The Colstrip Power Plant in Montana is now one of the early applicants to the new EPA exemption application process which we have previously discussed here. Specifically, the Colstrip plant has requested a two-year exemption from EPA standards regarding air pollution.
Previously, in April 2024, this power plant was subject to stricter standards under updates to the Mercury and Air Toxics Standards (MATS) for power plants which was targeted at reducing airborne emissions of heavy metals including lead, arsenic, and mercury and had a compliance deadline of 2028.
The owners of the plant criticized this rule and claimed that it would cost hundreds of millions of dollars in upgrades to bring the over 40-year-old plant into compliance with the stricter standards. Although this estimate was challenged by the previous administration that pointed to existing technology that other coal power plants had successfully used. The State of Montana and other co-plaintiffs were also unsuccessful in their petitions to the United States Supreme Court challenging these rules.
Those stricter MATS rules, though, have now been identified as part of the new EPA roll-backs on regulation, which we have previously detailed here. The Colstrip Power Plant according to previous EPA reports, is the only coal-powered plant in the United States without any modern particulate controls to reduce airborne pollutants and toxins.
As part of executive orders signed on April 8, 2024, it was announced that over 47 coal power plants operating 66 coal power plants would be receiving relief from unspecified regulations. It has not yet been confirmed that the Colstrip Montana Power Plant is one of these 47 coal power plants, but, given the current administration’s stated goal of re-igniting the coal power industry, it is likely that some sort of regulatory relief will be granted to this plant.
In terms of the impact on the coal industry itself, it remains to be seen if granting these regulatory waivers for coal power plants will provide a boost to the coal industry. Coal power is typically used presently to generate electricity, but only accounts for a small percentage of electricity generation overall. For example, in 2023, according to the statistics provided by the U.S. Energy Information Administration (EIA) coal power only accounted for 16 percent of overall electricity generated in the United States, with natural gas leading at 43 percent overall.
Furthermore, according to the latest forecasts by the EIA, renewable energy will supply most of the growth in electricity generation in the United States, hydropower usage for example is expected to increase by 7 percent this year. In addition, according to the last annual forecast provided by EIA in 2023, the increasingly lower costs associated with renewable energy will lead to further reliance on renewable energy sources in the future. Nevertheless, the future energy landscape remains uncertain, as the growth of renewable energy faces challenges from the new regulatory push towards coal power.
(The latest news, projections, and statistics regarding American energy can be found at the EIA here.)