U.S. Energy Department Aims for Billion-Dollar Savings with Bold Regulatory Changes

Gavel and hundred dollar bills on table.

The U.S. Department of Energy unveils a sweeping plan to cut regulations, aiming to save $11 billion and solidify America’s energy sector dominance.

Key Takeaways

The DOE proposes to cut or reduce 47 regulatory guidelines, saving $11 billion and over 125,000 words from federal codes.
The initiative aligns with President Trump’s executive order, aiming to bolster consumer freedom and energy sector enhancement.
Plans include altering appliance standards, construction regulations, and streamlining energy production policies.
Energy Secretary Chris Wright credits fast regulatory cuts to concentrated efforts over 110 days.

Historic Deregulation Initiative

The Department of Energy announced a historic regulatory cut on May 12, 2025, intending to reduce or eliminate 47 regulatory requirements. Officials estimate this initiative will save $11 billion for the American taxpayers while also removing over 125,000 words from the Code of Federal Regulations. This deregulation effort supports President Trump’s executive order, “Zero-Based Regulation to Unleash American Energy,” aiming for a more liberated, consumer-focused energy policy.

Energy Secretary Chris Wright emphasized the unprecedented speed of these changes, stating, “While it would normally take years for the Department of Energy to eliminate just a few regulations, the Trump Administration assembled a team working tirelessly to reduce costs and get results for the American people in just over 110 days.” The swift regulatory reduction is seen as a milestone achievement for the Trump administration.

Major Policy Changes and Impacts

The DOE’s proposal involves sweeping changes to energy policies. Key among these are amendments to appliance standards and building regulations, along with streamlining natural gas import/export procedures. The department aims to reduce costs, restore consumer choice, and ensure the nation’s energy policies are more cost-effective and competitive. Also included are modifications to diversity, equity, and inclusion requirements tied to grant recipients.

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

“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.

Some of the notable actions include overturning renewable energy incentives, eliminating water and energy efficiency standards, and repealing grant programs for local government facilities. The initiative marks the largest deregulation effort in the DOE’s history, demonstrating a strong federal commitment to reducing unnecessary regulations.

Future Outlook and Strategic Goals

With the DOE’s extensive list of 47 actions, including rescinding energy conservation standards and streamlining administrative procedures, the administration seeks to invigorate the energy sector. This approach reinforces President Trump’s agenda to reverse previous climate policies, including stepping away from the Paris Agreement and halting offshore wind power development.

Facing some opposition, several states have filed lawsuits against federal positions such as the offshore wind power ban. Despite this, the administration remains firm in its agenda to shift energy policy priorities, focusing on traditional energy sectors and asserting national energy independence.