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EPA ISSUES BACKGROUND PAPER ON ADMINISTRATION REVIEW OF NEW SOURCE AIR POLICY

Release Date: 06/22/2001
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Note to Correspondents

EPA is today releasing for public comment a background paper on a 90-day review of its program for controlling new industrial and utility sources of air pollution. The paper provides information on the electricity generating and petroleum refining industries. The paper has no conclusions or recommendations.

The program, called New Source Review (NSR), requires that an air pollution source install the best pollution control equipment available when it builds a new facility or when it makes a major modification that increases emissions from an existing facility. The NSR was designed to ensure that new and modified sources do not impede progress toward cleaner air.

Since 1977, when it was first incorporated into the Clean Air Act, the NSR program has been an important part of EPA’s efforts to protect air quality. EPA also recognizes that the NSR process is complex and burdensome both for affected companies and for state and local agencies responsible for implementing the program. For several years, EPA has been exploring options designed to simplify the program, reduce the length of the review process and remove any barriers it may pose to innovation and improved energy efficiency.

In its May 2001 report, the energy task force headed by Vice President Cheney recommended that EPA, in consultation with other federal agencies, review NSR regulations to determine the impact of those regulations on investment in new utility and refinery generation capacity, energy efficiency and environmental protection.

The paper contains background information on the NSR program and asks for comments on whether the program should be changed to encourage more efficient use of our nation’s energy resources while maintaining air quality. The final report, due to the President on August 17, is expected to include recommendations on how to improve the NSR process.

EPA’s 90-day NSR review is separate and apart from the one being conducted by the U.S. Justice Department. That review is considering whether existing NSR enforcement actions are consistent with the Clean Air Act regulations.

The Agency also will take several steps to involve the public and stakeholders in its deliberations. The background paper and instructions for submitting comments are available at: https://www.epa.gov/air/nsr-review. A special public docket will be created to give the public access to all NSR review material. Beginning June 27, separate meetings will be held with outside stakeholders, including affected industries, environmental groups, and state and local governments. Next month the Agency will hold public meetings to collect information and public comments in Cincinnati, Ohio on July 10; in Sacramento, Calif., on July 12; in Boston, Mass., on July 17; and in Baton Rouge, La., on July 20.

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