Power Sector

In June 2025 EPA proposed a rule rolling back the 2024 EPA standards for GHG emissions from existing coal-fired power plants and new gas-fired power plants.

The Clean Air Act’s Good Neighbor provision requires upwind states to ensure that their instate sources do not contribute to downwind states’ attainment of the NAAQS. On Mar. 12, 2025, EPA announced its plan to roll back the Biden administration’s Good Neighbor Plan, which the Supreme Court stayed in June 2024.

Through two state plan approvals, EPA finalized a new policy that eases all states’ Regional Haze planning obligations. Environmental groups are challenging the approvals.

In early January 2025, the Biden EPA withdrew its direct final rule and indicated it would release a subsequent rule addressing the 13 states that failed to submit state implementation plan revisions.

EPA establishes the baseline requirements for new source review (NSR) permits, which are then issued by state and local air pollution agencies. In 2025, EPA made multiple changes to the NSR program easing permitting requirements for new and existing sources.

In June 2025, the EPA proposed a rule to rescind the 2024 mercury and air toxics standards (MATS) for power plants. Trump has exempted 74 electric generating units from the 2024 MATS.