The U.S. chemical industry is finding itself on firmer ground in Washington, with regulators scaling back rules and lawmakers weighing measures favorable to manufacturers. Yet, while policy wins are adding up, efforts to expand competition in freight rail have stumbled.
A Trump administration directive requiring agencies to repeal ten rules for every new regulation has slowed the pace of federal rulemaking. The mandate has discouraged agencies from adding new layers of compliance, according to Eric Byer, president and CEO of the Alliance for Chemical Distribution (ACD). “They know if they issue regulations, they have to find ten they have to whack,” he explained.
Several agencies central to chemical oversight—including the Department of Transportation (DoT), the Occupational Safety and Health Administration (OSHA), the Department of Homeland Security (DHS), and the Environmental Protection Agency (EPA)—are actively reviewing duplicative or outdated requirements. The EPA, in particular, has revisited rules that affect plants relying on ethylene oxide (EO) and those subject to Hazardous Organic NESHAP (HON) standards, offering relief for medical sterilization facilities and petrochemical producers.
Meanwhile, congressional appropriators are taking aim at the EPA’s Integrated Risk Information System (IRIS), which industry groups argue has driven overly strict rules on substances such as EO, formaldehyde, and hexavalent chromium. The House Appropriations Committee has proposed cutting off funding, and separate legislation would bar IRIS assessments from being used in future regulations altogether.
The American Chemistry Council (ACC) is pressing for changes to the Toxic Substances Control Act (TSCA), citing burdensome provisions that delay approvals of new substances and complicate evaluations of existing ones.
For new chemicals, the ACC wants the EPA’s New Chemical Framework Rule scrapped, saying it has not improved the agency’s ability to meet its 90-day review deadline. For existing substances, the group is targeting the Risk Evaluation Framework Rule, which it argues wrongly assumes workers are not using proper protective equipment when handling chemicals.
Efforts to expand reciprocal switching—a practice that allows shippers to move cargo between competing railroads—suffered a blow when a federal appeals court blocked a rule finalized by the Surface Transportation Board (STB) in 2024. The rule aimed to make it easier for shippers to demand reciprocal switching if service was inadequate, but judges rejected the criteria used to define poor service.
Industry groups say the STB could have more success focusing on competition instead of service metrics. “Competition may not face the same restrictions that left the current rule vulnerable to lawsuits,” said Jeff Sloan, senior director of regulatory affairs for the ACC.
The debate over rail competition is unfolding against a backdrop of possible consolidation among North America’s largest freight railroads. Reports have surfaced of Union Pacific exploring a deal for Norfolk Southern, while both BNSF and CSX have reportedly engaged bankers to examine options.
Although Warren Buffett, whose Berkshire Hathaway owns BNSF, has downplayed speculation, further mergers could shrink the number of Class I railroads from six to four. Shippers warn that fewer carriers would mean less competition, higher costs, and weaker service—a concern already highlighted by disruptions following the Canadian Pacific–Kansas City Southern merger.
The industry may also get another opportunity to eliminate the Superfund excise tax on basic chemicals and derivatives. Lawmakers could revisit the issue in a fall tax package or in another bill next spring, Byer noted. While earlier legislation made permanent many provisions of the 2017 Tax Cuts and Jobs Act, the Superfund tax remained in place. Industry leaders argue that repeal would reduce costs and improve competitiveness.
Finally, momentum may be building to revisit the Chemical Facility Anti-Terrorism Standards (CFATS), a national program that expired two years ago. With Andrew Garbarino (R-NY) taking the gavel of the House Committee on Homeland Security, the door may open to reauthorize CFATS at a time when geopolitical risks are front of mind.