Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy”

<RULE> DEPARTMENT OF ENERGY <SUBAGY>Federal Energy Regulatory Commission</SUBAGY> <CFR>18 CFR Parts 2, 5, 36, 131, 153, 156, 157, 287, 300, 366, 375, and 385</CFR> <DEPDOC>[Docket No. RM25-14-000; Order No. 914]</DEPDOC> <SUBJECT>Implementation of the Executive Order Entitled “Zero-Based Budgeting To Unleash American Energy”</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Federal Energy Regulatory Commission. <HD SOURCE="HED">ACTION:</HD> Direct final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Commission is revising its regulations to insert a conditional sunset date into certain regulations in response to Executive Order (E.O.) 14270, “Zero-Based Regulatory Budgeting to Unleash American Energy.” </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This rule is effective December 5, 2025, unless significant adverse comments are received by November 20, 2025. If any part of the direct final rule is withdrawn as a result of such comments, timely notice of the withdrawal will be published in the <E T="04">Federal Register</E> . </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> Comments, identified by docket number, may be filed in the following ways. Electronic filing through <E T="03">http://www.ferc.gov,</E> is preferred. • <E T="03">Electronic Filing:</E> Documents must be filed in acceptable native applications and print-to-PDF, but not in scanned or picture format. • For those unable to file electronically, comments may be filed by USPS mail or by hand (including courier) delivery. ○ <E T="03">Mail via U.S. Postal Service Only:</E> Addressed to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE, Washington, DC 20426. ○ <E T="03">Hand (Including Courier) Delivery:</E> Deliver to: Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Richard Lehfeldt, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6592, <E T="03">richard.lehfeldt@ferc.gov.</E> Karin Herzfeld, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8459, <E T="03">karin.herzfeld@ferc.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> 1. In this direct final rule, the Federal Energy Regulatory Commission (Commission) inserts, into the specific regulations identified herein, a sunsetting provision that establishes a conditional sunset date that is one year after the effective date of this rule, and provides an opportunity to comment on the costs and benefits of the regulations to be conditionally sunset prior to the sunset date. Following the sunset date, the Commission will consider sunset regulations to no longer be effective, will not seek to enforce sunset regulations, and will remove the sunset regulations from the <E T="03">Code of Federal Regulations</E> and make necessary conforming changes. Through this action, the Commission responds to Executive Order (E.O.) 14270, “Zero-Based Regulatory Budgeting to Unleash American Energy,” and sunsets outdated and unnecessary regulations to eliminate unwarranted regulatory burdens and better harmonize the Commission's regulations with its underlying statutory authorities. <HD SOURCE="HD1">I. Rulemaking Procedure</HD> 2. The former Administrative Conference of the United States (ACUS) endorsed use of the direct final rule process as a means for expediting rulemaking. <SU>1</SU> <FTREF/> A direct final rule is a regulatory document that is used for non-controversial regulatory amendments. The direct final rule process allows an agency to issue a rule without having to go through the review process twice ( <E T="03">i.e.,</E> at the proposed and final rule stages), while at the same time offering the public the opportunity to challenge the agency's view that the rule is non-controversial. As explained below, and in keeping with E.O. 14270, “Zero-Based Regulatory Budgeting to Unleash American Energy,” this rulemaking would add a “sunsetting provision” to 53 outdated, seldomly used, or duplicative regulations. Therefore, because the Commission does not anticipate significant public comments on this rulemaking and considers it to be non-controversial, the Commission is using the “direct final rule procedure” for this rule. The amendments are effective on December 5, 2025. However, if the Commission receives significant adverse comments on any part of this direct final rule by November 20, 2025, then the Commission will publish a document that withdraws any such part of this action and will address the comments received in a subsequent final rule as a response to the companion proposed rule published in the Proposed Rules section of this issue of the <E T="04">Federal Register</E> or take other action as appropriate. Absent significant modifications to the proposed revisions requiring republication, the Commission will not initiate a second comment period on this action. Comments received on this direct final rule will also be considered comments on the companion proposed rule. <FTNT> <SU>1</SU>   <E T="03">See</E> ACUS Recommendation 95-4, Procedures for Non-controversial and Expedited Rulemaking, 60 FR 43110 (Aug. 18, 1995). </FTNT> 3. A significant adverse comment is a comment where the commenter explains why the rule (or part of the rule) would be inappropriate, including challenges to the rule's underlying premise or approach, or would be ineffective or unacceptable without a change. A comment is adverse and significant if: (1) The comment opposes the rule (or part of the rule) and provides a reason sufficient to require a substantive response in a notice-and-comment process. For example, a substantive response is required when: (a) The comment causes the Commission to reevaluate (or reconsider) its position or to conduct additional analysis; (b) The comment raises an issue serious enough to warrant a substantive response to clarify or complete the record; or (c) The comment raises a relevant issue that was not previously addressed or considered by the Commission. (2) The comment proposes a change or an addition to the rule, and it is apparent that the rule would be ineffective or unacceptable without incorporation of the change or addition. (3) The comment causes the Commission to make a change (other than editorial) to the rule. 4. Each of the amended regulations herein operates independently and the sunsetting of each regulation is not dependent on the sunsetting of any other regulation in this direct final rule. Thus, if any section, subsection, sentence, or other provision of this direct final rule is withdrawn by the Commission pursuant to the direct final rule procedure as set forth in this rulemaking, or if any such section, subsection, sentence, or other provision of this rulemaking is found to be invalid or unenforceable, such action or determination shall not affect the validity or enforceability of any other provision of this direct final rule which can otherwise be enforced. The Commission has considered the provisions in this direct final rule, both individually and in their totality, and intends for the remaining sunset provisions as finalized to remain in full force and legal effect. <HD SOURCE="HD1">II. Background</HD> 5. E.O. 14270, “Zero-Based Regulatory Budgeting to Unleash American Energy,”  <SU>2</SU> <FTREF/> directs the Commission to issue a rule inserting a conditional sunset date into each of its regulations that are in effect as of the date of the E.O. and were issued in whole or in part pursuant to the following statutes, as amended: the Federal Power Act of 1935 (FPA), the Natural Gas Act of 1938 (NGA), and the Powerplant and Industrial Fuel Use Act of 1978 (PIFUA). <SU>3</SU> <FTREF/> The E.O. describes the conditional sunset date for covered regulations to be one year after the effective date of the rule. The E.O. directs the Commission to issue the rule “to the extent consistent with applicable law” and provides that the E.O. does not apply to “regulatory permitting regimes authorized by statute.” This rule identifies regulations ripe for sunsetting that do not fit into one or more of the following three categories as covered by the E.O.: (1) regulations that cannot be sunset “consistent with applicable law” because they are necessary to fulfill the Commission's statutory mandates to ensure reliable, safe, secure, and economically efficient energy for consumers at a reasonable cost; (2) regulations that are part of the Commission's “regulatory permitting regimes authorized by statute;”  <SU>4</SU> <FTREF/> or (3) regulations that implement statutes other than the three specific statutes identified in the E.O. <FTNT> <SU>2</SU>  90 FR 15643 (Apr. 9, 2025). </FTNT> <FTNT> <SU>3</SU>  E.O. 14270 also directs the Commission, to the maximum extent consistent with law, to include a conditional sunset date in new regulations that would be covered by the E.O. Thus, the Commission will include a conditional sunset date in future regulations to which the E.O. would apply, consistent with the approach taken herein. </FTNT> <FTNT> <SU>4</SU>  For purposes of implementing this E.O., regulations that provide standards and requirements for Commission license and permit holders or applicants constitute the Commission's “regulatory permitting regime.” </FTNT> 6. Consistent with the goals of the E.O., this rule also identifies regulations that fall into one or more of the above three categories, but similarly are not being used or no longer serve their original purpose. As explained in section III, “Discussion,” of this document, the Commission will also add a conditional sunset date to those regulations. A sunset date ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 89k characters. 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