Power plants are covered by federal regulations related to air quality, water quality and solid waste. In the area of air quality in 2011 EPA issued a rule that places federal limits on hazardous air pollutants from coal-fired power plants, known as the Mercury and Air Toxics Standards (MATS). Also in 2011 EPA published the Cross-State Air Pollution Rule (CSAPR) which limits SO2 and NOx emissions from power plants in 28 mostly Eastern states and Texas where pollution is generated and crosses state lines. According to the EPA CSAPR was designed to reduce SO2 and NOx emissions from coal-fired plants by by 73 % and 54 %, respectively, compared to 2005 levels. CSAPR also provided for a cap-and-trade system for buying, trading and selling pollution emissions permits.
Late in 2011 a circuit court stayed the rule pending litigation from states and utilities. The U.S. Court of Appeals for the D.C. Circuit has now vacated the CSAPR regulations. In the interim the Clean Air Interstate Rule (CAIR) will be in effect.
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