EPA’s new rule on power plant emissions

Last year, in June 2022, the U.S. Supreme Court ruled that the Environmental Protection Agency (EPA) could not force carbon dioxide emitters in the power sector to switch to clean energy. Rather, the agency could mandate emissions cuts based on technology that could be deployed “within the fenceline” of the power facilities. Earlier this month, the EPA issued a new rule that would do just that.

New ruling

On May 11, the EPA unveiled a new proposal that would require most coal and natural gas powerplants to cut greenhouse emissions by 90% between 2035 and 2040 or else shut down. Rather than mandating emissions reductions by “generation shifting” – i.e., shutting down and building renewables – the new rules are mandating use of technology that companies can deploy on the grounds of the facilities themselves. EPA considered a range of onsite technologies that fossil fuel power plants can use to reduce emissions including:

• Carbon capture and sequestration (CCS)
• Low-GHG hydrogen co-firing
• Natural gas co-firing

The EPA estimates that through 2042, the new standards will avoid up to 617 million tonnes of CO₂ emissions and deliver up to $85 billion in net climate and health benefits.

Challenges ahead

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