The Trump administration on Tuesday released new guidance on pre construction permitting, citing the need for new power generation as American energy demand accelerates with the rise of power-hungry artificial intelligence (AI) data centers.
The Environmental Protection Agency (EPA) announced its intent to revise the definition of “begin actual construction” for New Source Review (NSR) preconstruction permitting so that companies can build or update non-emitting sections of power plants and industrial facilities before obtaining a Clean Air Act (CAA) construction permit. The shift would allow companies to get much-needed power on the grid sooner while still safeguarding the environment, several industry insiders told the Daily Caller News Foundation.
“For years, Clean Air Act permitting has been an obstacle to innovation and growth,” EPA Administrator Zeldin said Tuesday. “We are continuing to fix this broken system. Today’s guidance is another step to allow the build out of essential power generation, data centers, and manufacturing projects that will bring about America’s Golden Age.”
During the first Trump administration, the EPA released similar draft guidance as the increase in CAA regulations has dialed up the difficulty of obtaining necessary permits, EPA Assistant Administrator of the Office of Air and Radiation Aaron Szabo told the DCNF. The agency already moved to withdraw a proposed Biden-era NSR rule earlier in 2025 as it continued to cut down on regulations the energy industry considered to be burdensome.
“We have many more permitting reforms that are coming… they’re big on their own, but also, when you add them up, are going to fundamentally change air permitting in this country so that we are able to build again,” Szabo told the DCNF. Szabo noted that companies are unable to begin constructing or modifying needed energy infrastructure without a CAA permit and that this change would allow developers to assemble necessary — yet emissions-free — portions of needed energy facilities.
The EPA has previously stated that it is “committed to increasing certainty in the permitting process that is crucial to securing power demand for data centers and related facilities.”
“To provide greater clarity on construction activities permissible under the Clean Air Act prior to obtaining an NSR permit, EPA is proposing new guidance and intends to propose and finalize a rule in 2026 that would revise the definition of ‘begin actual construction’ in EPA’s NSR regulations,” the EPA said Tuesday.
Though this might put companies at risk as they could build power plant foundations and eventually have a CAA permit denied by a state or local entity, several industry insiders told the DNCF that they celebrate the move as they expect it to speed up energy infrastructure projects in America’s shifting power landscape.
“The EPA’s action will help unlock the construction of the energy infrastructure, data centers, and advanced manufacturing facilities our economy needs to compete in the global marketplace,” Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry, told the DCNF. “By streamlining permitting without compromising environmental safeguards, this guidance strikes the right balance between growth and responsibility, and it sends a strong signal that the U.S. is serious about becoming the world leader in innovation.”
Seiden told the DCNF he’s noticed a shift in industry concerns, with the top question in business meetings worldwide now being, “how are we going to generate the power we need?”
The anticipated uptick in domestic manufacturing as well as the rise in AI data centers are driving up American energy demand while aging energy infrastructure chokes supply. Former President Joe Biden’s green energy transition push and crackdown on conventional power sources like coal, oil and gas have strained America’s power grid, several energy experts and grid watchdogs have long cautioned.
President Donald Trump campaigned against what he terms the “green new scam” and has made several moves to unlock more of America’s energy potential while sounding the alarm over an impending energy crisis. Notably, the Department of Energy (DOE) released a report on American grid reliability on July 7, warning that blackouts will increase by a factor of 100 by 2030 if the U.S. continues to retire power plants without adequately replacing them.
“This administration has a sense of urgency that rivals our own,” said Fermi America Co-Founder and CEO Toby Neugebauer. “President Trump understands that thinking and acting like entrepreneurs is the only way to ensure that America wins again, and I applaud the EPA on this significant milestone towards that end.”
Zeldin has made several deregulatory moves since taking the helm of the EPA under Trump, seeking to protect human health and the environment while also bolstering the American energy sector.
“Championing the needs of manufacturers, the EPA’s new guidance on New Source Review brings speed and certainty to a vital preconstruction permitting process,” National Association of Manufacturers President and CEO Jay Timmons told the DCNF. “Delivering on what manufacturers have asked for, this guidance will drive infrastructure development by streamlining permitting reform for all energy sources so we can unleash American energy dominance critical for our industry to compete and succeed.”
