2026-19071RuleSignificantWallet

EPA Axes Carbon Rules for Fossil Fuel Power Plants

Published Date: 9/17/2026

Rule

Summary

In this final rule, the U.S. Environmental Protection Agency (EPA) is repealing most provisions of the 2024 Carbon Pollution Standards for greenhouse gas (GHG) emissions from fossil fuel-fired electric generating units (EGUs) based on a reevaluation of the best system of emission reduction for the relevant subcategories. Specifically, the EPA is repealing the emission guidelines for existing fossil fuel-fired steam generating units, the carbon capture and sequestration/storage (CCS)-based standards for coal-fired steam generating units undertaking a large modification, and the CCS-based standards for new base load stationary combustion turbines (i.e., Phase 2 standards). In a separate action published concurrently with this final rule, the EPA is issuing a supplemental proposal soliciting comment on additional reasons to rescind all GHG emission requirements for fossil fuel-fired EGUs to effectuate the best reading of Clean Air Act (CAA) section 111 and ensure consistency with applicable principles of administrative law beyond those reasons on which the EPA solicited comment in the June 2025 notice of proposed rulemaking.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Existing Steam EGU Guidelines Repealed

If you own or operate an existing fossil fuel-fired steam electric generating unit (EGU), the EPA has repealed the 2024 emission guidelines that would have required state plans for these sources. The repeal is final on November 16, 2026, and the EPA concluded that 90% carbon capture and 40% natural-gas co-firing are not adequately demonstrated or achievable (noting the original compliance dates of January 1, 2032 and January 1, 2030, respectively).

Power Sector Compliance Cost Savings

The EPA estimates present-value compliance cost savings for the power sector of $160 billion (3% discount rate) or $95 billion (7% discount rate) over the 2026–2047 period (all dollars in 2024$ discounted to 2025). The Agency also reports present-value real resource cost savings of $280 billion (3%) or $180 billion (7%) over the same period.

CCS Rules for Modified Coal Units Removed

If you own or operate a coal-fired steam generating unit that would undergo a large modification, the EPA has repealed the 90 percent carbon capture and sequestration (CCS)-based standards for such large modifications. The repeal is final on November 16, 2026, and the EPA concluded that 90 percent CCS has not been adequately demonstrated and that required infrastructure is not available to meet the prior compliance schedules.

Phase 2 CCS for New Base-Load Turbines Repealed

If you plan to build a new base load stationary combustion turbine EGU, the EPA has repealed the 2024 Phase 2 CCS-based standards of performance for those new units. The repeal is final on November 16, 2026, and the Agency concluded that 90 percent CCS for new base load turbines has not been adequately demonstrated and is not achievable by the January 1, 2032 compliance date.

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Key Dates

Published Date
Rule Effective
9/17/2026
11/16/2026

Department and Agencies

Department
Independent Agency
Agency
Environmental Protection Agency
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