[Federal Register Volume 90, Number 201 (Tuesday, October 21, 2025)]
[Proposed Rules]
[Pages 48419-48421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19608]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 2, 5, 36, 131, 153, 156, 157, 287, 300, 366, 375, and
385
[Docket No. RM25-14-000]
Implementation of the Executive Order Entitled ``Zero-Based
Regulatory Budgeting To Unleash American Energy''
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Commission is proposing to amend 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.''
DATES: Comments are due November 20, 2025.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways. Electronic filing through http://www.ferc.gov, is
preferred.
Electronic Filing: 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.
[cir] Mail via U.S. Postal Service Only: Addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE, Washington, DC 20426.
[cir] Hand (Including Courier) Delivery: Deliver to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
The Comment Procedures Section of this document contains more
detailed filing procedures.
FOR FURTHER INFORMATION CONTACT:
Richard Lehfeldt, Office of the General Counsel, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202)
502-6592, [email protected].
Karin Herzfeld, Office of the General Counsel, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202)
502-8459, [email protected].
SUPPLEMENTARY INFORMATION:
1. In this Notice of Proposed Rulemaking (NOPR), the Federal Energy
Regulatory Commission (Commission) acts to provide for consideration of
any
[[Page 48420]]
significant adverse comments submitted in response to a companion
direct final rule, issued concurrently with this NOPR. The direct final
rule inserts, into the specific regulations identified therein, a
sunsetting provision that establishes a conditional sunset date that is
one year after the effective date of that rule, and provides that the
Commission will offer the public 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
Code of Federal Regulations and make necessary conforming changes. This
NOPR ensures that the Commission has a proceeding through which it can
consider any significant adverse comments that might be filed in
response to the direct final rule and determine whether to proceed with
finalizing specific sunsetting regulations. Through this action and the
companion direct final rule, 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.
I. Rulemaking Procedure
2. The Commission is publishing this proposed rule concurrently
with a direct final rule in the Rules and Regulations section of this
issue of the Federal Register. Because the Commission does not
anticipate significant public comments on this action and considers it
to be non-controversial, the direct final rule will become effective on
December 5, 2025. However, if the Commission receives significant
adverse comments on any part of the direct final rule by November 20,
2025, then the Commission will publish a document that withdraws any
such part of the direct final rule and will address the comments in a
subsequent final rule. Absent significant modifications to the proposed
revisions requiring republication, the Commission will not initiate a
second comment period on this action.
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.
For a more detailed discussion of the proposed rule changes and
associated analyses, see the direct final rule published in the Rules
and Regulations section of this issue of the Federal Register.
II. Background
4. Executive Order (E.O.) 14270, ``Zero-Based Regulatory Budgeting
to Unleash American Energy,'' \1\ 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, the Natural Gas Act of 1938, and the Powerplant and
Industrial Fuel Use Act of 1978.\2\ 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;'' \3\ or (3) regulations that implement statutes
other than the three specific statutes identified in the E.O.
---------------------------------------------------------------------------
\1\ 90 FR 15643 (Apr. 9, 2025).
\2\ 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.
\3\ 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.''
---------------------------------------------------------------------------
5. 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 the companion
direct final rule, the Commission will also add a sunsetting provision
to those regulations. A sunset date will allow these unused regulations
to roll off the books. At the same time, if evidence emerges in the
interim indicating a continued need for these regulations, the
Commission can extend the sunset date as appropriate. Importantly, the
Commission is also continuing its regulatory reform efforts through
activities consistent with other executive orders, including E.O. 14192
(``Unleashing Prosperity Through Deregulation'') and E.O. 14154
(``Unleashing American Energy'').
6. The sunsetting provision will establish a conditional sunset
date that is one year after the effective date of the direct final rule
and provide that the Commission will offer the public 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 Code of Federal Regulations and make
necessary conforming changes. However, following the opportunity
provided by the direct final rule and this proposed rule for the public
to comment on the regulations' costs and benefits, the Commission may
extend the conditional sunsetting date if warranted.
III. Information Collection Statement
7. Information collection requirements are subject to review by the
Office of Management and Budget (OMB) under section 3507(d) of the
[[Page 48421]]
Paperwork Reduction Act of 1995. OMB's regulations require approval of
certain information collection requirements imposed by agency rules.
Upon approval of a collection of information, OMB will assign an OMB
control number and expiration date. Respondents subject to the filing
requirements will not be penalized for failing to respond to these
collections of information unless the collections of information
display a valid OMB control number.
8. This direct final rule does not implement any changes to the
identified collections. In the event of any resultant regulatory
changes that affect information collections, the Commission will
implement changes to the collections through regular information
collection processes, which include public comment opportunities.
IV. Environmental Analysis
9. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\4\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended. The actions proposed herein
fall within this categorical exclusion in the Commission's regulations.
To the extent that the amendments to any of the regulations herein (or
future rescissions of the regulations) are not procedural in nature,
the amendments may fall within other categorical exclusions in the
Commission's regulations.\8\ Therefore, no Environmental Assessment or
Environmental Impact Statement is required in connection with this
rule.
---------------------------------------------------------------------------
\4\ Reguls. Implementing the Nat'l Env't Pol'y Act, Order No.
486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783
(1987) (cross-referenced at 41 FERC ] 61,284).
---------------------------------------------------------------------------
V. Regulatory Flexibility Act
10. The Regulatory Flexibility Act of 1980 (RFA) \5\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The Commission is not required to perform this sort of analysis if the
proposed activities within the final rule would not have such an
effect. This rulemaking would add a ``sunsetting provision'' to certain
regulations, many of which are outdated seldomly used, or duplicative
with other regulations, and therefore the impact is minimal.
---------------------------------------------------------------------------
\5\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
11. Accordingly, pursuant to section 605(b) of the RFA,\6\ the
Commission certifies that the regulations proposed herein should not
have a significant economic impact on a substantial number of small
entities.
---------------------------------------------------------------------------
\6\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------
VI. Regulatory Planning and Review
12. E.O. 12866 (Regulatory Planning and Review), as amended by E.O.
14215 (Ensuring Accountability for All Agencies) and reaffirmed by
E.O.13563 (Improving Regulation and Regulatory Review), directs
agencies to assess the costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, distributive impacts,
and equity). E.O. 13563 emphasizes the importance of quantifying costs
and benefits, reducing costs, harmonizing rules, and promoting
flexibility. The Office of Information and Regulatory Affairs (OIRA)
has determined this proposed regulatory action is a ``significant
regulatory action,'' under section 3(f) of E.O. 12866, as amended,
though not economically significant under section 3(f)(1). Accordingly,
OIRA has reviewed this proposed regulatory action for compliance with
the analytical requirements of E.O. 12866. In general, this regulatory
action is intended to simplify and improve stakeholders' interactions
with the Commission by eliminating outdated, redundant, or
unnecessarily burdensome requirements in the Commission's existing
regulations. In addition, this final rule is considered a deregulatory
action under E.O. 14192 (Unleashing Prosperity Through Deregulation).
VII. Comment Procedures
13. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
the costs and benefits of the regulations to be conditionally sunset.
Comments are due November 20, 2025. Comments must refer to Docket No.
RM25-14-000, and must include the commenter's name, the organization
they represent, if applicable, and their address in their comments. All
comments will be placed in the Commission's public files and may be
viewed, printed, or downloaded remotely as described in the Document
Availability section below. Commenters on this proposal are not
required to serve copies of their comments on other commenters.
14. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at http://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software must be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
15. Commenters that are not able to file comments electronically
may file an original of their comment by USPS mail or by courier-or
other delivery services. For submission sent via USPS only, filings
should be mailed to: Federal Energy Regulatory Commission, Office of
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of
filings other than by USPS should be delivered to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
VIII. Document Availability
16. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov).
17. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
18. User assistance is available for eLibrary and the Commission's
website during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
By direction of the Commission.
Issued: October 1, 2025.
Debbie-Anne A. Reese,
Secretary.
[FR Doc. 2025-19608 Filed 10-20-25; 8:45 am]
BILLING CODE 6717-01-P