By Andrew Chung
The U.S. Supreme Court has denied a request to halt a new federal rule targeting carbon pollution from coal and gas-fired power plants, in a blow to states and industry groups challenging President Joe Biden’s climate change efforts.
The rule, which aims to cut greenhouse gas emissions, went into effect on July 8 and requires existing coal and new natural gas-fired plants to eventually reduce emissions, including by capturing and storing carbon dioxide.
Issued under the Clean Air Act, the EPA’s rule comes two years after a Supreme Court ruling limited the agency’s power to regulate the power sector. The EPA argues that addressing climate change must involve reducing emissions from fossil fuel-fired plants, which account for 25% of domestic greenhouse gas emissions.
The rule mandates that coal plants operating past 2038 and certain new gas plants reduce emissions by 90% by 2032, using carbon capture and storage technology. While the EPA claims the technology is proven and feasible, challengers argue it may not be as effective as predicted.
Opponents of the rule, including major coal producer West Virginia, argue that it is a backdoor tactic to phase out coal plants. They claim that the EPA’s rule raises major questions and exceeds the agency’s authority, echoing a legal doctrine embraced by conservative justices.
Multiple lawsuits have been filed challenging the rule, but the U.S. Court of Appeals for the District of Columbia Circuit has denied requests to pause the regulation. The court stated that the EPA’s actions were within its statutory authority and did not implicate a major question.
Overall, the Supreme Court’s decision to uphold the rule could have significant implications for the coal and gas industries, as they will be required to make substantial emission reductions in the coming years. This could lead to shifts in the energy sector and impact investments in these industries.
