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States, Trade Groups Sue EPA Over New Fossil Fuel Rules

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position-sidebar my-4 my-md-0"> <div class="pb-3 mb-3 border-bottom"> <h1 class="h6 fw-bold mt-0 text-uppercase">Follow Us</h1> <ul class="social-media-links border-0 m-0 p-0"> <li> <a href="https://www.facebook.com/POWERmagazine"> <span class="visually-hidden">Facebook</span> <i class="fa-brands fa-facebook-f"></i> </a> </li> <li> <a href="https://twitter.com/POWERmagazine"> <span class="visually-hidden">Twitter</span> <i class="fa-brands fa-x-twitter"></i> </a> </li> <li> <a href="http://www.linkedin.com/groups?gid=4270601&amp;trk=myg_ugrp_ovr"> <span class="visually-hidden">LinkedIn</span> <i class="fa-brands fa-linkedin"></i> </a> </li> </ul> </div> <div class="btn-wrapper"> <p class="we-are-first fw-normal fs-6"><i>POWER</i> is at the forefront of the global power market, providing in-depth news and insight on the end-to-end electricity system and the ongoing energy transition. We strive to be the “go-to” resource for power professionals, offering a wealth of information on innovative business practices, sound safety measures, useful productivity enhancements, and much more.</p> <a class="btn" href="https://www.powermag.com/power-membership/"> Start your subscription </a> </div> </div> </aside> <!-- /Left column --> <!-- Center column --> <div class="col-lg-6 order-1 order-lg-2 pb-4"> <article> <header class="article-header"> <a class="aside-line" href="https://www.powermag.com/category/legal-regulatory/">Legal &amp; Regulatory</a> <h1 class="article-title">States, Trade Groups Sue EPA Over New Fossil Fuel Rules</h1> </header> <div class="article-main"> <p class="p1"><span class="s1">More than two dozen states and a handful of trade groups filed separate lawsuits in the U.S. Court of Appeals for the D.C. Circuit, challenging parts of the Environmental Protection Agency&rsquo;s (EPA&rsquo;s) suite of new final environmental regulations targeting fossil-fired power plants. </span></p> <p class="p1"><span class="s1">The challenges respond to the publication in the <a href="https://www.federalregister.gov/agencies/environmental-protection-agency"><i>Federal Register </i></a></span><span class="s1">on May 9 of four major federal environmental rules, which the EPA rolled out <a href="https://www.powermag.com/epa-unleashes-four-pronged-assault-on-fossil-fuel-power-pollution/">simultaneously</a> on April 25. The rules cover </span><span class="s2">greenhouse gases (GHG), air toxics, wastewater discharges, and coal combustion residuals from fossil fuel-fired power plants.&nbsp;</span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bcfc1;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bcfc1 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bcfc2').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bcfc2"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bcfc2'); });</script></div></div><p class="p5"><span class="s1">The <a href="https://www.powermag.com/epa-unleashes-four-pronged-assault-on-fossil-fuel-power-pollution/">EPA&rsquo;s rules</a> include final Carbon Pollution Standards, which broadly seeks to curb GHG emissions from the nation&rsquo;s fleet of coal plants and&mdash;for the first time&mdash;set down GHG emissions limits from new natural gas-fired power plants. The agency also issued an updated and strengthened Mercury and Air Toxics Standards (MATS), which targets coal power emissions of hazardous air pollutants. Separately, the EPA finalized the Effluent Limitations Guidelines and Standards (ELGs), which aim to drastically reduce pollutants discharged by steam power plants through wastewater. Finally, the suite of regulations includes a final rule governing legacy coal combustion residuals.&nbsp;</span></p> <h2>D.C. Circuit Consolidates Suits from 25 States, Trade Groups</h2> <p class="p6"><span class="s4">On Thursday, </span><span class="s5">a coalition of 23 states led by North Dakota and West Virginia <a href="https://attorneygeneral.nd.gov/wp-content/uploads/2024/05/2053456-Petition-for-Review-89-Fed.-Reg.-38508-D.C.-Cir.-Case-No.-24-1119.pdf"><span class="s1">filed a petition</span></a> for review of the EPA&rsquo;s final MATS rules. Along with North Dakota and West Virginia, the coalition includes </span><span class="s1">Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming. </span></p> <p class="p7"><span class="s6">The D.C. Circuit on Thursday afternoon consolidated that case&mdash;<i>State of West Virginia, et. al. v. EPA </i>(</span><span class="s1">No. 24-1120)&mdash;with a separate petition for review filed jointly earlier in the day by the states of Ohio and Kansas, which challenged the EPA&rsquo;s GHG rule. </span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd2cf;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd2cf = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bd2d0').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bd2d0"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bd2d0'); });</script></div></div><p class="p7">In addition, the court consolidated two industry petitions for review of the GHG rule into the case <em>State of West Virginia, et al. v. EPA</em>: one filed by the National Rural Electric Cooperative Association (NRECA) and another jointly filed by the National Mining Association (NMA) and America&rsquo;s Power.</p> <h2>Overwhelmingly at Issue: Overreach</h2> <p class="p8"><span class="s8">NRECA, a national trade association representing nearly 900 local electric cooperatives, in a statement sent to <i>POWER </i>said its petition responds to concerns about the EPA&rsquo;s overreach of authority and the GHG rule&rsquo;s impact on reliability and affordability. </span></p> <p class="p8"><span class="s1">&ldquo;EPA&rsquo;s power plant rule is unlawful, unreasonable, and unachievable. It exceeds EPA&rsquo;s authority and poses an immediate threat to the American electric grid,&rdquo; said NRECA CEO Jim Matheson. &ldquo;Under the rule, EPA illegally attempts to transform the US energy economy by forcing a shift in electricity generation to the agency&rsquo;s favored sources.&rdquo; Matheson added that the rule &ldquo;recklessly undermines&rdquo; power reliability because it would force the premature closure of power plants. That will be detrimental &ldquo;especially as America relies on electricity to power the economy,&rdquo; he said. </span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd58f;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd58f = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bd590').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bd590"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bd590'); });</script></div></div><p class="p8"><span class="s1">Supportive legal actions already began to trickle on Thursday afternoon. South Carolina&rsquo;s electric cooperatives, The Electric Cooperatives of South Carolina and Central Electric Power Cooperative, told <i>POWER</i> they filed declarations of support for NRECA and the states&rsquo; lawsuits. &ldquo;While we share the EPA&rsquo;s goal of protecting the environment, we can&rsquo;t support a plan that jeopardizes the reliability of South Carolina&rsquo;s electric grid while driving up power bills,&rdquo; said Mike Couick, CEO of the Electric Cooperatives of South Carolina. &ldquo;We need a realistic path forward.&rdquo;</span></p> <p class="p9"><span class="s9">NMA, a national trade group that </span><span class="s10"> serves as the voice of the U.S. mining industry, and America&rsquo;s Power, a trade group that advocates on behalf of the U.S. coal fleet and its supply chain, said in their <a href="https://ecf.cadc.uscourts.gov/n/beam/servlet/TransportRoom?servlet=ShowDocMulti&amp;incPdfHeader=Y&amp;pacer=t&amp;CSRF=csrf_294070587528115228&amp;incPdfHeaderDisp=Y&amp;caseId=40875&amp;dktType=dktPublic&amp;outputType=doc&amp;d=2053706&amp;outputForm=view&amp;incPdfFooter=y&amp;dls=8621285%252C8621307"><span class="s1">petition</span></a> said they plan to show the final GHG rule is &ldquo;</span><span class="s1">in excess of the agency&rsquo;s statutory authority and is otherwise arbitrary, capricious, an abuse of discretion, and not in accordance with law.&rdquo; The groups urged the court to &ldquo;hold unlawful and set aside the final rule, and to order such other relief as might be appropriate.&rdquo;</span></p> <p class="p11"><span class="s11">In a statement, NMA said the new rule was &ldquo;modeled after the <a href="https://www.powermag.com/the-epas-clean-power-rule-in-three-infographics/"><span class="s12">Clean Power Plan</span></a>,&rdquo; a <a href="http://powermag.com"><span class="s12">2015 rule promulgated</span></a> by the Obama administration but ultimately </span><span class="s13">stayed and declared unlawful by the <a href="https://www.powermag.com/supreme-court-limits-epa-authority-to-regulate-power-plant-emissions/"><span class="s12">U.S. Supreme Court</span></a> in June 2022. </span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd86e;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bd86e = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bd86f').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bd86f"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bd86f'); });</script></div></div><p class="p11"><span class="s14">&ldquo;By ignoring the differences in generation mix across the country, variations in weather conditions from state to state, and the vast interstate transmission infrastructure that needs to be sited, permitted and built to make renewable generation broadly viable, the EPA has chosen to ignore reality in favor of election-year campaign promises and undemonstrated technologies,&rdquo; said </span><span class="s13">Rich Nolan, NMA president and CEO.</span></p> <p class="p13"><span class="s9">The 25 states filing petitions for review on May 9 all have Republican administrations, with the exception of Kansas, which is governed by </span><span class="s1">Democrat, Laura Kelly&#8203;. Reactions so far have been strongly worded and reflective of broader political and ideological divides regarding energy policy in the U.S.</span></p> <p class="p15"><span class="s15">North Dakota Attorney General Wrigley claimed that with the final MATS rule, the Biden administration &ldquo;</span><span class="s1">pushes a green political agenda with no purpose other than to attack fossil fuels.&rdquo; He added: &ldquo;Make no mistake, this rule intentionally sets impossible standards to destroy the coal industry. Yet again, the Biden Administration has ignored its statutory limitations and forced the entire country into an alignment with an activist agenda,&rdquo; he said. </span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bdaf5;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bdaf5 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bdaf6').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bdaf6"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bdaf6'); });</script></div></div><p class="p17"><span class="s1">Wrigley, in addition, asserted that federal agencies must operate within congressional constraints and cannot arbitrarily destroy industries. &ldquo;North Dakota will keep defending our energy producers and strive for America&rsquo;s energy independence,&rdquo; he said. </span></p> <p class="p18"><span class="s14">West Virginia Attorney General Patrick Morrisey echoed that sentiment. &ldquo;This rule strips the states of important discretion while using technologies that don&rsquo;t work in the real world&mdash;this administration packaged this rule with several other rules aimed at destroying traditional energy providers,&rdquo; he said. &ldquo;We are confident we will once again prevail in court against this rogue agency.&rdquo;</span></p> <h2>PJM: Despite EPA&rsquo;s Flexibility Measures, Reliability Still a Concern</h2> <p>The EPA in April said it issued the four final rules simultaneously to provide a &ldquo;predictable regulatory outlook for power companies, including opportunities to reduce compliance complexity and clear signals to create market and price stability.&rdquo;</p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3bdda9;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3bdda9 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3bddaa').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3bddaa"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3bddaa'); });</script></div></div><p>The agency told <em>POWER</em> that after it issued its proposal in May 2023, it &ldquo;<span class="s1">engaged extensively with balancing authorities, power companies, reliability experts, [Federal Energy Regulatory Commission] and the [Department of Energy] as well as regulatory authorities responsible for reliability to understand their concerns and address them in the final rule. We expect this engagement will continue during implementation,&rdquo; it said.&nbsp;</span></p> <p><em>As POWER</em> has reported, the <span class="s6"><a href="https://www.epa.gov/system/files/documents/2024-04/2024-mats-rtr-final-ria-final.pdf"><span class="s11">EPA&rsquo;s RIA</span></a> for the MATS rule suggests about 5 GW of operational generating unit capacity will need to comply with the rule in 2028. Another 11.6 GW would either need to improve existing particulate matter (PM) controls or install new PM controls to comply with the rule. The </span><span class="s8">EPA projected, however, that no coal-fired capacity would retire under the final MATS rule.</span></p> <p>The agency&rsquo;s illustrative analysis for its GHG rule suggests the final rule could result in 14 GW of coal retirements in 2040, along with 6 GW of coal-to-gas conversion and 3 GW of derated capacity. &ldquo;This results in 19 GW of coal-fired capacity remaining in place,&rdquo; the EPA told <a href="https://www.powermag.com/epa-unleashes-four-pronged-assault-on-fossil-fuel-power-pollution/"><em>POWER</em> in April</a>. By comparison, without the rule, the EPA&rsquo;s baseline economic projections suggest that 42 GW of operating coal capacity could be operational by 2040, a figure that also factors in additional projected retirements, capacity derates, and conversions to gas.</p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3be032;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3be032 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3be033').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3be033"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3be033'); });</script></div></div><p class="p1"><span class="s1">In addition, the EPA noted that it examined the &ldquo;cumulative impact of the final 111, ELG, MATS, and recently finalized vehicle rules to assess resource adequacy. &ldquo;</span><span class="s2">This cumulative analysis aligns with recent peer-reviewed research and reports from [the Department of Energy] and [the </span><span class="s3">National Renewable Energy Laboratory]</span><span class="s2"> in showing that the sector can meet growing demand for electricity and provide reliable, affordable electricity at the same time as it reduces pollution to protect health and the planet,&rdquo; it said. </span></p> <p class="p1"><span class="s2">&ldquo;Even in the context of higher demand and multiple power sector rules, this sensitivity analysis demonstrates compliance pathways that respect NERC resource adequacy considerations and constraints.&rdquo; The agency also suggested that it is worthwhile &ldquo;to note that the cumulative effect of these rules in terms of reduced coal steam electric generating capacity is less than the sum of each of these rules individually.&rdquo;</span></p> <p class="p20"><span class="s1">Still, at least one grid operator has so far issued a public statement on the GHG rule&rsquo;s potential impact on grid reliability and resource adequacy.</span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3be2d3;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3be2d3 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3be2d4').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3be2d4"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3be2d4'); });</script></div></div><p class="p18"><span class="s17">PJM Interconnection, the nation&rsquo;s largest </span><span class="s14">regional transmission organization (RTO), <a href="https://pjm.com/-/media/about-pjm/newsroom/2024-releases/20240508-pjm-statement-on-the-newly-issued-epa-greenhouse-gas-and-related-regulations.ashx"><span class="s18">in a statement on Wednesday</span></a> acknowledged that the EPA&rsquo;s new rule includes important measures to enhance flexibility measures. However, the grid operator stressed it remained concerned about the final rule&rsquo;s impact on reliability. </span></p> <p class="p21"><span class="s19">Among its continuing concerns are that the rule&rsquo;s reliance on </span><span class="s1">carbon capture and sequestration (CCS) technology poses feasibility issues owing to geographical and infrastructural challenges. PJM also suggested that stringent coal and natural gas requirements could lead to their premature retirement amidst rising electricity demands&mdash;particularly from data center load, electric vehicles, and increased electric heating load. </span></p> <p class="p9"><span class="s20">Finally, PJM noted the final rule is premised on the availability of increased access to natural gas infrastructure to support a compliance option for coal power. But, the present gas pipeline system is &ldquo;l</span><span class="s1">argely fully subscribed,&rdquo; it noted. &ldquo;The Final Rule, which is premised, in part, on the availability of natural gas for co-firing or full conversion, does not sufficiently take into account these limitations on the development of new pipeline infrastructure,&rdquo; it said. </span></p> <div><script>var AIAD_e340f307442066367e6eb877f6c24111_67422dd3be550;googletag.cmd.push(function(){var AIMAP_e02b89857b91a11b8be92fca409827ba = googletag.sizeMapping().addSize([980, 100], [[970, 90], [970, 250]]).addSize([730, 100], [728, 90]).addSize([500, 100], [468, 60]).addSize([0, 0], [320, 50]).build();AIAD_e340f307442066367e6eb877f6c24111_67422dd3be550 = googletag.defineSlot('/987/powermag.com/pwr-native-content', 'fluid', 'div-gpt-in-content-repeating-67422dd3be551').addService(googletag.pubads()); });</script></div><div style="text-align:center;margin: 20px auto;" class="widget widget_ai_ad_widget"><div id="div-gpt-in-content-repeating-67422dd3be551"><script>googletag.cmd.push(function() { googletag.display('div-gpt-in-content-repeating-67422dd3be551'); });</script></div></div><p class="p23"><span class="s1">&mdash;<b><i>Sonal Patel</i></b><i> is a POWER senior editor (</i><a href="https://twitter.com/Sonalcpatel"><span class="s21"><i>@sonalcpatel</i></span></a><i>,&nbsp;</i><a href="https://twitter.com/POWERmagazine"><span class="s21"><i>@POWERmagazine</i></span></a><i>).</i></span></p> </div> </article> <div class="d-flex align-items-center my-3"> <p class="mb-0 pe-2"><strong>SHARE this article</strong></p> <div class="ai-social-sharing ai-social-sharing_shortcode"><div class="a2a_kit a2a_kit_size_32 a2a_default_style" "><a class="a2a_button_facebook"></a><a class="a2a_button_x"></a><a class="a2a_button_linkedin"></a><a class="a2a_button_email"></a><a class="a2a_dd" href="https://www.addtoany.com/share"></a></div></div></div> <div class="tags-wrapper"> <a href="https://www.powermag.com/tag/nma/">NMA</a> <a href="https://www.powermag.com/tag/gas-2/">gas</a> <a href="https://www.powermag.com/tag/ccs/">CCS</a> <a href="https://www.powermag.com/tag/epa/">EPA</a> <a href="https://www.powermag.com/tag/lawsuits/">lawsuits</a> <a href="https://www.powermag.com/tag/pjm/">pjm</a> <a href="https://www.powermag.com/tag/d-c-circuit/">D.C. 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