 U.S.C. 6291 et 
                        seq.);
                    (B) with respect to the Bureau of Land Management, 
                any regulation promulgated by the Bureau of Land 
                Management under or pursuant to--
                            (i) the Energy Policy Act of 2005 (42 
                        U.S.C. 15801 et seq.);
                            (ii) the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1701 et seq.); or
                            (iii) sections 2319 through 2344 of the 
                        Revised Statutes (commonly known as the 
                        ``Mining Law of 1872'') (30 U.S.C. 22 et seq.);
                    (C) with respect to the Bureau of Ocean Energy 
                Management, any regulation promulgated by the Bureau of 
                Ocean Energy Management under or pursuant to--
                            (i) the Energy Policy Act of 2005 (42 
                        U.S.C. 15801 et seq.); or
                            (ii) the Outer Continental Shelf Lands Act 
                        (43 U.S.C. 1331 et seq.);
                    (D) with respect to the Bureau of Safety and 
                Environmental Enforcement, any regulation promulgated 
                by the Bureau of Safety and Environmental Enforcement 
                under or pursuant to the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1331 et seq.);
                    (E) with respect to the Office of Surface Mining 
                Reclamation and Enforcement, any regulation promulgated 
                by the Office of Surface Mining Reclamation and 
                Enforcement under or pursuant to the Surface Mining 
                Control and Reclamation Act of 1977 (30 U.S.C. 1201 et 
                seq.); and
                    (F) with respect to the Federal Energy Regulatory 
                Commission, any regulation promulgated by the Federal 
                Energy Regulatory Commission under or pursuant to--
                            (i) the Federal Power Act (16 U.S.C. 791a 
                        et seq.);
                            (ii) the Natural Gas Act (15 U.S.C. 717 et 
                        seq.); or
                            (iii) the Powerplant and Industrial Fuel 
                        Use Act of 1978 (42 U.S.C. 8301 et seq.).
            (3) Regulation.--The term ``regulation'' means 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.

SEC. 3. ZERO-BASED REGULATING.

    (a) Sunsets Required.--
            (1) Existing regulations.--Not later than 90 days after the 
        date of enactment of this Act, the head of each covered agency 
        shall amend each covered regulation in effect on that date to 
        provide that each covered regulation expires not later than the 
        date that is 1 year after the effective date of that amendment.
            (2) New regulations.--
                    (A) In general.--Subject to subparagraph (B), for 
                each covered regulation promulgated on or after the 
                date of enactment of this Act, the head of the 
                applicable covered agency shall ensure that the covered 
                regulation expires not later than 5 years after the 
                effective date of the covered regulation.
                    (B) Waiver.--The head of a covered agency may 
                exempt a covered regulation promulgated by the covered 
                agency on or after the date of enactment of this Act 
                from the requirement under subparagraph (A) if the head 
                of the covered agency--
                            (i) determines that the covered regulation 
                        has a net deregulatory effect; and
                            (ii) notifies the Director of the Office of 
                        Management and Budget of that determination.
    (b) Extension of Sunsets.--
            (1) In general.--The head of a covered agency may only 
        extend an expiration date imposed pursuant to subsection (a)--
                    (A) to a date that is not more than 5 years after 
                the current expiration date; and
                    (B) if, before the current expiration date and 
                except as provided in paragraph (2)(A)--
                            (i) the head of the covered agency provides 
                        an opportunity for public comment on the costs 
                        and benefits of the applicable covered 
                        regulation, which may include the publication 
                        of a request for information with respect to 
                        the covered regulation; and
                            (ii) following the completion of the 
                        opportunity for public comment under clause 
                        (i), the head of the covered agency determines, 
                        based on the comments provided in that 
                        opportunity, that an extension of the covered 
                        regulation is warranted.
            (2) Effect of amendments.--
                    (A) Deregulatory amendments.--If the head of a 
                covered agency determines that an amendment to a 
                covered regulation of that covered agency has a net 
                deregulatory effect, the amendment may extend the 
                expiration date for that covered regulation without 
                carrying out the requirements of subparagraph (B) of 
                paragraph (1), subject to the limitation described in 
                subparagraph (A) of that paragraph.
                    (B) Other amendments.--If the head of a covered 
                agency does not make the determination described in 
                subparagraph (A) with respect to an amendment to a 
                covered regulation of that covered agency, the existing 
                expiration date of the covered regulation being amended 
                shall apply to that amendment unless the requirements 
                described in paragraph (1)(B) have been met.
            (3) Continued extensions.--The head of a covered agency may 
        extend the expiration date of a covered regulation as many 
        times as the head of the agency determines appropriate, subject 
        to the condition that each extension meets the requirements of 
        this subsection.
            (4) Savings provision.--Seeking public comment with respect 
        to a covered regulation under paragraph (1)(B)(i), including 
        through a request for information, shall not automatically 
        extend the applicable expiration date of the covered 
        regulation.
    (c) Effect of Sunset.--If the expiration date of a covered 
regulation is not extended in accordance with subsection (b)--
            (1) the covered regulation shall cease to have any effect 
        as of that expiration date;
            (2) the applicable covered agency shall not enforce the 
        covered regulation on or after that expiration date; and
            (3) as soon as practicable after that expiration date, the 
        head of the applicable covered agency shall remove the covered 
        regulation from the Code of Federal Regulations.

SEC. 4. SEVERABILITY.

    If any provision of this Act or the application of such provision 
to any person or circumstance is held to be unconstitutional, the 
remainder of this Act, and the application of the provision to any 
other person or circumstance, shall not be affected.

SEC. 5. ADMINISTRATIVE PROVISIONS.

    (a) Savings Provisions.--Nothing in this Act impairs or otherwise 
affects the authority granted by law to an executive department or 
agency, or the head of an executive department or agency.
    (b) No Rights or Benefits.--Nothing in this Act creates any right 
or benefit, substantive or procedural, enforceable at law or in equity, 
by any party against the United States, the departments, agencies, or 
entities of the United States, the officers, employees, or agents of 
the United States, or any other person.
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