US National Mining Association senior vice president of regulatory affairs Bruce Waltzman said the priority area for the US Environmental Protection Agency for this year is the completion of two rules regulating carbon dioxide emissions from existing and new power plants.

These two rules are expected to drive greenhouse gas emissions in line with the target pledged by President Barack Obama prior to COP20 (the Conference of Parties designated as the governing body of the United Nations Framework Convention on Climate Change) last December in Lima – to reduce US GHG emissions by 26%-28% by 2025, compared with 2005 levels.

The rule limiting carbon dioxide emissions from existing power plants is anticipated to be finalised in US summer of 2015.

Under that rule, the EPA would require individual states to meet carbon dioxide emission targets starting in 2020 on a state-wide basis.

States could allow their power plants to use a number of measures to meet those goals, including heat rate improvements, energy efficiency, plant retirements, and renewable energy.

The EPA projects that the proposed rule will result in power sector emission reductions of 26%-30% from 2005 levels by 2030.

According to Watzman, it is still uncertain what the exact impact of that rule will be on existing coal-fired power generation – although analysts agree that it is most likely to further reduce coal-based power generation.

Carbon emissions from new power plants will be regulated under the Carbon Pollution Standard for New Power Plants initially tabled by the EPA in 2013.

The rule introduces an emission performance/control technology standard for fossil fuel plants at a level which makes it impossible to build new coal-fired units but still allows unabated gas-fired power plants to go ahead.

The EPA plans to issue final rules for both existing and new power plants in summer 2015.

Coal ash is another issue to watch in 2015, with the US Office of Surface Mining (OSM) expected to issue a proposal on the handling of coal ash at mine sites in April this year.

The EPA has already proposed a rule on the handling of coal ash at the utility level at the end of 2014.

While the EPA’s final rule issued in December concluded that coal ash was not hazardous, Walzman said “there is a possibility that OSM’s rule might be far harsher than the EPA rule”.

“OSM could prohibit the use of coal ash for reclamation purposes,” he said.

“If this happens, mine operators will have to obtain other materials and this will drive up the costs.”