EPA Proposes Rolling Back Restrictions on Wastewater From Coal-Fired Power Plants

The Environmental Protection Agency (EPA) said on May 14 that it is proposing a rule to roll back limits that require coal-fired power plants to prevent the release of toxic heavy metals into streams and rivers through polluted groundwater, saying a three-year-old rule is unduly costly for the energy industry at a time when energy demand is spiking.

EPA Administrator Lee Zeldin cited growing electricity demand from artificial intelligence data centers and manufacturing as key reasons for the move.

“This proposal is critical to advancing the Trump administration’s efforts to make electricity more affordable and reliable for all Americans while powering economic growth,” Zeldin said in a statement. “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.”

In its proposed rule, the EPA said a 2024 rule under President Joe Biden misjudged the effectiveness and cost of the regulation, and had the effect of shutting down coal-fired power plants at a time when energy demand is spiking.

In 2024, the EPA strengthened wastewater rules for coal-fired power plants that keep coal ash—a byproduct of burning coal—in unlined, uncovered dumps that leach toxic heavy metals such as mercury, arsenic, and selenium into groundwater.

The EPA initially had given power plant owners until Dec. 31, 2029, to meet the new limits.

The change would give permit writers greater flexibility to set case-by-case limits rather than one-size-fits-all standards, the agency said.

The EPA said the rule proposed, if finalized, would reduce power generation costs by as much as $1.1 billion a year.

The rule has a 30-day comment period after its publication in the Federal Register.

Industry leaders, including American Public Power Association CEO Scott Corwin, welcomed the proposal.

“Rescinding this provision would remove a legally uncertain and administratively unworkable requirement that would be exceptionally difficult for permitting authorities and public power facilities to implement consistently,” Corwin said in a statement.

National Mining Association General Counsel Tawny Bridgeford said the Biden-era rule resulted in early coal retirements that raised electricity prices and harmed grid reliability.

“The new, revised limits and approach are a welcome first step that continues this administration’s focus on responsible regulation reflecting the realities of what it takes to keep the lights on and electricity bills as low as possible in America,” Bridgeford said.

Thom Cmar, an attorney for environmental advocacy group Earthjustice, said the proposed rule would allow power plants to avoid cleaning up contamination.

“This plan would eliminate safeguards on hundreds of millions of pounds of wastewater with neurotoxins and cancer-causing contaminants,” Cmar said. “It would allow coal power plants to avoid cleaning up contamination that threatens our drinking water sources.”

The Associated Press contributed to this report.