Contributed by Isaac Smith, Principal, PPM Consultants
On March 12, 2025, the U.S. Environmental Protection agency (EPA) Administrator Lee Zeldin announced a series of deregulatory actions that were aimed at unleashing American energy, lowering the cost of living, revitalizing the auto industry, and empowering individual states to make their own decisions. In the announcement, the Administrator noted 31 different actions in which the agency will initiate in an attempt to roll back a list of regulations.
The majority of the actions focus on the Power Generation industry, methane and Greenhouse Gas emissions in the Oil and Gas industry, and vehicle emission standards in the Automotive manufacturing industry. While the length of the list was somewhat staggering, so are the number of regulations that have come out of EPA in the last few years. As I wrote in a 2021article entitled, How the Biden Administration Plans to Shape Environmental Policy, a number of the regulatory items the Biden Administration was thought to focus on came true, but the shear number or regulations and the wide-ranging tools the prior Administration used to steer regulations were quite amazing.
Given the vast differences in viewpoints, agendas, and Congressional makeup between the Trump and Biden Administrations, the pendulum was bound to swing the other way, but as with any large-scale change in regulations, there will be a lot of industry personnel and state regulators scratching their heads as to what environmental compliance might look like in the near future. A complete list of the proposed deregulatory actions can be found here.
Deregulatory Summary
The EPA’s deregulation efforts focus heavily on the energy sector, aiming to reduce regulatory burdens and promote energy independence. Key actions include:
- Reconsideration of Power Plant Regulations: Revisiting the Clean Power Plan 2.0 to ease restrictions on power plants;
- Oil and Gas Industry Regulations: Reconsidering rules that regulate methane emissions from the oil and gas industry, including the OOOO b/c regulations;
- Mercury and Air Toxics Standards (MATS): Reevaluating standards that target coal-fired power plants;
- Greenhouse Gas Reporting Program: Revisiting mandatory GHG reporting requirements; and
- Wastewater Regulations: Reconsidering effluent limitations and guidelines for the Steam Electric Power Generating Industry and coal power plants
The EPA’s actions aim to reduce the cost of living by making energy and manufacturing more affordable. Key initiatives include:
- Vehicle Regulations: Reconsidering light-duty, medium-duty, and heavy-duty vehicle regulations that underpin the electric vehicle mandate;
- Endangerment Finding: Revisiting the 2009 Endangerment Finding and related regulations;
- Technology Transition Rule: Reevaluating rules that force companies to use certain technologies, increasing costs on food and semiconductor manufacturing; and
- National Emission Standards: Revisiting multiple National Emission Standards for Hazardous Air Pollutants (NESHAPs) affecting energy and manufacturing sectors.
The EPA also intends to enhance cooperation with states and tribes, giving them more control over environmental regulations. Key actions include:
- Good Neighbor Plan: Ending the plan that expanded federal rules to more states and sectors;
- State and Tribal Implementation Plans: Working to resolve the backlog of plans that the previous administration did not address;
- Exceptional Events Rulemaking: Prioritizing the allowance of prescribed fires within state and tribal plans;
- Science Advisory Board: Reconstituting the Science Advisory Board and Clean Air Scientific Advisory Committee; and
- Coal Ash Program: Expediting state permit reviews and updating coal ash regulations
According to the EPA, these deregulation actions are expected to roll back trillions in regulatory costs and hidden taxes on U.S. families making it more affordable to purchase cars, heat/cool homes, and operate businesses.
Rulemaking Process
However, as required during the proposal and promulgation of any new regulation, in order for the EPA to implement the 31 historic deregulation actions they must follow a structured rulemaking process that includes several key steps:
The EPA begins by drafting detailed proposals for each deregulation action that center around research to understand the implications of the deregulation. Once the proposals are drafted, they undergo an internal review process ensuring they comply with existing laws and regulations. The proposals are also evaluated on a scientific basis for the proposed changes and are assessed for alignment with EPA’s overall policy goals.
Next, the EPA publishes the proposals in the Federal Register, inviting comments, usually over a 30–60-day period, for the public, stakeholders, and experts to submit comments and feedback. After the comment period ends, the EPA reviews all submitted comments analyzing the feedback to identify common concerns and suggestions. The EPA then finalizes the proposals, incorporating necessary changes from the review process, prepares a final version of the deregulation actions and obtains required approvals from EPA leadership and other relevant authorities
Once finalized, the EPA implements the deregulation actions, publishing them in the Federal Register. The EPA also publishes guidance and training to affected industries and stakeholders to ensure compliance with the new regulations.
Legal Challenges and Pushback
As with nearly all new regulations proposed in the last two decades or more, the deregulatory agenda by the Administration will undoubtedly face pushback, both in the news media and courts. Environmental groups and advocacy organizations are expected to challenge the deregulation actions. These groups argue that rolling back regulations will harm the environment and public health.
Additionally, several state governments, particularly those with strong environmental policies, i.e. California, may also file lawsuits against the EPA. Attorneys General from multiple states have previously taken legal action against federal deregulation efforts that they believe undermine environmental protections.
Many environmental statutes, such as the Clean Air Act (CAA) and the Clean Water Act (CWA), contain provisions that allow citizens to sue the EPA if it fails to perform its duties. These citizen suits can be initiated by individuals, organizations, or state governments. Regardless of the deregulatory drivers, given how the divided the U.S. is politically, citizen suits are almost expected.
Lastly, the EPA’s reconsideration of the 2009 Endangerment Finding, which underpins many climate regulations, is likely to face significant legal challenges. Environmentalists and climate scientists argue that the scientific basis for the Endangerment Finding is robust and that any attempt to overturn it will struggle to hold up in court.
Given the strong opposition from environmental groups, state governments, and the legal provisions for citizen suits, it is highly probable that the EPA’s deregulation actions will face legal challenges, which at the very least would delay, if not derail a number of the proposed deregulatory items.
If you would like to discuss the proposed actions, please feel free to contact me at Isaac.Smith@ppmco.com or (251) 266-7921.
Here are a couple of links to relevant documents on this rulemaking.
EPA head announces sweeping plan to revoke dozens of environmental regulations | PBS News