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The EPA is implementing a phased approach to regulate greenhouse gas (GHG) emissions, starting with the largest industrial sources. Following a 2007 Supreme Court ruling and a 2009 Endangerment Finding, the EPA established permitting requirements for new or modified facilities emitting significant amounts of CO2e. These requirements include a Best Available Control Technology (BACT) analysis. The agency has also implemented a three-year deferral for biomass facilities and plans to establish New Source Performance Standards (NSPS) for power plants and oil refineries by 2012.

The EPA has introduced new GHG permitting standards under the Clean Air Act, requiring large power plants and refineries to undergo a Best Available Control Technology (BACT) analysis. While states typically issue these permits, the EPA has taken over this role in Arizona and Texas due to non-compliance. The program targets facilities adding more than 75,000 tons of CO2 (or equivalent) and will expand in July 2011 to include all new facilities emitting over 100,000 tons per year. The BACT process involves a five-step evaluation of technology availability, feasibility, effectiveness, and impact to determine the best emission control options.