July 17, 2025

Major to Area Source Reclassification Rule Revoked

With approval by both houses of Congress and signed by the President on June 20, 2025, the power of the Clean Air Act has now been weakened for only the second time in its 55-year history. Senate Joint Resolution 31 enacts the Congressional Review Act (CRA) [5 U.S.C. §§801–808] and terminates EPA’s Review of Final Rule Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act from September 10, 2024 [89 FR 73293] EPA’s rule (discussed in a previous article) required certain sources to remain subject to applicable major source standards, even if that source reduces actual and potential emissions to below major source thresholds. While the rule’s regulatory language in §63.1(c)(6)(iii) currently remains in place, it has no effect, and EPA will likely soon issue a final rule formally removing the regulatory language.

The CRA was discussed in a previous article when EPA’s waste emissions charge (WEC) rule was overturned in early 2025. [90 FR 21225] As with the WEC rule, because Congress has not passed a subsequent law allowing EPA to issue another rule “in substantially the same form,” the agency’s major source rule is dead in the water.

EPA’s 2024 rule was designed to conform to the agency’s statutory obligation of CAA Section 112(c)(6) and court findings in Sierra Club vs. EPA (U.S. Court of Appeals, D.C. Circuit; Docket No. 15-1246; July 18, 2017). Consequently, EPA is in a situation where it is statutorily and judicially required to regulate certain source categories under 40 CFR Part 63, but Congress prevents it from doing so. There may be a legal mechanism for the agency to move forward with appropriate new regulations, but it is unclear what those regulations would look like and when, if ever, they may be promulgated.

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