From the San Francisco Chronicle:

The U.S. Environmental Protection Agency said it will take control of carbon-emission rules in Texas after Governor Rick Perry rejected new federal regulations intended to combat climate change.

The EPA will decide directly on greenhouse-gas permits for companies seeking to build or upgrade power plants and oil refineries in Texas, the agency said today in a statement. The EPA's nationwide carbon rules, imposed under the Clean Air Act, take effect Jan. 2.

Texas is the only state that has refused to implement the new rules. President Barack Obama is pressing ahead with the regulations after Congress failed to pass legislation capping carbon emissions. Perry, a Republican, calls the rules overreaching by the federal government that will cripple his state's economy.

EPA-Texas Feud Escalates Over New Carbon Regulations