Note: Single-source report; awaiting corroboration.
The United States relies on a strong chemical manufacturing sector to supply industries such as energy, national defense, agriculture, and health care. These facilities produce vital inputs for critical infrastructure, advanced manufacturing, medical sterilization, semiconductors, and defense systems. A robust domestic chemical industry is essential for economic stability and national security.
On May 16, 2024, the Environmental Protection Agency finalized the New Source Performance Standards for the Synthetic Organic Chemical Manufacturing Industry and accompanying National Emission Standards, known as the HON Rule. This rule introduces new emission control requirements for certain chemical manufacturing facilities under Section 112 of the Clean Air Act.
According to the proclamation, the HON Rule poses challenges, including reliance on technologies that are not widely available, unproven at scale, or not consistently safe to implement. The regulation’s compliance timeline could force shutdowns or require significant capital investments before viable compliance options exist.
The proclamation highlights that HON Rule requirements assume uniform technology availability, despite varied site conditions, permitting differences, and equipment configurations. These regulatory burdens risk disrupting chemical manufacturing capacity, undermining supply chains, increasing foreign dependence, and impairing crisis response across key sectors.
In response, the President issued an exemption for certain stationary sources subject to the HON Rule, as detailed in an annex to the proclamation, under the authority of the Clean Air Act. This regulatory relief is intended to promote American chemical manufacturing security and preserve critical industrial and emergency readiness.
The proclamation emphasizes the importance of sustained domestic chemical production for national resilience, military readiness, public health, and economic strength.