19 February 2026
The Trump administration has moved to weaken federal limits on mercury and other hazardous air pollutants from coal-fired power plants, arguing the rollback will help meet rising electricity demand, while public health advocates warn of significant risks to vulnerable communities.
The Environmental Protection Agency announced it will revert to the 2012 Mercury and Air Toxics Standards (MATS), scrapping stricter updates finalized in 2024 under former President Joe Biden. The Biden-era revisions aimed to cut allowable mercury emissions by 70% and reduce toxic metals such as arsenic, nickel, and lead by two-thirds. According to the Environmental Defense Fund, those rules were projected to generate $420 million in health savings through 2037.
The EPA said the 2012 standards already provide “an ample margin of safety” and estimated the rollback would save utilities between $69 million and $78 million annually from 2028 to 2037. Officials argue easing compliance costs is necessary as power demand surges, driven largely by energy-intensive data centers supporting artificial intelligence.
Coal industry groups welcomed the decision, saying stricter standards had accelerated plant closures. President Donald Trump has repeatedly pledged to bolster coal generation, declaring an “energy emergency” and granting exemptions to dozens of plants from certain air rules.
Health and environmental organizations strongly criticized the move. The American Lung Association said the 2024 standards would have delivered hundreds of millions of dollars in additional health benefits and protected pregnant women and children from neurotoxic exposure. The Union of Concerned Scientists also warned that the rollback weakens transparency requirements for plant emissions.
Coal plants currently supply less than 20% of U.S. electricity but remain major sources of hazardous air pollutants, including mercury, benzene, and formaldehyde. Critics argue that relaxing standards could increase long-term healthcare costs and environmental damage, even as utilities continue to phase out aging facilities.
Mercury-limit rollbacks shift long-term public-health-linked liability onto utilities and communities, and they will surface as private litigation, insurance repricing and community pushback well before any regulatory rebalancing. Our sustainability-due-diligence teams help utility clients evaluate what these rollbacks mean for TCFD-aligned disclosure.
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