USA – TEXAS Trends and Developments Contributed by: Gerald J. Pels, Elizabeth E. Mack, Gerald D. Higdon, Susan Rainey, Elizabeth Corey and Brett A. Miller, Troutman Pepper Locke LLP
it would exercise discretion differently, stating that today’s science differs from that in 2009, and that the 2009 projections the EPA relied on were overly pessimistic. Additionally, the EPA notes that certain climate change mandates were “based on inaccurate assumptions” and data. EPA now concludes that the CAA authorises review of existing emission standards and that the CAA gov- erns regional and local, not global exposures. Finally, a more defined nexus of specific air pollutants them- selves to causation and/or contribution to local or regional health and welfare impacts is necessary to regulate. Repeal of the Clean Power Plan 2.0 On 17 June 2025, the EPA proposed repealing GHG standards applicable to fossil fuel-fired electric gen- erating units (“EGUs”). The proposal repeals all GHG standards applicable to these EGUs, including the: • 2015 New Source Performance Standards (“NSPS”); • 2024 Carbon Pollution Standards for new, modi- fied, and reconstructed sources; and • emission guidelines (“EGs”) for existing EGUs. Specifically, the EPA must make a finding that GHG emissions from a source category significantly con- tribute to air pollution that endangers public health and welfare before the EPA can regulate GHGs from that source category. EPA concurrently determined that GHGs from these EGUs do not contribute to dan- gerous air pollution. EPA also proposed a more lim- ited alternative approach to rollback EGU regulation. Alternatively, EPA proposes to repeal EGs for existing fossil fuel EGUs and the carbon capture and storage (“CCS”) requirements for coal-fired steam generating units subject to a major modification and certain other CCS requirements for new base load stationary com- bustion turbines. This is important for the electric generation sector. If promulgated, the proposal would breathe life into the fossil fuel EGU sector. The profitability and operational stability of this industry should be more certain and scalable, absent the necessity of stringent controls as called for by the Plan. In turn, this should lead to less
costly energy production, which is necessary for the US to effectively compete in the AI race. Reform of the GHGRP On 16 September 2025, the EPA proposed rolling back the GHGRP, a mandatory information collection requirement imposed on industry. It is not, however, related to a specific rule. EPA estimates this rollback will save US businesses about USD2.4 billion, and that, in the absence of this burden, industry will be able to allocate compliance costs to matters hav- ing “tangible environmental benefits.” The GHGRP is understood to regulate over 8,000 facilities in 47 “source categories.” The proposal repeals all GHG reporting requirements except for the petroleum and natural gas sectors as mandated by the EPA’s WEC under CAA §136 (g). Data collected from this sector has been delayed until 2034, pursuant to recent legis- lation called The One Big Beautiful Bill (“BBB”). In conclusion, the EPA determined that, except for the petroleum and natural gas sector, there is no statutory basis for collecting GHG emissions data. EPA notes that industry may independently collect such data, but refrained from establishing a voluntary reporting pro- gram, which could result in incomplete, piecemeal, or reports based on different assumptions. Rollback of the WEC The WEC was established under the 2022 Inflation Reduction Act. At its core, it is a tax on methane emissions from the oil and gas sector, subject to reporting under the GHGRP. From its inception, the WEC’s implementation was fraught with opaque, if not inconsistent, rule-making. Its deadlines may not have been practicable based on supply chain vagaries and equipment supplier shortages. Two actions accomplish the rollback. First, pursu- ant to the Congressional Review Act, the WEC’s final implementing regulations were voided. To address the tax’s statutory implementation and reporting obli- gations, the BBB delays reporting and payment of the WEC until calendar year 2034 or later. This delay should enable the industry to better plan for potential implementation (if any) and avoid short-term height- ened capital costs for upgrades where equipment may be in short supply. Furthermore, if the WEC is imple-
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