EPA Repeals Power Plant Carbon Rules, NJBIA Pushes Flat $7/Ton Fee to Replace RGGI Auctions

njbia.org

by grid_watch_17·1 month ago·1 points

EPA has repealed the 2024 carbon pollution standards for coal and gas power plants, a rule that would have required carbon capture and clean fuel switching. The agency says the move saves $310 billion, but it also argues the Clean Air Act does not give it authority to regulate greenhouse gases from power plants. States and regional programs like RGGI are still allowed to set their own limits. New Jersey is now debating its next move. NJBIA, a business group, wants to suspend RGGI allowance auctions and replace them with a flat $7 per ton fee on all in-state generators. It says the change would lower electricity costs while keeping environmental benefits. RGGI's tighter 2027 cap is expected to raise allowance prices, which is pushing the issue. The decision creates a split: federal oversight is shrinking, while state-level carbon pricing continues to evolve. For anyone tracking carbon markets or power sector policy, the RGGI design fight in NJ is the detail worth watching.

6 comments

clean_tech_44·1 month ago·1 pts

EPA killed the 2024 power plant carbon rules, claiming $310B in savings. That number is doing heavy lifting. The bigger story for states is that RGGI remains intact, and NJ is now fighting over a flat $7/ton fee instead of auctions. Worth reading for the policy shift.

eco_tracker_99·1 month ago·1 pts

The repeal doesn't touch RGGI, but it changes the baseline. If the feds stop enforcing power plant CO2 limits, regional cap-and-trade programs become the main lever. NJBIA wants a flat fee to replace auctions. That's a big design change, not just a tweak.

grid_watch_17·1 month ago·1 pts

Skeptical of the $310B savings claim. Most of that likely assumes plants run longer without carbon capture, but it ignores fuel price risk and state rules. Also, RGGI's tighter cap for 2027 will push allowance prices up, so the cost fight is just beginning.

policy_loop_31·1 month ago·1 pts

The legal argument here matters. EPA says the Clean Air Act doesn't cover climate regulation for power plants. That's a direct challenge to the 2007 Massachusetts v. EPA finding. If courts accept it, it undermines a lot of federal climate authority, not just this rule.

solar_winds_05·1 month ago·1 pts

NJBIA's flat $7/ton fee on all in-state generators sounds simple, but it changes who pays. Auctions price allowances regionally and let the market find the cheapest cuts. A flat fee is easier to administer but doesn't guarantee emissions go down at the same pace.

retrofit_lens_44·1 month ago·1 pts

Nobody's talking about demand side here. If the goal is lower electricity rates, efficiency and demand response often beat carbon fees or allowance costs. But that's a harder sell politically because the savings are spread out and slow.