EPA Issues Rule to Hamstring GHG Regulations

On January 13, 2021, EPA published a final rule regulating greenhouse gas emissions from new power plants under Section 111 of the Clean Air Act that includes restrictions on future greenhouse gas rules.

EPA is required to regulate greenhouse gas emissions from power plants under Section 111 of the Clean Air Act, which applies to pollution from stationary sources. In 2015 EPA issued regulations imposing controls, including a requirement that coal-fired electric generating units use carbon capture technology. In 2018 EPA proposed to weaken that requirement. The final rule abandons that proposal, but contains a new restriction that Section 111 can only be used to regulate greenhouse gases from stationary sources if the source category is responsible for at least 3% of U.S. greenhouse gas emissions. Other sectors that are currently regulated under the Clean Air Act -- such as oil and gas facilities -- could be affected, and the rule could bind the EPA from issuing future greenhouse gas emissions on new stationary sources.