On April 25, 2024, the Environmental Protection Agency (EPA) released a set of rules aimed at cutting air, water, and land pollution from fossil fuel-fired plants. The rules would require existing coal-fired and new gas-fired power plants to reduce climate pollution significantly, with compliance deadlines beginning in 2030 and extending through 2039, to sharply cut emissions of toxic metals such as mercury, and to clean up fly ash and wastewater from coal plants.
Stakeholders have responded regarding the impact that these new rules could have if enacted. WV News reports the West Virginia coal industry's response, which warns that the rules are an effective elimination of the state's remaining coal-powered electrical generation. Senator Joe Manchin of West Virginia has stated that the goal of the rules is to achieve "death by a thousand cuts to America's fossil fuel industry." Senator Manchin further stressed the risks to electric reliability if plants are forced to close early.
The Pennsylvania Business Report also details a number of these concerns. Pennsylvania State Senator Gene Yaw has stated that the EPA rules are an attack on America's electric grid. The Pennsylvania Coal Alliance similarly provided that the regulations are a threat to the grid's electricity supply, national security, and economy. In a time of increasing electrification, the article notes that some stakeholders are worried that shutting down coal plants will significantly reduce baseload power at an inappropriate time. Further, any reductions in electricity supply, without the corresponding development of new generation, will lead to higher energy prices for all consumers.
As Newsweek reports, however, not all stakeholders oppose the new rules. Unsurprisingly, the EPA touts the climate and health benefits as far outweighing the costs industry will face to comply with the rules. Environmental groups similarly support the rules as a significant step toward a safer climate that has been long overdue. Additionally, proponents of the rule note that renewable generation costs have been declining and that coal already plays a small role in supplying the nation's electricity. According to the third article, 20 years ago, coal generated roughly half of the country's electricity; by 2022, coal was only about a fifth of electricity production.
Per the Virginia Mercury and E&E News, however, these rules will face significant legal challenges. The last time the EPA tried to restrict carbon emissions from power plants, a group of states (led by West Virginia) successfully challenged the rule before the U.S. Supreme Court. While it appears that the EPA has attempted to conform the current rules to the Supreme Court's ruling in the prior case, proponents of coal-fired generation have already filed a legal challenge. As detailed by E&E News, on May 9, 2024, 25 states filed a lawsuit challenging the rules in the U.S. Court of Appeals for the District of Columbia Circuit.
The upshot of these rules is twofold. One, due to the legal challenge, implementation of the rules may be delayed or prohibited altogether if a court determines that the EPA has exceeded its authority. Because litigation could take years, however, utilities and states that rely on coal-fired generation will need to start planning for a future based on these rules. If the rules are implemented, expensive and unproven carbon capture technology would be necessary to keep coal plants viable, thereby increasing costs to ratepayers for that development and installation. Alternatively, utilities may shutter coal-fired plants prior to their currently expected retirements, thereby reducing baseload electric supply at a time of increasing demand. In either of those scenarios, ratepayers will likely bear the cost.
