On January 20th, Reince Preibus, President Trumps Chief of Staff, issued a broad regulatory freeze memorandum entitled “Regulatory Freeze Pending Review” halting federal rules that had not yet become effective. All rules covered by the memorandum are suspended for 60 days (March 21, 2017). On January 26, 2017, EPA published a list of 30 rules subject to the freeze.
The vast majority of EPA rules temporarily frozen are actually rules that would lessen regulatory burdens or approve plans for meeting existing standards. These include: a grant of primacy to Kentucky's Underground Injection Control Program, numerous air plans for compliance with ozone or PM 2.5 air quality standards and attainment designations for areas that now meet air quality standards.
The most significant rule affected by the freeze include:
- Amendments to EPA's Risk Management Program (RMP)
- Renewable Fuel Standard's renewable volume obligations
- Pesticides; Certification of Pesticide Applicators
EPA's recent amendments to the Risk Management Plan (RMP) Rule titled "Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act." The RMP amendments, which will be discussed in a later post, increase emergency preparedness requirements at some 12,500 facilities that handle chemicals or hazardous substances.
Another rule impacted is the Renewable Fuel Standard's renewable volume obligations. As discussed in a recent Bloomberg article, the biofuel industry struck a major victory when the Obama Administration raised 2017 quotas- Renewable Volume Obligations (RVOS)- to new record levels. As discussed in the Bloomberg article, the freeze triggered a sell-off of biofuel credits.
Renewable Identification Numbers (RINs), tracking compliance with 2017 ethanol consumption targets, plummeted 23 percent to 46 cents a piece on Wednesday, the lowest since November 2015, broker data compiled by Bloomberg show. The credits are attached to each gallon of biofuel. Once a refiner blends ethanol or biodiesel into petroleum, they can keep the credit to show adherence to the program or trade it to another party.
Finally, the final rule Pesticides; Certification of Pesticide Applicators was also frozen. EPA states the purpose of the rule was to ensure that persons using certain types of pesticides- Restricted Use Pesticides (RUPs)- were competent to use the product. The rule creates new certification requirements for persons who want to use RUPs. According to EPA, the most acutely toxic pesticides or those needing to be applied with special care are classified as RUPs.
While the freeze did have a major impact on the RMP rules, pesticide certification and biofuels, the vast majority or rules affected are likely beneficial. These majority rules demonstrate compliance with federal air quality standards, allows states to take over implementation of regulatory programs or approves air quality compliance plans developed by States.
After the temporary freeze most if not all of the rules will likely move forward. The most likely rules that could be targeted by future Congressional action include the RMP amendments and raise in biofuel volume requirements.