The argument is that it's better handled at the state level, and having a centralized federal authority for that is of little to no value.
It might also make compliance overall more expensive by creating a fragmented patchwork of regulations and practices, which increases complexity. Look at the effect of different states having different fuel formulation requirements on the oil refining industry.
A lot of the cost of regulatory compliance comes from complexity, fragmentation, and cognitive load. Simple uniform regulations are cheaper and easier.
Maybe there's a middle ground where states can have local-overrides - if their residents agree.