Executive Order 14270—Zero-Based Regulatory Budgeting To Unleash American Energy

Executive Order 14270, titled "Zero-Based Regulatory Budgeting To Unleash American Energy," directs certain government agencies to incorporate "sunset provisions" into their regulations concerning energy production. This means that, to the extent permitted by law, these regulations will have a specific date when they will automatically expire and be removed from the Code of Federal Regulations unless the agency actively extends them. The order aims to compel agencies to periodically reexamine their rules to ensure they continue to serve the public good.

This executive order applies to several key agencies involved in energy and environmental policy. These include the Department of Energy, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission. It also affects various subcomponents within the Department of the Interior, such as the Bureau of Land Management and the U.S. Fish and Wildlife Service, as well as the U.S. Army Corps of Engineers. The order specifically targets regulations issued under various energy and environmental statutes that govern energy production. The President's stated aim is to stimulate innovation and deliver prosperity to everyday Americans by rescinding outdated regulations.

This action matters because it directs how federal agencies manage regulations related to energy and environmental policy. The President's stated rationale is that these rules should serve the public good, and that rescinding outdated regulations can stimulate innovation. The constitutional basis of such executive orders can be debated; it depends on whether the order directs agencies to implement existing laws within their authority or if it attempts to change regulatory schemes in ways not authorized by Congress. Both Democratic and Republican administrations have used executive orders to shift environmental policy, and courts have previously overturned orders that went beyond an agency's legal authority.

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