What you need to know about EPA's latest Clean Air Act amendments
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Hazardous air pollutants (HAPs) regulation has recently evolved with the U.S. Environmental Protection Agency’s (EPA) recent amendments to the Clean Air Act. This new rule, finalized on August 30, 2024, aims to 'enhance public health protections', according to the EPA's FAQ sheet, and ensure transparency when major sources of HAPs reclassify as area sources.
Overview of the New Rule
The EPA’s final amendments address the reclassification of major sources—those emitting 10 tons per year (tpy) or more of a single HAP or 25 tpy or more of a combination of HAPs—into area sources, which emit below these thresholds. This rule ensures that sources of persistent and bioaccumulative HAPs continue to comply with stringent emission standards, even after reclassification.
Here's some of the important stuff
Who does this rule affect?
This rule primarily impacts facilities currently classified as major sources of HAPs that are considering reclassification to area sources. Specifically, it affects facilities that emit or have the potential to emit 10 tons per year or more of any single HAP or 25 tons per year or more of any combination of HAPs. These can include, but are not limited to, the following:
Why was this rule put in place?
HAPs are regulated under CAA section 112 and historically, the “Once In Always In” policy required major sources to permanently comply with major source standards. This policy was withdrawn in 2018, allowing sources to reclassify as area sources. The new rule modifies the 2020 MM2A final rule, aligning with President Biden’s Executive Order 13990 to protect public health and the environment.
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What deadlines do I need to be aware of?
Facilities affected by this rule must be aware of the following deadlines:
The EPA continues to review other aspects of the 2023 reclassification proposal, focusing on safeguards and federal enforceability for emission limits. Make sure you're subscribed to the Regular-atory Compliance newsletter to stay updated on all the changes.
For further details, the final rule and additional information are available on the EPA’s electronic public docket and comment system.
Disclaimer: This is not legal advice and shall not be construed as such.
?? Nathan Hammer, 2024-present. All rights reserved.
I have a feeling that the M&A market will be even busier for smaller operators if they aren’t figuring out how to tackle these challenges right now. The big operators are all very heavily invested in this, and honestly, causing it to gain momentum.