Zero-Based Regulatory Budgeting: Genius or a High-Stakes Political Gamble?
President Trump’s “Zero-Based Regulatory Budgeting to Unleash American Energy“ is the latest in a whirlwind of executive orders aimed at reshaping the energy sector. The policy promises to streamline bureaucracy, boost innovation, and modernize outdated rules — all while claiming to prioritize sustainability. But is this bold move a stroke of genius or reckless politics? Like a river carving a new path, it’s fierce, but it could also break the bank if not managed properly.
What’s Zero-Based Regulatory Budgeting?
Imagine the regulatory system as an overgrown forest. Zero-based budgeting is like sending a team to clear out the deadwood — removing outdated or redundant rules to make room for new growth. Here’s how it works:
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Automatic Expiration: Existing regulations will sunset unless reviewed by September 30, 2025. New rules will expire within five years unless actively renewed.
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Public Input: Agencies must ask the public whether these “trees” (regulations) are still providing shade — or if they’re just blocking sunlight.
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Targeted Agencies: Key players like the EPA, Department of Energy (DoE), and Federal Energy Regulatory Commission (FERC) are tasked with implementing these changes.
The Upside
If executed properly, this policy could create fertile ground for growth in the energy sector:
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Lower Costs: Businesses could save millions by eliminating outdated compliance requirements.
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Encouraging Innovation: A streamlined regulatory framework might attract investment in cutting-edge technologies like renewables and advanced nuclear systems.
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Public Power: By requiring public input, agencies ensure regulations reflect current needs — not relics of a bygone era.
But Wait — There’s More (Executive Orders)
This initiative is part of a rushing flood of executive actions from the President. His administration is moving fast – perhaps too fast…
President Trump’s administration has pushed forward, issuing executive order after executive order — from deregulation mandates to sweeping changes in healthcare and immigration.
In the energy space, recent executive orders include:
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Rolling Back EPA Restrictions: Loosening pollution controls on coal plants under the banner of “energy security.”
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Blocking State Climate Policies: Limiting states’ ability to implement stricter climate regulations, reinforcing federal control over energy policy.
These actions are part of Trump’s broader goal to restore “American energy dominance.” However, critics cite that this rapid-fire approach risks undermining environmental sustainability and creates uncertainty for industries reliant on long-term planning. The question remains: Is this decisive leadership or a recipe for instability?
Time will tell…
Read the full Executive Order here.
And here’s the WhiteHouse.Gov for the latest on Trump’s rapid-fire actions.
