EPA proposes new rules for power plants

On March 27, the U.S. Environmental Protection Agency (EPA) proposed a rule limiting carbon dioxide (CO2) emissions from new power plants fired by fossil fuels such as coal or natural gas. The rule applies to new fossil fuel-fired electric utility generating units in the continental United States; it does not apply to existing units or new transitional units that already have received preconstruction air emission permits and that start construction within 12 months of the proposed rule’s publication in the Federal Register. Covered power plants would be required to meet an output-based standard of 1,000 pounds of CO2 per megawatt-hour. This standard is expected to favor natural gas over coal. EPA states that "new natural gas combined cycle power plant units should be able to meet the proposed standard without add-on controls." By contrast, coal-fired power plants would not be able to meet this standard without carbon capture and storage technology, which is still under development and is expected to be quite costly.