Possible Trump Administration Moves Towards Deregulation: The Net-Zero Rollback
According to Dan Goldbeck, director at the American Action Forum, “Executive orders will drive the overarching regulatory policy goals of the next administration.”
President-elect Donald Trump won the election on a platform that included rolling back regulations established during the Biden administration, especially those aimed at achieving net-zero emissions in the energy sector.
However, analysts suggest that this task may not be as simple as it sounds and may not be immediately achievable on day one.
The Biden administration has implemented 1,114 new regulations, costing American businesses and consumers $1.8 trillion and leading to an estimated 346 million hours of paperwork, according to the American Action Forum. Undoing these regulations may present challenges for the incoming Trump administration depending on how they were put into effect.
“The process of changing regulations will likely be done on a regulation-by-regulation basis,” said Dan Kish, senior vice president of policy at the American Energy Alliance.
For regulations that have gone through the formal process and have been enacted as “final rules” by agencies, the Administrative Procedures Act (APA) mandates that the cancellation of those rules must also go through a similar process, including a notice and public comment period.
“The Biden administration mandates that bypassed the rule-making process can be quickly taken down,” said Matt Bowman, senior counsel and director of regulatory practice for Alliance Defending Freedom.
Dan Goldbeck, director of regulatory policy at the American Action Forum, highlighted that although executive orders will shape the regulatory policy goals of the next administration, their direct impact on existing rules may be limited.
The Role of Congress and the Courts
There are various options available to the Trump administration to rescind regulations that have gone through the rule-making process. One option is to have Congress overturn them using the Congressional Review Act (CRA) within a specific timeframe.
Since its enactment, the CRA has been used to overturn multiple federal rules, with Congressional Republicans expected to be active in the current scenario.
“Many of the Obama-era regulations that were blocked by Congress indicate that the Trump administration will need to act swiftly to repeal certain rules,” Goldbeck said.
Additionally, Trump’s appointments within federal agencies will play a significant role in determining how regulations are implemented.
Trump recently announced that Elon Musk and Vivek Ramaswamy will oversee a new department focused on reducing regulations and improving government efficiency.
Ultimately, the coordination between Trump’s agencies and the cooperation between regulators and the Department of Justice will be crucial in achieving his deregulatory agenda.
