EPA Power Plant Rule Tightens Emissions Standards

The U.S. Environmental Protection Agency (US EPA) recently finalized its rule to limit power plant emissions, updating section 111(d) of the Clean Air Act. Under the regulations, existing coal and new natural gas-fired power plants that run more than 40% of the time would have to eliminate 90% of their carbon dioxide emissions. The rule was among four measures targeting coal and natural gas plants that the EPA said would provide "regulatory certainty" to the power industry and encourage them to make investments to transition "to a clean energy economy."

By including burdensome emissions limitations on new natural gas power plants, this rule will send a counterproductive signal to potential power plant operators in the nation. The EPA is countering criticism of the rule by claiming electricity costs will stay in check, and reliability maintained, due to tax incentives and funding from the Inflation Reduction Act and the Bipartisan Infrastructure Law for carbon capture and sequestration technology. 4/23/2024