U.S. EPA Finalizes Power Plant GHG Emissions Rule

On April 25, 2024, the U.S. Environmental Protection Agency ("EPA") released a pre-publication of its final rule to regulate greenhouse gas ("GHG") emissions from fossil fuel-fired power plants (the "Final Rule"), which includes robust emission standards for certain subcategories of facilities based on implementation of carbon capture and sequestration ("CCS"). The Final Rule will be effective 60 days after publication in the Federal Register. However, several companies and industry groups are expected to immediately challenge the Final Rule in federal court.

The Final Rule includes four major components:

1. Repealed the Affordable Clean Energy ("ACE") Rule. The Final Rule repealed the ACE rule which was promulgated under the Trump administration and relied on heat rate improvements at existing fossil fuel-fired power plants;