EPA slates July hearings on NSR energy roadblocks

July 2, 2001
The US Environmental Protection Agency has scheduled meetings to take public input on whether enforcement of a Clean Air Act rule is hampering investment in electric generating and refinery capacity.

The US Environmental Protection Agency has scheduled meetings to take public input on whether enforcement of a Clean Air Act rule is hampering investment in electric generating and refinery capacity.

The administration of President George W. Bush ordered the 90-day assessment of the New Source Review (NSR) provisions of the Clean Air Act (CAA) as part of its recently released national energy plan. The final report, due to President Bush on Aug.17, is expected to include recommendations on how to improve the NSR process.

The national energy policy also called for Atty. Gen. John Ashcroft to decide how to proceed with ongoing enforcement measures initiated under the administration of former President Bill Clinton. Environmentalists were quick to respond to the controversial proposals. They complained the Bush administration appears to be about to tie the EPA's hands on one of it most effective enforcement tools.

NSR dispute

NSR requires firms to install the best available pollution control equipment when they build a new facility or when they make a major modification that increases emissions from an existing facility. Under the Clinton administration, the EPA used the rule to launch a crackdown alleging modifications were made at power plants, refineries, and other industrial facilities in violation of the law.

In numerous lawsuits, EPA and the Department of Justice alleged a number of power plants, refineries, and pulp and paper mills made upgrades enlarging and extending the life of facilities in violation of CAA NSR provisions.

The lawsuits sought to force the companies to install billions of dollars worth of pollution-control equipment. Industry claimed the modifications were routine maintenance that previously had passed muster with EPA without problems. The companies complained they were victims of an illegal retroactive rulemaking by the agency.

The EPA said it recognizes that the NSR process is complex and burdensome both for affected companies and for state and local agencies responsible for implementing the program. EPA said it has been exploring options to simplify the program, reduce the length of the review process, and remove any barriers it may pose to innovation and improved energy efficiency.

The report to the president will summarize key findings with respect to the electric power generating and refining industries and examine whether NSR rules, including permitting and compliance, have deterred investment in new capacity. It will also include recommendations on how to improve NSR procedures and minimize any adverse impact on the energy industry.

Beginning June 27, EPA was to have held separate meetings with outside stakeholders, including affected industries, environmental groups, and state and local governments. The public meetings will be held July 10 in Cincinnati, July 12 in Sacramento, July 17 in Boston, and July 20 in Baton Rouge.