EPA Streamlines Preconstruction Permitting to Accelerate Power Plants, Data Centers, and Manufacturing Reshoring

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The U.S. Environmental Protection Agency (EPA) has introduced new guidance under its New Source Review (NSR) preconstruction permitting program, allowing power plant developers to commence certain non-emissions-related site work, such as grading and utility trenching, prior to obtaining a Clean Air Act construction permit. This change aims to expedite project timelines for power generation, data centers, and reshored manufacturing facilities, as stated by EPA Administrator Lee Zeldin. The guidance clarifies the definition of 'actual construction' under NSR, distinguishing between emissions-related work and broader site activities that do not impact air emissions.

The EPA plans to formalize this distinction through rulemaking in early 2026, while continuing to provide case-by-case guidance in the interim. Historically, the NSR program has been complex and fraught with regulatory uncertainties, often causing delays in essential infrastructure projects. The new guidance is part of the Powering the Great American Comeback initiative, aimed at facilitating the construction of critical facilities while ensuring environmental protections remain in place.