On May 3, 2024, the U.S. Environmental Protection Agency (EPA) announced a significant development that requires the attention of businesses operating major stationary sources. Published in the Federal Register, the proposed rule introduces key revisions to the preconstruction permitting regulations under the New Source Review (NSR) program. These changes could reshape the compliance landscape, making it essential for companies to understand the implications and prepare accordingly.
Key Proposed Changes
- Revision of the Definition of “Project”: The EPA proposes to refine what constitutes a “project” under the NSR regulations. This change could alter how projects are evaluated and which modifications at existing facilities trigger NSR permitting requirements. By redefining this term, the EPA aims to ensure that the regulatory framework more accurately reflects the scope and impact of modifications at major stationary sources.
- Enhanced Recordkeeping and Reporting: The proposal includes new requirements for recordkeeping and reporting, particularly for minor modifications at major stationary sources. These additional obligations are intended to enhance transparency and ensure that even smaller changes are adequately documented and monitored. This move could lead to increased administrative responsibilities for businesses but also provide clearer guidelines for compliance.
- Enforceability of Emission Decreases: In a crucial shift, the proposed rule mandates that any decreases accounted for in the Step 1 significant emissions increase calculations must be enforceable. This portion of the proposed requirement is intended to guarantee that any reported reductions in emissions are real, verifiable, and sustainable, thereby enhancing the integrity of the NSR program and ensuring that environmental benefits are genuinely achieved.
Why This Is Important
The proposed revisions are a response to ongoing concerns about the clarity and effectiveness of the NSR program. By tightening definitions and enhancing recordkeeping and reporting standards, the EPA seeks to streamline the permitting process while ensuring that environmental protections are robust and meaningful
Impact on Businesses
The immediate impact of these proposed changes will be felt in the way businesses plan and execute modifications to their facilities. Companies will need to reassess their projects under the new definition, potentially facing different permitting requirements. The enhanced recordkeeping and reporting obligations will also require businesses to produce more rigorous documentation processes.
What Clients Should Do
- Review the Proposed Rule
- Determine the Implications of the Proposed Rule
- Prepare for Public Comment
- Plan for Compliance
- Educate and Train Staff
The EPA has provided a summary fact sheet for the Project Emissions Accounting changes. Businesses must submit comments to the EPA on or before July 2, 2024.
If your company needs assistance in reviewing this proposed rule and its effect on your business, contact your local Trinity office for assistance and additional guidance.
