News Brief

U.S. EPA Administrator Lee Zeldin chaired a White House AI roundtable recently. Following in-depth discussions with tech, data center, and energy leaders from companies like QTS Data Centers, Hitachi America, Oracle, and Equinix, as well as members of Congress, Zeldin announced a major move: the agency will be prioritizing the review of new chemicals under the Toxic Substances Control Act (TSCA) that are intended for use in data center projects, including the infrastructure that powers data centers, or for the manufacturing of covered components, as defined by Executive Order (EO) 14318, “Accelerating Federal Permitting of Data Center Infrastructure.” This prioritization of reviews will start with submissions received on or after September 29, 2025.

The New Chemicals Review Backlog

Under Section 5 of the Toxic Substances Control Act (TSCA), new chemicals need EPA approval before they can be commercially manufactured or imported. Although regulations specify a 90-day review period for a Premanufacture Notice (PMN), the process has become notoriously slow. PMN reviews have routinely dragged on for far longer than the legal limit, and U.S. chemical companies are increasingly concerned that these delays are stifling innovation.

“We inherited a massive backlog of new chemical reviews from the Biden Administration … We are taking every step possible to make America the artificial intelligence capital of the world,” said EPA Administrator Zeldin.

Eligibility for Priority Review

Starting on September 29, 2025, companies seeking a priority review for their new chemical applications under Executive Order 14318, "Accelerating Federal Permitting of Data Center Infrastructure," must submit a cover letter and supporting documents. These materials must prove the project meets at least one of the following criteria:

• Project for which the project Sponsor has committed at least $500 million in capital expenditures, as determined by the Secretary of Commerce

• Project involving an incremental electric load addition of greater than 100 MW

• Project that protects national security.

• Project has been designated as a "qualifying project" by a relevant government department.

What Is the Data Center Project?

“Data Center Project” means a facility that requires greater than 100 megawatts (MW) of new load dedicated to AI inference, training, simulation, or synthetic data generation.

What Are the Covered Components?

• energy infrastructure, such as transmission lines, natural gas pipelines or laterals, substations, switchyards, transformers, switchgear, and system protective facilities; 

• natural gas turbines, coal power equipment, nuclear power equipment, geothermal power equipment, and any other dispatchable baseload energy sources, including electrical infrastructure (including backup power supply) constructed or otherwise used principally to serve a Data Center Project;

• semiconductors and semiconductor materials, such as wafers, dies, and packaged integrated circuits;

• networking equipment, such as switches and routers; and 

• data storage, such as hardware storage systems, software for data management and protection, and integrated services that work with public cloud providers.

What Is the Covered Component Project?

“Covered Component Project” means infrastructure comprising Covered Components, or a facility with the primary purposes of manufacturing or otherwise producing Covered Components.

Expert Tips from REACH24H

The U.S. government is making a concerted effort to address the new chemical review backlog. First, the EPA reorganized, moving experts into its new chemicals division. It then created a special risk assessment team to clear the backlog of Low Volume Exemption (LVE) applications. The latest step is a new policy to prioritize the review of chemicals tied to special projects. While it's encouraging that the government is finally tackling the issue of lengthy review times, significant challenges remain. There's still a long way to go to consistently get timelines within the legal limits. 

Companies planning to do business in the U.S. should keep a close eye on these qualifying projects and build in ample time for market access. For more information and inquiries, please feel free to contact us at customer@reach24h.com.