Just a few months into his second term, President Trump has once again set his sights on reshaping environmental policy, specifically targeting the Environmental Protection Agency (EPA). These actions echo his first Administration’s efforts yet go several steps further, raising new concerns about the future of environmental regulations and the broader impact on decarbonization efforts. 

While the long-term consequences remain uncertain, businesses and stakeholders must understand what’s changing and how to prepare.

Key EPA actions and their potential impacts

The Trump Administration has initiated several key actions targeting the EPA:

• Budget cuts and staffing reductions: President Trump and EPA Administrator Lee Zeldin are proposing significant cuts to the EPA's grant budget and plan to lay off large swaths of the agency’s staff. These changes would have a major impact on the agency's ability to enforce environmental regulations, conduct scientific research, and administer grants.

• Deregulation efforts: The administration is renewing attempts to roll back dozens of climate and environmental regulations, including those related to air and water quality, emissions standards, and chemical safety.

• Appointments: President Trump is also nominating individuals with close industry ties and a track record of climate science skepticism to key leadership roles within the EPA, raising concerns about future decision-making and the agency's overall priorities.

Regulations targeted for rollback

While the Trump Administration has made several announcements about plans to roll back regulations, it's important to note that regulatory changes follow a legal process governed by the Administrative Procedure Act (APA) of 1964; the process will take time. The APA lays out how regulations are promulgated and how they may be withdrawn. Most rules, including the ones mentioned below, typically require a lengthy notice-and-comment period, during which the public can provide feedback that agencies must review before finalizing any changes. Failure to follow the APA can make these changes vulnerable to legal challenges.

Here are five major regulations currently under threat:

1. Clean power plant rule

The EPA plans to reassess and potentially overturn a Biden-era regulation designed to reduce carbon emissions from power facilities. This clean power plant rule was a cornerstone of efforts to mitigate global warming, as the power sector accounts for a significant portion of US greenhouse gas emissions.

2. Vehicle emissions standards

The Administration aims to weaken greenhouse gas emissions standards for both heavy-duty and light-duty vehicles for model year 2026 and beyond. This rollback could significantly slow the transition to clean transportation, including electric and more fuel-efficient vehicles.

3. Endangerment finding

In a move with far-reaching implications, the EPA is preparing to reassess the 2009 "endangerment finding" that greenhouse gases pose a threat to public health. This foundational scientific determination has been the legal basis for regulating greenhouse gases under the Clean Air Act, and its reversal could fundamentally alter the EPA's ability to address climate change.

4. Clean Water Act protections

The EPA has proposed narrowing the definition of waterways eligible for protection under the Clean Water Act. This change could potentially reduce restrictions on runoff pollution from agriculture and petrochemical activities, impacting water quality across the nation.

5. Mercury and Air Toxics Standards

The Administration plans to reevaluate the Mercury and Air Toxics Standards that were updated under the Biden Administration. These standards, aimed at reducing harmful emissions from coal-fired power plants, play a crucial role in protecting public health from dangerous air pollutants.

Implications for climate, business, and consumers

These proposed rollbacks represent a significant shift in US environmental policy, with wide-reaching impacts on air and water quality, climate change mitigation, and public health. Businesses and individuals committed to sustainability should anticipate new regulatory risks and uncertainty, closely tracking and engaging in the policy process. 

As the EPA moves forward with these changes, legal challenges are likely. Environmental groups, state governments, and concerned citizens are already preparing to challenge these changes in court. In the meantime, businesses can take steps to stay ahead.

Navigating the changing climate policy landscape

Despite the challenges posed by the Trump Administration's actions, opportunities remain for businesses and stakeholders to navigate the changing landscape and lead on climate action. 

• Monitor regulatory developments: Stay up to date on proposed rule changes, legal challenges, and state-level policy shifts. 

• Engage with policymakers: Members of Congress benefit from input from constituents, including businesses located or operating in their states and districts. By hearing directly from companies on the ground, Congress can relay the impact of policy changes to the Administration. 

• Prepare for global and state regulations: Even as federal standards weaken, state and international regulations are gaining strength. Many jurisdictions, including US states and cities as well as other nations, are tightening requirements on emissions, energy, land use, and pollution via both legislation and regulation. Rather than focus solely on US federal action, stakeholders should look subnationally and beyond US borders to assess the true direction of climate policy.   

By proactively responding to these developments, businesses can protect long-term value, reduce compliance risks, and contribute to a more sustainable and resilient future, regardless of shifting federal policies.