Legislative Update: Senate Workload and Procedural Hurdles Cloud the Outlook for TSCA and Permitting Reform

Senate Workload and Procedural Hurdles Cloud the Outlook For TSCA And Permitting Reform

Congressional efforts to advance several major environmental policy initiatives, including reauthorization of the Toxic Substances Control Act (TSCA) user fee program and permitting reform, are increasingly at risk as Republican leaders contend with a crowded legislative calendar, narrow majorities, and internal political divisions ahead of the November elections. Senate Environment and Public Works (EPW) Committee Chair Shelley Moore Capito (R-WV) is reportedly targeting a mid-July markup on a TSCA package alongside water infrastructure legislation and a broader PFAS package. Prospects for floor consideration remain uncertain given limited legislative time and competing priorities, including appropriations bills, the National Defense Authorization Act (NDAA), and efforts to avoid a government shutdown later this year. If environmental legislation is not advanced before the August recess, it will become increasingly difficult to enact before the end of the session.

TSCA Reauthorization – For the Vinyl Institute and the chemical industry, TSCA reform remains an immediate priority, including the Environmental Protection Agency’s (EPA’s) authority to collect TSCA user fees, which expires on September 30. TSCA negotiations have slowed due to both unresolved policy issues and procedural hurdles. In particular, the EPA has reportedly been slow to provide technical assistance requested by committee staff, delaying the completion of legislative text for several complex TSCA provisions. Multiple congressional and industry sources indicate that career EPA experts have been less engaged than expected, complicating efforts to resolve outstanding technical issues before introduction. Others attribute the slower pace to staffing reductions, internal agency priorities, or policy disagreements. Similar concerns have reportedly emerged in the House, where the House Committee on Energy and Commerce is also developing TSCA legislation but has yet to release a bipartisan proposal. But an EPA spokesperson rebutted these claims.  “The agency had no outstanding TA requests and EPA’s dedicated career staff had been involved in the responses,” said an EPA spokesperson on July 2. “The agency will continue to respond to TA requests as quickly as possible and provide the support needed.”

At the same time, broader political dynamics around PFAS legislation are further complicating the outlook for TSCA, which may lead Congress to ultimately approve only a short-term extension of TSCA fee authority if broader reform cannot be completed before the deadline. In the House, Republican leaders are also seeking Democratic support for their own TSCA legislation while facing opposition from Make America Healthy Again (MAHA)-aligned organizations and environmental groups, creating another obstacle to comprehensive reform.

Despite those delays, Senate Republicans and Democrats continue working toward a narrower bipartisan bill expected to include targeted reforms, such as strengthened civil judicial enforcement provisions and conflict-of-interest safeguards, while preserving the core objective of extending the agency’s fee authority and improving implementation of the chemicals program. Industry continues to support these measured statutory updates, viewing them as important improvements that can enhance the efficiency and predictability of TSCA implementation while providing the legislative foundation necessary to extend EPA’s user fee authority. For regulated companies, timely enactment remains a priority to preserve a stable, adequately funded chemicals program that supports product innovation, regulatory certainty, and the continued processing of new chemical submissions.

Permitting Reform – House procedural disputes have further narrowed the legislative window to key environmental legislation through Congress this year, including permitting reform. With the House scheduled to adjourn for the August recess the week of July 23 and the Senate on July 31, these competing priorities are expected to consume considerable committee time and floor attention during the three weeks of legislative days remaining before the August recess.  Bipartisan staff negotiations on permitting reform continue, but with EPW focused on TSCA and PFAS, permitting reform is likely to be pushed to the fall. The crowded agenda, combined with a narrower Senate Republican majority and ongoing House procedural disputes, could further complicate efforts to advance broader permitting reform legislation this year. Even if the EPW Committee advances TSCA and PFAS measures, limited Senate floor time, looming appropriations deadlines, a delayed NDAA, and the prospect of a fall government funding battle leave little room for additional major legislation.

Still, several key Senate Republicans are optimistically pushing forward, seeking avenues to pass a package.  On June 24, former pipeline company executive and Sen. Alan Armstrong (R-OK) introduced the American Energy and Mineral Infrastructure Act (S. 4944) to revive bipartisan negotiations on long-stalled permitting reform. The new Senator has made permitting reform his top legislative priority and hopes his private-sector experience will help build consensus before his temporary Senate appointment ends in January.

Backed by Senate Republican leadership, the legislation seeks to accelerate federal approvals for major energy, natural gas, mining, and infrastructure projects by streamlining agency coordination, revising the National Environmental Policy Act (NEPA), and making significant changes to the Clean Water Act, particularly Section 401 state water quality certifications.  Armstrong has been working with leadership in both the Senate EPW and ENR Committees, though committee leaders have not publicly endorsed the measure. The legislation has attracted support from Republican senators, including John Barrasso (R-WY), Lisa Murkowski (R-AK), Cynthia Lummis (R-WY), Rick Scott (R-FL), and Katie Britt (R-AL), while Peter Welch (D-VT) was the only Democrat to participate in the bill’s rollout.

Sen. John Curtis (R-UT) expressed optimism that bipartisan negotiations on permitting reform are nearing completion during a Rainey Center webinar on July 8, saying senators are “very close” to a legislative package, even as friction persists between Democrats and the Trump administration over its moves to curtail renewable energy projects.  Speaking, Curtis emphasized that any successful permitting bill must originate from or receive the support of the Senate EPW and ENR, suggesting standalone proposals, including legislation introduced by Senator Armstrong, will face significant obstacles without committee leadership backing.

Water Infrastructure – EPW is also working to reauthorize EPA’s water infrastructure funding programs before they expire on September 30.  Water utilities are advocating for funding levels at least as high as the $50 billion provided under the Infrastructure Investment and Jobs Act (IIJA). Although lawmakers have not yet released legislation specifying future funding levels, industry groups stress that maintaining robust support for the State Revolving Fund (SRF) and the Water Infrastructure Finance and Innovation Act loan programs is essential to helping utilities address rising infrastructure costs while keeping water services affordable and reliable.

Housing Bill Remains in Limbo

President Donald Trump’s decision on the bipartisan 21st Century ROAD to Housing Act (H.R. 6644) remains uncertain as the constitutional 10-day deadline approaches for him to either sign or veto the legislation. Trump canceled a planned signing ceremony in late June and instead demanded that Congress prioritize the SAVE America Act, a voter identification and proof-of-citizenship measure that has repeatedly passed the House but lacks sufficient support in the Senate to overcome the filibuster. Trump indicated this week that he has not ruled out allowing the housing bill to become law without his signature but continued to emphasize voter ID legislation as his top priority, leaving the housing measure in limbo. Because Congress remains in session, the bill will automatically become law if Trump neither signs nor vetoes it before the deadline. Supporters, including House Financial Services Chairman French Hill (R-AR), describe it as the most significant bipartisan housing reform in years.

EPA Revises Proposed WOTUS Rule Before Finalizing Clean Water Act Definition

The EPA and the U.S. Army Corps of Engineers have submitted a supplemental proposed rule to the White House that would revise the Trump administration’s November 2025 proposal redefining which waters are protected under the Clean Water Act. The unusual decision to issue a second proposal suggests the agencies are making significant changes before finalizing the rule and are seeking additional public input on key provisions. EPA officials said the revised proposal remains focused on producing a durable definition of “waters of the United States” (WOTUS) that complies with the Supreme Court’s 2023 decision in Sackett v. EPA, reduces regulatory burdens, and provides greater deference to state and Tribal water management. Because the supplemental proposal will require another public comment period, it is expected to delay completion of the rulemaking.

The original proposal would have significantly narrowed federal jurisdiction by requiring wetlands and nonpermanent waters to have a continuous physical connection to larger waterways and contain standing water throughout a region’s “wet season” to qualify for federal protection. However, the proposal drew criticism from environmental groups, industry stakeholders, and former Army Corps officials, who argued that the undefined “wet season” standard could be difficult to implement and could remove federal protections from millions of acres of wetlands and streams. EPA has since indicated it is reconsidering that provision and may clarify other aspects of the proposal, while observers speculate the supplemental rule could also revise procedures for determining whether individual waters fall under federal jurisdiction.

Trump Opens Multiyear USMCA Talks Instead of Extending Trade Pact

The Trump administration’s decision not to renew the United States-Mexico-Canada Agreement (USMCA) in its current form has prompted concern among manufacturers and business organizations, who warn that prolonged uncertainty could undermine investment and disrupt integrated North American supply chains. Following a virtual meeting with Canada and Mexico, the Office of the United States Trade Representative (USTR) announced on July 1 that the U.S. would not renew the agreement in its current form, triggering an extended renegotiation period. The U.S. will continue negotiations to address perceived shortcomings in the agreement and bilateral trade deficits, while leaving open the possibility of eventual renewal or even U.S. withdrawal.

For industrial manufacturers, the past 30 days of negotiations have heightened trade uncertainty and enforcement of compliance mechanisms.  Industry representatives argued that the absence of a long-term extension makes it more difficult for companies to commit capital to major manufacturing projects, particularly those tied to expanding electricity infrastructure and regional production capacity. Business groups across multiple sectors are urging the administration to preserve the agreement’s trilateral structure. They emphasized that USMCA provides the predictable rules governing cross-border trade, digital commerce, investment, and supply chains that support North American competitiveness. While some industry leaders viewed the administration’s decision as the beginning of a negotiated modernization process rather than an imminent withdrawal, they cautioned that recurring reviews or a shift toward bilateral agreements could weaken investment confidence and regional economic integration.

Trump EPA Targets Expedited FOIA Processing for Environmental Justice Requests 

The EPA is expected to finalize a rule this month rescinding a Biden-era Freedom of Information Act (FOIA) provision that allowed expedited processing of records requests tied to environmental justice concerns. Adopted in 2023, the rule enabled communities facing disproportionate pollution burdens to obtain EPA records more quickly when the information could help inform affected residents. The change represents another step in the Trump administration’s broader rollback of Biden-era environmental justice initiatives.  EPA officials say eliminating the expedited processing category would reduce administrative costs and staff workload while aligning the agency’s FOIA regulations with President Donald Trump’s executive order eliminating federal diversity, equity, and inclusion (DEI) programs. EPA emphasized that requesters would still be able to seek expedited processing by demonstrating a traditional “compelling need” under existing FOIA standards.

Leadership Change at EPA’s Air Office Leaves Major Rulemakings Unfinished 

Aaron Szabo is set to leave the EPA after serving for about a year as Assistant Administrator for the Office of Air and Radiation, leaving several major air and climate regulatory rollbacks unfinished and without an announced interim successor. During his tenure under EPA Administrator Lee Zeldin, Szabo led the Trump administration’s sweeping deregulatory agenda, including efforts to rescind the 2009 greenhouse gas endangerment finding, repeal Biden-era vehicle and power plant greenhouse gas regulations, roll back air toxics standards for power plants, and eliminate stricter particulate matter standards, many of which remain in the rulemaking process or are facing legal challenges. Before joining EPA, Szabo worked in private practice representing energy and industry clients and previously held environmental policy positions in the first Trump administration.