S. 2427: Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025

The Zero-Based Regulatory Budgeting to Unleash American Energy Act of 2025 is a bill that aims to change how certain federal regulations are managed, specifically focusing on energy and natural resource regulations. The primary goal is to ensure that regulations created by several key government agencies can expire after a set timeframe unless they are specifically renewed.

Key Provisions of the Bill

• Covered Agencies: The bill defines several agencies that will be affected, including:
  • The Department of Energy
  • The Bureau of Land Management
  • The Bureau of Ocean Energy Management
  • The Bureau of Safety and Environmental Enforcement
  • The Office of Surface Mining Reclamation and Enforcement
  • The Federal Energy Regulatory Commission
• Regulations and Sunset Provisions:
  • Existing regulations must include an expiration date that is no more than 1 year after the amending of those regulations.
  • For new regulations created after the bill’s enactment, the expiration date must be set no later than 5 years unless a waiver is granted by the agency head under specific conditions.
  • Agencies may extend a regulation’s expiration date up to 5 years beyond the current expiry, provided that they solicit public comments on the regulation before the expiration date and determine that an extension is justified based on these comments.
  • If a regulation is not renewed according to the bill’s provisions, it will cease to have any legal effect, and the agency must remove it from regulatory listings.
• Public Comment Requirement: Agencies must provide a public opportunity to comment on the costs and benefits of regulations before deciding to extend them.
• Exemption for Deregulatory Effect: If a regulation is determined to have a net deregulatory effect, it can avoid the usual renewal process and have its expiration extended more easily.

Administrative Provisions

• The bill clarifies that it does not affect the authority of federal agencies beyond what is described in this bill.
• Additionally, it establishes that the bill does not create enforceable rights or benefits for individuals against the United States or any of its departments.

Relevant Companies

• XOM - Exxon Mobil Corporation: As a major player in the energy sector, regulatory changes could significantly impact its operations and compliance costs.
• CVX - Chevron Corporation: Similar to Exxon, Chevron's regulatory compliance will be affected, potentially impacting its business strategies and costs.
• PSX - Phillips 66: This company may experience changes in its regulatory environment, which could influence operational practices and costs significantly.