The U.S. Environmental Protection Agency (EPA) said it will take control of carbon-emission rules in Texas after Governor Rick Perry rejected new federal emissions regulations, according to a report by Businessweek/Bloomberg.

New carbon rules under the Clean Air Act are set to take effect on Jan. 2, and Texas is the only state that has refused to implement the new rules. Businessweek/Bloomberg reports that Perry has called the rules overreaching by the federal government and said they will cripple his state”s economy. By EPA estimates, Texas, which is responsible for about 11 percent of U.S. emissions, is the country”s largest emitter of greenhouse gases.

The EPA’s rules are set to start 13 months after the agency declared carbon-dioxide emissions a danger to public health and welfare, notes Businessweek/Bloomberg.

EPA Assistant Administrator Gina McCarthy said the the agency isn’t taking over Texas’s permitting program. She said its handling of carbon regulations was meant to supplement the existing permit process.

“All we are trying to do is ensure that Texas businesses that are applying for a Clean Air Act permit can get one and have somebody to apply to,” she told reporters on a conference call, notes Businessweek/Bloomberg.

To read the full Businessweek/Bloomberg report on this story, click here.