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White House review clears path for new US power-plant carbon rollback

Two completed regulatory reviews could let the EPA repeal existing standards and make future carbon limits harder to impose.

Two measures clear review

White House regulatory officials have completed their review of two Environmental Protection Agency measures aimed at carbon-dioxide controls for fossil-fuel power plants. The completed review is a concrete procedural step that allows the EPA to advance the package. One item is a final rule intended to eliminate standards adopted in 2024; the other is a proposal designed to constrain future federal carbon standards for coal- and gas-fired generators.

Axios reported that the reviews finished on September 11 and that an unveiling could follow around the G20 energy ministers’ meeting in Houston. The EPA had not commented when the report was published. Because the legal text had not yet been released, the precise scope and effective dates remain matters to watch rather than established outcomes.

The policy’s reach could be substantial. Electricity generation is the second-largest source of US energy-related carbon emissions, while power demand is increasing after a long period of relatively flat consumption. New data centres, manufacturing facilities and electrification are contributing to that growth. A weaker federal emissions regime could therefore affect both domestic climate targets and the credibility of US commitments in international negotiations.

The legal contest ahead

The expected approach would build on the administration’s February repeal of the federal endangerment finding for greenhouse gases from motor vehicles. Power stations are regulated through a different part of the Clean Air Act, so the new measures require a separate legal theory. The reported proposal could seek to prevent a later administration from rebuilding direct carbon standards, not merely cancel the current rule.

Supporters of the rollback argue that the 2024 standards leaned too heavily on carbon-capture technology that has not become commercially economical at scale and could accelerate coal retirements or impede construction of new gas plants. Environmental lawyers counter that excluding one of the country’s largest emissions sources conflicts with the purpose and evidence base of federal clean-air law.

Litigation is expected once the measures are final. Courts will examine whether the EPA reasonably interpreted its statutory authority, justified the change with evidence and followed administrative procedure. The immediate signals to monitor are publication of the final rule, the text of the companion proposal, compliance deadlines for utilities and requests for emergency judicial stays. Until publication, the completed White House review establishes direction, but not the final regulatory outcome.