Future of Waco Coal Plants Uncertain Under New EPA Rule

Three coal-fired power plants in the Waco area may face closure or significant operational changes due to a new EPA rule mandating nearly full carbon emission capture by 2032 for plants operating beyond 2039. The rule, introduced in April, aims to transition energy reliance towards cleaner sources. While the rule could expedite the global trend of coal divestment, its long-term effects remain uncertain as 27 states, including Texas, are challenging it in court. Local plants, like Sandy Creek, NRG’s Limestone, and Luminant’s Oak Grove, which collectively emitted over 25 million tons of carbon dioxide last year, are evaluating the rule’s impact.
The rule outlines different compliance periods based on planned operation timelines, with stringent measures for those intending to operate long-term. New gas-fired plants will also face emission reduction requirements. The EPA estimates significant reductions in overall greenhouse gas emissions through 2047 as a result of these regulations.
Economic impacts are anticipated, particularly in local tax revenues and employment, as the coal industry has already seen declines. Transitioning from coal may involve high costs for implementing carbon capture technologies, though federal subsidies and tax credits are available. Additional EPA rules targeting toxic emissions may further increase operational costs.
Despite these challenges, experts suggest Texas has sufficient time to adapt by increasing investments in renewable energy sources like wind and solar, which already surpass coal in energy contribution within the state’s grid. Studies indicate Texas could feasibly replace coal output with strategically placed renewable projects, supplemented by battery storage and alternative energy forms like geothermal power to ensure reliability.