Seyfarth Synopsis: A second Trump administration is likely to bring sweeping changes to environmental regulatory and enforcement agendas. During the first Trump term, his administration focused on significant deregulation in the environmental sector, including budget cuts and staff reductions at USEPA, and the rollback of key policies from the Obama administration. In his second term we expect further slashes in EPA staffing we sell as additional jurisdictional changes such as reducing federal oversight and emphasizing state control over environmental regulations.
Context: The First Trump Administration
During his first term, President Trump's administration was characterized by significant deregulation efforts in the environmental sector. The U.S. Environmental Protection Agency (USEPA) saw substantial budget cuts, a reduction in staff, and a rollback of numerous environmental regulations. Key policies such as the Obama-era Clean Water Rule were repealed, the administration attempted to replace the Obama Clean Power Plan, the U.S. temporarily withdrew from the Paris climate agreement, vehicle emissions standards were relaxed, and restrictions on methane emissions from oil and gas operations were eased
Major Shifts Ahead
In Trump's second term, the change in administration will result in swift and obvious changes as which effects might not be felt for several months or years into the new administration. The USEPA Administrator, Michael Regan, will be replaced with a republican; Trump has proposed Lee Zelden, A former congressman from Long Island who ran unsuccessfully for governor of New York in 2022. From an industry perspective, welcome changes will de-emphasize "command and control" enforcement, and there will likely be an elimination or relaxation of bans on manufacturing growth in environmental justice areas. Trump has already indicated large investments in the US will be met with prompt permit issuance of permits, compared to the years that have become common under the Biden administration. De rigueur in a new administration, certain recently enacted and proposed federal environmental rules will be subject to Executive Order and be overturned, withdrawn, or modified in favor of manufacturing and energy sectors.
Just as likely are big changes in hot topic areas such as PFAS regulations under the Clean Water Act, TSCA and the Clean Air Act, as well as other chemicals targeted under the Biden administration to be banned. In addition to the Clean Water Act and TSCA, the administration will likely implement changes in proposed Clean Air Act Risk Management rules, rules for recycling solar panels and lithium batteries, and proposed rules currently aimed at the Oil and Gas and Pharmaceutical industries. Significant modifications to the USEPA Regulatory Agenda should be expected promptly in the First Quarter of 2025.
Expected Structural Changes to USEPA
In his second term, President Trump is likely to continue his agenda targeting the structure of USEPA. Here are some anticipated structural changes:
- Budget and Staffing Reductions: The EPA will face budget cuts and hiring freezes, reducing its capacity to enforce regulations and conduct scientific research; return-to-work-orders are expected to result in a significant number of voluntary separations of agency personnel.
- Shift Toward State Control: Emphasizing state authority over federal oversight could lead to more variability in environmental standards across states.
Enforcement and Regulatory Agendas: Shifts in Priorities
USEPA's enforcement of environmental regulations is also expected to see significant changes, with a potential goal to decrease federal oversight and an increase in state-level enforcement. The EPA's enforcement capabilities may be diminished due to budget and staffing cuts, leading to fewer inspections and enforcement actions, and thus penalties. States may take on a larger role in enforcing environmental regulations, resulting in a patchwork of enforcement standards.
The second Trump administration is likely to target several key regulatory and legal agendas established during the Biden administration:
- Climate Change Initiatives: Programs aimed at reducing greenhouse gas emissions, such as the Clean Energy Rule and the Inflation Reduction Act, may be rolled back or significantly altered.
- Environmental Justice: Efforts to address environmental justice issues, which were a priority under the Biden administration, are likely to see reduced emphasis and funding.
- Renewable Energy Support: Incentives for the general public (such as tax breaks for purchasing an EV or installing electric charging infrastructure in a home) and support for renewable energy projects may be scaled back in favor of fossil fuel development.
Implications for Environmental Professionals, Attorneys, and In-House Lawyers
Given these anticipated changes, environmental professionals, environmental attorneys, and in-house lawyers should prepare for a dynamic regulatory landscape where one day will not be like the next. Here are some strategies to consider:
- Stay Informed: Regularly monitor updates from the EPA and state environmental agencies to stay abreast of regulatory changes. Keep channels of communication open between trusted legal counsel, consultants, and operational personnel.
- Engage with State Agencies: Build strong relationships with state environmental agencies, as they will likely play a larger role in enforcement and compliance, picking up whatever slack the USEPA leaves.
- Review Compliance Programs: Assess and update compliance programs to ensure they meet both federal and state requirements; now might be the time to update permits to obtain.
The second Trump administration is poised to bring significant changes to USEPA's rulemaking, enforcement, and regulatory agendas. By staying informed and proactive, environmental professionals, attorneys, and in-house lawyers can navigate these changes effectively and continue to promote environmental stewardship within their organizations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
