Fed appeals court denies a request to block EPA power plant rule as challenges wind through courts

A federal appeals court has denied a request to block the Environmental Protection Agency’s power plant rule while legal challenges wind through the courts. 

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit on Friday rejected requests from industry groups and some Republican-led states to block the rule. 

West Virginia is leading a 25-state coalition that is suing the EPA over the rules, as are utilities and industry groups. 

Under the EPA’s rule issued in April, coal-fired and new gas-fired power plants operating after 2039 will have to install carbon capture technologies running at 90% efficiency.

Compliance standards come into effect beginning in 2032. Analyses show that the rule will likely result in coal plants being retired, as the investments won't be economically feasible, and it will discourage investment in natural gas plants. This will potentially lead to more blackouts and increased energy costs. 

Edison Electric Institute, which is among the industry groups suing the EPA over the rules, said in a statement in May that the carbon capture technologies are emerging, and the EPA timeliness “do not align with the current reality.”

In its ruling, the federal appeals court Friday stated, according to Utility Dive, that compliance won’t begin until 2032 when the cases will be resolved. The court also said the case doesn’t involve the major questions doctrine, a 2022 Supreme Court ruling that blocks federal agencies from issuing regulations with major national significance unless supported by clear congressional authorization.

The National Rural Electric Cooperative and the National Mining Association plan to ask the U.S. Supreme Court to review the appeals court’s decision, Utility Dive reported.