In an effort to remove “outdated regulations that serve as a drag on progress,” “stimulate innovation and deliver prosperity for everyday Americans,” and ensure that regulations “serve the public good,” President Trump today signed an Executive Order on “Zero-Based Regulatory Budgeting to Unleash American Energy,” which directs agencies including the Bureau of Ocean Energy Management (BOEM), Bureau of Safety and Environmental Enforcement (BSEE), Fish & Wildlife Service (FWS), Environmental Protection Agency (EPA), and U.S. Army Corps of Engineers (USACE) to incorporate a sunset provision into their regulations on energy production, to the extent permitted by law.
The sunset provision requirement applies to all regulations issued under the Outer Continental Shelf Lands Act (BOEM, BSEE), Energy Policy Act of 2005 (BOEM), Marine Mammal Protection Act (FWS), Endangered Species Act (FWS), and Magnuson-Stevens Act (FWS), among other statutes. EPA and USACE have until May 9, 2025 to provide a list of statutes vesting them with regulatory authority that are subject to the Executive Order. The Executive Order does not apply to regulatory permitting regimes authorized by statute, in order to “ensure certainty for long-term development projects.”
For all regulations issued under the applicable statutes identified in the Executive Order and by EPA and USACE, a sunset rule must be issued by Sept. 30, 2025 that includes a conditional sunset of 1 year from the effective date of the sunset rule for those regulations (conditional sunset date may be extended for up to 5 years as many times as is deemed appropriate). Absent affirmative action to extend a rule within the 1 year conditional sunset date, the regulation will cease to be effective on that date.
Sunset rules for existing regulations will include a commitment to provide a public comment opportunity prior to the rule’s conditional expiration date, and new regulations will include a conditional sunset date not more than 5 years in the future, to the maximum extent consistent with law.