Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 105

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 3
Chunk 105
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 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 

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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, to repeal (1) the Phase 2 standard requiring carbon capture and sequestration for new combustion turbines because it is not an adequately demonstrated technology and (2) the standards for existing coal and gas units.  Thus, under the proposed alternative proposal, the only standards that would remain are the Phase 1 standards for new gas combustion turbines.  Comments on this proposed repeal are due August 2025, and the EPA is expected to finalize the rule by the end of 2025.  Entergy continues to monitor the status of the EPA’s efforts to repeal the May 2024 rule.

Entergy continues to support national legislation that would most efficiently reduce economy-wide greenhouse