FENCES Act

The FENCES Act clarifies that states can avoid penalties under the Clean Air Act for failing to meet air quality standards if pollution originates from outside U.S. borders (regardless of human activity). It allows states to demonstrate to the EPA that nonattainment areas (for ozone or particulate matter) would meet standards but for pollution from outside their borders, exceptional events, or mobile sources beyond their control. States must renew this demonstration every five years to maintain the exemption from sanctions or fees. The bill does not change air quality standards but prevents penalties for pollution sources outside a state’s jurisdiction. It applies directly to states and local areas struggling with air quality due to external pollution sources.