Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 124

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 124
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 filed by Entergy Louisiana challenging the disapproval of Louisiana’s SIP.  Judicial stays of the SIP disapprovals were granted in all four states in which the Utility operating companies operate.  In March 2025 the United States Fifth Circuit Court of Appeals concluded that the EPA properly disapproved Texas’s and Louisiana’s SIPs but found that the EPA’s disapproval was unreasonable for Mississippi’s SIP.  The United States Eighth Circuit Court of Appeals has not issued a merits decision yet in the Arkansas SIP disapproval litigation.  The FIP is also subject to numerous legal challenges in various federal circuit courts of appeals, and in June 2024 the United States Supreme Court issued an order, in challenges filed in the D.C. Circuit, staying enforcement of the FIP pending the D.C. Circuit’s review of the rule.  Following the United States Supreme Court stay, the EPA also stayed the FIP.  In March 2025 the EPA asked the D.C. Circuit for a voluntary remand to reconsider the FIP.  In its declaration, the EPA states that it plans to reconsider, among other things, what states are subject to the FIP.  In April 2025 the D.C. Circuit held the cases in abeyance pending further order of the court.  The EPA anticipates a new rule by fall 2026.  Entergy is monitoring this litigation, any subsequent rulemaking, and assessing its compliance options in the event that the FIP becomes effective.

Greenhouse Gas Emissions

As discussed in the Form 10-K, in May 2024 the EPA finalized rules regulating greenhouse gas emissions from new combustion turbine electric generating units (EGUs) under Section 111(b) of the Clean Air Act and from certain existing coal- and gas-fired EGUs under Section 111(d) of the Clean Air Act.  For new gas combustion turbine EGUs, the final rule includes three subcategories of emission standards based on the unit’s annual capacity factor.  Base load (>40% annual capacity factor) EGUs are subject to a Phase 1 output-based CO2 efficiency standard followed by a more stringent Phase 2 CO2 standard which will apply beginning January 1, 2032.  The Phase 2 standard was established based on an EPA determination that carbon capture and sequestration represents the best system of emission reduction for new base load combustion turbine EGUs.

In June 2025 the EPA released a rule proposing to repeal the May 2024 rule in its entirety, or alternatively