Client Alert: EPA Announces Largest Deregulatory Initiative in U.S. History

/ KERAMIDA Inc./

On March 12, 2025, the U.S. Environmental Protection Agency (EPA) announced a comprehensive deregulatory initiative, marking the largest such initiative in the agency's history and a significant shift in federal environmental policy. EPA Administrator Lee Zeldin detailed 31 actions aimed at reducing regulatory burdens across various sectors. EPA’s efforts to evaluate, re-write, publish and issue the regulations under the 31 targeted categories, are expected to take months, if not years. 

Key Actions

  • Energy Sector: The EPA plans to reconsider regulations affecting power plants, including the "Clean Power Plan 2.0," and rules impacting the oil and gas industry, such as the New Source Performance Standards (NSPS) for the oil and natural gas sector (commonly referred to as OOOO b/c). The agency will also review the Mercury and Air Toxics Standards (MATS) targeting coal-fired power plants. The EPA’s mandatory Greenhouse Gas Reporting Program will also be reconsidered.

  • Automotive Industry: The agency intends to reassess vehicle emissions standards set during the previous administration, which were designed to promote electric vehicle adoption.

  • Manufacturing and Chemical Sectors: The EPA will review air quality regulations affecting manufacturing and chemical industries, including National Emission Standards for Hazardous Air Pollutants (NESHAPs), and will reevaluate the Risk Management Program rule, which imposes safety requirements on facilities handling hazardous chemicals.

Two issues of high concern for many industries include the reconsideration of the PM2.5 rule and the reconsideration of the greenhouse gas (GHG) reporting rule.  

  • PM 2.5 National Ambient Air Quality Standards (NAAQS):
    The EPA has announced a reconsideration of the PM 2.5 rule. However, changes are unlikely to occur quickly. The agency has not yet determined whether it will rescind, vacate, or delay the current rule, and any modifications will require a comprehensive rulemaking process with notice and comment.

  • Greenhouse Gas (GHG) Reporting Rule:
    The e-GGRT reporting platform is currently down, and while no official action has been finalized, EPA officials have indicated an extension of the reporting deadline is likely. EPA officials also suggest that the Agency is not eliminating GHG reporting but is considering significant revisions to the rule.

Implications for Stakeholders

  • Regulatory Compliance: As the EPA revisits existing regulations, businesses should anticipate changes in compliance requirements. Staying informed about these developments is crucial for adjusting operational practices accordingly.

  • Legal Considerations: The proposed rollbacks may be challenged by environmental advocacy groups and state governments. Companies should monitor litigation trends that could impact the implementation of these deregulatory actions.

  • Strategic Planning: Organizations in the energy, automotive, manufacturing, and chemical sectors should evaluate how these regulatory changes might affect their long-term strategies, particularly concerning investments and sustainability initiatives.

KERAMIDA is closely monitoring the deregulatory actions and can help our clients balance compliance obligations with operational objectives. If you have questions about how the changes may affect your business, please contact us to speak with one of our environmental or sustainability compliance professionals today.

Contacts

John Wellspring
Vice President, Air & Environmental Compliance Services
KERAMIDA Inc.

Contact John at: jwellspring@keramida.com

Anisa Chowdhury, CPA, CA
Vice President, Corporate Sustainability & Assurance
KERAMIDA Inc.

Contact Anisa at: achowdhury@keramida.com