EPA Announces Permitting Reforms to Expedite the Build-Out of Power Generation for Data Centers

The Environmental Protection Agency (EPA) has released new guidance for New Source Review (NSR) permitting requirements to “provide much needed clarity for the buildout of essential power generation and reshoring of manufacturing.”

Under the new guidance, entities will be able to begin certain building activities that are not related to air emissions, such as installing cement pads, prior to obtaining a Clean Air Act (CAA) construction permit. The CAA’s NSR program is a preconstruction permitting program that requires certain stationary sources to obtain permits prior to beginning construction. The NSR permitting program applies to both new construction and to modifications of existing sources.

The EPA is also planning to propose and finalize a rule in 2026 that would revise the definition of “begin actual construction” in EPA’s NSR regulations to assist permitting authorities in properly distinguishing between emissions units and other parts of a stationary source facility that are not an emissions unit or part of an emissions unit, and therefore are eligible to be constructed prior to the issuance of a CAA construction permit.

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