What's happening at a single coal-burning power plant serving Colorado Springs reveals how federal and state authorities are clashing over energy policy, with implications for Wyoming coal producers.
The Ray D. Nixon Power Plant has been burning Wyoming Powder River Basin coal since 2003 and was targeted for closure by 2030 under Colorado's plan to reduce regional haze pollution. But the EPA under the Trump administration withdrew federal support for that shutdown timeline, possibly extending the life of the plant.
The decision affects Wyoming's coal industry, which supplies 40% of the coal burned nationwide, as federal and state officials battle over fossil fuel regulations and plant shutdowns.
"This is right down the fairway for President Trump and administrators," said Cyrus Western, EPA Region 8 administrator and a former Wyoming legislator from Sheridan. "They have really emphasized the necessity for powering the great American comeback and energy dominance. Part of that is highly dispatchable, highly reliable and affordable power, of which coal is one of the best sources of that power."
Western, who knows Wyoming's coal interests well from his legislative days and service on the Minerals, Business and Economic Development Committee, explained that the EPA essentially told Colorado it can't use federal authority to shut down 13 coal-fired generating units across the state.
"That goes directly against the prerogative of the administrator and President Trump. And so we're pushing back and saying that you're not going to do this on our watch, and certainly not using our authority,” said Western, adding that this represents "a big step in pushing back on the war on coal" that he characterized as targeting every aspect of the industry.
Breathing Room?
The decision could give Colorado Springs Utilities more runway as it faces reliability concerns about the 2030 closure deadline.
"What that really does is allow us some flexibility to begin continuing our talks with the state of Colorado," said Danielle Nieves, senior public affairs specialist for Colorado Springs Utilities.
The municipally-owned utility still plans to retire the coal portion of the Nixon plant by the end of 2029, but "our concerns are that that date does pose some very serious reliability challenges for us."
The Nixon plant continues burning Powder River Basin coal under contract until closure, a relationship that's been steady since 2003.
The regulatory squaring off between the state of Colorado and the EPA centers on something called the Regional Haze Rule, part of the federal Clean Air Act that requires states and federal agencies to work together to improve air quality and visibility in national parks and wilderness areas.
Colorado counts planned coal plant retirements as part of its strategy to reduce emissions causing haze. The state describes regional haze as pollution that can travel hundreds of miles even when the original pollution source is far away.
The health impacts, according to the Colorado Department of Public Health and Environment, include respiratory problems and premature death from breathing small particles, while some pollutants contribute to acid rain.
Colorado Responds
Colorado officials signaled they plan to proceed with the planned closures.
"We're not impacted by the EPA's proposed partial disapproval of Colorado's ambitious and protective Regional Haze Plan," said Michael Ogletree, senior director of state air quality programs at the Colorado Department of Public Health and Environment, in a prepared statement. "Colorado remains committed to clean air, climate progress, and protecting visibility in places like Rocky Mountain National Park, one of our nation's most iconic and beloved landscapes."
The EPA found that closing the Nixon plant wasn't necessary for Colorado to meet its haze reduction goals and worried that forced retirement could create reliability problems for Colorado Springs. But the utility still has to deal with state legislation passed in 2019 requiring utilities to cut greenhouse gas emissions 50% by 2030.
Environmental groups see the EPA action as the opening shot in a broader assault on Colorado's clean energy transition.
"This is a major slap in the face to the state's ability to protect clean air on its terms,” said Jeremy Nichols withthe Center for Biological Diversity.
