Generic Hero BannerGeneric Hero Banner
Latest market news

States say EPA CO2 rule is legally flawed

  • Market: Coal, Electricity, Emissions
  • 01/11/18

A US Environmental Protection Agency (EPA) proposal to cut power plant CO2 emissions falls well short of what is required by the Clean Air Act, supporters of more aggressive action say, offering a preview of legal arguments that are likely to be raised in litigation.

A group of 18 state attorneys general yesterday urged EPA to withdraw its proposal to replace the Clean Power Plan, saying it would not lead to any "meaningful" reductions of CO2 emissions from coal-fired power plants and may also lead to higher levels of conventional pollutants.

"The proposed rule, if finalized, would be unlawful. EPA should abandon it and instead focus on implementing and strengthening the Clean Power Plan," the attorneys general said in comments on EPA's Affordable Clean Energy rule.

The group, which includes attorneys general from the District of Columbia and the top legal officials in seven cities and counties, says the proposal would "effectively rewrite the Clean Air Act" with how EPA proposes to set emissions limits for existing power plants. In addition, it fails to set a "best system of emission reduction" required by the law by ignoring a number of ways the states have already lowered power plant CO2, including through emissions trading and renewable energy mandates, the letter said.

"EPA's protestations now that it lacks information about the feasibility or mechanics of such approaches are plainly arbitrary and capricious," they said.

The group also cited a number of other flaws with the proposal, including EPA's own projection that it could lead to 1,400 premature deaths each year from higher SO2 and NOx emissions. Their arguments are echoed in separate comments filed by environmental regulators from many of the same states, as well as environmental groups.

The proposal, issued in August, would replace the Clean Power Plan, crafted by the administration of former president Barack Obama, with a less aggressive regulation EPA says will provide states with more flexibility and help keep coal-fired power plants on line. It would rely on on-site heat-rate improvements to cut CO2 emissions from coal units, rather than the broader suite of measures envisioned in the Clean Power Plan. The comment period on the proposal closed yesterday.

EPA's plan is supported by regulators in coal states including Kentucky and West Virginia, as well as industry groups, which say it will provide greater regulatory certainty than its predecessor.

The rule's "approach provides the necessary flexibility to states to set standards based upon what is reasonably achievable at each power plant upon consideration of costs, remaining useful life and other factors," the National Mining Association said in its comments.

EPA says the new rule could cover up to 600 coal-fired units at 300 power plants and would save the industry about $400mn/yr in compliance costs. The agency estimates its proposal will only reduce power plant CO2 emissions by 1.5pc from projected levels if the Clean Power Plan did not exist, leading to an overall reduction of 33-34pc from 2005 levels by 2030.

Power plant emissions last year were 28pc below 2005 levels, the result of an overall shift away from coal to lower cost natural gas and renewables.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
22/04/25

FERC commissioner Phillips resigns from agency

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Tariff ‘shock’ prompts IMF to cut growth outlook


22/04/25
News
22/04/25

Tariff ‘shock’ prompts IMF to cut growth outlook

Washington, 22 April (Argus) — Global economic growth is expected to be significantly lower in 2025-26 than previously anticipated because of the steep tariffs President Donald Trump is pursuing for most imports and the uncertainty his policies are generating, the IMF said. The IMF, in its latest World Economic Outlook released today, forecasts the global economy will grow by 2.8pc in 2025 and 3pc in 2026. That compares with the 3.3pc/yr growth for 2025-26 that the IMF was expecting just three months ago. Today's forecast is based on the tariffs that Trump had in place as of 4 April, before he paused steep tariffs on most countries and escalated tarrifs on China. These barriers had pushed up the effective US tariff rate to levels "not seen in a century", the IMF said. While Trump has altered his tariff levels repeatedly, he has imposed an across-the-board 10pc tariff on most imports, a 25pc tariff on steel and aluminum, a 25pc tariff on some imports from Canada and Mexico, and a 145pc tariff on most imports from China. "This on its own is a major negative shock to growth," the IMF said. "The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook." IMF forecasts are used by many economists to model oil demand projections. The US and its closest trading partners appear to be among those hardest hit by tariffs and corresponding trade countermeasures. The IMF's baseline scenario forecasts US growth at 1.8pc this year, a decrease of 0.9 percentage points from the forecast the IMF released in January, reflecting higher policy uncertainty, trade tensions and softer demand outlook. Mexico's economy is now projected to shrink by 0.3pc in 2025, rather than grow by 1.4pc, while Canada's growth is forecast at 1.4pc in 2025, down from 2pc. The release of the IMF report comes as Trump has given no indications of a shift in thinking on tariffs, which he says are generating billions of dollars for the US and will prompt companies to relocate their manufacturing capacity to the US. "THE BUSINESSMEN WHO CRITICIZE TARIFFS ARE BAD AT BUSINESS, BUT REALLY BAD AT POLITICS. THEY DON'T UNDERSTAND OR REALIZE THAT I AM THE GREATEST FRIEND THAT AMERICAN CAPITALISM HAS EVER HAD!" Trump wrote on social media on 20 April. The next day, major stock markets indexes declined by more than 2pc, continuing their crash from when Trump began announcing his tariff policies. Trump on 21 April escalated his attacks against US Federal Reserve chair Jerome Powell for failing to lower interest rates as Trump has demanded. There could be a "SLOWING of the economy unless Mr. Too Late" — his nickname for Powell — "a major loser, lowers interest rates, NOW," Trump wrote. The IMF also ratcheted down its expectations for the Chinese economy. China's economy is expected to grow by 4pc/yr in 2025-26, down from the 4.6 and 4.5pc, respectively, the IMF was anticipating in January. The euro area is forecast to grow by 0.8pc in 2025 and 1.2pc in 2026, a decrease of 0.2 percentage points from the IMF's previous forecast. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Coal India, DVC to build 1.6GW of thermal power plants


22/04/25
News
22/04/25

Coal India, DVC to build 1.6GW of thermal power plants

Singapore, 22 April (Argus) — State-owned producer Coal India (CIL) plans to develop 1.6GW of coal-fired power capacity under a joint venture with state-controlled utility Damodar Valley (DVC) to meet rising demand and expand its non-coal revenue. India's top coal producer CIL plans to set up two brownfield thermal power units of 800MW each with DVC in the eastern Indian state of Jharkhand, the company announced on 21 April. The brownfield expansion will be carried out at DVC's 500MW Chandrapura thermal power station. The 50:50 joint venture plans to invest 165bn rupees ($1.94bn) towards the expansion. The expanded capacity will source coal from the regional mines of CIL's subsidiary companies, Bharat Coking Coal and Central Coalfields. The firms did not disclose the timeline for the completion of this expansion. CIL has geared up to construct several super-critical or ultra super-critical pit-head thermal power plants to support the nation's requirement for affordable and reliable energy, the company said in its annual report for the fiscal year ended 31 March 2024. CIL announced plans to set up two brownfield thermal power units of 800MW each with state-owned utility Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) at the latter's existing Kalisindh thermal project in the northern Indian state of Rajasthan in September 2024. India's installed thermal capacity stood at 247GW as of 31 March, with coal accounting for 215GW of this, and the rest being lignite, diesel and natural gas, according to data from the country's Central Electricity Authority (CEA). The country's total power capacity stood at 475GW as of 31 March. India plans to raise its electricity generation capacity by more than fourfold over the next two decades to cater to rising domestic demand, although the focus would be on boosting power production from cleaner sources of energy as the country takes steps to cut emissions. New Delhi is aiming to achieve a generation capacity of 2,100GW by 2047, power minister Manohar Lal Khattar said at the launch of National Electricity Plan for power transmission in October 2024. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Washington seeks input on GHG market changes


21/04/25
News
21/04/25

Washington seeks input on GHG market changes

Houston, 21 April (Argus) — Washington regulators are moving forward with a slew of potential changes to the state's "cap-and-invest" program through a pair of draft rules, despite ongoing uncertainty around new program mechanics under discussion in the California-Quebec carbon market. The Department of Ecology opened public comment for the two draft rules on 16 April for the revised carbon market linkage rulemaking it kicked off in March . The draft language builds on changes required by SB 6058 , which lawmakers passed last year at the request of Ecology, to smooth out any incompatibility between the state's program and the larger California-Quebec market, known as the Western Climate Initiative (WCI). In line with legislation, the agency is proposing to shift the program's greenhouse gas (GHG) emissions exemption for biomass-derived fuels to 35pc lower lifecycle emissions — down from 40pc — than the comparable petroleum fuels, allow the use of another jurisdiction's carbon offsets issued after July 2019 for compliance, and lower the allowance holding limits for general participants in a linked market. Ecology is proposing other changes required by the law, such as accounting for emissions from imported electricity. Changes Ecology is proposing that are not required by SB 6058 include accounting for the combined total allowances between all three jurisdictions in the program's holding limit formulas and adding quarterly future vintage allowance auctions in line with the WCI. Ecology began pursuit of linking with the WCI in 2023 , the first year of the Washington's program. While the agency continues to move forward on linkage-related due diligence required by state law, some program changes needed to join the WCI market, such as aligning program compliance periods and corporate affiliation group disclosures, must wait for guidance from California and Quebec. Ongoing work by the current WCI members to update their respective regulations has run into a series of delays . One potential change California Air Resources Board staff floated in April 2024 is aligning the end of each compliance cycle with the program's emissions reduction targets in 2030, 2035, 2040 and 2045, rather than the current three-year compliance cycle. But the agency has largely been silent on the issue since, including in its most recent market notice on planned changes in October 2024. Washington's "cap-and-invest" program aims to cut GHG emissions by 45pc by 2030, compared with 1990 levels, and to achieve net-zero emissions by 2050. The program covers industrial facilities, natural gas suppliers, power plants and other fuel suppliers with GHG emissions of at least 25,000 t/yr. Ecology is requesting public comment on the draft language through 16 May. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India’s thermal coal imports ease in March


21/04/25
News
21/04/25

India’s thermal coal imports ease in March

Singapore, 21 April (Argus) — India's thermal coal imports in March fell on the year for the seventh consecutive month, pressured by rising domestic output and high inventories even as coal-fired generation expanded. The country imported 14.1mn t of thermal coal in March, down by 1.2pc from a year earlier, but up by over 24pc from 11.33mn t in February, according to data from shipbroker Interocean. Coal arrivals declined year-on-year across key origins barring Indonesia and South Africa. India's cumulative imports over January-March stood at 38.3mn t, down by 8.6pc from 41.9mn t in the same period a year earlier, according to Interocean data. Demand for imported coal fell as domestic availability continued to rise. The combined output from state-controlled Coal India (CIL), Singareni Collieries (SCCL) and captive blocks reached 118.54mn t in March, up by 1.6pc from a year earlier, according to data from the country's coal ministry. Overall supplies stood at 94.94mn t, up by 5.1pc from a year earlier. Combined coal supplies to utilities from domestic sources stood at 78.46mn t in March, up by 6.3pc from a year earlier and up from 69.61mn t in February, coal ministry data show. The increase in domestic coal output and supplies helped utilities to increase stocks to cater for an increase in coal consumption at power plants in March. But the higher domestic coal availability pressured imports. The country's coal-fired generation reached 117.95TWh in March, up from 112.82TWh a year earlier and well above the 106.18TWh in February, according to Central Electricity Authority (CEA) data. Higher temperatures and increased air conditioning use lifted coal-fired output in March. Coal burn at utilities could remain elevated over the summer months and exacerbate drawdowns from stocks at power plants and at coal producer CIL. Combined coal inventories at Indian power plants stood at 58.11mn t as of 31 March, up from 50.69mn t a year earlier, and up from 54.59mn t on 28 February, the CEA said. Inventories at CIL reached an all-time high of 106.8mn t as of 31 March, up from 89.41mn t a year earlier. Import mix Imports from Indonesia grew to 9.68mn t in March from 9.23mn t a year earlier, and were sharply higher from 6.75mn t in February, Interocean data show. Indonesia continued to be the primary supplier of imported coal to India in March, accounting for nearly 69pc of overall thermal coal imports, up from almost 60pc in February. Imports from South Africa, a source favoured by coal-consuming industries like sponge iron, rose by 72pc from a year earlier to 2.32mn t, but fell from 2.42mn t in February. Demand from India's coal-intensive sponge iron industry, which is a major consumer of South African NAR 5,500 kcal/kg coal, remained resilient following a stimulus measure from the Indian government to introduce steel safeguards , which in turn has driven domestic sponge iron prices higher. By Ajay Modi India thermal coal imports in March 2025 t Origin Quantity % ± m-o-m % ± y-o-y Indonesia 9,684,944 43.4 5 South Africa 2,323,265 -4 72.1 USA 1,132,417 66.8 -17.1 Russia 435,120 -27.1 -20.8 Mozambique 68,306 -42.7 -85.7 Others 458,288 -21.4 -44.1 Total 14,102,340 24.4 -1.2 Source: Interocean Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more