EPA Tightens Ship Flares: Cleaner Air, Same Old Regs
Published Date: 3/4/2026
Proposed Rule
Summary
The EPA is updating rules for marine tank vessel loading to cut harmful air pollution. Companies that load fuel onto ships will need to improve flare monitoring, do regular performance tests, and report electronically. These changes remove some old exceptions and aim to keep the air cleaner, with public comments open until April 20, 2026.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 3 costs, 0 mixed.
New monitoring, testing, and e-reporting
Facilities that load bulk liquids onto ships will be required to implement enhanced flare monitoring, perform periodic performance tests, and submit certain reports electronically under the proposed rule. The EPA proposes these changes as part of the technology review of the MTVLO NESHAP that applies to facilities engaged in direct loading of bulk liquids onto marine vessels.
Removal of SSM exemptions
The EPA proposes to remove startup, shutdown, and malfunction (SSM) exemptions in the MTVLO NESHAP so emissions during those events would no longer be exempt from the standards. This change is intended to reduce unregulated emissions from vessel loading operations and keep the air cleaner near marine terminals.
MACT applicability thresholds kept
The EPA proposes to retain the current MACT applicability thresholds that require controls only for facilities with emissions above 10 tons per year of any single HAP or 25 tpy of aggregate HAP (the “10 or 25 ton” thresholds). The Agency found additional controls for smaller sources are not cost-effective and therefore proposes no change to those thresholds.
Tightened emissions accounting and permitting
The EPA proposes clarifying 40 CFR 63.565(l) so emissions estimation methods only apply for 'permitted' operating conditions, and to remove the word 'actual' from certain definitions in 40 CFR 63.561. This would require facilities that rely on controls to stay below major-source thresholds to have federally enforceable, permitted operating limits.
Vapor-pressure exemption remains
The EPA proposes to keep the exemption for commodities with vapor pressure less than 1.5 pounds per square inch absolute (psia) at standard conditions, meaning those low-vapor-pressure streams would not be required to meet additional MTVLO controls. The Agency found eliminating this exemption would have incremental cost effectiveness generally exceeding $100,000 per ton of HAP removed.
More detailed annual HAP reporting
The EPA proposes to revise 40 CFR 63.567(j)(3) to require annual HAP control efficiency reports to identify the monitoring parameter(s) used and to ensure the source continuously maintains control efficiency while loading regulated commodities. This adds specificity to annual reporting and continuous-operation expectations.
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Key Dates
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