The U.S. Environmental Protection Agency (EPA) has issued new guidance clarifying that the Clean Air Act’s Acid Rain Program does not apply to “islanded” power generation facilities not connected to a public electricity grid.
This clarification, issued in July 2026, expands opportunities for companies to develop and operate such facilities, particularly for data centers. It offers developers greater flexibility in construction location and speed.
The guidance supports President Trump’s agenda by aiming to protect the environment and reduce burdens on communities’ electric grids.