Yesterday the OMB’s Office of Information and Regulatory Affairs (OIRA) announced that it had approved a direct final rule from the Federal Energy Regulatory Commission (FERC) on “Implementation of the Executive Order [EO 14270] Entitled "Zero-Based Regulatory Budgeting to Unleash American Energy"”. The rule was submitted to OIRA on September 18th, 2025.
EO 14270 requires FERC to “to incorporate a sunset provision into their regulations governing energy production to the extent permitted by law”. This requirement applies to:
The Federal Power
Act of 1935,
The Natural Gas Act
of 1938, and
The Powerplant and
Industrial Fuel Use Act of 1978.
Yesterday FERC voted to “sunset 53 outdated and unnecessary regulations to advance the Commission’s core mission of ensuring reliable, safe, secure and economically efficient energy for consumers at a reasonable cost.” In support of that vote FERC issued two orders:
A Direct Final Rule establishing
a conditional sunset date for 53 regulations that is one year after the
effective date of this rule and providing an opportunity to comment on the
costs and benefits of the regulations to be conditionally sunset prior to the
sunset date.
A Notice of Proposed
Rulemaking (NOPR) to be used as a proceeding to consider significant
adverse comments if any are filed in response to the Direct Final Rule.
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