FE · 10-Q · 2026Q1 · Full report

Clean Air Act

FIRSTENERGY CORP · 2026-04-28 · Importance 32 · Surprise 24

FirstEnergy complies with SO2 and NOx reduction requirements under the Clean Air Act through lower‑sulfur fuel, combustion controls and emissions allowances, and has participated in CSAPR compliance and allowance markets. The EPA’s Good Neighbor Plan and subsequent reconsideration/remand (and related litigation) could require additional emissions reductions and capital expenditures for affected plants; MP purchased NOx allowances for 2021 ozone season and FirstEnergy continues to monitor EPA rulemaking. The company notes the EPA’s reconsideration timeline (with potential new rulemaking by Q4 2026) and that further changes to reliability standards or emissions rules could materially affect operations and require upgraded controls or altered dispatch.

Key facts

• The EPA issued the final Good Neighbor Plan on June 5, 2023 with an effective date 60 days thereafter and certain states, including West Virginia, appealed disapprovals of their SIPs with some obtaining stays precluding the Good Neighbor Plan from taking effect in those states; the Supreme Court granted a stay of the Good Neighbor Plan on June 27, 2024 pending disposition of petitions in the D.C. Circuit and the D.C. Circuit later granted the EPA’s motion for remand with cancellation of oral argument in March 2025.
• On April 6, 2022 the EPA published proposed rules seeking to impose further significant reductions in EGU NOx emissions in 25 upwind states, including West Virginia.
• On March 12, 2025 the EPA announced its intent to reevaluate or reconsider numerous environmental regulations that apply to FirstEnergy.
• MP purchased NOx emissions allowances in December 2021 to comply with 2021 ozone season requirements.

Impact estimates