Environmental Compliance Enters New Era
Vinson & Elkins
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Since the second Trump administration has taken office, it has embarked on an ambitious environmental deregulatory program. Six months in, all signs are that the administration is just getting started.
On July 3, seven federal agencies released sweeping updates to their regulations and procedures implementing the National Environmental Policy Act (NEPA).
The updates narrow the scope of environmental reviews under NEPA, largely shift NEPA implementation from reliance on regulations promulgated through notice-and-comment rulemaking to a guidance-based approach, and give agencies greater discretion that can be used to streamline permitting.
Our Environmental and Natural Resources team examines all of these changes, along with their implications for permitting efficiency and litigation risk.
Yet this comprehensive overhaul is only the latest in a string of recent administration initiatives affecting environmental regulation, particularly at the Environmental Protection Agency (EPA). In this edition of Vantage Point, we highlight three of the most important of these initiatives.
The EPA has proposed a new rule under the Renewable Fuel Standard (RFS) program to raise the minimum volume of renewable fuels — like ethanol and biodiesel — that must be incorporated into the U.S. transportation fuel supply in 2026 and 2027.
The rule, called “Set 2,” would increase targets for several types of biofuels, limit the use of imported renewable fuels, and remove renewable electricity as a qualifying fuel under the RFS program. The goal is to support U.S. biofuel producers and reduce reliance on foreign energy sources. It would also introduce changes to registration, reporting, and recordkeeping requirements, among other revisions. Comments on the proposal are due to the EPA by August 8.
Our attorneys take an in-depth look at the proposal and its implications for clients.
In a sweeping regulatory reversal, the EPA has proposed to repeal all existing greenhouse gas (GHG) emissions standards for fossil fuel-fired power plants.
The repeal would include the 2015 New Source Performance Standards, the 2024 Carbon Pollution Standards, and the emission guidelines for existing steam-generating units. The EPA argues that the repeal is needed to support grid reliability amid surging electricity demands from sectors like AI data centers and domestic manufacturing.
If this repeal is finalized, there would no longer be any federal limits on GHG emissions from power plants. This could reduce costs for energy companies, but legal challenges are a near certainty. Environmental groups, states, and other stakeholders have already announced their intentions to sue.
The public can submit comments on this proposal until August 7. Find out more to understand how the proposed rule could affect the energy sector.
The EPA is proposing to repeal the 2024 amendments to the Mercury and Air Toxics Standards (MATS), which had tightened emissions limits for coal- and oil-fired power plants.
Under the Trump administration, the agency now contends that the stricter rules offer minimal additional health benefits, could be based on flawed data, and may not be cost-effective. If repealed, the less stringent standards from the original 2012 MATS would go back into effect, in line with the EPA’s broader deregulatory priorities.
According to the EPA, repealing the 2024 MATS amendments would reduce total compliance costs by $1 billion from 2028 to 2037. The proposed rule also would provide greater regulatory certainty, allowing plant operators to rely on established compliance methods, the EPA says.
Read more from our attorneys on the rule and what’s next. Comments on this proposal are due by August 11.
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