The Trump administration has repealed the EPA's 2024 rule that limited carbon emissions from power plants. That rule had given utilities a choice: retire coal plants by the 2030s or install carbon capture. The repeal removes federal climate regulation for the electricity sector, citing uncertain climate science and consumer costs. Coal decline in the US has been driven largely by cheap natural gas, but rising data center electricity demand is pushing some utilities to extend coal plant lifetimes, including Southern Company's Mississippi coal unit. The decision is a major setback for federal climate policy, though the Obama and Biden rules never fully took effect. The Inflation Reduction Act subsidies for renewables remain the main federal driver of grid decarbonization. However, the repeal removes a key signal to utilities and could slow coal phaseout, with public health consequences. States with their own emissions targets may step in, but the federal backstop is gone.
