Deregulation Strategy Promises Huge Savings and Major Energy Standards Shift

Department of Energy sign outside a government building.

The U.S. Department of Energy’s decisive move to cut regulatory red tape promises a revolutionary change in American energy, but what will these deregulations mean for the average citizen?

Quick Takes

The Department of Energy has proposed eliminating or reducing 47 guidelines.
This deregulatory action aims for $11 billion in savings and will cut over 125,000 words from regulations.
The initiative aligns with President Trump’s “Zero-Based Regulation to Liberate American Energy” directive.
Energy Secretary Chris Wright emphasized the rapid progress of deregulation in just 110 days.

Comprehensive Deregulation Announced

The U.S. Department of Energy announced a major deregulation initiative on May 12, 2025. This strategy proposes the elimination or reduction of 47 existing energy guidelines. The primary aim is to rejuvenate the energy sector while reducing consumer costs. Aligning with President Donald Trump’s executive order for zero-based regulation, this bold move could unburden the American energy consumer from outdated standards. The directive seeks not just cost savings, but also a reclamation of the United States’ leadership in global energy discussions.

The initiative promises an estimated $11 billion in savings and slashes more than 125,000 words from regulatory texts. The focus is on restoring consumer choice, lowering costs, and emphasizing the country’s energy sector as a pivotal player globally. President Trump’s witness to the efficacy of harmonizing commerce and energy directives reinforces his administration’s intention to prioritize deregulation. Energy Secretary Chris Wright noted the administration’s unwavering commitment to deliver meaningful reforms within a narrowly defined time frame.

Priority Actions and Goals

This comprehensive deregulation effort will encompass significant changes, including alterations to appliance standards, construction regulations, and measures related to diversity and inclusion requirements for grant recipients. Procedures for the import and export of natural gas and regulations governing minority business loan conditions related to DOE contracts will be streamlined. These steps reveal a clear intention to revert to essential energy production and development.

Current plans include rescinding energy conservation standards for various appliances and repealing programs geared towards schools, hospitals, and buildings funded by government grants. These proposals showcase an intent to revoke and rewrite past climate policies to establish impactful, long-term changes in how energy is produced and consumed.

Today, the DOE launched the LARGEST one-day deregulatory action in U.S. history — smashing all records.

We slashed the red tape, eliminating 47 regulations. NEVER have so many harmful regulations been removed in ONE SINGLE DAY. pic.twitter.com/TlBvRPL41u

— U.S. Department of Energy (@ENERGY) May 12, 2025

Implications on Climate Strategy

The administration’s strategy seeks to reconfigure existing climate policies, withdrawing from the Paris Agreement and pausing offshore wind power activities. The DOE’s deregulatory actions include cutting funding for climate-focused organizations and eliminating renewable energy incentives. Seventeen states have launched lawsuits against the federal government over the offshore wind power prohibition. These are seen as aligned with the administration’s broader agenda to emphasize traditional energy resources and reform previous environmental policies.

“Thanks to President Trump’s leadership, we are bringing back common sense — slashing regulations meant to appease Green New Deal fantasies, restrict consumer choice, and increase costs for the American people. Promises made, promises kept,” stated Secretary Wright.

The DOE released a comprehensive list detailing nearly 50 actions taken to achieve this ambitious deregulatory goal. Proposed changes include rescinding second-tier energy standards, streamlining regulatory application processes, and removing certain consumer goods from rigorous compliance scrutiny. The landscape of American energy may soon see a liberalization that could redefine the dynamics of energy usage and consumer affairs alike.