WASHINGTON — On Wednesday, the Supreme Court decided to maintain a federal rule designed to curb emissions from coal-fired power plants amid ongoing legal challenges.
This regulation faced opposition from states managed by Republican leadership and industry groups, who argued that the Environmental Protection Agency (EPA) had overreached its authority and imposed standards that are not practically achievable.
The existing rule mandates that numerous coal plants must capture 90% of their carbon emissions or cease operations within an eight-year period, although the deadlines for compliance will not take effect for several years.
This regulation is significant because the power sector is the second-largest source of greenhouse gas emissions in the United States, and forms an essential part of President Joe Biden’s commitment to eliminate carbon emissions from the electricity sector by 2035 and from the entire economy by 2050.
Earlier this month, the high court also opted to permit two additional regulations to remain in effect for the time being. However, several other environmental policies have faced challenges in the Supreme Court in recent years.
Notably, in a landmark ruling from 2022, the justices limited the EPA’s powers regarding the regulation of carbon dioxide emissions from power plants. In June, they suspended the EPA’s “good neighbor” rule aimed at reducing air pollution.
Additionally, a June decision that overturned the long-standing Chevron deference could further complicate the establishment and enforcement of environmental regulations, as well as affect other federal agency functions. This ruling was referenced by the U.S. Chamber of Commerce in its brief supporting the challenges against the coal plant regulation.
An appellate court had previously allowed the new rule from the EPA to be implemented.
A three-judge panel — composed of two judges nominated by former President Barack Obama and one by former President Donald Trump — concluded that the states involved would not face immediate harm, as the compliance timelines do not start until 2030 or 2032.
Environmental advocates assert that the standards set forth by the rule are not only reasonable but also cost-effective and within the EPA’s legal framework to regulate harmful pollutants and greenhouse gases.
Meanwhile, the National Mining Association has expressed concerns, stating that the regulations may jeopardize the reliability of the national power grid by pushing for the early closure of power plants amid increasing electricity demand.
The EPA estimates that the rule could generate up to $370 billion in benefits related to climate and health and could prevent nearly 1.4 billion metric tons of carbon emissions by 2047. This impact is roughly equivalent to taking 328 million gasoline-powered cars off the roads each year.