EPA Proposes Repeal of Greenhouse Gas Standards for Power Plants
On June 11, 2025, the U.S. Environmental Protection Agency ("EPA") issued a proposed rule to repeal all greenhouse gas ("GHG") emissions standards for fossil fuel-fired electric generating units ("EGUs") under § 111 of the Clean Air Act ("CAA"), partially fulfilling its announcement on March 12, 2025, to take 31 actions, including the reconsideration of regulations on power plants.
Key Elements of the Proposal
- Section 111 Interpretation. Under CAA § 111(b)(1), EPA lists categories of stationary sources for regulation if the category "causes, or contributes significantly to, air pollution which may reasonably be anticipated to endanger public health or welfare." Under the 2015 New Source Performance Standards ("2015 NSPS"), EPA determined it could regulate GHGs from EGUs because EPA already listed EGUs for other air pollutants, and GHG was an air pollutant. EPA now proposes that the best reading of CAA § 111 requires, or at least authorizes EPA to require, a specific endangerment determination for each air pollutant prior to its regulation.
- Repeal of GHG Standards. With the new interpretation, EPA proposes to find that GHG emissions from EGUs do not endanger public health or welfare. As such, EPA proposes to rescind the 2015 NSPS and the 2024 Carbon Pollution Standards ("CPS") for new, modified, and existing fossil fuel-fired power plants, including associated emission guidelines for states.
- Alternative Proposal. As an alternative, EPA proposes to repeal a narrower set of requirements, including emission guidelines for existing fossil fuel-fired steam generating units, carbon capture and sequestration ("CCS")-based standards for coal-fired units undertaking large modifications, and CCS-based standards for new base load combustion turbines. EPA reexamined the "best system of emission reduction" determinations in the CPS, concluding that 90% CCS is not adequately demonstrated or cost-reasonable for existing or new units, and that required infrastructure is unlikely to be available by compliance deadlines. Similarly, EPA found that 40% natural gas co-firing is inefficient and constitutes impermissible "generation shifting" under recent Supreme Court precedent.
Comments on the proposal are due August 7, 2025. Affected industries should consider submitting comments and follow developments closely.
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