U.S. EPA ‘s “Largest Deregulatory Announcement in U.S. History” and What it Means for Power Plants

Introduction

The United States Environmental Protection Agency’s (U.S. EPA) new administrator, Lee Zeldin, was confirmed by the Senate on January 29^th, 2025. Since his nomination Zeldin has made swift action and on March 12, 2025 he announced several proposed changes in “the largest deregulatory announcement in U.S. history.” This announcement included the repeal or modification of several environmental regulations, most notably a group of deregulations on power plants including the following:

• Reconsideration of wastewater regulations for oil and gas development to help unleash American energy (oil and gas effluent limitation guidelines or ELG)
• Reconsideration of limitations, guidelines, and standards (ELG) for the Steam Electric Power Generating Industry to ensure low-cost electricity while protecting water resources (Steam Electric ELG)
• Reconsideration of Mercury and Air Toxics Standards that improperly targeted coal-fired power plants (MATS)
• Reconsideration of regulations throttling the oil and gas industry (OOOO b/c)
• Reconsideration of regulations on power plants (Clean Power Plan 2.0)

What This Means

While Zeldin’s announcement is just a plan for review and revision, U.S. EPA has the authority to propose these revisions. For a proposed regulation or deregulation, in this case, to pass it must go through the following:

• Office of Management and Budget (OMB) review;
• Public comment period ;
• Congressional review where “major” (economic impact of ~$100 million or more) rules go through a 60-day review window;
• Presidential veto consideration;
• Potential judicial oversight, in the case of lawsuits, where court rulings can overturn regulations.

The following regulatory changes can be expected if the proposed revisions pass.

• ELGs which could see relaxed standards include oil and gas as well as steam electric generators. Relaxation of ELGs would mean facilities would not have to comply with the previously proposed ELGs which would require increased treatment technologies and testing.
• The reconsideration of MATS could potentially relax the current emissions limits on mercury and other toxic pollutants for Coal- and Oil-Fired Electric Utility Steam Generating Units (EGUs). U.S. EPA is also considering a two-year compliance exemption under Section 112 of the Clean Air Act (CAA) for affected facilities during the rulemaking process.
• Zeldin is proposing a large deregulatory push in the oil and gas industry. Proposed changes could lighten the requirements in 40 CFR Part 60 Subpart OOOO for Leak Detection and Repair (LDAR) and methane emissions standards.
• Deregulation could remove the requirements to implement carbon capture and sequestration (CCS), low-greenhouse gas (GHG) hydrogen co-firing, and natural gas co-firing to help plants meet emissions standards.

What Can I Do?

Regulatory actions posed by Administrator Zeldin are merely a plan of action. While this is in line with the Trump administration’s overarching regulatory agenda and push for more energy production in the U.S., there is still a legal process to be followed for these regulations to be rolled back.

In the meantime, keep an eye out for any updates from U.S. EPA or your state environmental agency to stay abreast of ever-changing environmental regulatory climate. ALL4 will continue to track these changes. If you have any questions or concerns regarding your facility compliance strategies, please do not hesitate to reach out to Evan Mia at emia@all4inc.com.