EPA has finalized a rule that rolls back most of the 2024 Carbon Pollution Standards for fossil fuel power plants. The agency argues the original standards relied on unproven control technologies and exceeded its authority under the Clean Air Act, citing the Supreme Court's Loper Bright decision. EPA projects the repeal will save $310 billion in compliance costs, and it is also proposing to rescind the remaining federal greenhouse gas standards for the power sector, which would add another $370 million in savings. The move is a significant shift in federal climate policy. It removes binding emissions limits for existing and new power plants, which could slow the pace of coal and gas retirements. States and utilities that rely on these standards for planning will need to adjust. The public comment period is open for 45 days after publication in the Federal Register, with a hearing 15 days after that. For carbon markets and clean energy investors, this means federal policy is no longer driving emissions reductions in the power sector. Demand for carbon credits and renewable energy will depend more on state-level programs, corporate procurement, and voluntary markets. The rollback could also affect the economics of carbon capture and storage, since the regulatory incentive is gone.
