President-Elect Trump's impact on chemical industry

Election 2024 Recap: Chemical Industry Sees Regulatory Relief in Trump's Return

Nov. 8, 2024
As manufacturers welcome a potential rollback of Biden-era rules, experts warn companies must still answer to shareholders and customers on environmental commitments.

The chemical industry has been yearning for the Trump administration’s hands-off approach to regulations ever since Jan. 20, 2021, the day President Joe Biden took office. For chemical manufacturers, the return of Donald J. Trump to the White House symbolizes a momentous shift toward less regulation and bureaucratic oversight.

Industry groups like the American Chemistry Council (ACC) have long derided the Biden administration for implementing what they say are unnecessary, burdensome regulations that kowtow to environmental extremists over what they contend is science-backed data.

Less than 24 hours after Trump wrestled the presidency back from Democrats, ACC issued a hopeful statement for the chemical industry, calling the 2024 race “an historic election.” ACC President and CEO Chris Jahn said the industry group is ready to begin working with the Trump administration and Congress, while providing and helping to “drive the solutions for a future that will better serve all Americans.” 

Specifically, Jahn said ACC will work with the administration to adopt policies that bolster domestic chemical production. In the statement, ACC linked to a blog post outlining “Chemistry Lessons for the Next Administration and Congress.

Regulation Rollbacks?

The five-point agenda calls on lawmakers to avoid regulatory overreach by using the “best available science.” During his first term, Trump rolled back many Obama-era regulations, including plant-safety measures under the U.S. Environmental Protection Agency’s risk management program. All totaled, Trump softened more than 100 EPA rules, according to a New York Times report.

When Biden took office, he issued executive orders aimed at protecting public health and the environment. He also has stepped up enforcement of reporting rules under the Toxic Substances Control Act, including requirements for per- and polyfluoroalkyl substances, or PFAS.

Experts weighing in on the election results say Trump will likely resume his anti-regulatory stance. While chemical manufacturers stand to benefit, the onus will be on them to fulfill their sustainability commitments to investors and customers.

“This will truth test a company’s voluntary commitments to achieve GHG reductions, advance the goals of circularity and achieve other voluntary benchmarks,” said Lynn Bergeson, managing partner of Bergeson & Campbell, a law firm specializing in chemical regulations and Chemical Processing’s compliance columnist. “Industry does not have a government-enforced legal obligation to make good on these commitments, but shareholders can bring actions, boards can question and react, and, of course, the court of public opinion can be expected to question inaction.”

Chemical Companies Should Choose Safety Over Cost 

Environmental groups, like Beyond Petrochemicals, indicated they are ready for the battle. Beyond Petrochemicals, launched in 2022 by former New York Mayor Michael Bloomberg, issued a statement Nov. 6 saying, “This campaign is already winning where the industry believes it is strongest, and our partners are only getting stronger. While we know there are threats and tests to come, our commitment remains unshaken. We shall not be moved.”

David Russell, president of Global Environmental Operations Inc., agrees that chemical manufacturers must continue with their stewardship efforts. Russell’s organization provides pollution testing and consulting along with environmental remediation services.

“The chemical industry needs to take a good deep look in the mirror and see how they can produce chemicals as cheaply and safely as possible,” Russell said. “If one has to choose between safety and price, choose safety.”

Bergeson outlined several specific areas where President-Elect Trump could have a significant impact on regulations. While EPA enforcement will likely decline, manufacturers can expect “relentless litigation from everyone,” including nongovernmental organizations, the EPA and the private sector.

Green energy initiatives will receive less support or not be supported at all, she said. In addition, TSCA implementation will be revisited and possibly rolled back to the rules under the first Trump administration, which could be chaotic and unpredictable.

For example, the Biden administration introduced extremely conservative risk determinations. Trump could reverse these policies, which would invite considerable chaos, Bergeson said. 

TSCA is particularly open to litigation because many of its terms and policies remain ill-defined since it was amended in 2016, Bergeson said. Also, the Supreme Court overturning Chevron deference in June gives courts more authority to scrutinize and potentially overturn federal agencies' interpretations of laws, leading to more potential litigation.

Bergeson also expects to see reduced resources for EPA, which she says is a mistake when it comes to the premanufacture notice program under TSCA. That’s the requirement for manufacturers or importers of new chemical substances to notify the EPA before beginning manufacturing or importing a new chemical.

Russell, who recently published a book about cleaning contaminated sites, called for more even-handed regulations, saying enforcement for municipalities are lax compared to those that the chemical industry encounters.

“When a municipality exceeds its permits for water pollution, it gets a slap on the wrist,” he says. “When industry does the same, it gets fines and possible imprisonment.”

Jahn said policymakers can’t forget the importance of chemicals in everyday life. He said ACC will work with House members in both parties to “champion science-based policy solutions across all levels of government.”

Yet, as decades of clashes between the chemical industry and the EPA have shown, the interpretation of “science-based” remains as fluid as the compounds they seek to regulate.


More Coverage

Several other publications owned by Chemical Processing parent company Endeavor Business Media have also been writing about the presidential election's impact on their markets.

About the Author

Jonathan Katz | Executive Editor

Jonathan Katz, executive editor, brings nearly two decades of experience as a B2B journalist to Chemical Processing magazine. He has expertise on a wide range of industrial topics. Jon previously served as the managing editor for IndustryWeek magazine and, most recently, as a freelance writer specializing in content marketing for the manufacturing sector.

His knowledge areas include industrial safety, environmental compliance/sustainability, lean manufacturing/continuous improvement, Industry 4.0/automation and many other topics of interest to the Chemical Processing audience.

When he’s not working, Jon enjoys fishing, hiking and music, including a small but growing vinyl collection.

Jon resides in the Cleveland, Ohio, area.

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