FENCES Act

Received in the Senate and Read twice and referred to the Committee on Environment and Public Works.

Apr 17, 2026

The FENCES Act modifies Clean Air Act standards to exempt certain states and nonattainment areas from penalties and fees if they demonstrate that emissions outside their control prevented them from meeting air quality standards. This exemption applies to severe or extreme ozone nonattainment areas and serious particulate matter areas, and states must renew their demonstration every five years to maintain exemption status. The bill also allows states to avoid designation as nonattainment areas for new or revised air quality standards if they can show they would meet standards but for emissions from outside the country, including those from human activity. Additionally, the bill clarifies that when states demonstrate compliance with federal air quality standards, they may account for emissions from outside the country regardless of whether those emissions resulted from human activity.

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Foreign Emissions and Nonattainment Clarification for Economic Stability Act or the FENCES Act This bill modifies standards under the Clean Air Act to exempt states from penalties for emissions outside of the state’s control. The bill provides that certain nonattainment areas (i.e., those classified as severe or extreme for ozone or as serious for particulate matter) are not subject to sanctions for implementation plan deficiencies or for fees for failing to attain national ambient air quality standards (NAAQS) if the state demonstrates it would have avoided deficiencies or attained its standards but for emissions outside of its control (e.g., emissions from an exceptional event like a wildfire). A state must renew its demonstration at least once every five years for exemption from the sanctions or fees to continue to apply. The bill specifies that an area within a state may not be designated as a nonattainment area regarding any new or revised NAAQS for a pollutant if the state demonstrates it would be in attainment but for emissions emanating from outside of the country, regardless of whether the emissions resulted from human activity. For purposes of approving a state implementation plan or meeting certain NAAQS, current law provides that a state may demonstrate to the Environmental Protection Agency that but for emissions emanating from outside of the country, it would have attained applicable NAAQS by the attainment date for certain pollutants. The bill specifies that such emissions emanating from outside the country may include emissions that result from human activity.