US EPA Blocks Colorado’s Coal Phase-Out Plan, Citing Grid Reliability and Rising Power Demand

The US Environmental Protection Agency has rejected Colorado’s plan to comply with federal regional haze rules by accelerating the retirement of coal-fired power plants, arguing the facilities are still needed to maintain reliable electricity supply. The decision halts the state’s proposal to shut three aging coal plants two years earlier than planned to curb sulfur dioxide and nitrogen oxide emissions affecting national parks and wilderness areas. In a statement, the EPA said Colorado’s implementation plan violated the Clean Air Act because the state failed to secure consent from one of the targeted coal plant operators. The agency said it would work with Colorado to revise the plan or impose a federal alternative. The move reflects a broader push by the Trump administration to extend the life of coal plants as electricity demand rises, driven in part by data centers powering artificial intelligence. EPA Administrator Lee Zeldin said “reliable baseload energy sources” remain essential to keeping energy affordable and supporting economic growth, even as Colorado pursues its long-term goal of reaching net-zero emissions by 2050.