Author: joan

NSR Reactivation Policy Rescinded / September 18, 2025

EPA issued a memorandum ending its longstanding “Reactivation Policy” for idle sources on a nationwide basis. Previously, under that policy, if a major industrial facility had been idle for two or more years, EPA presumed it was “permanently shut down,” requiring the source to obtain a new NSR permit as if it were a brand-new source before restarting operations. The September 2025 update eliminates that automatic presumption – EPA announced it will no longer apply any form of the Reactivation Policy in NSR permitting decisions or enforcement. Going forward, an idled facility can restart without an NSR permit unless the restart involves changes that qualify as a “major modification” (i.e. a physical change that causes a significant emissions increase) under the NSR rules. This change aligns EPA’s practice with a recent court interpretation of the Clean Air Act and is intended to reduce permitting hurdles for bringing idled plants (such as power generation units) back online more quickly.

See New Source Review Program “Reactivation Policy” | US EPA

Reinstatement of “No Second Guessing” Emissions Policy / September 15, 2025

EPA reissued a policy (originally from 2017) that it will not “second-guess” industry’s own emissions projections when determining if a facility modification triggers NSR, so long as the projection is made in accordance with regulations. This memo restores the 2017 guidance (which had been revoked in 2022) on the Actual-to-Projected-Actual Applicability Test. Under the reinstated policy, a facility may account for planned operational practices or controls to keep emissions increases below NSR thresholds, and the projected emissions values themselves are not treated as enforceable limits up front. In other words, EPA will not require an NSR permit or penalize a source based solely on its pre-project emissions estimate – enforcement would only occur if post-project actual emissions data later show a significant increase beyond allowed levels. This update formally reverses the 2022 rescission and provides regulatory certainty by immediately reinstating the 2017 NSR applicability policy.

See New Source Review (NSR) Actual-to-Projected Actual Memorandum | US EPA

NSR Construction Start Clarification / September 9, 2025

Clarification of “Begin Actual Construction”: EPA issued new guidance clarifying what activities can commence before an NSR permit is obtained. Specifically, the guidance allows certain construction work that does not involve installing emission-producing equipment (for example, laying building foundations or cement pads) to begin prior to permit issuance. In practical terms, companies only need to secure an NSR air permit when they are ready to “break ground” on actual emissions units or other activities that will generate air pollution. This policy is intended to eliminate unnecessary delays for projects by permitting early work on non-emitting structures, and EPA plans to codify this interpretation in a future rulemaking to formally update the NSR regulations’ definition of “begin actual construction”.

See https://www.epa.gov/nsr/begin-actual-construction-0

Good Neighbor Plan for 2015 Ozone NAAQS

2025 Update

As part of the prior administration’s approach to implementing the 2015 Ozone NAAQS, EPA denied multiple State Implementation Plans (SIPs) and issued a multistate Federal Implementation Plan (FIP) that set stringent NOx emission standards for non-EGUs including industrial boilers at many manufacturing facilities (such as iron and steel mills, chemical plants, and pulp, paper and paperboard mills). Although the Supreme Court stayed the standards (and therefore delayed the need to install expensive controls on many sources by May 1, 2026), further developments in this area could provide more durable relief. EPA has committed to reconsidering the GNR and may revisit the inclusion of industrial sources in the rule, the scope of states included in the rule, and the degree of emission reductions needed from each state. States are also likely to take regulatory actions to ensure EPA can approve their SIPs.

Original Post

On March 15, 2023, the U.S. Environmental Protection Agency (EPA) issued its final Good Neighbor Plan, which secures significant reductions in ozone-forming emissions of nitrogen oxides (NOX) from power plants and industrial facilities. This action will save thousands of lives and result in cleaner air and better health for millions of people living in downwind communities.

The Good Neighbor Plan ensures that 23 states meet the Clean Air Act’s “Good Neighbor” requirements by reducing pollution that significantly contributes to problems attaining and maintaining EPA’s health-based air quality standard for ground-level ozone (or “smog”), known as the 2015 Ozone National Ambient Air Quality Standards (NAAQS), in downwind states.

See https://www.epa.gov/csapr/good-neighbor-plan-2015-ozone-naaqs

Per- and Polyfluoroalkyl Substances (PFAS) / Proposed PFAS National Primary Drinking Water Regulation

On March 14, 2023, EPA announced the proposed National Primary Drinking Water Regulation (NPDWR) for six PFAS including perfluorooctanoic acid (PFOA), perfluorooctane sulfonic acid (PFOS), perfluorononanoic acid (PFNA), hexafluoropropylene oxide dimer acid (HFPO-DA, commonly known as GenX Chemicals), perfluorohexane sulfonic acid (PFHxS), and perfluorobutane sulfonic acid (PFBS). The proposed PFAS NPDWR does not require any actions until it is finalized. EPA anticipates finalizing the regulation by the end of 2023. EPA expects that if fully implemented, the rule will prevent thousands of deaths and reduce tens of thousands of serious PFAS-attributable illnesses.

Read more at https://www.epa.gov/sdwa/and-polyfluoroalkyl-substances-pfas

EPA Announces Final “Good Neighbor” Plan to Cut Harmful Smog, Protecting Health of Millions from Power Plant, Industrial Air Pollution

Plan reflects President Biden’s commitment to reducing air pollution, delivering environmental and public health benefits for all

WASHINGTON (March 15, 2023) – Today, the U.S. Environmental Protection Agency (EPA) announced the final Good Neighbor Plan, a rule that will significantly cut smog-forming nitrogen oxide pollution from power plants and other industrial facilities in 23 states. The final rule will improve air quality for millions of people living in downwind communities, saving thousands of lives, keeping people out of the hospital, preventing asthma attacks, and reducing sick days.

The Clean Air Act directs EPA to issue a federal plan to address pollution that significantly contributes to unhealthy levels of ground-level ozone, or smog, formed from nitrogen oxide emissions traveling beyond certain states’ boundaries. Exposure to ground-level ozone can cause respiratory issues, aggravate asthma and other lung diseases, and lead to missed days of work or school, emergency room visits, and premature deaths. These costly public health impacts can be especially harmful to children and older adults, disproportionately affecting people of color, families with low-incomes, and other vulnerable populations.

In addressing the significant contribution of upwind states to downwind smog, the program is anticipated to deliver important emissions reductions for environmental justice communities.

“Every community deserves fresh air to breathe. EPA’s ‘Good Neighbor’ plan will lock in significant pollution reductions to ensure cleaner air and deliver public health protections for those who’ve suffered far too long from air-quality related impacts and illness,” said EPA Administrator Michael S. Regan. “We know air pollution doesn’t stop at the state line. Today’s action will help our state partners meet stronger air quality health standards beyond borders, saving lives and improving public health in impacted communities across the United States.”

This action will reduce ozone season NOX pollution by approximately 70,000 tons from power plants and industrial facilities in 2026. By 2027, the emissions budget for power plants will reflect a 50% reduction from 2021 ozone season NOx emissions levels.

In 2026 alone, EPA projects that the final rule will result in significant public health benefits:

  • preventing approximately 1,300 premature deaths,
  • avoiding more than 2,300 hospital and emergency room visits,
  • cutting asthma symptoms by 1.3 million cases,
  • avoiding 430,000 school absence days,
  • avoiding 25,000 lost work days.

Reducing smog also has economic benefits. Estimated annual net benefits, after taking costs into account, would be $13 billion each year over the period from 2023 to 2042.  Reducing smog also will improve visibility in national and state parks and increase protection for sensitive ecosystems, coastal waters, estuaries, and forests.

Relying on a longstanding regulatory framework and commonly used, affordable pollution controls, this action fully resolves Clean Air Act “Good Neighbor” obligations for the 2015 Ozone National Ambient Air Quality Standards (NAAQS) for the included states, enhancing public health and environmental protections regionally and for local communities. EPA’s approach provides a long-term planning horizon for states, grid operators, and power companies to make informed decisions and continue to ensure electric system reliability.

The Good Neighbor Plan announced today will ensure that 23 states meet the Clean Air Act’s “Good Neighbor” requirements. The rule will reduce pollution that significantly contributes to problems downwind states face in attaining and maintaining EPA’s health-based air quality standard for ground-level ozone, known as the 2015 Ozone National Ambient Air Quality Standards (NAAQS). EPA’s rule uses a proven, science-based approach to limit emissions of NOX during the summertime “ozone season”: a NOx allowance trading program for fossil fuel-fired power plants in 22 states and NOx emissions standards for certain sources within nine industry categories in 20 states.

Beginning in the 2023 ozone season, power plants in 22 states will participate in a revised and strengthened Cross-State Air Pollution Rule ozone season trading program. To achieve emissions reductions as soon as possible, EPA is basing the initial control stringency on the level of reductions achievable through immediately available measures, including consistently operating emissions controls already installed at power plants. Further reductions will be phased in over several years starting in 2024 and reflect emissions levels that could be achieved through installation of new emissions controls.

The final Good Neighbor Plan builds on the demonstrated success of existing emissions trading programs by including additional features that promote consistent operation of emissions controls to enhance public health and environmental protection for affected downwind regions. These features include backstop daily emissions rates on large coal-fired units to promote more consistent operation and optimization of emissions controls, annual recalibration of the emissions allowance bank, and annual updates to the emissions budgets to account for changes in the generating fleet.

Beginning in the 2026 ozone season, EPA is setting enforceable NOX emissions control requirements for certain sources at existing and new industrial facilities that have significant impacts on downwind air quality and the ability to install cost-effective pollution controls.

These industry-specific requirements will apply in 20 states and reflect proven, cost-effective pollution reduction measures that are consistent with standards that sources throughout the country have long implemented. Collectively, these standards will reduce ozone season NOx emissions by approximately 45,000 tons from the following types of emission sources:

  • reciprocating internal combustion engines in Pipeline Transportation of Natural Gas;
  • kilns in Cement and Cement Product Manufacturing;
  • reheat furnaces in Iron and Steel Mills and Ferroalloy Manufacturing;
  • furnaces in Glass and Glass Product Manufacturing;
  • boilers in Iron and Steel Mills and Ferroalloy Manufacturing, Metal Ore Mining, Basic Chemical Manufacturing, Petroleum and Coal Products Manufacturing, and Pulp, Paper, and Paperboard Mills; and
  • combustors and incinerators in Solid Waste Combustors or Incinerators.

This final rule implements the Clean Air Act’s “Good Neighbor” or “interstate transport” provision, which requires each state to submit a State Implementation Plan (SIP) that ensures sources within the state do not contribute significantly to nonattainment or interfere with maintenance of the NAAQS in other states. Each state must make this new SIP submission within 3 years after promulgation of a new or revised NAAQS.

Where EPA finds that a state has not submitted a Good Neighbor SIP, or if the EPA disapproves the SIP, the EPA must issue a Federal Implementation Plan (FIP) within 2 years to assure downwind states are protected.

More information on EPA’s final Good Neighbor Plan is available by clicking here.

For further information: EPA Press Office (press@epa.gov)

EPA Fugitive Emissions Rule (12/7 CIBO Committee Presentation)

EPA has the fugitive emissions rule under reconsideration. The CAA does not really detail how to deal with fugitive emissions. The court case in 1979 did not really resolve the issue. That was followed by some unfortunate rule making and guidance under New Source Review that further confused the issue. New Source Review includes Non-Attainment New Source Review and Prevention of Significant Deterioration (PSD). EPA is proposing to eliminate the mid-2008 “Fugitive Emissions Rule” and eliminate a source of confusion. The rule was stayed in 2009 and remains stayed.

There was also another exclusion that was part of the original rule. The definition of a Major Source is not being changed. A listed source must include fugitive emissions in its potential to emit. There are 29 listed source categories. The problem is with “unlisted” sources. If not on the list, a source becomes major if the potential to emit is greater than 250 tons/yr. Title III, Section 302(j) mentions fugitive emissions. The list comes from Title I, Part C, Section 169. However, this portion does not mention fugitive emissions. Nor does it consider modifications. The court decision stated that EPA could not count fugitive emissions in a facility’s total emissions unless that facility went through rule making, particularly for modifications. A major modification is any physical change that would result in a significant emissions increase. Unfortunately, that definition came from the NSPS section of the CAA. That does not include fugitive emissions. Fugitive emissions have historically been excluded when dealing with unlisted source categories. In 2002, the PSD rule was modified to include fugitive emissions at unlisted source categories. This rule was amended in 2008 with some new clauses. These were stayed during the Obama administration and remain stayed today. Another part of the 2008 rule excludes fugitive emissions if such inclusion would be the only reason that a source would become a major source.

In October, the EPA proposed to rescind the 2008 rule and proposed to remove the exclusion further down in the CAA. The comment period ends Feb. 2023. In other words. EPA wants to include fugitive emissions for practically everything. The definition of fugitive emissions basically states that such emissions “could not reasonably be vented through a stack” (i.e. become a point source). Further, EPA states that the cost to control such emissions (not collect and subsequently vent) should not be a consideration. A coalition has been formed to comment to EPA.

Jay Hofmann, Trinity Consultants, Inc.

EPA Fugitive Emissions Rule (12/7 CIBO Committee Presentation)

EPA has the fugitive emissions rule under reconsideration. The CAA does not really detail how to deal with fugitive emissions. The court case in 1979 did not really resolve the issue. That was followed by some unfortunate rule making and guidance under New Source Review that further confused the issue. New Source Review includes Non-Attainment New Source Review and Prevention of Significant Deterioration (PSD). EPA is proposing to eliminate the mid-2008 “Fugitive Emissions Rule” and eliminate a source of confusion. The rule was stayed in 2009 and remains stayed.

There was also another exclusion that was part of the original rule. The definition of a Major Source is not being changed. A listed source must include fugitive emissions in its potential to emit. There are 29 listed source categories. The problem is with “unlisted” sources. If not on the list, a source becomes major if the potential to emit is greater than 250 tons/yr. Title III, Section 302(j) mentions fugitive emissions. The list comes from Title I, Part C, Section 169. However, this portion does not mention fugitive emissions. Nor does it consider modifications. The court decision stated that EPA could not count fugitive emissions in a facility’s total emissions unless that facility went through rule making, particularly for modifications. A major modification is any physical change that would result in a significant emissions increase. Unfortunately, that definition came from the NSPS section of the CAA. That does not include fugitive emissions. Fugitive emissions have historically been excluded when dealing with unlisted source categories. In 2002, the PSD rule was modified to include fugitive emissions at unlisted source categories. This rule was amended in 2008 with some new clauses. These were stayed during the Obama administration and remain stayed today. Another part of the 2008 rule excludes fugitive emissions if such inclusion would be the only reason that a source would become a major source.

In October, the EPA proposed to rescind the 2008 rule and proposed to remove the exclusion further down in the CAA. The comment period ends Feb. 2023. In other words. EPA wants to include fugitive emissions for practically everything. The definition of fugitive emissions basically states that such emissions “could not reasonably be vented through a stack” (i.e. become a point source). Further, EPA states that the cost to control such emissions (not collect and subsequently vent) should not be a consideration. A coalition has been formed to comment to EPA.

Jay Hofmann, Trinity Consultants, Inc.

DOE – “GAIN” Initiative (Gateway for Accelerated Innovation in Nuclear)  (12/8 CIBO Committee Presentation)

The Gateway for Accelerated Innovation in Nuclear (GAIN) looks to drive innovation in the nuclear energy field. Developers can propose a work scope and the National Labs can execute that work scope to minimize the additional costs of building and troubleshooting new facilities.

There is nuclear technology information from a variety of prior government agencies that is often “lost” to the present. GAIN is looking to relocate that information and make it available. GAIN has a website. There is a coal to nuclear program. There is an industrial outreach program. Process heat applications as well as power are being considered. They are trying to find out what industry needs in these areas. Idaho National Labs is trying to establish an integrate energy system to consider all aspects of energy and then see where nuclear fits in. There is a lot of focus on hydrogen as an energy carrier.

The GAIN Voucher program started in 2016 and $26 million has been awarded to date. GAIN Vouchers are open to support multiple areas for advanced nuclear applications. End users can potentially make use of this resource. There is a 20% cost share requirement. The next cycle is due Jan. 31st. There are 4 cycles per year. Typically, these are one-year studies in the range of $100- $500 K. Summary results for each completed study are available on the website. There are two test beds for SMR projects. There are 6 SMR projects and 2 micro reactor projects that are on the timeline for the next 6 years.

Christopher Lohse, DOE Idaho Lab