Environmental Update (January 2006)

Originally published January 2006

The US Environmental Protection Agency took another significant step toward a complete overhaul of the federal "new source review" air permitting program.

The agency proposed a new rule in October that would dramatically alter how it calculates an emissions increase due to a physical change or a change in the method of operation at existing power plants. The proposed rule responds to a decision by the US court of appeals for the 4th circuit, which held that the agency must define the word "modification" consistently for purposes of both the new source review or "NSR" program and the new source performance standards or "NSPS" program.

The proposed rule would clarify that power plant upgrades are not considered "modifications" for air permitting purposes unless they are considered modifications for purposes of the NSPS program.