CFACT has officially joined the newly formed Fix the EPA Veto Coalition, a broad alliance pressing the Trump Administration to issue a strong executive order reining in the Environmental Protection Agency’s ability to retroactively sabotage major energy, mining, and infrastructure projects.

At the heart of the issue is Section 404(c) of the Clean Water Act — a little-known provision that gives the EPA power to veto dredge-and-fill permits issued by the U.S. Army Corps of Engineers, even years after projects have been approved, funded, and built. While used sparingly in the past, this authority has become a potent political weapon capable of destroying billions in investment and thousands of jobs with the stroke of a pen.

A History of Weaponized Regulation

The precedent that alarms industry most came during the Obama years, when the EPA retroactively revoked a lawfully issued permit for the Spruce No. 1 coal mine in West Virginia — four years after approval. The Biden administration later took the tactic even further, using 404(c) preemptively to kill Alaska’s massive Pebble Mine project before it could even break ground.

This regulatory whiplash creates devastating uncertainty for developers who spend years and hundreds of millions navigating the federal permitting maze, only to have the rug pulled out once they’ve finally secured approval.

Billions at Stake

The stakes could hardly be higher. Under the Trump Administration, critical projects now moving forward — including the Alaska natural gas pipeline, Arctic energy development, new LNG terminals, Minnesota’s Duluth Mining Complex, and strategic critical mineral mines across the country — all remain vulnerable to future EPA vetoes.

Every year, the Army Corps of Engineers issues between 60,000 and 75,000 Section 404 permits, supporting roughly $200 billion in economic activity. The looming threat of a retroactive veto hangs like a sword over all of them.

A Clear Solution

The Fix the EPA Veto Coalition is urging the White House to issue an executive order modeled on the Reducing Permitting Uncertainty Act, legislation sponsored by Rep. Pete Stauber (R-MN) that has twice passed the House but stalled in the Senate.

The proposed order would:

  • Establish clear timelines for when veto authority can be used
  • Prohibit retroactive and preemptive vetoes
  • Restore consistency and predictability to the review process
  • Protect projects that already hold permits or are actively moving through permitting

Melanie Collette, CFACT Senior Policy Analyst, emphasized why her organization is proud to join the fight:

“This is exactly the kind of regulatory fix CFACT exists to fight for. The 404(c) veto has been used as a political weapon to kill projects long after investors, workers, and communities have already committed. That uncertainty is a real drag on domestic energy and mineral development, and we want to see the Administration close this loophole before the next administration has the chance to exploit it.”

Myron Ebell, Coalition Senior Advisor and leader of Trump’s first EPA transition team, put it more bluntly:

“Going through years of permitting only to have the permit pulled after the fact is a massive obstacle to investing in America. It’s not the kind of regulatory environment a country serious about energy dominance can afford.”

The coalition is calling on the Trump Administration to act decisively and deliver the regulatory certainty American industry needs to build, produce, and lead.

For more information or to join the effort, visit fixtheepaveto.org or email [email protected].