On September 14, EPA announced that it finalized a rule eliminating a variety of greenhouse gas regulations on fossil fuel power plants across the country. The final rule repeals “the majority of” the Biden administration’s 2024 Carbon Pollution Standards (CPS), which imposed requirements on different types of generators based on what was technically achievable for each of those facilities.
What Was Repealed
The final rule attacked each requirement on specific grounds:
- It repealed carbon capture rules, by finding that it is not technically feasible for coal plants to capture 90% of their carbon dioxide by 2032.
- It eliminated fuel switching requirements by determining that requiring coal plants to switch partially to natural gas is inconsistent with recent Supreme Court precedent.
- It eliminated the regulation of natural gas and oil steam fired facilities, claiming they are so rare that it would be an inefficient use of time to regulate them altogether.
- Some standards, such as efficiency standards for new stationary combustion turbines, were left intact for now.
What Comes Next
EPA has already been sued by public health and environmental groups, including the American Lung Association, the American Public Health Association (APHA), the Clean Air Council, Clean Wisconsin, the Environmental Defense Fund, and the Natural Resources Defense Council (NRDC), citing the agency’s responsibility to protect communities from air pollution under the Clean Air Act.
Notably, the final rule did not address one of the most significant arguments that were advanced in the proposed rule: whether the EPA is permitted, under the Clean Air Act, to regulate greenhouse gases from fossil fuel power plants. Instead, EPA is making this argument under a separate proposal, which is open for public comment until November 2.
What States Can Do
Climate XChange has previously covered many ways that states can fill the gap as the federal government backtracks on climate regulation: EPA rollbacks, shifting transportation policy, the federal budget bill, and blocking the regulation of GHGs under the Clean Air Act. States retain the authority to clean their own electric grids, including by adopting the same types of pollution standards that the federal government is walking back. In particular, they can adopt electric sector GHG reduction targets, coal phaseout plans, and clean energy standards, participate in cap-and-trade systems, or even impose plant-specific emissions regulations.
States have more authority over reducing emissions than any other level of government, and Climate XChange is committed to helping state actors leverage that authority no matter how federal policy changes.
Climate XChange Resources on What States Can Do
1. Adopt Electric Sector Greenhouse Gas Reduction Targets
These targets aim to reduce emissions by certain amounts over time, often in the form of a percentage reduction relative to a baseline year. Greenhouse gas reduction targets are most effective when they are codified into law, as opposed to governor-issued executive orders which can be repealed by future administrations.
Model States
- California: 38 million metric tons (MMT) reduction by 2030 | 35 MMT by 2032
- Colorado: 46 percent reduction by 2027 | 80 percent by 2030 Relative to 2005 levels
- Connecticut: 100 percent reduction by 2040
2. Create Coal Phaseout Plans
Coal phaseouts are a timeline for how a state must stop using coal for energy generation. Some states establish target dates to cease coal-fired electricity generation, while others prohibit new or renewed permits for coal generation facilities. Legislation often includes financial mechanisms for early plant retirement, incentives for clean energy adoption, and support for displaced workers and local communities.
Model States
- Hawai‘i: The public utilities commission is prohibited from issuing or renewing permits for covered source facilities that burn coal for electricity generation after December 31, 2022.
- Oregon: Requires electric utilities to phase out coal-fired electricity generation by 2030.
- Washington: Requires utilities to phase out coal-fired electricity from their state portfolios by 2025.
3. Establish Clean Energy Standards
This policy requires a specific percentage or amount of electricity sold by utilities to be generated by zero-carbon energy sources by a target date. Clean energy standards usually include a set of incremental milestones that increase the level of clean energy supplied to in-state consumers each year.
Model States
- Minnesota: 25 percent renewable energy by 2025 | 80 percent clean electricity for investor-owned utilities (IOUs), and 60 percent for munis and coops by 2030 | 55 percent renewable and 90 percent clean electricity by 2035 | 100 percent clean electricity by 2040
- Rhode Island: 100 percent renewable energy by 2033
- Vermont: 63 percent renewable energy by 2025 | 100 percent by 2030 for utilities serving at least 75,000 customers | 100 percent by 2035 for utilities serving less than 75,000 customers
4. Participate in Cap-and-Trade Systems
A market-based mechanism that aims to reduce the amount of GHGs by setting an annual limit on total carbon dioxide emissions. This cap is divided into emissions credits distributed to regulated entities, either for free or through an auction. Unused credits can be traded on a carbon market, and entities thatwho don’t reduce their emissions sufficiently can buy those unused credits.
Model States
- California: California’s Cap-and-Trade Program covers the electricity, buildings, transportation, and industrial sectors, covering around 80 percent of state emissions.
- Massachusetts: The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector.
- Washington: Washington’s Cap-and-Invest Program covers the electricity, buildings, transportation, and industrial sectors, covering around 75 percent of state emissions.
