The Environmental Protection Agency moved Tuesday to relax requirements for power plants and other industrial facilities in a way that will allow them to expand operations without the fear of being punished.
EPA administrator Scot Pruitt said the new guidance to industry affects New Source Review rules that have been difficult for industrial facilities to navigate in the past when considering adding more plant capacity, or making upgrades.
“Today’s NSR guidance advances President Trump’s goal to streamline permitting requirements for manufacturing facilitates as well as EPA’s efforts to reform the overly complicated and burdensome NSR program,” Pruitt said.
EPA’s air chief, Bill Wehrum, added in a statement that new guidance outlines a “common-sense interpretation of NSR rules,” and said the result is the removal of “unnecessary administrative barriers to the construction of cleaner and more efficient facilities.”
Wehrum said Tuesday’s action is an “important step toward achieving better outcomes based on real world impacts.”
Industry has long seen NSR as a tricky regulation that should be avoided when possible. The EPA program attempts to determine if by modifying a power plant, or building a new manufacturing plant, for example, a significant new source of pollution is being created.
If a modification to a manufacturing plant were to trigger a review, it could mean more costly studies and ultimately new air pollution permits and control technologies that create uncertainty and drive up cost.
EPA explained that it is looking to clear up the uncertainty in the pollution source program through improving what it calls the Step 1 process of determining “whether a proposed project will, by itself, result in a significant emissions increase.” The agency explained that if Step 1 shows that “an increase is projected to occur,” the more rigorous “Step 2” process is triggered to determine “whether the project, combined with other unrelated recent projects, will result in a significant net emissions increase.”
The previous interpretation of NSR has been “inconsistent” across the Step 1 process, which has punished environmentally beneficial projects from moving forward, according to the EPA. “The memo clarifies that companies can consider projected decreases in emissions of air pollution, as well as projected emissions increases, during Step 1. This removes regulatory obstacles, saves time and money, and reduces pollutants,” the agency said Tuesday.
Fear of having to attain new air pollution permits under NSR has slowed manufacturing facilities from installing more efficient energy technologies, like combined heat and power systems that recycle waste gases to generate heat and electricity to power the plant, rather than venting into the atmosphere. The program has not been able to adequately assess these pollutants as an emission reduction system and beneficial to the environment.
The refinery industry praised the new guidance as necessary expand and grow the industry. “Most importantly, these reforms will allow our industries to be modified and expanded, while continuing to provide strong environmental and health protection for the public,” said the American Fuel and Petrochemical Manufacturers, the refinery industry’s lead trade association in Washington.
“AFPM has long been supportive of reforming the New Source Reform process to provide a clearer, more streamlined permitting pathway to expediting the development of critical projects,” the group said.
“Balanced, effective NSR regulations allow our industry to invest in new facilities and energy infrastructure in ways that improve environmental performance,” said Howard Feldman, the head of regulatory affairs at the American Petroleum Institute, the largest oil industry lobbying firm.
But it isn’t just the oil industry that favors the changes. Big paper and wood product manufacturers also want NSR modified to help them boost energy efficiency at their mills.
“Under the former process, for example, one of our wood products facilities was making changes to reduce energy consumption as well as comply with Boiler [air pollution] requirements,” explained America Wood Council President and CEO Robert Glowinski. “Because of the arcane and unnecessary permitting steps, the project was delayed approximately five months, resulting in increased emissions over that time.”
Glowinski said his industry thanks EPA for taking this step to reform “the burdensome NSR review process and procedures. This is a winning proposal for both business and the environment.”
