Stay ahead of the changing US chemicals regulations

The United States is undergoing significant regulatory transformation in chemicals management at both the federal and state level with the returning Trump administration, and with the Toxic Substances Control Act (TSCA) and Environmental Protection Agency (EPA) embroiled in legal battles. 

In this article, we summarize the upcoming regulatory federal changes in the US and Canada, as highlighted by Terry Hyland, Enhesa Product Intelligence’s Senior Editor for North America, in our Global Outlook webinar.

Latest developments under TSCA

A new administration will trigger a “see-sawing” of TSCA policies, as priorities differ between Biden and Trump, with many expecting a shift back to numerous policies promoted throughout Trump’s first presidency.
 

The Biden administration 

By the end of Biden’s presidency, many actions were finalized. For example, TSCA Section 6 (the existing chemicals policy) finalized its risk management rules for five of the 10 ‘high priority chemicals’ determined by the EPA’s risk assessments, which includes: 

1. Asbestos 
2. Methylene chloride 
3. Perc 
4. Carbon tet 
5. TCE 

The next five substances for risk evaluation have been selected, following the updated TSCA risk evaluation framework rule, which seeks to solidify elements of the chemical policies — such as assessing risk determinations based on the whole chemical, rather than on a use-by-use basis. 

Further, under TSCA Section 5, a final rule updating the new chemical review procedure was solidified. The EPA continues to struggle to meet the statutory 90-day deadline under TSCA to complete new chemical submissions. EPA reviews have been delayed by months, or even years. This new rule therefore aims to clarify information and allows the EPA to ‘restart the clock’ for any errors. 

A consent order was agreed between the Biden administration and the EPA to complete any major TSCA deliverables in 2025, including finalizing eight risk evaluations and PFAS reporting requirements.

The Trump administration

What’s upcoming under the second Trump administration?
 

Executive orders 

President Trump has since issued executive orders which are expected to accelerate litigation in certain industries and further congressional action.  

A regulatory freeze was put in place to withhold any progress on policies that hadn’t yet taken effect. As a standard procedure when a new administration enters into force, all incomplete rules are under review for 60 days. The TCE rule — which would ban nearly all uses of the solvent within one year — for example, is included in this regulatory freeze due to delays in 2024.  

Another order executed by the President called for federal agencies to eliminate 10 regulations or guidance documents for every new one created. This would be difficult in practice, as rules cannot be undone by the President alone once in effect. However, this ‘10-to-1’ rule emphasizes the administrator’s deregulatory position. Industry groups have supported changes to TSCA framework rules. It’s therefore likely the EPA may wish to revise some of the rules completed during Biden’s administration. 

Thirdly, an order from February 11 2025 directed agencies to only hire one new worker for every four that leave, which, if carried out, would have significant impacts on the US workforce.
 

Litigation 

As mentioned, nearly all the rules that have been issued are now subject to legal challenges. Litigation opens another avenue for the Trump administration to revisit rules. 

As these rules filter through court, it’s currently unclear exactly what action EPA will take. Likely, the agency may remand the rules back to rework. Industry groups involved in litigation will most likely not oppose this, but NGOs and labor groups would more than likely contest this decision.
 

Congressional action 

The Congressional Review Act (CRA) gives congress the ability to undo a recently finalized rule. A resolution has already been introduced to revoke the TCE risk management rule. If approved by the House and Senate into law, the TCE rule will be eliminated.  

Furthermore, the CRA prohibits the creation of any future rule that’s considered substantially similar. 

In addition, congress also has the power to amend laws, such as TSCA. Industry has called for amendments to the TSCA statute, particularly concerning changing the requirements around new chemical reviews. This could potentially lead to: 

• Cutting down what the EPA is allowed to evaluate in its reviews 

• Providing clarity on what constitutes ‘unreasonable risk’ 

• Addressing issues around presumptions during risk evaluations 

If there’s less aggressive action at the federal level, it could potentially lead to more aggressive action at the state level. Watch the webinar recording for Melanie Rybar’s overview of PFAS, EPR, and PCP at the state level.

CEPA in Canada

In June 2023, the Canadian Environmental Protection Act (CEPA) reforms, which the country is now working toward, came from Bill S5.  

The S5 legislation split CEPA’s Schedule 1 toxic substances list into two parts: 

1. Substances with the highest risk to prohibit 
2. Other toxic substances, with preference on ‘pollution prevention’ 

S5 also created a new Watch List of potentially problematic substances, giving the government authority to compile a list of substances with hazardous properties which could pose a risk to human health or the environment.  

The S5 also called for the Canadian government to finalize two new frameworks by 13 June 2025:

1. A framework on incorporating the right to a healthy environment 

Three main concepts are expected to be implemented under CEPA for prioritizing, assessing, and managing chemicals: 

• Environmental justice, to avoid disproportionate impacts on vulnerable populations 

• Intergenerational equity, looking at persistence in bioaccumulation and endocrine disruption that may impact future generations 

• Non-regression, to maintain current levels of protection and strive for improvement

2. A framework detailing a plan for chemical management priorities

In Fall 2024, the government proposed a list of 14 specific chemicals and substances within 18 classes to be prioritized for assessment. The whole list covers 520 chemicals, including substances now subject to TSCA in the US.
 

Supporting actions 

In addition to progress on the main frameworks, the Canadian government is working on supporting actions in relation to the S5 Bill shaping CEPA. Discussion documents will form a core part of these actions, including clarifying uses for Part 1 and Part 2 toxic substances.  

The government will also propose a labeling strategy in Spring 2025 to build on a 2022 document contemplating labeling for certain substances, cosmetics, flame retardants, and upholstery furniture.  

Lastly, the Watch List approach should be finalized before the end of 2025.