The U.S. Environmental Protection Agency announced Monday the repeal of federal rules limiting greenhouse gas emissions from coal and gas-fired power plants in a move EPA said will save $310 billion for the power sector and make electricity more affordable.
EPA’s action scraps most of the 2024 Carbon Pollution Standards enacted under the Biden administration that would have forced existing coal-burning plants to install carbon-capture technology and required future gas power plants to operate on cleaner fuels, such as hydrogen that do not produce carbon emissions.
The EPA said the 2024 rules exceeded the agency’s authority under the Clean Air Act by requiring unproven emission control technologies that would effectively force power plants to be retired, rather than set realistic standards that could be met.
Concurrent with Monday’s action on 2024 standards, EPA also proposed rescinding all remaining greenhouse gas emission requirements for power plants, which the agency said has drained the power sector’s resources. The EPA proposal states that the Clean Air Act does not give the agency the authority to regulate power plant emissions based on climate change.
While the federal government is stepping back from greenhouse gas oversight for power plant emissions, individual states can still implement their own stricter standards. The EPA’s decision does not override efforts by individual states or regional pacts such as the Regional Greenhouse Gas Initiative (RGGI), of which New Jersey is a member, to maintain or tighten state-level cap-and-trade programs and set clean energy targets.
NJBIA recently launched a Rethink RGGI campaign that advocates suspending New Jersey's participation in RGGI allowance auctions, which have led to higher electricity rates. Instead, the proposal calls for replacing them with a flat $7-per-ton carbon fee on all in-state generators.
“At a time of great affordability challenges in the energy space, this solution can be a win-win to help lower costs and improve the environment,” NJBIA Deputy Chief Government Affairs Officer Ray Cantor said.
Prompt action is needed because RGGI has set a tighter regional emission cap of 69.8 million tons for 2027, which is expected to put upward pressure on the price that power generators pay for carbon allowances and increase their operating costs, Cantor said.
On the NJBIA landing page, njbia.org/rethinkRGGI, New Jersey residents can watch a brief explainer video and sign a letter to Gov. Mikie Sherrill and state lawmakers to consider the Rethink RGGI proposal, which is expected to be backed by legislation this fall.
