EPA Announces Plan to Roll Back Power Plant Pollution Standards

Action: The Environmental Protection Agency (EPA) announced on June 11 its intent to roll back major emissions standards on power plants. The Administration argues that these standards, a key part of the previous Administration’s climate agenda, have made oil, gas, and coal-powered energy production more costly, leading to higher prices for American consumers and a less reliable energy grid.

• Reporting on this plan first surfaced in late May, with the EPA arguing that power plants do not significantly contribute to global greenhouse gas (GHG) emissions and that the standards have unduly led to higher energy costs. EPA Administrator Zeldin has characterized the move as part of the Administration’s broader plan to reduce excessive regulations and support more forms of American energy as outlined in the President’s early executive actions.
• The EPA is proposing to repeal two rules aimed at reducing power plant pollution. The first concerns GHG emissions standards for the power sector under Section 111 of the Clean Air Act. The proposal seeks to repeal requirements issued for new and existing fossil fuel-fired steam-generating units, which currently impact many power plants, combustion turbines, and modified coal plants.
• The second proposal intends to repeal amendments to Mercury and Air Toxics Standards (MATS) from 2024, which the Administration argues caused undue regulatory burden on coal plants adhering to stringent standards on filterable particulate matter (PM) and mercury. In a press statement, EPA suggests that repealing these standards will save over $1.3 billion in regulatory action annually over the next few decades.
• Stakeholders from the mining, fossil-fuel, and energy utility companies praised the moves, characterizing them as an opportunity to increase energy supply for consumers and drive costs down. In contrast, environmental groups criticized the announced plans as risking a degradation in air quality and undermining action to address climate change.
• EPA will propose these regulatory changes through the Federal Register for public comment, which will result in a new rule repealing these regulations in some form. These proposed rules, once finalized, will likely face legal challenges from states supporting the original standards and environmental groups alleging both public health risk and any procedural deficiencies in adopting the rules.