Key Takeaways
President Trump issued four proclamations that exempt for two years chemical manufacturing plants, oil refineries, coal plants, medical device sterilizers, and other companies from Clean Air Act rules set by the Biden administration.
Because the Biden rules were much more stringent than rules set by the Obama administration, plants would have had to endure massive capital investments, making them uneconomical against competitors, or shut down.
By the time the two-year exemptions expire, the rules in question may be permanently removed by the Trump administration.
More than 100 facilities are being provided with exemptions.
Compliance with the Biden rules is also dependent on emissions-control technologies that do not yet exist in a commercially viable form.
The Trump administration is exempting over 100 chemical manufacturing plants, oil refineries, coal plants, medical device sterilizers, and other companies from Clean Air Act rules set by the Biden administration, recognizing that “overly restrictive environmental regulations undermine America’s energy reliability, economic vitality, and national security.” The Trump administration issued four proclamations exempting the facilities from one of four rules for two years. The plan is that by the time the two-year exemptions expire, the rules in question may be removed by the Environmental Protection Agency (EPA). According to the White House, “The exemptions ensure that these facilities within these critical industries can continue to operate uninterrupted to support national security without incurring substantial costs to comply with, in some cases, unattainable compliance requirements.” Even the Biden administration had noted the disruption the rules would cause when it previously said it would consider exempting facilities from a rule to prevent disruptions to supply chains for medical devices.
Due to one of the proclamations, more than 50 chemical manufacturers and oil refineries are exempt from requirements to reduce emissions of certain chemicals, including ethylene oxide and chloroprene. Eight producers of taconite iron ore, used in making steel, are exempt from requirements to reduce mercury emissions by about 33%. These plants are needed in the production of semiconductors and energy. Six coal plants are also exempt from the more stringent restrictions on emissions of mercury, nickel, arsenic, and lead set by the Biden administration, joining 66 other coal plants previously exempted.
On May 7, 2024, Biden’s EPA published a final rule, titled National Emissions Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review, which amended the preexisting Mercury and Air Toxics Standards rule set by the Obama administration to make it more stringent. The Biden rule’s compliance date is July 8, 2027, three years after the rule’s effective date of July 8, 2024. Because the rule requires compliance with standards based on emissions-control technologies that do not yet exist in a commercially viable form, President Trump issued the proclamation for coal plants that allows the exemptions.
In March, the EPA set up a portal allowing companies to request exemptions from nine Clean Air Act rules. Among those exempted are taconite iron ore plants in Minnesota owned by the United States Steel Corp. and six facilities owned by Cleveland-Cliffs Inc. in Minnesota and Michigan. Chemical makers, including Dow Inc. and BASF SE, and refiners such as Phillips 66 and Citgo Petroleum Corp., also received waivers from EPA regulations requiring emissions controls for certain facilities, allowing them to avoid massive capital investments for compliance or shutting down.
With the latest announcement, coal-fired power plants in Ohio, Illinois, and Colorado were exempted from Biden’s climate mandates limiting emissions of mercury. Other coal plants that received exemptions earlier are Montana’s Colstrip Generating Station, North Dakota’s Coal Creek Station, and the Oak Grove plant in Texas. The exemptions also apply to four plants operated by the Tennessee Valley Authority, the nation’s largest public utility. According to the EPA, the presidential exemptions “will bolster coal-fired electricity generation, ensuring that our nation’s grid is reliable, that electricity is affordable for the American people, and that EPA is helping to promote our nation’s energy security.”
President Trump issued executive orders to allow some older coal-fired power plants set for retirement to keep operating due to rising U.S. electricity demand from growth in data centers, artificial intelligence, and electric vehicles. Trump also directed his agencies to identify coal resources and prioritize coal leasing on federal lands, and to lift barriers to coal mining.
Analysis
Ideally, environmental regulations should not be subject to ad hoc exemptions on a firm-by-firm basis, as this undermines the rule of law and creates uncertainty for both industry and the public. Equal treatment under the law requires that all companies operate under the same set of rules, not temporary carveouts granted through executive discretion. Given that the current regulations are unworkable and reliant on nonexistent technologies, the EPA should move swiftly to revoke or revise them through proper administrative channels. Furthermore, Congress should act to codify a more balanced and technologically feasible standard, ensuring clarity, consistency, and long-term legal stability for energy producers and manufacturers alike.
