The rush to power data centers is weakening the Clean Air Act
Grist · LC · trust 45/100
Across the country, the electricity needs of data centers have been a major driver of the widespread resistance to the speedy developments. The rapid buildouts of data centers have raised concerns that residential and small business utility customers will end up shouldering the costs, and about the health and climate impacts because much of the new capacity relies on burning fossil fuels. The rush has also given rise to a popular refrain: Make the data centers provide their own electricity.
Pennsylvania Governor Josh Shapiro recently announced a moratorium on “any AI data center that does not bring, develop, and pay for their own power,” citing electricity costs in a post announcing the move on Instagram. Texas Governor Greg Abbott blocked new data centers from connecting to the state’s power grid. A drumbeat of calls for data centers to make power for themselves has been beating for months among regulators, consumer advocates, and other stakeholders. The calls for this approach argue it will shield utility ratepayers from data center costs. And it may.
But new guidance from the Environmental Protection Agency about “islanded” power plants — those built to serve a single facility rather than the electricity grid — shows there aren’t as many reliable safeguards against the environmental and climate impacts. The EPA published guidance last month clarifying that the Clean Air Act’s Acid Rain Program “does not apply to power generation facilities that are not connected in any way to the larger electricity grid.” It’s part of a broader effort, experts said, to loosen regulations for data centers and power plants built to serve them.
The Acid Rain Program is just one component of the complex federal air pollution law, which can require one facility to obtain numerous Clean Air Act permits, according to Mindy Goldstein, director of Emory Law School’s environmental law program. Exempting islanded power plants from the acid rain provisions means one fewer permit that independent power plants built for data centers need to obtain, though the EPA’s guidance and several experts contend such plants were never covered by the program.
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In 1990, the Acid Rain Program was added to the Clean Air Act to address the emissions of sulfur dioxide and nitrogen oxide from large power plants. From the beginning, the program applied only to utility power plants, or those producing electricity for sale primarily for use by the public. It largely captured coal plants that were old enough to have avoided other Clean Air Act regulations, according to University of Texas energy law and politics professor David Spence. Newer gas plants that were already subject to the rest of the Clean Air Act joined later.
Compliance with the Acid Rain Program requires power plants to continuously monitor their emissions and report that data — something, Goldstein said, that states can’t mandate outside of the Acid Rain Program or another program that applies in fewer states. The monitoring inherent to the program has worked; sulfur dioxide and nitrogen oxide emissions from power generation have dropped significantly since the 90s.
“The anchor of the Clean Air Act is a set of programs that are, in the end, the responsibility of states and counties to implement targeting that local pollution,” said Joe Goffman, a former EPA official who’s now with the Environmental Protection Network. said. “Local regulators will have to decide, and communities will have to ultimately demand some kind of system that reveals what the emissions profile of these things are.”
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