In March, EPA announced 31 major deregulatory actions it planned to undertake, many of which were energy focused and addressed climate change regulations and policies. Allowing time for the Trump administration to get its political appointees in place and develop its priorities, the latest regulatory agenda that was recently published in the Federal Register highlights efforts to scale back or entirely scuttle numerous climate programs. At the heart of these initiatives is the goal of finalizing the repeal of the greenhouse gas (GHG) endangerment finding and vehicle GHG rules by the end of the year.

The GHG endangerment finding is the foundation for all GHG regulations. To be able to regulate GHG emissions under the Clean Air Act, EPA must find that GHG emissions endanger the public health. EPA’s endangerment finding for GHG emissions from vehicles was upheld by the U.S. Supreme Court. EPA then used the GHG endangerment finding for vehicles as the basis for imposing GHG emission regulations on other industries.

GHG’s ‘Mental Leaps’

In repealing the GHG endangerment finding and the vehicle GHG rules, the administration—as indicated in EPA’s draft regulatory impact analysis—would negate the projected benefits of $1.6 trillion that was claimed for the 2007 endangerment finding, reduce regulatory burdens on U.S. industry, and produce net societal benefits. 

As further justification for the proposed repeal, EPA now claims that the Obama administration made several “mental leaps” to conclude that six GHGs (some of which vehicles do not emit) contribute some unspecified amount to climate change.

Furthermore, the Obama administration did not consider the regulations that would flow from the finding and the regulatory costs they would impose. As part of the proposed repeals in the works, electric vehicle mandates are also likely to be abandoned.
Good-Bye to Expensive Reporting Program?

In addition, EPA just released a proposal to end the burdensome and costly GHG Reporting Program (GHGRP). The GHGRP currently requires 47 source categories covering 8,000 facilities in the U.S. to calculate and submit their GHG emissions reporting annually, even though there is no requirement to do so under the Clean Air Act. In a September 12 press release, EPA stated that the GHGRP does nothing to improve air quality, public health, or environmental impacts. 

EPA Administrator Lee Zeldin stated that the GHGRP “costs American businesses and manufacturing billions of dollars, driving up the cost of living, jeopardizing our nation’s prosperity, and hurting American communities. According to EPA, the end of the GHGRP would save U.S. businesses $2.4 billion in regulatory costs without sacrificing air quality. The proposal also “represents a significant step toward streamlining operations, cutting unnecessary red tape, unleashing American energy, and advancing EPA’s core mission of protecting human health and the environment.”

Pushback Will Come

The proposed deregulatory actions impacting climate change regulations are controversial and will be challenged by environmental advocacy groups. This will most likely trigger a series of legal challenges that could ultimately end up in the U.S. Supreme Court. 

Keep in mind that EPA is relying mostly on legal arguments to support the proposals. Accordingly, EPA could be vulnerable on its interpretation of the Clean Air Act. That’s because under the U.S. Supreme Court’s ruling in Loper Bright v. Raimondo, it is now the courts, not EPA, that decide appropriate interpretation when it comes to regulating GHG emissions.

State Side

Even with the dismantling of climate change rules on the federal level, several states have their own GHG emissions regulations and reporting requirements. In addition, many large metalcasting customers have corporate sustainability programs that require vendors and suppliers to provide GHG emissions information that will continue to be an issue for some metalcasting operations. Nevertheless, there is a significant shift away from imposing further regulatory burdens focused on GHG emissions and climate change.

AFS and its Air Quality Committee will continue to monitor climate change regulations and their potential impact on the metalcasting industry. 

AFS members who would like to participate in the AFS Air Quality Committee or other environmental, health and safety committees are encouraged to email Kim Perna at kperna@afsinc.org to be added to the committee roster for critical updates and industry engagement.