In April 2024, the Environmental Protection Agency (EPA) unveiled a series of new regulations targeting greenhouse gas (GHG) emissions from fossil fuel-fired power plants, including those powered by coal, alongside three other air quality directives. The move is expected to significantly curb carbon emissions and pollution from U.S. power generation facilities, a sector that stands as the nation's second-largest source of GHG emissions, both nationally and in Minnesota.
Under the newly introduced rules, coal plants intending to operate beyond 2039 and new gas plants with a high frequency of operation (defined as having a capacity factor over 40%) will be required to slash their emissions by ninety percent by 2032. Additionally, the regulations bolster and modernize air quality standards while reducing wastewater pollutants from coal-fired power plants. Furthermore, the rules establish guidelines for the management of coal ash in areas previously lacking federal oversight.
The implementation of these regulations is poised to impact coal plants owned by Minnesota utilities such as Otter Tail Power and Minnesota Power. Otter Tail's Coyote Station and Big Stone coal plants, situated in North and South Dakota respectively, currently have projected operational endpoints in 2040 and 2046. Similarly, Unit 4 of Minnesota Power's Boswell coal plant, slated for coal cessation by 2035 but possibly subject to repowering with alternative fuels, may also be affected.
However, Fresh Energy, an advocacy organization, does not anticipate significant implications for Xcel Energy's Boswell Unit 3, scheduled for retirement by the close of 2029, nor for any of Xcel Energy's coal-fired facilities slated for decommissioning by 2030. Despite the planned phase-out of coal use in Minnesota by 2035, there remain several out-of-state coal plants serving Minnesota's energy needs.
In response to the EPA's announcement, Isabel Ricker, Senior Director of Clean Electricity at Fresh Energy, remarked, “Federal rules to reduce carbon emissions and air pollution from fossil fuel plants, especially coal plants, have been a long time coming. This national standard provides certainty and an investment signal to the power sector that will help states stay on track with their greenhouse gas emissions reductions plans, like Minnesota's 100% carbon-free electricity law. We're looking forward to further analyzing this set of rules and continuing to engage in Minnesota's regulatory processes to advocate for a carbon-free electricity sector.”
