White House Plan to Nominate New EPA Air Chief Stalls, Sources Say

A White House plan to nominate Justin Schwab, a top adviser to the Environmental Protection Agency (EPA) administrator, to lead the agency's influential air office has been put on hold, according to three sources familiar with the situation. The nomination was reportedly aborted after the current officeholder, Aaron Szabo, unexpectedly remained in his post.

A Last-Minute Reversal

Aaron Szabo, who heads the EPA’s Office of Air and Radiation, had planned to resign on July 17 for a position at a private law firm, the sources said. Staff had reportedly attended a series of farewell parties for the departing chief.

However, Szabo's planned move fell through at the last minute, according to one source. The EPA confirmed that Szabo was asked to remain in his role “a little longer to help further advance the President’s agenda.” The agency did not specify how long he would stay on.

The Intended Nominee and Market Impact

Justin Schwab, the intended nominee, recently rejoined the EPA as a senior adviser to Administrator Lee Zeldin. He previously served as the agency's deputy general counsel during President Donald Trump's first term and also worked at the White House Council on Environmental Quality.

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To become the permanent head of the air office, Schwab would require a formal White House nomination and Senate confirmation. The Office of Air and Radiation holds significant power over key industries, overseeing major programs including:

• The Clean Air Act, which sets pollution standards affecting power plants, manufacturers, and automakers.
• The Renewable Fuel Standard (RFS), a politically sensitive program that mandates the blending of biofuels like ethanol into the nation's gasoline supply. The RFS frequently creates conflict between agricultural interests and the oil refining industry.

Confirmation Hurdles and Industry Ties

A potential nomination for Schwab would likely face a challenging Senate confirmation process, given the scope of the position. Both Schwab and Szabo are affiliated with CGCN Group, a Washington, D.C.-based lobbying firm.

Szabo was named a partner at the firm in 2018, whose clients included the American Fuel and Petrochemical Manufacturers, a trade group that has opposed stricter pollution regulations. According to his LinkedIn profile, Schwab is the founder of CGCN Law, an entity associated with the lobbying group. When asked about a potential Schwab nomination, a White House official stated, “Any and all personnel announcements will be made directly by the Administration.”