Trump Cuts EPA Regulations on the Plastics Industry

The Trump administration, based on a provision in the Clean Air Act, approved a two-year partial waiver of certain environmental regulations, which had a significant impact on the plastics and manufacturing industries.

The White House stated that these recent regulatory exemptions granted by the Environmental Protection Agency (EPA) affect multiple industrial sectors within the plastics and manufacturing supply chains. The exemption allows more than 170 facilities nationwide to forgo compliance with federal requirements on toxic chemical emission reductions.

"Maintaining a strong domestic chemical industry is crucial for ensuring and supporting the supply chain of our country's economy and reducing the nation's external dependence on key materials," the relevant document states. "As competitors expand their influence on key inputs, continuous domestic production is not only vital for economic resilience but also for military readiness, public health, and national emergency capabilities."

The Trump administration also granted similar exemptions to medical sterilization facilities using ethylene oxide, allowing them to avoid complying with stricter emission standards.

Key Exemptions Affecting the Plastics Industry

The biggest impact on the plastics and medical device industries is that about 40 medical device sterilization plants have been granted exemptions. These plants were originally required to reduce ethylene oxide emissions by 90%. Although ethylene oxide is classified as a carcinogen, it is indispensable in the sterilization process.

In addition, more than 50 chemical manufacturers and refineries have been granted exemptions and are not required to comply with regulations on reducing emissions of toxic chemicals such as ethylene oxide and chloroprene, both of which are widely used in the production processes of various polymers and elastomers.

EPA's Exemption Reasons

When defending these exemptions, the EPA stated that there are technical limitations in implementing the relevant regulations, and the exemptions align with national security interests. The exemption for sterilization facilities particularly reflects concerns about maintaining adequate processing capacity for medical equipment.

Other industries that have received regulatory easing include:

- Coal-fired power plants - Nearly 70 facilities are exempt from complying with the 2024 updates to the Mercury and Air Toxic Standards.

- Eight facilities of pyrite iron ore processing plants have been granted exemptions and are not required to comply with mercury emission reduction requirements.

Industry Response

The American Chemistry Council (ACC) welcomed this initiative, stating that it “appropriately recognizes the critical role of the strong chemical manufacturing industry in meeting advanced manufacturing needs within our country’s overall infrastructure and supply chains.”

The American Chemistry Council believes that Trump's move is a necessary relief from the "concerning aspects of the Biden administration's regulations." The council states that the Biden administration's regulations require significant capital expenditures and, due to unrealistic compliance deadlines, pose a risk of plant shutdowns.

"The American Chemistry Council represents leading companies in the chemical industry, a domestic sector valued at $633 billion that directly employs over 550,000 people," the organization stated. "Our members are operating their manufacturing facilities responsibly to ensure the safety and health of the communities in which they operate, as well as their employees and customers."

Industry Progress and Concerns

The American Chemistry Council emphasized that recent "Responsible Care" data show the industry has made progress in safety and environmental performance indicators, including "significantly reducing ethylene oxide emissions that have been overlooked by the Biden administration."

"We thank EPA Administrator Lee Zeldin for bringing this important issue to the White House, and we appreciate the President for granting these exemptions," said the American Chemistry Council. "Without relief from these impractical deadlines, the Hazardous Organic National Emission Standards for Hazardous Air Pollutants (HON rule) would jeopardize the production of critical chemicals, which are essential to our nation’s security interests, including public health and economic security."

These exemptions signify a major shift in environmental enforcement policy, and manufacturers should closely monitor the ongoing evolution of regulatory approaches. While industry representatives welcome the regulatory flexibility, environmental advocates have expressed concern about the potential health impacts on communities near these facilities.

Finally, ACC is committed to strengthening environmental and safety performance while developing innovative products.

"To successfully fulfill these responsibilities, regulation of our industry must be based on sound science and reasonably assess the risks and benefits involved," the organization wrote.