EPA’s Good Neighbor Rule

In March 2023, EPA finalized it’s “Good Neighbor” Rule, under which power plant owners in 22 states will face tighter nitrogen oxides emissions requirements. Power plants without NOx emissions reduction equipment will have to install such equipment and power plants with the pollution control equipment will be required to run it all the time during the ozone season to protect downwind areas.

The rule includes flexibility measures including a NOx trading program.

In June 2024, the Supreme Court halted implementation of this rule, pending judicial review.