EPA repeals federal carbon limits for power plants

On September 14, Reuters reported that the US Environmental Protection Agency announced rules repealing federal carbon-emissions limits for coal- and gas-fired power plants and proposed preventing future greenhouse-gas regulation of the sector under the Clean Air Act. The prior rule was designed to reduce emissions by 1 billion metric tons through 2047, while EPA said the repeal would save industry $370 million in direct compliance costs; state emissions rules remain in force. Utilities and major power purchasers therefore face a more fragmented compliance map rather than the disappearance of transition risk. Counsel should distinguish the final repeal from the accompanying proposal, track expected litigation and preserve state-by-state assumptions used in investment, procurement and disclosure decisions.