Zero-Based Regulatory Budgeting to Unleash American Energy

4/9/2025

Executive Orders

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Action Summary

Purpose: Address the regulatory overreach that stifles innovation in energy production by rescinding outdated regulations and restoring liberty and progress.
Regulatory Revision: Mandates the insertion of a Conditional Sunset Date into existing and new energy-related regulations, requiring periodic reexamination and public comment before extension.
Covered Agencies: Applies to major energy and environmental agencies, including the EPA, Department of Energy (DoE), FERC, NRC, and several subcomponents such as OSMRE, BLM, BOEM, BSEE, FWS, and the Army Corps of Engineers.
Statutory Basis: Specifies applicable statutes (e.g., Atomic Energy Act, various Energy Policy Acts, Outer Continental Shelf Act, and others) that govern the covered regulations.
Sunset Provision Details:
- Requires Covered Agencies to issue a sunset rule by September 30, 2025.
- Sets a Conditional Sunset Date of one year for existing regulations (extendable through public comments and agency review) and up to five years for new regulations.
- Agencies must remove or cease enforcement of a regulation if its sunset date lapses without proper extension.
Implementation and Coordination: Involves coordinated actions between agency heads, DOGE Team Leads, and the Office of Management and Budget, while excluding regulatory permitting regimes.
General Provisions: Includes severability clauses and clarifications to ensure the order does not impair existing legal authorities or create enforceable rights against the government.

Risks & Considerations

The Executive Order on Zero-Based Regulatory Budgeting aims to streamline regulations, particularly in the energy sector, by introducing sunset provisions. This could lead to significant changes in regulatory compliance requirements for institutions involved in energy research and development.
Vanderbilt University, as a recipient of federal funding and potentially involved in energy-related research, may need to reassess its compliance strategies to align with the new regulatory landscape. This could involve increased administrative oversight and potential restructuring of research programs.
The periodic review and potential expiration of regulations could create uncertainty in long-term research projects, affecting funding stability and project planning. This may necessitate more flexible research strategies and contingency planning.
The focus on deregulation could impact environmental and safety standards, which may affect research ethics and the university’s commitment to sustainability and responsible innovation.
There is a risk that the deregulation efforts could lead to increased scrutiny of federally funded research programs, particularly those related to energy and environmental sciences, potentially affecting grant opportunities and collaborations.

Impacted Programs

Vanderbilt’s School of Engineering and its energy research initiatives may need to adapt to the changing regulatory environment, potentially affecting research focus and funding opportunities.
The Vanderbilt Institute for Energy and Environment could see shifts in research priorities and collaborations, as deregulation may alter the landscape of energy innovation and environmental protection.
Research Administration may need to enhance its compliance monitoring and reporting mechanisms to ensure adherence to evolving federal regulations.
The Office of Sponsored Programs might need to adjust its grant application strategies to align with new federal priorities and regulatory requirements.

Financial Impact

The introduction of sunset provisions could lead to fluctuations in funding availability for energy-related research, necessitating more dynamic financial planning and resource allocation.
Vanderbilt University may need to invest in compliance infrastructure and expertise to navigate the new regulatory framework, potentially increasing operational costs.
Opportunities for securing federal grants may shift, with potential increases in funding for projects that align with deregulation goals, while projects focused on regulatory compliance may face reduced support.
The uncertainty surrounding regulatory changes could impact partnerships with industry and government agencies, affecting collaborative research and development efforts.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the implementation of the zero-based regulatory budgeting order, particularly as it pertains to energy regulations. This will be crucial in understanding potential impacts on research funding and compliance requirements for energy-related projects.
Vanderbilt’s School of Engineering should evaluate opportunities to engage in research and development projects that align with the deregulatory focus on energy innovation. By identifying areas where outdated regulations have been rescinded, the school can position itself to lead in cutting-edge energy research.
The Vanderbilt Institute for Energy and Environment should consider conducting studies on the effects of regulatory changes on energy production and environmental impact. These studies can provide valuable insights and position Vanderbilt as a thought leader in the evolving energy landscape.
Vanderbilt’s Legal Department should review the implications of the sunset provisions on existing and future energy-related regulations to ensure compliance and identify any potential legal challenges or opportunities.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Research Centers to secure funding for projects that focus on innovative energy solutions. By aligning research initiatives with the deregulatory agenda, Vanderbilt can enhance its competitiveness in obtaining federal grants.
Vanderbilt can capitalize on the emphasis on energy innovation by developing partnerships with industry leaders and government agencies. These collaborations can lead to joint research initiatives and technology development, enhancing Vanderbilt’s reputation in the energy sector.
The focus on reducing regulatory burdens offers an opportunity for Vanderbilt’s Business School to develop programs and courses that address the intersection of energy policy, regulation, and business strategy. This can attract students interested in navigating the complexities of the energy industry.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on energy research and regulatory compliance.)

Average Relevance Score: 4

Timeline for Implementation

Within 30 days of April 9, 2025: The EPA Administrator and the Secretary of the Army must submit a list of relevant statutes to the President via the OMB Director.
By September 30, 2025: All Covered Agencies are required to issue a sunset rule that incorporates a Conditional Sunset Date for each Covered Regulation.

Relevance Score: 4

Impacted Government Organizations

Environmental Protection Agency (EPA): Directed to work on incorporating sunset provisions in regulations related to energy production, as specified in Section 3(j) and Section 4.
Department of Energy (DoE): Responsible for applying the new regulatory sunset rules to energy-related regulations under several key energy statutes detailed in Section 3(b).
Federal Energy Regulatory Commission (FERC): Required to implement sunset provisions for its energy regulations as outlined in Section 3(c).
Nuclear Regulatory Commission (NRC): Mandated to apply conditional sunset dates to its nuclear energy regulations as per Section 3(d).
Office of Surface Mining Reclamation and Enforcement (OSMRE): A subcomponent of the Department of the Interior tasked with reviewing and revising its regulations under the Surface Mining Control and Reclamation Act in Section 3(e).
Bureau of Land Management (BLM): Affected in its regulatory process with respect to land and energy policies as set forth in Section 3(f).
Bureau of Ocean Energy Management (BOEM): Subject to the new sunset rule for its energy-related regulations outlined in Section 3(g).
Bureau of Safety and Environmental Enforcement (BSEE): Impacted through its regulatory oversight of offshore energy operations as described in Section 3(h).
United States Fish and Wildlife Service (FWS): Required to reexamine regulations related to wildlife and environmental stewardship under multiple statutes mentioned in Section 3(i).
United States Army Corps of Engineers (ACE): Instructed to coordinate with the EPA and OMB, and adapt regulatory sunset dates for its applicable regulations as noted in Section 3(j) and Section 5.

Relevance Score: 3 (Six to ten Federal Agencies are impacted by this executive order.)

Responsible Officials

Administrator of the Environmental Protection Agency (EPA) – Tasked with, among other duties, providing the President with a list of statutory authorities vesting EPA with regulatory power subject to this order.
Secretary of the Army – Responsible for providing the President, through the OMB Director, a list of statutes vesting ACE with regulatory authority as specified in the order.
Agency Heads of the Covered Agencies – These include the heads of the EPA, Department of Energy (DoE), Federal Energy Regulatory Commission (FERC), Nuclear Regulatory Commission (NRC), and the specified subcomponents of the Department of the Interior (OSMRE, BLM, BOEM, BSEE, FWS) as well as the United States Army Corps of Engineers (ACE). They are directed to implement sunset rules by coordinating with their DOGE Team Leads and the Office of Management and Budget.
Office of Management and Budget (OMB) Director – Plays a key role in the implementation and oversight process, including reviewing exemptions related to new regulations or amendments.
DOGE Team Leads – Leaders at each agency (as defined in Executive Order 14158) tasked with assisting agency heads in the coordination and implementation of the exercise of these regulatory directives.

Relevance Score: 5 (Directives affect high-level, Cabinet-level officials and agency heads responsible for significant national regulatory actions.)