EPA repeals power plant GHG rules, clearing path for new gas-fired generation
The US Environmental Protection Agency (EPA) Sept. 14 finalized the repeal of Biden administration greenhouse-gas standards for fossil-fuel-fired power plants, removing a regulatory barrier to new gas-fired generation at a time when electricity demand is rising from data centers, manufacturing, and other energy-intensive industries.
EPA estimates the action will produce more than $300 billion in cost savings over 20 years.
The announcement, made at the G20 Energy Ministers’ Meeting in Houston, also included a proposal to eliminate remaining federal greenhouse-gas requirements for fossil-fueled power plants. The proposal could make it more difficult for future administrations to impose similar climate regulations on the power sector under the Clean Air Act.
The Edison Electric Institute has previously said that “critically needed new natural gas-fired generation” is crucial to providing baseload and peaking power, supporting grid reliability and balancing renewable resources, and that a stable greenhouse-gas regulatory framework is important to new generation investment.
EPA Administrator Lee Zeldin said the rollback would enable development of new generating infrastructure.
Gas-fired development expands
The change comes as developers are planning a significant expansion of US gas-fired generation to serve growing electricity demand. Global Energy Monitor reported in August that US gas-fired power capacity in development had risen 50% in first-half 2026 to 378 Gw. Of that, 189 Gw was associated with projects intended to serve data-center demand.
While not all projects in development will be built, the scope points to significant potential additional demand for natural gas. The repeal could improve the prospects for projects that otherwise faced higher costs or operating restrictions under the Biden-era rules.
US electric power-sector natural gas consumption increased 31% to an average 35.8 bcfd in 2025 from 27.3 bcfd in 2016, according to the Energy Information Administration (EIA). EIA now forecasts US electricity use will reach record levels in both 2026 and 2027, driven in part by data-center development and increased manufacturing activity. Overall US gas consumption also is forecast to reach record levels in both years, rising to 92.2 bcfd in 2026 and 94.3 bcfd in 2027 from 91.9 bcfd in 2025.
More gas-fired generation would also create additional demand for gas pipelines and storage, particularly in regions where new power plants and data centers are developing faster than existing pipeline capacity.
Environmental and public-health groups, including the Environmental Defense Fund and Earthjustice, have vowed to challenge the rollback in court.
About the Author
Cathy Landry
Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.