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EPA Finalizes Repeal of 2024 Power Plant Emissions Rules, Proposes Scrapping Remaining Standards

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The US Environmental Protection Agency on Monday finalized the repeal of most Biden-era greenhouse gas standards for power plants and proposed rescinding all remaining federal climate rules for the sector.

Administrator Lee Zeldin unveiled the repeal at the G20 Energy Abundance Ministerial in Houston, alongside Interior Secretary Doug Burgum and National Energy Dominance Council Executive Director Jarrod Agen.

EPA said the final rule would save $310 billion, and the proposed repeal would add another $370 million in compliance-cost savings if adopted.

The final rule strikes down most of the 2024 Carbon Pollution Standards, which required power plants to use emissions-control technology EPA now says was not "adequately demonstrated" and exceeded the agency's authority under the Clean Air Act.

EPA cited the Supreme Court's 2022 ruling in West Virginia vs EPA, which limited the agency's authority to reshape the power sector's fuel mix.

The broader proposal would go further, eliminating remaining greenhouse gas rules for power plants entirely.

EPA said that after the repeal of the 2009 Endangerment Finding and the Supreme Court's Loper Bright decision overturning Chevron deference, the Clean Air Act does not authorize it to regulate power-plant emissions on climate grounds.

The agency also said potential public health harms from the plants' emissions are too diffuse to justify federal regulation.

Zeldin said the rules would lower electricity prices and expand coal and natural gas use, calling the 2024 standards part of a "war on coal" by prior administrations.

"Americans will see a decrease in electricity prices, but this is just the beginning," Zeldin noted.

Energy Secretary Chris Wright said the change would support baseload power generation.

"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," Wright said.

EPA projects coal use for power generation could increase more than tenfold as a result of the rule changes, which it frames as part of a broader push for US "energy dominance."

The proposed repeal will be subject to a public hearing 15 days after publication in the Federal Register, followed by a 45-day public comment period.

America's Power, a trade association representing coal-fired power plants, welcomed the move. President and Chief Executive Officer Michelle Bloodworth said the repeal would help preserve the coal fleet.

"Overturning these examples of EPA overreach will help preserve and strengthen the US coal fleet, protect grid reliability, and shield electricity consumers from higher costs at a time of surging demand from data centers, artificial intelligence, and advanced manufacturing," Bloodworth said.

She said the rules being repealed would have threatened the retirement of over 170 coal plants across 37 states, and cited EPA's estimate that utilities and ratepayers will save roughly $1.2 billion a year as a result.

What else is happening in Commodities?

Commodities

US Natural Gas Prices Snap 4-Week Winning Streak Amid Steady Supplies, Easing Weather Momentum

After four straight weeks in the green, US natural gas prices were down this week amid steady supplies and easing weather-related momentum.In the futures market, the Nymex front-month contract ended the week at $2.820 per million British thermal units on Friday, down from $2.939/MMBtu on Sep. 4.Natural gas spot prices declined to $2.81/MMBtu on Wednesday, down $0.07/MMBtu, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.This was primarily attributed to diverging regional weather, with cooler-than-average temperatures in the West helping offset above-average temperatures across Texas and the Midwest, leading to a 1.5%, or a 1.5 billion cubic feet per day decline in power consumption demand, according to data from S&P Global.Meanwhile, LNG export feedgas flows held steady at 19.6 Bcf/d, which was significantly above the 30-day moving average for this period, at 18.53 Bcf/d, according to the Bloomberg LNG Feedgas Model.Total gas supply remained mostly flat over the week, with a 0.4 Bcf/d, or 7%, decline in imports from Canada offset by a 0.4 Bcf/d, or less than 1% increase in domestic dry gas output.Net injection into storage for the week ended Sep. 4 was 40 Bcf, up from last week's 30 Bcf, bringing total working gas inventories to 3,254 Bcf, according to the EIA's weekly inventory data.The net build was ahead of forecasts at 35 Bcf but well below last year's 71 Bcf and the five-year average for this period, at 52 Bcf, according to data compiled by Investing.com, making it a fairly mixed storage build.At 3,254 Bcf, inventories were 148 Bcf, or 5% above the five-year average for this period, but 79 Bcf, or 2% below the same time last year.All regions reported a net injection during the week, barring South Central, which reported a net withdrawal of 7 Bcf. The East and Midwest led in injections, at 20 Bcf and 18 Bcf, respectively.According to Pinebrook Energy Advisors, the storage data shows that weather is set to play "a reduced role as a price driver" as September progresses and temperatures begin to moderate, that is, before winter makes landfall, leading to significant heating gas demand.A total of 36 LNG carriers departed US ports during the week, up by four from the prior week, with a total combined capacity of 137 Bcf, up 10 Bcf from last week.The US gas rig count increased by two from 130 the previous week to 132 in the week ending Sep. 11, according to data from Baker Hughes (BKR) released Friday. That compares with 118 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, increased by six to 798 from 792 the previous week.In international markets, European TTF gas prices averaged $25.47/MMBtu for the week ended Sep. 9, $1.59/MMBtu above the prior week. Meanwhile, the Japan-Korea Marker averaged $24.30/MMBtu, about $0.97/MMBtu above the prior week.Meanwhile, the EIA expects natural gas consumption in the electric power sector to reach a record in 2027 as electricity demand continues to grow, according to its monthly Short-Term Energy Outlook for July on Tuesday.The agency forecasts that natural gas use for power generation will increase by 2% in 2026 and by another 4% in 2027, to a record 38.1 Bcf/d. Monthly demand is expected to reach an all-time high of 50.6 Bcf/d in July 2027.Higher electricity demand, additional natural gas-fired generating capacity and relatively low natural gas prices will drive the increase, the EIA said.US gas-fired capacity is expected to reach 508 gigawatts by the end of 2027, up 3% from 2025.Summer natural gas demand for power generation is expected to average 42.2 Bcf/d this year, up 0.5 Bcf/d from summer 2025, before rising to 46.3 Bcf/d in summer 2027.Renewable generation will supply much of the increase in electricity output, while gas plants will continue to meet peak demand, according to the STEO.The EIA expects total US natural gas consumption to increase by 3.1 Bcf/d from 2025 to 2027, with the electric power sector accounting for 2.3 Bcf/d, or 7% of the increase.Weather remains the biggest uncertainty, as hotter summer temperatures could further boost electricity demand.Record Permian production should keep natural gas inventories above the five-year average and limit price gains, the agency said.Working gas inventories are expected to reach 3,966 billion cubic feet by the end of October, 5% above the five-year average.Above-average natural gas inventories heading into winter are expected to keep Henry Hub spot prices at $3.57/MMBtu in Q4 2026, down 5% from the same quarter a year earlier, the EIA said.EIA forecasts the Henry Hub natural gas spot price will ease to $3.43/MMBtu in 2026 and $3.28/MMBtu in 2027, down from $3.53 in 2025, as robust production growth outpaces rising demand.

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Commodities

Russia To Attend G20 Energy Abundance Ministerial in Houston

Russia will attend the G20 Energy Abundance Ministerial in Houston, Texas, as a G20 member, a White House official toldin an emailed response on Friday.The official also noted that Russia attended the Treasury G20 meeting in Asheville, North Carolina.The G20 Energy Abundance Ministerial will run from Monday through Wednesday, with Interior Secretary Doug Burgum, Energy Secretary Chris Wright and White House official Jarrod Agen among the US participants, according to a Reuters report Friday.Energy ministers from Europe and Asia are expected to join the Houston gathering. The European Union is entering winter with unusually low gas inventories, while its plans to reduce Russian energy dependence face setbacks, according to the report.

Commodities

US Natural Gas Update: Futures inch Down on Ample Supply, Milder Weather Outlook

US natural gas futures prices declined slightly in after-hours trade Friday, pressured by plentiful supplies and forecasts for moderating temperatures later this month.The front-month Henry Hub contract and the continuous contract each lost 0.49% to $2.820 per million British thermal units.In earlier trade on Friday, the October contract hit a low of $2.773/MMBtu before recovering.Forecasts of cooling temperatures put pressure on prices. Barchart, citing Commodity Weather Group data, said above-normal temperatures are expected across the South and Southeast through Sept. 20, supporting near-term demand, but most forecasters expect temperatures to cool thereafter.Aegis Hedging pegged average national temperatures at about 76 degrees Fahrenheit Friday, with readings expected to fall by 6 degrees or more in the second half of the month.Cooling demand and powerburn are expected to decline accordingly. Powerburn fell to 46.8 Bcf/d Friday from seasonally high levels of above 50 Bcf/d as temperatures began moderating across the northern US, Gelber & Associates said.Looking further ahead, heating demand may be muted this winter as NOAA's Climate Prediction Center raised the probability of a historically strong El Nino this fall, favoring above-normal temperatures across much of the northern US during winter 2026/27.On the export side, US LNG exports continued to support domestic gas demand. Barchart, citing BNEF data, said feedgas flows to US LNG terminals were near capacity at 19.8 Bcf/d, up 1.5% from the prior week. Annual maintenance at Cove Point LNG could reduce Appalachian feedgas demand by about 850 MMcf/d for up to three weeks from Sept. 19.US output and inventory levels kept the market amply supplied and pressured prices. Natural gas production remained elevated at 112.7 Bcf/d, keeping supply ample despite Canadian imports falling to 4.4 Bcf/d, Gelber said. BNEF said production was up 4.4% year over year.On Thursday, the US Energy Information Administration reported a 40 Bcf storage injection for the week ended Sept. 4, bringing total inventories to 3,254 Bcf, or 5% above the five-year average but 79 Bcf below year-earlier levels.RBC Capital Markets expects storage to peak near 3.9 trillion cubic feet this fall, about 120 Bcf above the 10-year average but 60 Bcf below last year's level. It forecasts a 35-40 Bcf injection in next week's EIA report, below the seasonal norm of 74 Bcf.