Regulatory Relief for Certain Stationary Sources to Promote American Iron Ore Processing Security
President Trump issued a proclamation granting a two-year exemption from the Taconite Rule for specific iron ore processing facilities.
The exemption, based on national security and economic considerations, cites the unavailability of necessary technology for prompt compliance with the rule and concerns over the impact on domestic steel production, critical infrastructure, and supply chain resilience.
The proclamation identifies specific facilities from United States Steel Corporation and Cleveland-Cliffs Inc. as beneficiaries of the delay, extending compliance deadlines by two years.
Arguments For
National Security: The proclamation emphasizes that domestic taconite processing is vital for steel production, which is essential for national defense systems and critical infrastructure. The existing regulations risk undermining the nation's capacity to supply steel for essential purposes.
Economic Resilience: Maintaining domestic taconite processing reduces reliance on foreign sources, bolstering the resilience of American industrial supply chains and protecting jobs. The proclamation claims that the timeline of the Taconite Rule threatens domestic production and risks plant shutdowns.
Technological Feasibility: The president argues that technology to meet the Taconite Rule's standards is not currently available or commercially viable within the specified timeframe. A 2-year delay allows time for technological advancements and ensures that compliance won't be impossible.
Legal Basis: The proclamation cites section 112(i)(4) of the Clean Air Act as the legal authority for issuing the exemption. This highlights a Presidential prerogative to modify regulatory compliance when necessary.
Arguments Against
Environmental Concerns: Critics might argue that delaying the implementation of the Taconite Rule could lead to increased air pollution and harm to the environment.
Economic Inefficiency: The exemption may shield inefficient companies from needed upgrades and may ultimately hinder technological innovation in the industry, potentially undermining long-term competitiveness.
Regulatory Uncertainty: Granting exemptions based on national security concerns could set a precedent for circumventing environmental regulations in various industries. This increases regulatory uncertainty and may complicate future environmental compliance.
Job Displacement (Long-Term): Though the proclamation aims to protect jobs in the short term, the long-term economic consequences of delaying environmental regulations and environmental damage could lead to losses in related industries or to the burden of later, more sudden, and more costly compliance.
- Taconite iron ore processing is fundamental to the United States’ steel production and manufacturing sectors. The facilities involved in the process supply essential raw materials used to make steel, which is used in national defense systems, critical infrastructure, and a broad range of industrial applications. Preserving and enhancing domestic taconite processing capabilities is vital to reducing reliance on foreign sources and ensuring resilience of American industrial supply chains.
- On March 6, 2024, the Environmental Protection Agency published a final rule, pursuant to section 112 of the Clean Air Act, 42 U.S.C. 7412, titled National Emission Standards for Hazardous Air Pollutants: Taconite Iron Ore Processing, 89 FR 16408 (Taconite Rule). The Taconite Rule imposes new emissions-control requirements on taconite iron ore processing facilities.
- The Taconite Rule places significant burdens on a sector critical to the Nation’s industrial foundation. The Taconite Rule mandates compliance with standards that rely on emissions-control technologies that have not been demonstrated to work in the taconite industry, are untested at commercial scale, or are not reasonably achievable under current operational conditions. If enforced under the current timeline as set forth at 89 FR 16408, the Taconite Rule risks forcing shutdowns, reducing domestic production, and undermining the Nation’s ability to supply steel for defense, energy, and critical manufacturing. The United States must not allow inflexible regulatory deadlines to jeopardize a material critical to our industrial base. Maintaining this capacity is essential to our national security and economic resilience. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States, including section 112(i)(4) of the Clean Air Act, 42 U.S.C. 7412(i)(4), do hereby proclaim that certain stationary sources subject to the Taconite Rule, as identified in Annex I of this proclamation, are exempt from compliance with the Taconite Rule for a period of 2 years beyond the Taconite Rule’s relevant compliance dates (Exemption).The technology to implement the Taconite Rule is not currently available, and it is necessary to issue this Exemption now because long design, permitting, and construction lead times mean that regulated entities will not be able to meet the relevant compliance deadlines absent compliance relief.This Exemption applies to all compliance deadlines established under the Taconite Rule, with each such deadline extended by 2 years from the date originally required for such deadline.The effect of this Exemption is that, during each such 2-year period, these stationary sources are subject to the emissions and compliance obligations that they are currently subject to under the applicable standard as that standard existed prior to the Taconite Rule.In support of this Exemption, I hereby make the following determinations: a. The technology to implement the Taconite Rule is not available. Such technology does not exist in a commercially viable form sufficient to allow implementation of and compliance with the Taconite Rule by the compliance dates in the Taconite Rule. b. It is in the national security interests of the United States to issue this Exemption for the reasons stated in paragraphs 1 and 3 of this proclamation. IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of July, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and fiftieth.
DONALD J. TRUMP
This section lays out the rationale for the presidential proclamation.
Paragraphs 1 and 3 describe the importance of taconite iron ore processing for the US steel industry and national security, highlighting the potential negative impacts of a new EPA regulation (the Taconite Rule) on domestic steel production and supply chains.
Paragraph 2 details the Taconite Rule's origin and its implications.
The proclamation itself grants a two-year exemption from the rule, citing the unavailability of the necessary technology and the need to avoid disrupting essential production.
It affirms this decision is made in the national interest and under the authority of the Clean Air Act, section 112(i)(4).
Finally, the document is signed by President Trump.
1. United States Steel Corporation i. Affected Facility/Source: i. Keetac Plant, Keewatin, Minnesota ii. Minntac Plant, Mountain Iron, Minnesota
2. Cleveland-Cliffs Inc. i. Affected Facility/Source: i. United Taconite, Minnesota ii. Northshore Mining, Minnesota iii. Hibbing Taconite, Minnesota iv. Minorca Mine, Minnesota v. Tilden Mine, Michigan vi. Empire Mine, Michigan
This annex lists the specific iron ore processing facilities granted exemptions under the proclamation.
It details the facilities belonging to United States Steel Corporation and Cleveland-Cliffs Inc., providing each facility's name and location.