The US Environmental Protection Agency proposed revisions Thursday to coal plant wastewater rules that could lower electricity generation costs by up to $1.1 billion annually.
The proposal would revise the Effluent Limitations Guidelines for steam electric power plants to support reliable and affordable coal-fired electricity generation.
The EPA said the rule would continue protecting water resources while giving utilities greater flexibility to manage wastewater from coal-powered plants under the Clean Water Act.
The agency extended several wastewater compliance deadlines for coal-fired facilities earlier in 2025.
"The AI and data center revolution is creating an electricity and baseload power demand that cannot be met under the overly restrictive policies of past administrations," EPA Administrator Lee Zeldin said.
"The Trump EPA will continue doing its part to address these burdensome regulations on the coal-fired power plant sector that hold American communities back," Zeldin added.
The EPA said the Biden administration's 2024 wastewater rules for steam electric plants threatened affordable baseload power generation and contributed to higher electricity costs.
Under the proposal, the agency would remove certain fixed wastewater treatment standards for unmanaged combustion residual leachate and instead allow permit writers to set facility-specific discharge limits.
The EPA said the revised approach would replace certain one-size-fits-all wastewater requirements with case-by-case and data-driven discharge limits while continuing long-term protections for US water resources.
America's Power President and Chief Executive Officer Michelle Bloodworth lauded the move in a statement on Thursday.
"We appreciate EPA's efforts to rescind one-size-fits-all ELG requirements that are unnecessarily prescriptive and costly," Bloodworth said.
He added that the proposal will preserve the US coal fleet. "This proposal represents another important step toward preserving the nation's coal fleet, which is essential to providing affordable and reliable electricity," Bloodworth said.
Bloodworth said the group will work with the EPA on the proposal while continuing to urge the agency to repeal the 2024 ELG rule, which she said still threatens coal-fired generation and grid reliability.