Comment submitted by American Fuel & Petrochemical Manufacturers (AFPM)
AnonymousSupportTrade association
Summary: The American Fuel & Petrochemical Manufacturers (AFPM), a trade association representing the petroleum refining and petrochemical industries, strongly supports the EPA's proposal to clarify the "begin actual construction" trigger in the New Source Review (NSR) program. They argue that the proposal correctly aligns the regulations with the Clean Air Act by focusing on emissions-based triggers rather than non-emitting site work, which will reduce permitting delays and improve investment certainty for domestic energy projects.
June 29, 2026
The Hon. Lee Zeldin
Administrator
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20460
RE: Begin Actual Construction in the New Source Review (NSR) Preconstruction Permitting Program; EPA–HQ–OAR–2025–0618.
Dear Administrator Zeldin:
The American Fuel & Petrochemical Manufacturers (AFPM) is pleased to offer comments on EPA’s proposed definitions related to “Begin Actual Construction in the New Source Review (NSR) Preconstruction Permitting Program.” AFPM is the leading trade association representing the petroleum refining and petrochemical industries. In addition to making valuable contributions to the economy, our members produce refined products and petrochemicals made in the U.S that make modern life possible.
I.EXECUTIVE SUMMARY
AFPM strongly supports the intent of EPA’s proposal. The proposal (i) restores the Clean Air Act’s emissions-based trigger for New Source Review (NSR), (ii) corrects a 1978-era interpretive error untethered from the statutory text, and (iii) eliminates a significant impediment to domestic energy and petrochemical investment without authorizing a single additional ton of emissions. Finalizing the rule reflects the best reading of the Act under Loper Bright, advances Executive Order 14154, and will improve air-quality outcomes by accelerating deployment of modern, lower-emitting equipment.
AFPM respectfully requests that EPA, in the final rule:
•Finalize the proposed exclusions substantially as proposed, with the targeted clarifications below.
•Confirm that the list of exclusions is illustrative, not exhaustive, and that any activity without emissions potential falls outside the “begin actual construction” (BAC) trigger.
•Confirm uniform application to Prevention of Significant Deterioration (PSD), nonattainment NSR, and minor NSR.
•Include an express severability clause covering each exclusion category and each principal interpretive holding.
•Confirm that off-site fabrication of long-lead-time equipment does not constitute BAC.
•Confirm that demolition and decommissioning do not constitute BAC.
•Clarify the treatment of debottlenecking projects.
•Publish a regulatory impact analysis (RIA) quantifying the capital-cost-of-delay, labor-utilization, and schedule-compression benefits of the proposal, including illustrative case studies for refinery tie-ins, cogeneration installations, and petrochemical debottlenecks.
•Expressly confirm that operators may commence non-emitting work without triggering reporting or notification obligations under CAA §§ 110, 165, or analogous SIP provisions.
•Include a transition rule clarifying the treatment of projects whose permit applications are pending, or whose design is fixed, as of the final rule's effective date.
II.BACKGROUND
A.Overview of NSR program
Congress established the modern NSR preconstruction permitting program in the 1977 Clean Air Act Amendments. New Source Review (NSR) is the Clean Air Act’s preconstruction permitting program for major new and modified stationary sources and is implemented through the Prevention of Significant Deterioration (PSD), nonattainment NSR, and minor NSR sub-programs, each of which imposes preconstruction obligations on activities with emissions consequences. Sections 165 and 173 of the CAA tie NSR’s preconstruction obligations to the construction of a “major emitting facility” or “major stationary source,” categories defined by emissions thresholds.
The current NSR regime, and in particular EPA's 1978 reading of "begin actual construction," has imposed a significant constraint on the domestic refining and petrochemical capacity needed to support U.S. energy security and the goals of Executive Order 14156. NSR significantly impacts oil and gas refineries and petrochemical operations. According to our members, EPA and the relevant state authorities can take up to 24 months to review a permit application, undermining regulatory and investment certainty. This timeline even applies to projects that reduce emissions. AFPM has long advocated for NSR reform, including support for the New Source Review Permitting Reform Act, H.R. 161 (Rep. Griffith), and the identification of obsolete NSR guidance for rescission.
Revising the regulatory definition of “begin actual construction” is the single most efficient way to compress NSR's preconstruction timeline. The current rule treats non-emitting site work, such as building foundations and installing utilities and HVAC, as if it were the construction of an emissions unit. It is not.
EPA’s proposal seeks to clarify the definition of “begin actual construction” and tie it to a new definition of “pollutant emitting activities,” thereby aligning it more closely to the statute and narrowing the scope of NSR.