Capito, Senators Introduce Growing American Innovation Now Act

Press Release

U.S. Senator Shelley Moore Capito (R-W.Va.) joined with Senate Majority Leader Mitch McConnell (R-Ky.), and Senators John Barrasso (R-Wyo.), Mike Braun (R-Ind.), and Rand Paul (R-Ky.), to introduce S.2662, the Growing American Innovation Now (GAIN) Act.

The GAIN Act reforms the New Source Review (NSR) program under the Clean Air Act. The bill provides greater regulatory certainty about when facility upgrades require a permit. The program in its current form was identified as a key barrier to manufacturing growth in the 2017 Department of Commerce report titled "Streamlining Permitting and Reducing Regulatory Burdens for Domestic Manufacturing." Instead of jumping over regulatory hurdles, the bill allows facility owners and operators to focus on protecting the environment, growing the economy, and creating American jobs.

"New Source Review is the poster child of negative unintended consequences from otherwise well-intentioned government policies," Senator Capito said. "This environmental regulation actually prevents industry from making upgrades to existing facilities to improve efficiency and reduce emissions. This is particularly impactful when it comes to installing carbon capture systems, and can lead stakeholders to abandon these projects. This legislation will remove these obstacles and allow our economy to make use of the latest technological advances and reduce our environmental impact."

"Reforming the New Source Review program would help promote critical modernization and energy efficiency improvements at power plants, which can lead to lower energy prices, more jobs, and cleaner communities," Senate Majority Leader Mitch McConnell said. "Current regulations hinder investment and negatively impact Kentucky workers, and this bill can encourage new development in communities most in need. I'm proud to join Chairman Barrasso and my other Senate colleagues in introducing this important legislation."

"The GAIN Act will help grow our economy and protect the environment at the same time," Senator Barrasso said. "The New Source Review program has held power plants and manufacturing factories back from improving efficiency. The program blocks businesses from upgrading their facilities and reducing emissions. Our legislation will cut government red tape and make it simpler for manufacturers to get the permits they need to improve their plants. The result will be cleaner, increased production."

"American innovation in the private sector has made great strides toward reducing carbon emissions and preserving our natural resources, but the New Source Review program puts federal government hurdles in the way of manufacturers and power plants who want to improve the way facilities impact the environment," Senator Braun said. "The GAIN Act encourages job-creation and efficiency while also promoting environmental responsibility."

"Protecting Kentucky's coal jobs and ensuring that unnecessary regulations aren't standing in the way of the industry's ability to compete has always been a top priority of mine, and this legislation is a continuation of my pledge to always defend Kentucky's coal miners, their families, and the industry that keeps the lights on in the Commonwealth of Kentucky and across the country," Senator Paul. "By changing the criteria for triggering New Source Review, an expensive and burdensome regulatory process, this bill, like the bills I've previously introduced, would ensure that power plants are no longer disincentivized from increasing efficiency and making other improvements and modifications, and help prevent coal jobs from falling victim to overbearing regulations."

The GAIN Act would:

Amend the definition of "modification" and "construction" to clarify when NSR permits are required.
Enable facilities to more readily carry out pollution control projects, energy efficiency projects, and equipment reliability and safety improvements.
Provide the Environmental Protection Agency Administrator with authority under certain, clearly defined circumstances to require NSR permitting after determination of an adverse effect to human health or the environment.