US EPA rejects Colorado haze plan to retire coal plants early

WASHINGTON, Jan 9 (Reuters) - The U.S. Environmental Protection Agency on Friday rejected Colorado's plan to comply with regional haze regulations by shutting its coal plants, saying the state needs the plants to remain running to maintain reliable power.

The agency said Colorado's state implementation plan to reduce sulfur dioxide and nitrogen oxide pollution that causes haze in national parks and wilderness areas violates the Clean Air Act because the state did not get consent from one of the coal plants targeted for early retirement.

WHY IT'S IMPORTANT

The move is the latest effort by the Trump administration to extend the life of aging coal-fired power plants to continue to provide baseload power to meet the growing demand for electricity from the buildout of data centers to power artificial intelligence.

KEY QUOTE

"Reliable baseload energy sources are essential to Powering the Great American Comeback and ensuring families have cost-effective energy," EPA Administrator Lee Zeldin said in a statement.

CONTEXT

The administration last year issued five emergency orders to keep retiring coal plants running, most recently on December 30 when Energy Secretary Chris Wright issued an order to keep a coal plant in Craig, Colorado, operating even though it was set to retire at the end of 2025.

BACKGROUND

Colorado had ordered three older coal plants that were set to retire in 2030 to shut down two years earlier to comply with its regional haze plan. The EPA said it would help Colorado rewrite its plan, or else impose one on the state.

Colorado also has a state goal to reduce greenhouse gas emissions to net-zero by 2050.