EPA proposes changes to data center permitting and wetland protections

The Environmental Protection Agency (EPA) is advancing two major regulatory proposals that have drawn scrutiny regarding public transparency and federal authority.

One proposal seeks to eliminate the federal requirement for states to notify the public and solicit comments before issuing air pollution permits for industrial facilities, specifically targeting the rapid expansion of AI data centers. Critics argue this move could prevent local communities from voicing concerns about emissions and large-scale server warehouses before construction begins.

Separately, the EPA is seeking additional public input to refine its definition of ‘waters of the United States’ (WOTUS). This supplemental rule aims to implement a 2023 Supreme Court decision that limited federal protections for certain wetlands. The agency stated the goal is to reduce bureaucratic red tape and provide regulatory certainty for landowners and industries while recognizing state and tribal management of water resources.