Consultation · OCC · 24 Apr 2026
The Office of the Comptroller of the Currency proposes to rescind or amend regulations in Title 12 CFR Parts 24, 43, and 128 to align with Executive Order 14219 by eliminating unnecessary or duplicative requirements. The proposal removes minority- and women-owned entity references from public welfare investment rules, eliminates the redundant lead arranger risk retention option for open market collateralized loan obligations, and rescinds duplicative nondiscrimination mandates for Federal savings associations. These amendments streamline compliance burdens for national banks and savings associations while preserving statutory authority and existing market practices.
21See RIN 1904–AF72.
22See https://www.reginfo.gov/public/do/ eAgendaViewRule?pubId=202504&RIN=1904-AF72. 23Petition for Writ of Certiorari at Supreme Court of the United States, AGA v. DOE, No. 25–879 (Jan. 20, 2026). 24 Id. and regulatory principles that underpin the Commercial Water Heater Rule and the Consumer Furnace Rule. In addition, a matter titled ‘‘Procedures, Interpretations, and Policies for Consideration in New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment’’ (‘‘Process Rule’’) appears in the Unified Agenda.21 The Unified Agenda’s abstract states that the Department ‘‘is considering a noticeand-comment rulemaking to amend its Process Improvement Rule to reflect statutory changes as well as innovative, collaborative approaches to reflect more efficient rulemaking.’’ 22 Moreover, the Process Rule was received at OMB on January 9, 2026, and is currently pending review by the Office of Information and Regulatory Affairs. Because changes to the Process Rule and Interpretive Rule could affect how DOE approaches standards rulemakings, amending the compliance dates now would help avoid forcing manufacturers and consumers to make irreversible transition investments while DOE is considering these matters.
C. Amendment of the Compliance
Deadlines Is Warranted Due to Pending Supreme Court Review of These Rules On January 20, 2026, AGA, APGA, NPGA, and NCTP, Inc., doing business as Thermo Products (‘‘Petitioners’’) petitioned the U.S. Supreme Court to review the D.C. Circuit decision upholding DOE’s Consumer Furnace Rule and Commercial Water Heater Rule.23 The petition maintains that the lower court inappropriately deferred to the Department in violation of Loper Bright Enterprises v. Raimondo, 603 U.S. 369, 395 (2024), and the majority erred in analyzing the sections of EPCA that protected performance characteristics. The interests of justice require amendment of the compliance dates for the Commercial Water Heater Rule and the Consumer Furnace Rule pending judicial review. First, there is significant likelihood that Petitioners will succeed on the merits in a challenge of both rules at the Supreme Court.24 Second, if the Court grants certiorari, the briefing could extend for months, and it could be some time before the Court issues an opinion. Hence, a decision may not be issued until 2027, after the compliance date for the Commercial Water Heater Rule. In short, the pending petition for writ of certiorari creates near-term uncertainty for manufacturers and the market. Specifically, it creates uncertainty for manufacturers, distributors, contractors, and consumers who must plan for compliance in advance of the compliance dates. This uncertainty is particularly relevant for the Commercial Water Heater Rule, given the proximity of the current compliance date (October 6, 2026) and the lead times associated with the rule. Finally, an amendment of the compliance dates pending judicial review will not substantially injure other parties or undermine the public interest. In summary, ‘‘[t]here is generally no public interest in the perpetuation of unlawful agency action.’’ Shawnee Tribe v. Mnuchin, 984 F.3d 94, 102 (D.C. Cir. 2021) (internal quotation marks omitted). In conclusion, prompt action by DOE to amend the compliance dates would provide greater regulatory certainty and reduce the risk of disruption and compliance expenditures while Petitioners’ petition for writ of certiorari is pending.
III. Conclusion
For the reasons stated above, Joint Requesters respectfully request that the Department amend the compliance dates for the Commercial Water Heater Rule and the Consumer Furnace Rule. If you have any questions regarding this submission, please do not hesitate to contact the undersigned. Respectfully submitted, /S/ Matthew J. Agen, Chief Regulatory Counsel, Energy, American Gas Association, 400 N Capitol Street NW, Washington, DC 20001, magen@aga.org. /S/ Eric Kurilla, Executive Vice President, Vice President of Operations & Advocacy, American Public Gas Association, 201 Massachusetts Avenue NE, Suite C–4, Washington, DC 20002, ekurilla@apga.org. /S/ Benjamin Nussdorf, General Counsel/Senior Vice President, Regulatory & Industry Affairs, National Propane Gas Association, 1140 Connecticut Ave. NW, Suite 1075, Washington, DC 20036, bnussdorf@npga.org. cc: Michael Helmer, Principal Deputy Assistant Secretary Louis Hrkman, Principal Deput Assistant Secretary Joshua Campbell, Deputy General Counsel for Energy Efficiency and Clean Energy Demonstrations Carolyn Snyder, Deputy Assistant Secretary for the Office of Innovation, Affordability and Consumer Choice. [FR Doc. 2026–08145 Filed 4–24–26; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 24, 43, and 128 [Docket ID OCC–2025–0075] RIN 1557–AF32 Streamlining Regulations Concerning Public Welfare Investments, Open Market Collateralized Loan Obligations, and Federal Savings Association Nondiscrimination Requirements AGENCY: Office of the Comptroller of the Currency, Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: The Office of the Comptroller of the Currency invites public comment on a notice of proposed rulemaking (proposed rule) to rescind or amend certain regulations that are unnecessary, based on anything other than the best reading of the underlying statutory authority, or lacking clear statutory authority, consistent with the criteria set out in the Executive Order titled Ensuring Lawful Governance and Implementing the President’s ‘‘Department of Government Efficiency’’ Deregulatory Initiative. The proposed rule would remove certain references to minority- and women-owned entities; remove the portion of the credit risk retention requirements that provides an alternative compliance option for lead arrangers of open market collateralized loan obligations; and remove certain duplicative non-discrimination requirements for Federal savings associations. DATES: Comments must be received by May 27, 2026. ADDRESSES: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title ‘‘Streamlining Regulations Concerning Public Welfare Investments, Open Market Collateralized Loan Obligations, and Federal Savings Association Nondiscrimination Requirements’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods:
1 90 FR 10583 (Feb. 19, 2025).
2 Id.
3See 12 CFR 24.3.
4For the proposed examples, the primary determinant of whether an investment meets the requirements of § 24.3 would, as in the current rule, continue to be (1) the location of the investment (i.e., in an LMI area or targeted redevelopment area) or (2) the benefit the investment would provide for LMI individuals. 5 79 FR 77602 (Dec. 24, 2014). Go to https://regulations.gov/. Enter Docket ID ‘‘OCC–2025–0075’’ in the Search Box and click ‘‘Search.’’ Public comments can be submitted via the ‘‘Comment’’ box below the displayed document information or by clicking on the document title and then clicking the ‘‘Comment’’ box on the top-left side of the screen. For help with submitting effective comments, please click on ‘‘Commenter’s Checklist.’’ For assistance with the Regulations.gov site, please call 1–866–498–2945 (toll free) Monday–Friday, 9 a.m.–5 p.m. EST, or email regulationshelpdesk@gsa.gov.
6 Id.
7 Id. at 77650.
8 Id. at 77750–1, codified at 12 CFR 43.9. 9 Loan Syndications & Trading Ass’n v. SEC, 882 F.3d 220 (D.C. Cir. 2018). 10 76 FR 48950 (Aug. 9, 2011). 11 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376, 1522 (2010). The Dodd-Frank Act transferred 12 CFR part 528 to the OCC with respect to Federal saving associations and to the Federal Deposit Insurance Corporation (FDIC) with respect to State saving associations. The FDIC republished these regulations at 12 CFR part 390. 12 90 FR 10583 (Feb. 19, 2025). 13The former OTS rule cites to 12 U.S.C. 2810 (disclosure of data by the Department of Housing and Urban Development under 12 U.S.C. 29); 12 U.S.C. 2901 et seq. (Community Reinvestment Act, which does not impose substantive nondiscrimination requirements); 12 U.S.C. 1691 et seq. (Equal Credit Opportunity Act, for which the Bureau of Consumer Financial Protection has exclusive rulemaking authority); and 42 U.S.C. 1981–1982 (civil rights statutes relating to equal rights under the law and the property rights of citizens, which do not grant the OCC rulemaking authority). 14 15 U.S.C. 1691 et seq. 15 42 U.S.C. 3605. 16See Equal Employment Opportunity Act of 1972, Pub. L. 92–261, 86 Stat.103 (1972); Home Mortgage Disclosure Act, 12 U.S.C. 2801 et seq.; Civil Rights Act of 1964, Pub. L. 88–352, 78 Stat. 241 (1964). 17Similarly, on February 3, 2021, the FDIC rescinded and removed 12 CFR part 390, which, as noted above, was applicable to State savings associations. The FDIC based its rescission on the fact that the provision was largely duplicative of other regulations and burdensome to subject State savings associations to additional requirements to which insured State nonmember banks are not subject. 86 FR 8082 (Feb. 3, 2021). 18 44 U.S.C. 3501 et seq. 19The OCC bases the estimate of the number of small entities on the Small Business Administration’s size thresholds for commercial banks and savings institutions (NAICS Code:
522110), and trust companies (NAICS Code:
523991), which are $850 million and $47 million, respectively. Consistent with the General Principles of Affiliation 13 CFR 121.103(a), the OCC counts the assets of affiliated financial institutions when determining whether to classify an OCC-supervised institution as a small entity. The OCC uses December 31, 2024, to determine size because a ‘‘financial institution’s assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.’’ See footnote 8 of the U.S. Small Business Administration’s Table of Size Standards. related ABS transactions.6 The preamble to the final rule explains that for open market CLO transactions, the CLO manager is the appropriate party to hold risk retention.7 As an alternative to the standard options for vertical or horizontal risk retention, the final rule includes a provision to permit the lead arranger in an open market CLO transaction to hold risk retention in lieu of the CLO manager (lead arranger option).8 In 2018, plaintiffs successfully sued the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System to block the final rule’s credit risk retention requirements from applying to CLO managers in open market CLO transactions.9 While the OCC was not a party to the case, it is likely the court’s conclusions would apply to open market CLO managers under the OCC’s risk retention rule. As open market CLO managers are no longer subject to the current risk retention rule, the lead arranger option in 12 CFR 43.9 is now irrelevant. Therefore, the OCC is issuing this proposed rule to rescind the lead arranger option for its credit risk retention regulation and make conforming amendments to crossreferences in part 43.
C. Part 128—Nondiscrimination
Requirements
Consistent with E.O. 14219, the OCC is issuing this proposed rule to rescind its ‘‘Nondiscrimination Requirements’’ regulation for Federal savings associations (FSAs) codified at 12 CFR
part 128.10 The regulation is duplicative
of other legal authorities that address discrimination and lacks clear statutory authority. Additionally, rescinding part 128 would reduce burden for FSAs by removing regulatory requirements that are not applicable to national banks.
Part 128 prohibits FSAs from
engaging in discriminatory practices in connection with: (i) lending and other services, including the purchase of a loan or securities; (ii) applications; (iii) advertising; (iv) appraisals; (v) underwriting; and (vi) employment. These requirements were originally promulgated by the Office of Thrift Supervision (OTS) at 12 CFR part 528 before the OTS’s powers, authorities, rights, and duties were transferred to the OCC pursuant to Title III of the DoddFrank Act.11 E.O. 14219 requires agencies to identify regulations that (1) are based on anything other than the best reading of the underlying statutory authority and (2) implicate matters of social, political, or economic significance that are not authorized by clear statutory authority.12 Twelve CFR part 128 implicates nondiscrimination, which is a matter of social, political, or economic significance, and is not authorized by clear statutory authority. Current part 128 cites to 12 U.S.C. 1464 (the OCC’s general rulemaking powers for FSAs under the Home Owners’ Loan Act) and 12 U.S.C. 5412(b)(2)(B) (the transfer provision for authorities from OTS to the OCC). Twelve U.S.C. 1464 does not address nondiscrimination. Further, the OTS did not have clear statutory authority to promulgate 12 CFR part 528 in the first instance,13 and thus 12 U.S.C. 5412 did not transfer clear statutory authority to the OCC for part 128. Additionally, part 128 largely reiterates the prohibitions on discrimination contained in the Equal Credit Opportunity Act and its implementing regulations,14 the Fair Housing Act and its implementing regulations,15 and other laws concerning nondiscrimination and their implementing regulations.16 Accordingly, part 128 is generally duplicative of other legal authorities that address discrimination and unnecessary.17 Request for Comments The OCC invites comment on all aspects of this proposed rule.
III. Regulatory Analyses
Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) 18 states that no agency may conduct or sponsor, nor is the respondent required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC has reviewed the notice of proposed rulemaking and determined that it would not create any new or revise any existing, collections of information under the PRA. Accordingly, no PRA submissions to OMB will be made with respect to this proposed rule. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., requires an agency, in connection with a proposed rule, to prepare an Initial Regulatory Flexibility Analysis describing the impact of the rule on small entities (defined by the Small Business Administration (SBA) for purposes of the RFA to include commercial banks and savings institutions with total assets of $850 million or less and trust companies with total assets of $47 million or less) or to certify that the proposed rule would not have a significant economic impact on a substantial number of small entities. The OCC currently supervises approximately 609 small entities.19 The OCC estimates that the proposed rule would not have a significant economic impact on a substantial number of small entities, as the proposed rule would rescind or amend existing regulations and does not contain any new mandates. Accordingly, an Initial Regulatory Flexibility Analysis is not required, and
20 5 U.S.C. 553(b)(4). the OCC certifies that the proposed rule would not have a significant economic impact on a substantial number of small entities. Unfunded Mandates Reform Act of 1995 The OCC analyzed the proposed rule under the factors set forth in the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this analysis, the OCC considered whether the proposed rule includes a Federal mandate that may result in the expenditure by State, local, and Tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year (adjusted for inflation). Because the proposed rule would rescind or amend existing regulations and does not contain any new mandates, the OCC estimates that the proposed rule would not result in an expenditure of $100 million or more annually by State, local, and Tribal governments, or by the private sector (adjusted for inflation). The OCC’s estimates that the costs associated with the proposed rule, if finalized as proposed, would be de minimis. Accordingly, the OCC has not prepared the written statement described in
section 202 of the UMRA.
Riegle Community Development and Regulatory Improvement Act of 1994 Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4802(a)), in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, the OCC will consider, consistent with the principles of safety and soundness and the public interest:
(1) any administrative burdens that the proposed rule would place on depository institutions, including small depository institutions and customers of depository institutions and (2) the benefits of the proposed rule. The OCC requests comment on any administrative burdens that the proposed rule would place on depository institutions, including small depository institutions and their customers, and the benefits of the proposed rule that the OCC should consider in determining the effective date and administrative compliance requirements for a final rule. Providing Accountability Through Transparency Act of 2023 The Providing Accountability Through Transparency Act of 2023 20 requires that a notice of proposed rulemaking include the internet address of a summary of not more than 100 words in length of a proposed rule, in plain language, that shall be posted on the internet website www.regulations.gov. The OCC invites public comment on the proposed rule to rescind or amend certain regulations that are unnecessary, based on anything other than the best reading of the underlying statutory authority, or lacking clear statutory authority, consistent with the criteria set out in the Executive Order titled Ensuring Lawful Governance and Implementing the President’s ‘‘Department of Government Efficiency’’ Deregulatory Initiative. The proposed rule would remove certain references to minority- and women-owned entities; remove the credit risk retention requirements for open market collateralized loan obligations; and remove certain duplicative nondiscrimination requirements for Federal savings associations. The proposal and the required summary can be found at https:// www.regulations.gov by searching for Docket ID OCC–2025–0075 and https:// occ.gov/topics/laws-and-regulations/ occ-regulations/proposed-issuances/ index-proposed-issuances.html. Executive Orders 12866 and 14192 Executive Order 12866, as amended, provides that the Office of Information and Regulatory Affairs (OIRA) will review all ‘‘significant regulatory actions’’ as defined therein. OIRA has determined that this proposed rule is a ‘‘significant regulatory action’’ for purposes of section 3(f) of Executive Order 12866. Executive Order 14192, titled ‘‘Unleashing Prosperity Through Deregulation,’’ separately requires that an agency, unless prohibited by law, identify at least ten existing regulations to be repealed when the agency publicly proposes for notice and comment or otherwise promulgates a new regulation with total costs greater than zero. Executive Order 14192 further requires that new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least ten prior regulations. This proposed rule is considered a deregulatory action under Executive Order 14192. List of Subjects 12 CFR Part 24 Community development, Credit, Investments, Low and moderate income housing, Manpower, National banks,
Reporting and recordkeeping requirements, Rural areas, Small businesses. 12 CFR Part 43 Automobile loans, Banks and banking, Commercial loans, Commercial real estate, Credit risk, Mortgages, National banks, Reporting and recordkeeping requirements, Risk retention, Securitization. 12 CFR Part 128 Advertising, Aged, Civil rights, Credit, Equal employment opportunity, Fair housing, Individuals with disabilities, Martial status discrimination, Mortgages, Religious discrimination, Reporting and recordkeeping requirements, Savings associations, Sex discrimination, Signs and symbols. Authority and Issuance For the reasons set forth in the preamble, the Office of the Comptroller of the Currency proposes to amend 12 CFR parts 24, 43, and 128 as follows:
PART 24—COMMUNITY AND
ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS
PART 128—[REMOVED AND
RESERVED]
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The documents this one cites, and the documents that cite it.
“11 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376, 1522 (2010).”
“The OCC has conducted a review of its existing regulations for consistency with the criteria set out in Executive Order 14219 (E.O. 14219), Ensuring Lawful Governance and Implementing the President’s ‘‘Department of Government Efficiency’’…”
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