The Environmental Protection Agency (EPA) has decided to repeal greenhouse gas regulations for power plants that use coal and natural gas, a move that could lead to another legal battle over the federal government’s ability to regulate the energy sector as per the Clean Air Act.
This rollback is expected to save the energy industry over $300 billion and enables utility companies to prioritize the needs of their customers instead of feeling pressured to close older power plants. The repeal reverses Biden-era mandates which required existing coal plants and some new natural gas plants to reduce 90% of their carbon emissions by 2032 if they wished to operate beyond 2039.
Jason Isaac, the founder and CEO of the American Energy Institute, expressed his support, stating that the U.S. should focus on producing affordable and reliable energy rather than spending billions on capturing and sequestering carbon dioxide.
TODAY: EPA is set to eliminate needless CO₂ regulations that pushed power plants toward costly carbon capture, raising rates for Americans.
TOMORROW: The @txrrc is set to approve a massive carbon capture project positioned to collect billions in Biden-era Green New Scam tax…
— Fmr. Rep. Jason Isaac (@ISAACforEnergy) September 14, 2026
Isaac further remarked that Administrator Zeldin was right to reject regulations that limited the energy Americans rely on and praised the restoration of the Clean Air Act to its intended purpose.
The EPA initially proposed this repeal on June 11, 2025, arguing that it would cut costs and enhance the reliability of the electrical grid.
Steve Milloy, a senior legal fellow at the Energy & Environment Legal Institute and a former member of the Trump EPA transition team, indicated that the repeal is a significant part of the Trump energy agenda, but expects it will face legal challenges in the courts.
The issue of how the EPA can manage emissions from power plants has been contentious, beginning with a Supreme Court petition from West Virginia and other states in 2021 after the Trump’s administration’s Affordable Clean Energy rule was struck down. The Supreme Court ruled against the EPA in June 2022, stating the Clean Air Act did not authorize the agency to implement the previous administration’s plans to shift energy production away from high-emission sources.
The Court noted that an agency claiming authority over issues of significant economic and political impact needs clear backing from Congress. However, it didn’t outright ban the EPA from regulating greenhouse gas emissions from power plants. In response, the Biden administration released new regulations in April 2024 for fossil fuel-fired power plants.
These standards relied on carbon capture and sequestration to set emissions limits for some coal plants and new natural gas facilities. Additionally, the EPA is proposing rules that address concerns over how emissions from power plants contribute to harmful air pollution, which is likely to face its own legal challenges.
Isaac Orr, vice president of research at Always On Energy Research, pointed out that legal challenges will likely arise regarding the EPA’s stance that U.S. power plants are minor contributors to global carbon dioxide levels.
Environmental groups like the Natural Resources Defense Council (NRDC) and the Sierra Club are anticipated to challenge the rollback, criticizing the EPA’s decision as flawed in its legal and technical reasoning. The NRDC has stated that it believes this action will not withstand a legal challenge.
In February, the administration had already repealed the 2009 Endangerment Finding, which had served as a foundation for federal greenhouse gas regulations and also eliminated emissions standards for vehicles.
Orr noted that this repeal has significant implications for the energy sector, emphasizing that it was crucial for keeping existing coal plants operational and facilitating the establishment of new natural gas power plants, especially in light of rising electricity demands associated with data centers.
He suggested that if Republicans continue to control Congress, they should legislate to clarify that greenhouse gas emission regulations are a matter exclusively for Congress, prohibiting the EPA and states from setting their own regulations.
