Energy

Tuesday, March 30, 2010 5:00 PM

EPA May Reverse Bush Permit Streamlining

By Darren Goode, NationalJournal.com

The EPA today proposed revoking Bush administration changes to the agency's New Source Review permitting rule.

The agency last February announced it would reconsider the Bush changes and address concerns raised by the Natural Resources Defense Council.

The Clean Air Act requires major polluters and regulators to combine related projects when determining whether modifications trigger NSR requirements. NSR requires facilities to install best available pollution controls when they make major modifications.

The Bush January 2009 "aggregation" policy for the EPA's pre-construction permitting program directed facilities and permit regulators to combine emissions from construction projects only when they are "substantially related." This in effect means activities have to be technically or economically interconnected.

Bush, who issued the rule days before his presidency ended, argued this would simplify and streamline the process for issuing NSR permits.

But the Obama EPA "is concerned that the changes made last year... would make the agency's New Source Review permitting program less effective, allowing facilities to increase emissions that may impact air quality without a thorough review," according to an agency release.

The EPA would go back to its original policy, which based permitting decisions on a broader range of factors. The EPA today is also proposing to extend the effective date of the Bush changes another six months "to give the agency time to complete the reconsideration," the release said. The EPA is taking public comments for 30 days on abandoning the Bush changes.

"The current decision to repeal the rule is unfortunate, but not surprising," said Scott Segal, an energy industry lobbyist who helps lead federal government relations and strategy at Bracewell & Giuliani. Segal said today's decision underscores that the EPA will again use the NSR program as a major environmental enforcement tool. "However, time and again experience has shown that litigation-heavy strategies do not produce significant environmental benefits," he argued.

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