On October 29, 2024, the U.S. Environmental Protection Agency (EPA) issued a final rule implementing an administrative stay of the Good Neighbor Plan’s requirements for all sources covered by the rule, where such a stay had not already been established. This action aligns with the Supreme Court's June 2024 stay order, which temporarily halted enforcement of the Good Neighbor Plan pending judicial review.
The Good Neighbor Plan, originally signed in March 2023, mandates that power plants and other industrial facilities across 23 states reduce nitrogen oxides (NOx) emissions contributing to ozone issues in downwind states. The Supreme Court's stay, however, has shifted the regulatory landscape, prompting the EPA's Third Interim Final Rule to address the legal implications while adjusting compliance timelines and emissions trading protocols.
In our latest report, Paul Tesoriero provides an in-depth analysis of these developments, offering insights into their implications for the emissions trading market and expectations for allowance pricing in 2025.
For further information or to explore market opportunities, please contact our REC Desk at recdesk@evomarkets.com.