Industrials Regulatory News and Trends - December 22, 2025

Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.

EPA releases draft risk evaluation on formaldehyde. The United States Environmental Protection Agency (EPA) has released for public comment a proposed revised draft risk evaluation on the health dangers posed by formaldehyde. Risk evaluations are used under the Toxic Substances Control Act (TSCA) to determine whether a chemical presents an unreasonable risk of injury to human health or the environment, without consideration of costs or non-risk factors. The Formaldehyde; Updated Draft Risk Calculation Memorandum proposes to dramatically revise the final risk evaluation for formaldehyde released by the agency on January 2 this year. Under that earlier evaluation, formaldehyde was deemed to pose an “unreasonable risk of injury to human health,” and EPA stated that it would be taking action under the TSCA to limit human exposure to the chemical, with a particular focus on workers’ exposure. EPA’s proposed changes would roughly double the safe inhalation standard compared to that set out in the earlier final risk evaluation. Of note: the agency has not changed its position that formaldehyde presents an overall “unreasonable risk” to human health, particularly for workers and consumers. Comments on the Updated Draft Risk Calculation Memorandum are due by February 2, 2026. 

Federal court affirms EPA approval of an exceptional-events waiver, while vacating redesignation of Detroit air as meeting NAAQS. In a split decision issued on December 5, the US Court of Appeals for the Sixth Circuit has affirmed EPA’s approval of an exceptional-events request by the state of Michigan, while vacating the agency’s redesignation of the Detroit area as having met National Ambient Air Quality Standards (NAAQS) under the Clean Air Act. The case, brought against EPA by the Sierra Club, arose from the manner in which environmental regulators measured air quality in June 2022, when wildfire smoke blanketed vast swaths of the US. In determining the seven-county Metro Detroit region’s air quality, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) deemed readings from that period “exceptional events” so that, in 2023, it could claim the state had met federal air-quality standards governing ground-level ozone. The Sierra Club charged that EGLE had failed to consider the contributions of local sources to ozone levels during that period and challenged EPA’s finding that the region had attained NAAQS under the Clean Air Act. The court concluded that EGLE and EPA had accurately scrutinized the impact of wildfire smoke on air quality in June 2022. However, the court also found that EPA had erred when it finalized a Clean Data Determination stating that the Detroit area had attained the NAAQS for the 2020–2022 period, because the state had not appropriately met all applicable requirements for redesignation – for instance, it had failed to ensure the implementation of control technologies to reduce factory emissions of volatile organic compounds (VOCs). At this writing, it remains unclear whether EPA will require Michigan to put in place measures to control VOCs and other emissions. EGLE will reportedly need to repeat the process of applying for redesignation. See the court’s decision here.

Backed by US, Korea Zinc will build massive critical minerals smelter in Tennessee. Korea Zinc Co., the world’s leading comprehensive nonferrous metal manufacturer, reportedly plans to build a massive new zinc production facility in Tennessee. In a strategic partnership, the US Department of War, the US Department of Commerce, and private investors have backed construction to protect supplies of materials essential for chip-making, defense, and aerospace. Korea Zinc will establish a foreign joint venture, Crucible JV LLC, that will oversee the project. The deal includes the purchase of Tennessee-based Nyrstar Zinc, currently the only zinc smelter in the US, for an undisclosed sum. The Nyrstar site, which already features multimodal transportation infrastructure, direct rail access, and Cumberland River barge capability, will become the company’s US headquarters, covering nearly 7 million square feet and featuring a new state-of-the-art, large-scale smelting facility capable of refining zinc, lead, copper, gold, and silver as well as antimony, germanium, and gallium. Phased commercial operation is projected to begin in 2029. When fully operational, the facility is projected to process 1.1 million tons of raw materials annually and produce a total of 540,000 tons of finished products. In addition, the company is planning to re-open a zinc mine in Gordonsville, Tennessee whose operations had been temporarily suspended due to weak global prices.

PFAS updates. The San Francisco Fire Department (SFFD) is transitioning all its equipment to turnout gear manufactured without per- and polyfluoroalkyl substances (PFAS). By December 31, the SFFD will have reportedly received 1,100 sets of non-PFAS turnout gear, enough to provide every front-line firefighter with one set of PFAS-free gear. Funding to acquire the gear was provided through a combination of federal and local funds and grants. San Francisco Mayor Daniel Lurie stated, “This step places San Francisco at the forefront of firefighter safety, making us the largest city in the country to go PFAS free.”

Meanwhile, the latest version of the National Defense Authorization Act (NDAA), released on December 7, would allow the Pentagon to further delay the phase-out of firefighting foam containing PFAS. Under the 2020 NDAA, the military was required to end acquisitions of firefighting foam containing PFAS by 2023 and end its use by 2024; that bill allowed the Pentagon to extend its use of such foams through 2026 via waivers. The NDAA that is now under consideration by Congress would allow the Pentagon to resume purchases of PFAS-containing firefighting foams through 2026 and, with waivers, through 2028. 

China to introduce export quota system for many steel products. China’s General Administration of Customs is introducing an export quota licensing system covering as many as 300 types of products containing steel. The quotas go into effect January 1, 2026, requiring exporters of steel goods meeting certain classifications under the country’s Harmonized System of product codes to apply for export licenses. Among exports affected by the new quotas are carbon steels, stainless steels, ferrous scrap, pig iron, recycled steel materials, rebar, wire, and steel scrap. Further categories may be added going forward. Reportedly, the export quotas aim to address global concerns about China’s surging volume of steel exports, which doubled in volume between 2020 and 2024 and rose another 10 percent this year. In November, the Organization for Economic Cooperation and Development (OECD)’s Steel Committee issued a statement charging that China’s “pervasive use of nonmarket policies” was, among other things, depressing global steel prices, disrupting trade, and prompting some of the 38 OECD member countries to postpone new lower-carbon emissions projects. The state-backed China Iron and Steel Association posted on WeChat, “The move will help maintain a balance of global supply, demand and trade.”