EPA rolls back climate action: Agency repeals 2024 power plant standards, announces savings of over $310 billion

The Trump administration has eliminated federal limits on carbon emissions from coal- and gas-fired power plants, in a move it presents as a decisive step toward strengthening energy security and reducing costs for consumers and industries.

The announcement was made in Houston, during a meeting of energy ministers from the G20, and repeals most of the emissions regulations approved in 2024 under the presidency of Joe Biden.

The end of a "war on coal"

The administrator of the Environmental Protection Agency (EPA), Lee Zeldin, defended the decision by arguing that the climate policies of the Obama and Biden administrations had unleashed a "war on coal" that jeopardized the reliability and cost of electricity. According to Zeldin, the agency's new approach aims to ensure that citizens are not burdened by excessive regulations.

"We are working to go even further so that American energy can be fully unleashed. Realizing the full potential of American energy means more jobs, lower prices, and a more prosperous America," said the administrator.

From this perspective, the 2024 regulations, which required reductions of up to 90% in CO2 emissions at certain plants, are considered unfeasible and harmful to the electric grid. The EPA maintains that those requirements forced the adoption of carbon capture technologies not yet proven on a large scale and that, in practice, they accelerated the closure of power plants that remain key to grid stability.

"During periods of peak electricity demand, coal and natural gas continue to play a critical role in keeping the lights on," said Energy Secretary Chris Wright. "Today’s announcement will help ensure reliable electricity generation regardless of whether the wind is blowing or the sun is shining by allowing coal and natural gas plants to keep generating power when Americans need it most."

Record deregulation and savings for the sector

The agency estimates that repealing the power plant regulations will generate savings of more than $310 billion for the energy sector. If finalized, the new proposal would save an additional $370 million in direct compliance costs. Zeldin presented the measure as part of the "largest power sector deregulatory action ever," an initiative that, according to the administration, will reduce bureaucracy and facilitate new investments in electricity generation.

"The Trump administration is saving Americans hundreds of millions of dollars through common sense energy solutions that put an end to the Biden administration's disastrous Green New Scam policies enacted at the cost of our nation's energy security and future," said Doug Burgum, president of the National Energy Dominance Council and secretary of the Interior.

For supporters of the measure, this change comes at a time of strong growth in demand, driven by the expansion of data centers, the electrification of industry, and increased residential consumption. From this perspective, keeping more coal and gas power plants open and expediting new projects is seen as a necessary step to prevent blackouts and keep electricity bills in check.

The debate over the EPA's authority

In addition to eliminating the 2024 regulations, the EPA has proposed removing the remaining federal requirements on greenhouse gas emissions from power plants. The proposal argues that the agency lacks authority under the Clean Air Act to regulate emissions from the electricity sector due to their impact on global climate change.

This line of argument is based on the revocation, announced in February, of the so-called 2009 "Endangerment Finding," the scientific determination that established that greenhouse gases threatened public health and well-being. For supporters of the measure, regulating CO2 emissions from U.S. power plants would have a marginal effect on global warming, while imposing high costs on the national economy.