On Wednesday, the United States Supreme Court declined to block a significant new government rule to limit carbon pollution from coal and gas-fired power plants. This decision was made in response to demands from many states and industry organisations to delay the EPA Power Plant Emissions Regulation aimed at reducing greenhouse gas emissions. West Virginia, Indiana, and 25 other states, many of which are governed by Republican administrations, have accompanied power corporations and industry associations in requesting that the law be suspended while lower court action continues. The rule was enacted on July 8 and is essential to President Joe Biden’s overall effort to combat climate change.

EPA’s New Emissions Rule

The EPA Power Plant Emissions Regulation, which mandates existing coal plants and new gas-fired plants to limit emissions, aims to capture and store CO2. This regulation, issued under the Clean Air Act, a landmark anti-pollution statute, is part of a comprehensive effort to minimize emissions from one of the most significant sources of domestic greenhouse gases: fossil fuel-fired power plants. These plants are responsible for 25% of total US greenhouse gas emissions, and the EPA has stated that addressing climate change must include the electricity industry. The rule requires existing coal and new gas plants to decrease emissions by 90% by 2032 using carbon capture and storage devices. These systems capture CO₂ from the exhaust and store it underground. Although the EPA believes the technology is proven and practical, opponents of the regulation claim that it has yet to be shown at the necessary scale.

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Legal and Industrial Challenges

The Supreme Court’s decision comes two years after its 2022 decision limited the EPA’s power to enforce broad restrictions to transition the energy sector from coal to cleaner sources. This decision was founded on the “major questions” theory, which requires specific congressional authorisation for actions with significant societal consequences. Opponents of the new EPA rule, including West Virginia, contend that it exceeds the agency’s power and is a veiled attempt to shut down coal plants. According to the state’s legal brief, the rule is a “backdoor avenue” for the phaseout of coal electricity.

Multiple lawsuits have been filed by states and industry organisations, alleging that the EPA’s regulation raises serious legal concerns and goes beyond the agency’s power. However, on July 19, the United States Court of Appeals for the District of Columbia Circuit, now hearing the case, denied motions to stay the regulation. The court stated that the EPA’s activities in setting emission limits are “well within” its statutory power and do not create a significant legal issue. As litigation proceeds, the EPA’s regulation remains in effect, indicating a dramatic shift in US climate policy and the ongoing fight over environmental regulations.

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