Future EPA Rule Seeks to Clarify Preconstruction Activities

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The U.S. Environmental Protection Agency (EPA) on Tuesday announced plans to modify New Source Review (NSR) rules relating to what preconstruction activities can take place before a stationary source of air pollution must apply for a federal Clean Air Act permit.

In a statement, the EPA said the move, which it characterized as "permitting reform," would "provide clarity (to) expedite construction of essential power generation (and) reshore manufacturing." In invoking "manufacturing," the EPA statement also suggests advanced manufacturing plants such as semiconductor fabrication facilities were close to the heart of its effort, right next to power plants.

The announcement was supported by a range of business organizations, including the National Association of Manufacturers (NAM), whose president and chief executive, Jay Timmons, said: "The EPA is delivering by making the permitting process more prompt, clear and responsible--keeping air quality safe while cutting excessive red tape. By doing so, the EPA will fast-track construction of essential power generation, data centers and manufacturing facilities, and that means more jobs, investments and opportunities for manufacturers in the U.S. and the communities we serve."

The Arizona Chamber of Commerce & Industry also welcomed the EPA's move. In a statement, the organization said, "Business leaders have long argued that federal permitting delays create unnecessary costs and uncertainty for companies seeking to invest in new facilities. For Arizona, where the technology, manufacturing and clean energy sectors are rapidly expanding, the new guidance could prove especially significant."

The Grand Canyon State is home to several proposed semiconductor manufacturing projects.

Arizona Chamber President and Chief Executive Officer Danny Seiden continued, "Arizona businesses depend on a clear and predictable regulatory environment to invest, expand and hire. The EPA's action will help unlock the construction of the energy infrastructure, data centers and advanced manufacturing facilities our economy needs to compete in the global marketplace. By streamlining permitting without compromising environmental safeguards, this guidance strikes the right balance between growth and responsibility, and it sends a strong signal that the U.S. is serious about becoming the world leader in innovation."

Though it didn't explicitly endorse the EPA move, the U.S. Chamber of Commerce earlier this year endorsed an aspiration for permitting reform championed by House Majority Leader Steve Scalise (R-Louisiana), who said, "We want to see permitting reform this fall," and that it must be a bipartisan effort. In a July 24 statement, the Chamber said it "wholeheartedly agrees," with Scalise's goal. "Our permitting process is broken, and we're excited to help support fixing it." This past summer it issued a roadmap for comprehensive federal permitting reform that it said was guided by four principles: predictability, efficiency, transparency and stakeholder input.

A far different viewpoint was expressed by environmental organizations. "The Trump administration is weaponizing the EPA to prop up Big Tech, trading away our clean air and public health for corporate profits," Camden Weber, climate and energy policy specialist at the Center for Biological Diversity, said in a statement. "By gutting Clean Air Act safeguards, Trump officials are giving data centers and AI developers a free pass to pollute, drain resources and drive up energy costs for American families."

The EPA's pre-announcement on Tuesday of a forthcoming rulemaking was short on detail but long on strategic intent. Administrator Lee Zeldin connected this seemingly arcane issue to the Trump administration's "energy dominance" agenda to expedite the construction of electric generation, transmission lines, oil and gas facilities so that data centers and manufacturing facilities can be built faster. The Trump administration has vowed to "win" the artificial intelligence competition with China, and an adequate supply of electric generation is necessary to power the data centers at the heart of AI.

The EPA said it "intends to initiate a rulemaking to revise the definition of 'Begin Actual Construction' in its NSR (New Source Review) regulations and codify how permitting authorities may distinguish between emissions units and other parts of a stationary source facility that are not an emissions unit or part of an emissions unit. By doing so it will be easy to understand what parts of construction need an NSR permit and what construction activities can proceed without an NSR permit. This will also allow cut down on construction deadlines."

As an example, the agency said being able to install cement pads before having to apply to for a federal Clean Air Act permit was one type of preconstruction activity it wanted to allow.

Zeldin commented, "For years, Clean Air Act permitting has been an obstacle to innovation and growth. We are continuing to fix this broken system. This is another step to allow the build out of essential power generation, data centers and manufacturing projects that will bring about America's Golden Age."

In an earlier statement, the agency said, "permitting reforms are critical to expedite construction of essential power generation and industrial facilities."

President Donald Trump issued several "Day One" Executive Orders meant to secure "energy dominance," mainly by reducing regulations. For more on that, see January 21, 2025, article - Trump Invokes 'Energy Emergency,' Vows to 'Drill Baby Drill,' and January 22, 2025, article -- Far-Reaching Executive Actions on Energy Pour Out of White House. Over the summer, Zeldin joined Trump and elected and business leaders in speaking at a Pennsylvania summit devoted to expediting construction of energy infrastructure to "win" the AI race with China. For more on that, see July 17, 2025, article - Big Talk of AI, Power Development at Pennsylvania Summit.

The EPA's pre-announcement continues its efforts to pare back federal regulations and policies that energy interests have said constrain and delay their efforts. The EPA is trying to withdraw its "endangerment" finding about greenhouse gas emissions. For more on that, see July 30, 2025, article - EPA Proposes to Repeal its Own GHG 'Endangerment' Finding. Also, in a less-publicized move, the agency disbanded several outside panels of experts who have advised the agency on matters of science and the environment, according to a report from "GreenWire." The agency also plans to propose rolling back greenhouse gas reporting, according to a report in "E&E News." The Trump administration also is trying to modify the National Environmental Policy Act (NEPA), a cornerstone of U.S. environmental law, to enable industrial facilities to be constructed faster, with less federal oversight. Many of these efforts are likely to draw legal challenges.

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