Ethylene oxide — a substance used for sterilizing medical devices — is at the center of a dogfight over protecting public health while also preserving a supply chain, Jael and Axios Pro Health's Maya Goldman write.

Why it matters: A chemical helping to keep Americans alive may also be making people sick, creating a situation that's sent lawmakers scrambling and positioned federal officials against the industries they regulate.

Driving the news: The EPA in April proposed new commercial standards for ethylene oxide, or EtO, including new emissions restrictions for sterilization facilities and chemical plants.

• EPA's moves are based on risk assessments, including a 2016 report finding with "high" confidence that ethylene oxide is "carcinogenic to humans."
• Like PFAS, this odorless gas has become the subject of many civil claims and was at the center of a Trump-era dust-up over alleged suppression of science.

Between the lines: Stakeholders are facing an uncomfortable truth: This chemical's pretty hard to get rid of right now.

• EtO has numerous uses, but crucially helps sterilize half of all medical devices in the U.S. each year, according to an FDA spokesperson.
• AdvaMed, a medical device lobbying group, and other industry outfits say EPA's proposals would cause "critical shortages" of medical devices.

Threat level: Chemicals trade representatives in D.C. have aimed at EPA's science and a chemicals program known as IRIS, as well as broadcasting EtO's myriad uses, including in EV batteries.

• The American Chemistry Council is involved in an ongoing legal challenge to a 2020 rule on reducing EtO emissions from vents and storage tanks. Their effort questions the viability of the 2016 risk assessment's findings.

Yes, but: Darya Minovi, a senior analyst at the Union of Concerned Scientists, is optimistic that FDA can find alternative sterilization methods.

• "We should value the health of the people who live near these facilities a little bit more than our system has," Minovi told Jael.
• An FDA spokesperson, meanwhile, says that "while signs of innovation are promising, other methods of sterilization cannot currently replace the use of EtO for many devices."

The intrigue: The EtO fight has sparked visceral reactions from allies and foes in Congress.

• The fight against EtO has been led primarily by lawmakers from Illinois, home to a high-profile EtO exposure site.
• Rep. Brad Schneider created a bipartisan EtO task force in 2019 with former Rep. Jody Hice and recently wrote in support of EPA's proposed regulations with Sens. Tammy Duckworth and Dick Durbin.
• "This is not a binary choice between making sure we have medical devices, medical products and clean air. We're able to do both," Schneider told Maya.

What EPA says: Shayla Powell, an agency spokesperson, provided a statement saying EPA's goal is to reduce "cancer causing EtO exposure to workers and community members, while maintaining the integrity of the supply chain."

• "We are working with FDA and others on potential supply chain issues and will use the input gathered during the public comment process in making any final decision."

What we're watching: House appropriators included language in the Interior-Environment bill that would restrict EPA from using funds to create new standards for EtO emissions until FDA certifies that the action won't cause a medical device shortage.

Congress has allowed a chemical terrorism safety program to expire, leaving companies temporarily without federal resources to protect facilities, Nick writes.

Why it matters: The Chemical Facility Anti-Terrorism Standards program enjoys bipartisan support, and industry is worried the lapse could mean risks for chemical facilities.

Driving the news: Sen. Rand Paul blocked quick passage of a two-year CFATS reauthorization bill before the Senate left town last week.

• The House had previously passed the legislation 409-1.
• The Cybersecurity and Infrastructure Security Agency currently says on its website that it can't enforce CFATS and will "follow up with facilities in the future" if the program is reauthorized.
• CISA has been in touch with chemical companies to walk them through next steps, said American Chemistry Council spokesman Scott Jensen.
• "It's still sort of an ongoing process to fully understand what the impact is of CFATS expiring, because this has never happened before," Jensen said.

Zoom in: The program requires security plans for high-risk chemical facilities and helps companies vet personnel who get access to them.

• During the lapse, "our guys don't have access to things like the Personnel Surety Program," which screens for potential terrorism ties, said Eric Byer, CEO of the National Association of Chemical Distributors.
• "That's not something we can do from a private-sector perspective," Byer told Nick.

The other side: Paul argued that "every company has a self-incentive to protect hazardous chemicals."

• Paul said he would let the reauthorization pass if he got a bill added as an amendment to prevent duplicative federal programs.

What's next: Given the overwhelming support, Congress will likely get a reauthorization done come September.

There's a reason your podcasts and online TV platforms are being inundated with hydrogen-related ads: the Inflation Reduction Act, Jael writes.

Why it matters: As digital media becomes increasingly bifurcated, D.C. insiders are using targeted methods to impact how the climate law is used.

Driving the news: We're expecting an update on the IRA's hydrogen production tax credit any day now as a statutory one-year deadline for the Treasury to issue guidance approaches in two weeks (the law's actual anniversary is Aug. 16).

• D.C. has been showered with ads as this deadline's approached. Several have been from environmental groups and American Clean Power (some of which have run in Axios' Sneak Peak newsletter).
• These ads support putting restrictions on access to the credit to protect against hydrogen production increasing carbon emissions.

Other ads opposed to guardrails have been run by the Fuel Cell and Hydrogen Energy Association, which represents companies vying into hydrogen production or hydrogen-powered transport.

• Their ads are showing up on platforms like Hulu. Nick's even heard one as the front bumper for one of his favorite comedy podcasts.

What they're saying: The association's CEO, Frank Wolak, declined to say how much the group is spending. But he confirmed it is intentionally targeting digital mediums to get Washington eyeballs.

• "This is a very inside-the-Beltway kind of discussion and very technical, so it's not intended to be a broad campaign across the country," Wolak said. "The intention was to look at lots of content that policymakers and people around Washington [consume]."

🌊 1. United (climate) Nations — House Oversight Republicans are asking for documents on the Net-Zero Insurance Alliance to determine whether the U.N. is "advancing radical climate goals."

📦 2. Sustainable procurement — The Biden administration is beginning to roll out its low-carbon government purchasing plans.

🌅 3. Deep sea mining — Some House Republicans are urging the DOD to support deep-sea mining for minerals with defense applications.