U.S. Moves to Ease Coal Ash Disposal Rules, Raising Environmental Concerns

The Environmental Protection Agency has proposed rolling back key safeguards governing the disposal of coal ash, a hazardous byproduct of coal-fired power plants, signaling a significant shift in U.S. environmental policy.

Announced under EPA Administrator Lee Zeldin, the proposal would relax requirements for groundwater monitoring near coal ash sites and scale back mandates that currently require cleanup across entire contaminated properties. The revisions would also make it easier for companies to reuse coal ash in other applications.

Coal ash contains toxic heavy metals such as arsenic and lead, which can leach into groundwater if not properly managed. Many coal plants are located near rivers and waterways, heightening the risk of widespread contamination. Existing rules-first introduced during the Barack Obama administration and strengthened in 2024 under Joe Biden-required stricter containment, monitoring, and closure of unsafe storage sites.

The proposed rollback is part of a broader push by the Donald Trump administration to reduce regulatory burdens on the fossil fuel industry and support domestic energy production.

Environmental groups have strongly opposed the move, warning it could increase public health risks by allowing toxic pollutants to contaminate drinking water sources, particularly in communities located near coal plants. Advocates also point to past disasters, including major coal ash spills in Tennessee (2008) and North Carolina (2014), as evidence of the dangers of inadequate regulation.

Meanwhile, industry groups argue that stricter rules have driven up operational costs and accelerated plant closures without delivering proportional environmental benefits.

As the proposal moves through the regulatory process, it is expected to face intense scrutiny, highlighting the ongoing tension between energy policy priorities and environmental protection in the United States.

Easing coal-ash disposal rules creates long-tail environmental liability for utilities - even when federal rules relax, state litigation and community pressure typically fill the gap. Our sustainability-due-diligence teams help utility clients evaluate what these rule changes mean for their long-term liability exposure and disclosure.