The Trump Administration’s Environmental Protection Agency (EPA) has announced two proposals to repeal existing U.S. regulations on power plants, including all existing greenhouse gas emissions (GHG) regulations and certain amendments to the 2024 Mercury and Air Toxics Standards. In a new insight, Director of Energy and Environmental Policy Shuting Pomerleau walks through what the proposed rules are, the EPA’s cost-benefit analysis, and the implications of the proposed rules.

Key points:

• EPA estimates that the proposed repeal of all GHG regulations on power plants would save compliance costs between $9.6–$19 billion (in 2024 dollars) and lead to PM2.5 (fine inhalable particulate matter) and ozone-related health costs of $76–$130 billion.
• The most striking aspect of the EPA proposals is that the agency does not provide any monetized estimates associated with the increased GHG emissions from the proposed rule.
• If the proposed rules are finalized, they will be subject to substantial legal challenges across the country, which would create significant policy uncertainty for players in the U.S. electricity market, such as investors, energy developers, and utilities.

Read the analysis.