Contributed by Keith Lemchak, Senior Project Manager, PPM Consultants
In July 2025, President Donald Trump issued a proclamation granting a two-year exemption from key provisions of the U.S. Environmental Protection Agency’s (EPA) Hazardous Organic National Emissions Standards for Hazardous Air Pollutants (HON NESHAP) to 25 chemical and industrial facilities, including 12 in Louisiana. This move—framed by the administration as necessary for national security and manufacturing resilience—has sparked debate among policymakers, environmental advocates, and industry leaders. For those of us in the environmental consulting field, especially those advising clients in petrochemicals, refining, and chemical manufacturing, this exemption is not only a legal and regulatory shift but a signal of broader strategic changes. It’s critical that industry leaders and environmental managers understand the implications of this decision and what it may mean for operations, permitting, and compliance strategies over the next two years.
The HON Rule is part of the broader National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations, developed under Section 112 of the Clean Air Act. Specifically, the HON targets emissions of toxic organic compounds such as ethylene oxide (EtO) and chloroprene from chemical manufacturing operations. These pollutants are known or suspected to cause cancer, and their regulation has long been a focus of both environmental groups and the EPA. In May 2024, the EPA finalized an update to the HON standards that aimed to reduce annual emissions by over 6,200 tons and decrease cancer risk by up to 96% for fence-line communities located near these facilities. The new rule introduced stricter requirements for leak detection, fence line monitoring, emissions capture and reporting across dozens of plants in multiple states. The final rule set a compliance deadline for 2026, with some provisions beginning implementation as early as 2025.
President Trump’s proclamation relies on Section 112(i)(4) of the Clean Air Act, which gives the president authority to temporarily exempt stationary sources from compliance with hazardous pollutant rules if two conditions are met: 1) the required technology is not available, and 2) the exemption is deemed necessary for national security. Historically, this power has seldom been used, with few documented instances of exemptions at this scale or duration. According to the proclamation, the updated HON rule imposes substantial burdens on U.S. chemical manufacturers and incorrectly assumes uniform technological availability across all facilities. It argues that enforcing the rule as written could disrupt domestic chemical production, compromise key supply chains, and increase America’s dependence on foreign producers.
In support of the process, the EPA created a pathway for facilities to submit exemption requests by March 31, 2025. Companies were required to detail the specific standards they wished to be exempted from, provide justification for the request, and explain how the exemption served national interests. Among those granted a reprieve were some of the most well-known names in American industry. The list includes Dow Chemical’s Plaquemine facility, Shell Chemical’s Geismar plant, Formosa Plastics in Baton Rouge, and Denka Performance Elastomers in LaPlace. Also included were operations from BASF, Westlake, DuPont, Citgo, TotalEnergies, Sasol, and others across Louisiana, as well as U.S. Steel and Cleveland-Cliffs iron and taconite facilities in the upper Midwest. In total, over 40 facilities across the country have been given until mid-2027 to meet the updated standards.
Despite the exemption, these facilities are not completely free of oversight. The Louisiana Department of Environmental Quality (LDEQ) clarified that it would continue to enforce existing HON requirements that remain in place, particularly for facilities already operating under previous emission limits. Additionally, any facility handling certain high-risk substances—such as ethylene oxide, chloroprene, 1,3-butadiene, benzene, vinyl chloride, or ethylene dichloride—must still conduct fenceline air monitoring and publicly report emissions data. This ensures that regulators and community members retain visibility into facility emissions even during the exemption period.
The chemical industry, for its part, has largely welcomed the exemption. Trade organizations such as the Louisiana Chemical Association argue that the timeline and scope of the updated HON rule placed unrealistic demands on facilities, especially those managing complex, multi-unit operations or older infrastructure. Many companies have reported difficulties finding the contractors, equipment, and engineering resources necessary to comply on time. David Cresson, CEO of the LCA, praised the administration’s decision, noting that members are committed to compliance but need a more practical timeline to implement controls safely and effectively. The exemption, he said, provides critical breathing room and allows companies to focus on long-term planning and capital improvements without fear of immediate penalties.
At the same time, the decision has drawn significant criticism from public health officials, environmental organizations, and lawmakers. Congressman Troy Carter, who represents much of Louisiana’s industrial corridor, called the exemptions reckless and a betrayal of the communities living near these plants. “Polluters and violators should not get a free pass,” he said in a public statement. “This rule was designed to reduce toxic emissions and protect our communities.” Groups like the Louisiana Bucket Brigade argue that the decision is especially alarming given the track record of some exempted facilities, particularly Denka Performance Elastomers, which has been the subject of EPA enforcement actions and is located in an area with some of the highest cancer risk estimates in the country.
Critics also contend that the exemption process lacked transparency. By allowing applications via email and issuing decisions through a proclamation, the administration circumvented public notice requirements typically associated with regulatory changes. Some fear that this sets a precedent for future rule rollbacks without stakeholder input or environmental review. The potential weakening of the Clean Air Act’s enforcement mechanisms—including the possible reversal of the EPA’s Endangerment Finding, which underpins many modern air regulations—adds further uncertainty to the regulatory landscape.
For facility operators, the exemption presents both opportunity and risk. On the one hand, it offers relief from what many see as overly aggressive timelines, allowing for phased investments in pollution controls and more time to coordinate compliance strategies with federal and state agencies. On the other hand, the additional scrutiny, legal exposure, and reputational risk associated with being named on the exemption list cannot be ignored. Communities near these sites are now more aware of their emissions profiles, and public expectations for accountability remain high.
To make the most of this exemption period, companies should take several key steps. First, stay current with regulatory developments at the federal and state level—particularly any potential legal challenges to the exemptions. Second, document all actions taken during the exemption period, including fence line monitoring, internal audits, and community outreach. Third, engage proactively with local stakeholders to build goodwill and provide transparency about emissions and mitigation efforts. Finally, begin preparing now for the eventual end of the exemption, including budgeting for emissions controls, and identifying engineering solutions that will support full compliance by 2027.
The HON Rule exemption is a major development in environmental policy and a clear example of how political shifts can reshape compliance priorities. For industry, it opens a window of flexibility—but also heightens responsibility. The companies that thrive in this environment will be those that not only avoid penalties but use this time to lead with preparation, public engagement, and smart investment. At a time of rising scrutiny and evolving expectations, earning the trust of both regulators and the public is not only good citizenship—it’s smart business. If you want to discuss this topic in more detail or how it relates to your business, please don’t hesitate to reach out to me at keith.lemchak@ppmco.com.