Energy Department Plans $11 Billion Rollback of 47 Regulations

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Key Takeaways

  • The DOE plans to eliminate or modify 47 regulations, claiming $11 billion in savings.
  • Deregulatory actions target appliance standards, administrative burdens, DEI grant requirements, and more.
  • Fossil fuel and energy cooperatives broadly support the initiative for reducing compliance costs.
  • Environmental and civil rights organizations warn of long-term economic, environmental, and social risks.
  • The rule changes remain subject to public comment and potential legal and state-level responses.
  • Analysts warn of “regulatory whiplash” for corporations balancing state, federal, and global climate obligations.

In what it has labeled the most extensive deregulatory effort in its history, the U.S. Department of Energy (DOE) announced on May 12, 2025, its intention to rescind or modify 47 regulations under President Trump’s “Zero-Based Regulation to Unleash American Energy” executive order. The proposal is expected to save an estimated $11 billion and cut over 125,000 words from the Code of Federal Regulations, according to DOE estimates.

The move, introduced by U.S. Secretary of Energy Chris Wright, was positioned as a cornerstone of the administration’s drive to remove barriers that “restrict consumer choice and increase costs for the American people.” Wright stated, “Thanks to President Trump’s leadership, we are bringing back common sense — slashing regulations meant to appease Green New Deal fantasies.”

Scope of Deregulatory Actions

The proposed actions span consumer appliance standards, building codes, energy production requirements, and administrative procedures. Significant measures include the rescission of energy efficiency standards for products such as microwave ovens, faucets, dehumidifiers, and dishwashers, as well as the elimination of greenhouse gas voluntary reporting programs and biofuel production incentives.

The DOE also plans to withdraw regulations supporting minority business enterprises, rescind nondiscrimination requirements in federally assisted programs, and delay compliance for federal agencies under the Clean Energy Federal Building Rule.

Support from Fossil Fuel and Energy Sectors

Mike Sommers, President and CEO of the American Petroleum Institute (API):


"We applaud the House Ways and Means Committee for their hard work in crafting a tax plan that supports American energy leadership. As this important process continues in Congress, we look forward to working with policymakers on a final, pro-growth tax package that enhances the pro-investment policies, accelerates innovation and advances global competitiveness." 

While not directly commenting on the DOE's recent deregulatory actions, Darren Woods, CEO of ExxonMobil has previously emphasized the importance of regulatory consistency. He noted, "I don’t think the stops and starts are the right thing for businesses. It is extremely inefficient. It creates a lot of uncertainty."

Criticism from Environmental and Equity Advocates

Conversely, environmental and consumer groups have raised alarms. The Appliance Standards Awareness Project warned that rolling back appliance efficiency standards will drive up household energy and water costs over time.

Andrew deLaski, Executive Director, stated:

"If this attack on consumers succeeds, President Trump would be raising costs dramatically for families as manufacturers dump energy- and water-wasting products into the market. Fortunately, it's patently illegal, so hold your horses."

Large energy companies expressed caution. While they welcome the reduction of certain administrative burdens, some warned about possible long-term risks. 

Mackie McCrea, co-CEO of Energy Transfer, acknowledged the necessity of regulation but advocated for a balanced approach, stating, "We're not arguing that we don't need to be regulated. But what we're asking for is reasonable, not onerous regulation."

Outlook for Implementation

While the DOE’s announcement is a major milestone, the regulatory changes remain subject to a public comment period and potential legal challenges. Industry analysts are closely watching the balance between deregulation and potential state-level responses that may introduce new local standards in absence of federal oversight.

The actions also come amid rising global energy demand and the parallel challenge of meeting corporate and municipal climate commitments. 

The DOE’s initiative underscores a fundamental shift in U.S. federal energy policy toward deregulation and market-driven energy strategies. Supporters hail it as a long-overdue move to unleash domestic energy potential and reduce costs. Critics warn that the social, environmental, and financial costs may outweigh the intended benefits.

Environment + Energy Leader