EPA Takes Further Actions to Improve the NSR Permitting Program

The U.S. Environmental Protection Agency (EPA) is announcing several actions to clarify and improve New Source Review (NSR) permitting requirements. These Clean Air Act actions are part of a suite of measures EPA is taking to modernize and streamline the NSR process, without impeding the Agency’s ongoing efforts to maintain and enhance the nation’s air quality. These actions will improve regulatory certainty and remove unnecessary obstacles to projects aiming to improve the reliability, efficiency, and safety of facilities while maintaining air quality standards.

“NSR reforms are a key component of President Trump’s agenda to revitalize American manufacturing and grow our economy while continuing to protect and improve the environment,” said EPA Administrator Andrew Wheeler. “NSR regularly discouraged companies from investing in and deploying the cleanest and most efficient technologies. Through the Trump Administration’s efforts, EPA is providing clarity to permitting requirements, improving the overall process, and incentivizing investments in the latest energy technologies.”

“For too long, New Source Review permitting requirements stifled job creation, hampered innovation and slowed the ability to modernize critical energy infrastructure. Worse, in previous administrations, the permits were weaponized, so liberal activists could delay key projects,” said U.S. Senator Jim Inhofe (OK). “New Source Review hasn’t been updated in over four decades—making it hard to integrate new technologies into our energy infrastructure. I’ve worked for years to modernize the review process, and applaud today’s action by President Trump and Administrator Wheeler to streamline the NSR permitting process.”

“One of my consistent frustrations with New Source Review is what seems to be a perverse incentive away from innovation. Thank you to Administrator Wheeler and the Trump Administration for recognizing this and finalizing these positive reforms,” said U.S. Senator Kevin Cramer (ND). “The EPA’s actions provide certainty while restoring the proper scope of the Clean Air Act.”

“I applaud the EPA for taking further steps to reform the New Source Review permitting program. NSR’s burdensome process can impede upgrades that would actually increase efficiency and improve air quality. The EPA is moving toward a better NSR program that streamlines the process without sacrificing environmental protections,” said U.S. Representative Morgan Griffith (VA-09). 

“I applaud Administrator Wheeler for implementing a strong regulatory reform agenda at the EPA. Today’s actions are a solid first step in the right direction to reform the NSR permitting program. I look forward to continue working with the Trump Administration to further reform NSR and allow America’s industry to make their units more reliable and efficient, while maintaining strong environmental standards,” said U.S. Representative Andy Biggs (AZ-05).

“President Donald Trump continues to deliver on his promise to cut burdensome regulations that strangle American manufacturing and energy development. These improvements to the New Source Review (NSR) permitting requirements will protect our air quality, while incentivizing businesses to grow and expand. I look forward to continuing to work with President Trump and Administrator Wheeler to cut needless regulations and create American jobs,” said U.S. Representative Alex X. Mooney (WV-02).

“This Administration is clearing the path for manufacturers to invest in more energy efficient technologies that conserve energy, reduce emissions, and keep U.S. manufacturers competitive,” said Portland Cement Association President and CEO Mike Ireland. “For energy-intensive industries like cement, strategic investment in energy efficiency and emissions reduction are key components of any long-term climate and sustainability strategy, and EPA’s New Source Review reforms announced today help unlock new opportunities for sustainable operation.”

Final Guidance: Revised Policy on Exclusions from “Ambient Air”

After considering public comments, EPA is issuing final guidance, identifying the sort of measures which EPA may take account of in determining whether a source owner or operator has precluded the general public from having access to its property. Where access is precluded, the portion of the atmosphere above that property is not considered “ambient air” for the purpose of conducting air quality analyses under the Clean Air Act. The guidance updates EPA’s policy to recognize that a variety of measures may be considered effective in keeping the public off a source owner/operator’s property. These measures, which account for advances in surveillance and monitoring, depend on site-specific circumstances and continue to include, but are now not solely limited to, fences or other physical barriers. State, local and tribal permitting authorities have the discretion to apply this guidance on a case-by-case basis. The regulatory definition of “ambient air,” as stated in 40 CFR § 50.1(e) to mean “that portion of the atmosphere, external to buildings, to which the general public has access,” remains unchanged.

Final Guidance: Interpreting “Adjacent” for New Source Review and Title V Source Determinations in All Industries other than Oil and Gas

EPA has also recently issued a final guidance that revises the agency’s interpretation of when multiple air pollution-emitting activities are located on sufficiently “adjacent” properties to one another that they should be considered a single source for the purposes of permitting. To determine what activities comprise a single source under the NSR and Title V air permitting programs, three factors must be satisfied: the activities must be under common control; they must be located on contiguous or adjacent properties; and they must fall under the same major group standard industrial classification (SIC) code. In this guidance, for all industries other than oil and natural gas production and processing for which there is a separate set of rules and to which this guidance does not apply, EPA adopts an interpretation of “adjacent” that is based on physical proximity only. The concept of “functional interrelatedness” would not be considered by EPA when determining whether activities are located on adjacent properties. This interpretation should help clarify and streamline the permitting process.

Additional NSR Proposals

EPA also recently issued a proposal to address minor errors that have accumulated over time in four NSR regulations. While these minor errors, such as outdated cross references and typographical errors, have not materially impeded the effective operation of the NSR program, EPA believes that it is important to remove such errors from the regulations in order to provide regulatory certainty and clarity. The proposed corrections are all considered to be non-substantive and are intended to provide clarity and precision to the NSR regulations without altering any NSR policy or changing the NSR program as a whole.

EPA is also proposing to remove from the NSR regulations various provisions, such as certain “grandfathering” provisions, that, with the passage of time, no longer serve any practical function or purpose. EPA will be taking comment on this proposal, which will be published in the Federal Register.

More information on these actions and other NSR improvements are a