STOCKS | EPA Rolls Back Most Power Plant Carbon Limits, Seeks to Weaken Future Rules

The U.S. Environmental Protection Agency signed a final rule on September 14 that rolls back most greenhouse gas emissions standards the Biden administration set in 2024 for coal- and gas-fired power plants. According to Sina Finance, the EPA also proposed a supplemental rule that would eliminate the remaining power plant carbon standards and related legal findings. The final rule removes three main requirements: emissions guidelines for existing coal, oil, and natural gas steam generating units; carbon capture and storage standards for existing coal units undergoing major modifications; and carbon capture and storage standards for new baseload natural gas turbines. The EPA said the 90% carbon capture requirement has not been sufficiently proven, and that related transport and storage facilities are unlikely to be built at scale before the 2032 compliance deadline. The agency estimated the final rule could save the power sector up to $310 billion. It said the figure is based on model projections over decades and does not mean electricity prices will fall immediately. The supplemental proposal, which was released alongside the final rule, would go further by rescinding the remaining greenhouse gas standards for power plants and revising the agency's interpretation of Section 111 of the Clean Air Act. The EPA said the proposal would be open for a 45-day public comment period after publication in the Federal Register and that a public hearing is planned. The Biden administration's 2024 rule had required some long-running coal plants to adopt carbon capture technology or phase out over time, while some new large gas units faced tighter limits. The EPA said its current assessment places greater emphasis on compliance costs, grid reliability, and rising electricity demand. Environmental and public health groups said they plan to sue, and the final rule is expected to face legal challenges.