Environmental Groups and States Fight Proposed EPA Rule Change on Data Center Air Permits

WASHINGTON — A regulatory proposal put forward by the Environmental Protection Agency (EPA) to eliminate federal requirements for mandatory public notice and comment on certain air pollution permits has drawn intense pushback from environmental advocates, state attorneys general, and community groups.

The rule change targets the minor New Source Review (NSR) program, which applies to emissions facilities below major industrial thresholds. While major industrial plants would remain subject to strict federal public review, the "minor source" designation encompasses critical infrastructure components used in data center buildouts—including large fleets of backup diesel generators and on-site natural gas power generation facilities.

Under existing rules in place since 1973, states are mandated to provide a public notice and a minimum 30-day comment period before issuing minor source air permits. The EPA's proposed rule would shift full discretion to state and local air agencies to decide whether, when, and to what extent the public can weigh in.

Opposing Perspectives

The EPA and industry proponents argue that removing federal participation minimums streamlines the permitting process, reduces administrative burdens, and accelerates the expansion of critical energy and tech infrastructure. The agency emphasizes that emission standards themselves would remain unchanged and that state regulators are best positioned to determine appropriate public involvement.

Opponents contend that stripping mandatory notices creates dangerous blind spots. Environmental law groups note that in states with "no stricter than federal" laws, state agencies could automatically be forced to roll back public participation rights, allowing massive data centers and on-site power plants to secure permits behind closed doors.

A coalition of nearly 200 environmental and civil rights organizations, alongside a group of 14 state attorneys general, submitted formal comments urging the EPA to withdraw the proposal before it is finalized.