Implementation of the EPA’s long-anticipated ban on trichloroethylene (TCE) and perchloroethylene (PCE) is now on hold. On January 28, 2025, the agency announced a delay in the final rule for TCE until March 21, 2025, following the Trump administration’s regulatory freeze on pending federal rules. The EPA may consider further delaying the effective date, leaving the potential impacts of the TCE and PCE ban up in the air.
Why the Delay and Impact on State Regulations?
When the EPA first finalized the rules in December 2024, it aimed to reduce harmful chemical exposures by banning TCE and limiting PCE use. TCE, a solvent found in cleaning products, degreasers, brake cleaners, sealants, lubricants, adhesives, paints, and coatings—as well as in the manufacture of some refrigerants—is widely used across consumer and commercial applications. PCE, which is used in dry cleaning and petroleum manufacturing, is particularly notable because it can biodegrade into TCE, further complicating the potential risks and regulatory landscape.
The federal delay could create a patchwork of regulations:
In states with bans like Minnesota and California, enforcement will continue unaffected, but industries might push back, citing federal inaction as a reason to seek exemptions or delays.
In states without bans, the delay allows industry stakeholders extra time to assess their compliance obligations, but it also opens the door to potential legal challenges or policy reversals. In December, the EPA estimated that the TCE changes could cost the industry up to $102.4 million over 20 years, while the PCE implementation might cost up to $43.4 million over the same period.
What This Means for Industrial Users and Dry Cleaners
The ban targeted industries that use TCE and PCE in significant quantities, particularly dry cleaners, industrial degreasers, and manufacturing operations. Many businesses have already been phasing out these chemicals, but now any future requirements to be implemented are unclear. Operators and owners of affected facilities should closely monitor updates from the EPA to ensure compliance with any future deadlines or restrictions.
Some industrial users may struggle to find suitable alternatives and could challenge the ban legally. If the administration ultimately rolls back or modifies the rule, businesses will need to adapt to a shifting regulatory landscape.
How This Affects Environmental Due Diligence
For environmental due diligence professionals, the delay doesn’t fundamentally change how TCE and PCE are assessed in site assessments. These chemicals have long been listed as hazardous substances under CERCLA and material releases to the environment remain recognized environmental conditions (RECs) per ASTM E1527—a standard that holds regardless of the ban’s status.
“For Phase I Environmental Site Assessments, this delay doesn’t have a significant impact,” said Alan Agadoni, LightBox Environmental Risk Specialist. “TCE and PCE remain regulated, so Phase IIs investigations and any legacy releases will still be managed when contamination is found.”
For property owners and tenants, the delayed ban extends uncertainty, but many lenders and investors will likely continue viewing properties with historical PCE/TCE use as higher risk. While the fate of the federal TCE/PCE ban hangs in the balance, adequate environmental due diligence by qualified environmental professionals is critical for assessing the potential risk exposure to a lender or buyer on transactions involving sites with potential contamination by these substances.
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