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Drilling Industry NewsWater

EPA Moves to Revise Wastewater Rules for Power Plants

Its concerned about energy reliability and costs.

By The Driller Staff
An overhead view of a wastewater treatment plant

Image via Pok Rie from Pexels

June 27, 2025

In a move that blends environmental regulation with the high demands of American energy infrastructure, the U.S. Environmental Protection Agency (EPA) announced plans today to revise key pollution rules affecting steam electric power plants. The agency's decision, unveiled by EPA Administrator Lee Zeldin, marks a significant pivot in the balance between environmental oversight and the goal of maintaining a stable and affordable electricity grid.

At the heart of the announcement is the agency’s plan to revise the 2024 Effluent Limitations Guidelines (ELGs) — federal rules that dictate how much industrial wastewater power plants can discharge into the environment.

Steam electric power plants — including coal, natural gas, and nuclear facilities — produce electricity by converting water into steam, which spins turbines. This process often produces wastewater laced with heavy metals, chemicals, and heat. The 2024 ELG rule, finalized last year, imposed “zero-discharge” mandates on some types of wastewater, meaning plants would need to eliminate pollutant releases entirely using advanced treatment systems.

But those systems come at a high cost. According to EPA Administrator Zeldin, those costs could ultimately be passed on to American families and industries, raising electricity prices and potentially straining the power grid during a period of growing demand.

“We know there are serious concerns about the compliance timelines,” Zeldin said. “We must consider more realistic options that may prevent the burdensome costs required by the current regulation from hurting American families.”

Last week's announcement aligns closely with President Donald Trump’s Unleashing American Energy executive order — a central plank of his administration’s second-term agenda. The order calls for expanding domestic energy production, with particular emphasis on fossil fuels, nuclear power, and infrastructure deregulation.

EPA’s planned revisions are part of what the agency is calling a broader strategy to “Power the Great American Comeback,” as it seeks to ease regulatory burdens that may hinder energy output or economic growth.

In March, the agency had already signaled its intent to revisit the 2024 rules. Now, it's moving forward with a formal rulemaking process to extend compliance deadlines and seek new data on how zero-discharge technologies are performing — and whether they’re financially viable at scale.

Environmental advocates have long championed the 2024 ELG rule as a much-needed crackdown on industrial wastewater pollution. Power plant discharges often contain toxic heavy metals such as mercury, arsenic, and selenium — substances that can accumulate in fish and water supplies, harming both ecosystems and human health.

The original rule was designed to be technology-forcing — pushing industries toward cleaner processes using existing treatment innovations. But the EPA’s current leadership argues that the costs may outweigh the benefits, at least under current energy market conditions.

By revising the rule, the agency says it aims to strike a more practical balance: maintaining environmental protections while ensuring energy reliability, particularly during periods of peak demand like summer heatwaves or winter cold snaps.

This summer, the EPA will propose specific revisions, including:

  • Extending compliance deadlines for many zero-discharge requirements;

  • Collecting more data on the cost and effectiveness of wastewater treatment technologies;

  • Exploring additional flexibilities to support energy reliability;

  • Possibly addressing other pollutants, such as unmanaged combustion residual leachate, in a future second rulemaking.

The agency emphasized that it is still in the information-gathering phase and will seek public input throughout the process. Final rules are not expected until sometime in 2026.

Industry groups, particularly coal and utility companies, have welcomed the move. They argue that overly strict rules could force some plants to shut down early or avoid much-needed upgrades, risking grid instability.

Environmental advocates, however, see the move as a troubling rollback of hard-fought protections. They warn that loosening standards could lead to increased water pollution and undermine efforts to transition to cleaner energy sources.

As the U.S. faces skyrocketing electricity demand driven by electric vehicles, data centers, and extreme weather, the pressure is on to ensure the grid remains resilient. But the path forward isn’t simple. It must thread the needle between climate resilience, environmental justice, and economic practicality.

This EPA announcement is the latest chapter in that evolving narrative — a reminder that environmental regulation is not just about pollution control, but about policy choices that ripple through our economy, communities, and ecosystems.


KEYWORDS: wastewater water industry

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