Day One: Orders on "Regulatory Freeze", AI, Climate/Environment

KPMG Insights

Swift Actions: Establishment of acting agency leadership and the issuance of new Executive actions and orders across an array of policy areas (e.g., immigration, DEI and energy).
More Coming: Expect a continued flurry of “Day One” actions and orders across additional policy areas in the coming week(s). Increasing regulatory patchwork across federal, state and global.
Revised Course: Agency leadership changes and Administration directives will increase short-term disruption to assess and implement.
Legal Actions: Expect legal activity against new and evolving Administration actions.

Consistent with a desire for rapid policy shifts, the new Administration set forth an initial set of Day One executive orders and memorandums. These actions include designation of acting agency leadership (e.g., SEC, FTC, FERC) and the recission of 67 prior Administration Executive Orders and 11 memorandums. This Regulatory Alert recaps actions related to:

“Regulatory Freeze”
AI
Climate/Environment

“Regulatory Freeze”

Type

Action

Description

New

Memorandum

“Regulatory Freeze Pending Review”

Instructs all executive departments and agencies:

Not to propose or issue any rule until reviewed and approved by the new Administration agency leaders.
To consider postponing for 60 days any rules that have been issued (in any manner) but have not yet taken effect.
To consider opening/re-opening a comment period.
To consider further delaying rules and/or publishing proposed rules beyond the 60 days.

Repeal/Rescind

EO 14094

“Modernizing Regulatory Review”

Amended the definition of a “significant regulatory action,” including the dollar threshold for annual effect on the economy.
Increased processes to obtain public input on regulatory actions.
Required regulatory analysis to recognize “distributive impacts and equity”.

Type

Action

Description

Repeal/Rescind

EO 14110

“Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”

To advance and govern the development and use of AI in accordance with eight principles and priorities (safety, security, privacy, civil rights, consumer/worker protections, innovation, competition, national security).
Provided for notification to government when developing powerful models that could affect national security, the economy or public health, and to report on testing results.
Directed agencies to develop standards and metrics to test AI systems, including provisions for limiting bias.

Climate/Environment

Type	Action	Description
New	EO	“Putting America First in International Environmental Agreements” Withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change; immediately cease or revoke any financial commitment made by the U.S. under this framework. Revocation of the U.S. International Climate Finance Plan, including direction to departments and agencies to report on actions to revoke or rescind policies implementing this plan.
	EO	“Declaring a National Energy Emergency” To facilitate a “reliable supply of energy” and protect the integrity of the electrical grid in support of increasing demand, technological innovation, and national security. Directs executive departments and agencies to exercise emergency authorities to facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources, including, but not limited to, on Federal lands. Expedites the completion of all authorized and appropriated infrastructure, energy, environmental, and natural resources projects.
	EO	“Unleashing American Energy” Directs agencies to suspend, revise, or rescind regulatory actions that may impede development or use of domestic energy resources, including oil, natural gas, coal, hydropower, biofuel, critical minerals, and nuclear energy resources. Provides for expedited permitting, approvals for liquified natural gas exports. Terminates the “Green New Deal” and pauses disbursement of funds under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, including funds for electric vehicle charging stations.
	EO	“Unleashing Alaska’s Extraordinary Resource Potential” Intent to maximize the development and production of natural resources on federal and state lands within Alaska. Directs executive departments and agencies to rescind, revoke, revise, amend, defer, or grant exemptions from any and all regulations, orders, guidance documents, policies, and any other similar agency actions that are inconsistent with the policy.
Repeal/Rescind	EO 13990	“Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis” Policy to promote and protect public health and the environment, including clean air and water, reduce GHG emissions, bolster resilience to climate change, and prioritize environmental justice. Requires federal department and agencies to review and rescind rules in conflict with these policies, especially with regard to emissions standards (e.g., methane) and fuel standards.
	EO 14008	“Tackling the Climate Crisis at Home and Abroad” Establishes climate considerations as an essential element of U.S. foreign policy and national security; commits the U.S. to work with other countries to “put the world on a sustainable pathway”.
	EO 14027	“Establishment of the Climate Change Support Office” Office within Department of State to lead diplomatic engagement on climate change and to ensure climate change is integrated into all U.S. foreign policy decisions.
	EO 14030	“Climate-Related Financial Risk” Requires consistent, clear, intelligible, comparable and accurate disclosure of climate-related financial risk, including both physical and transition risk.
	EO 14082 EO 14096	“Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022” “Revitalizing Our Nation’s Commitment to Environmental Justice for All” Priorities include achieving climate goals to reduce GHG emissions and advancing environmental and climate justice. Agencies must take action to make achieving environmental justice part of their mission, including addressing disproportionate and adverse human health and environmental effects (including risks) and hazards of Federal activities, including those related to climate change and cumulative impacts of environmental and other burdens on communities.