SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that—
(1) on August 27, 2003, the United States En-
vironmental Protection Agency (EPA) finalized revi-
sions to the new source review regulations under the 
Clean Air Act excluding from review equipment 
changes involving fixed capital costs and repair costs 
that are 20 percent or less of the total replacement 
value of the affected process unit; 
(2) there are serious concerns about the ex-
pected air pollution consequences of the revisions to 
the new source review regulations and it is estimated 
that 17,000 industrial facilities nationwide are af-
fected by the regulatory revisions; 
(3) in a report dated August 22, 2003, the 
United States General Accounting Office found that 
EPA has relied on anecdotal information from the 
industries most affected by the new source review 
program to support its conclusion that the program 
discouraged some energy efficiency projects because 
the Agency lacked more comprehensive data; 
(4) the National Academy of Public Adminis-
trators, an independent, nonpartisan organization 
chartered by Congress to improve government, 
issued an April 21, 2003 report examining the new 
source review program and recommended that ef-
forts to reform the program should ensure both that 
new source review provides enhanced protection of 
health and the environment and should carefully 
avoid creating even broader loopholes or more ex-
emptions from the program’s requirements; 
(5) the EPA’s August 27, 2003 final revisions 
to the new source review regulations require adop-
tion by states, Indian tribes or municipalities having 
approved new source review programs within three 
years and will automatically apply within 60 days of 
publication of the final revisions in states, Indian 
tribes and municipalities not having an approved 
program; 
(6) the State and Territorial Air Pollution Pro-
gram Administrators and the Association of Local 
Air Pollution Control Officials have stated that 
states and local governments should be allowed to 
make their own choices regarding the adoption of 
EPA’s revisions to the new source review program 
based upon the state’s or locality’s own judgment of 
what will best serve its local air quality needs; and 
(7) States, Indian tribes, municipalities, and air 
pollution control agencies should not be required to 
implement EPA’s August 27, 2003 new source re-
view revisions if they consider that the result would
be to lessen the protection of public health or the en-
vironment. 
(b) PURPOSE.—The purpose of this Act is to preserve 
the ability of states, Indian tribes, municipalities, and air 
pollution control agencies to protect the public health and 
the environment by affording them discretion as to wheth-
er or not to implement the August 27, 2003 new source 
review revisions. 
SEC. 3. PRESERVATION OF STATE AND TRIBAL AUTHORITY. 
(a) PROHIBITIONS.—(1) No State, Indian tribe, mu-
nicipality, or air pollution control agency shall be required 
to implement or to have implemented in their jurisdiction, 
the Environmental Protection Agency’s August 27, 2003 
new source review revisions. 
(2) No revision of a Federal implementation plan 
pursuant to the August 27, 2003 new source review revi-
sions shall take effect until the affected State, Indian 
tribe, municipality, or air pollution control agency notifies 
the Environmental Protection Agency that it agrees to 
such revision. 
(3) Failure of a State, Indian tribe, municipality, or 
air pollution control agency to implement the August 27, 
2003 new source review revisions, or to consent to revision 
of a Federal implementation plan pursuant to the August 
27, 2003 new source review revisions, shall not subject
such State, tribe, municipality, or agency to sanctions, the 
revocation of an approved state implementation plan 
under the Clean Air Act, or imposition of a new or revised 
Federal implementation plan under the Clean Air Act. 
(b) DEFINITIONS.—For purposes of this Act: 
(1) The terms ‘‘air pollution control agency’’, 
‘‘State’’, ‘‘municipality’’, and ‘‘Indian tribe’’ shall 
have the same meaning as provided in subsections 
(b), (d), (f), and (r) of section 302 of the Clean Air 
Act (42 U.S.C. 7602(b), (d), (f), and (r)). 
(2) The term ‘‘August 27, 2003 new source re-
view revisions’’ means the exclusion to the new 
source review requirements under the Clean Air Act 
entitled ‘‘Prevention of Significant Deterioration 
(PSD) and Nonattainment New Source Review 
(NSR): Equipment Replacement Provision of the 
Routine Maintenance, Repair and Replacement Ex-
clusion’’ promulgated by the Environmental Protec-
tion Agency on August 27, 2003. 
(3) The term ‘‘Federal implementation plan’’ 
shall have the same meaning as provided in sub-
section (c)(1) of section 110 of the Clean Air Act 
(42 U.S.C. 7410(c)(1)) and subsection (y) of section 
302 of the Clean Air Act (42 U.S.C. 7602(y)).
(c) EFFECT OF ACT.—Nothing in this Act affects the 
retention of State authority under section 116 of the Clean 
Air Act (42 U.S.C. 7416).
Æ