Federal judges ruled in favor of the Environmental Protection Agency’s costly pollutant rules for coal-fired power plants on Tuesday.
The D.C. Circuit Court of Appeals ruled that the EPA can keep its rules but must go back to address the cost of complying with them. Most of the utility industry is already in compliance with the standards, which cost the industry more than $9 billion each year.
The appeals court held oral argument two weeks ago on a ruling from the Supreme Court that said the EPA cannot ignore the cost of its utility rules. The agency argues that under previous Supreme Court rulings it has the discretion not to calculate the cost of complying with its rules.
The high court set a precedent in ruling against EPA discretion when it comes to cost. That ruling is likely to come up in oral arguments next year when the appeals court takes up a lawsuit by 27 states opposing EPA climate rules for power plants.
Since the Supreme Court was reviewing a separate case heard by the D.C. Circuit court, its ruling directed the appeals court to ultimately make a decision on whether the EPA regulations would live or die. It chose to keep them and remand a cost study back to EPA for completion by April.
At Dec. 4 oral arguments on the mercury rule, Chief Judge Merrick Garland told a lawyer representing states in asking the court to vacate the rule, that the bulk of the utility industry says it would be disruptive “if we were to do anything more than remand” the rule back to EPA so it could do a cost assessment.
Other judges hearing oral arguments appeared to share Garland’s concerns that killing the Mercury and Air Toxics Standards for power plants would be premature.
Tuesday’s ruling plays out what the judges knew to be true two weeks ago: there wasn’t enough to support killing the rules.
Of course, the EPA is applauding the judges’ decision. EPA spokeswoman Melissa Harrison said the rules are “practical and achievable standards” that “are already cutting pollution from power plants that will save thousands of lives each year and prevent heart and asthma attacks.”
“The standards also slash emissions of the neurotoxin mercury, which can impair children’s ability to learn.”
The EPA is slated to deliver its new cost assessment in the spring, even though it says most utilities have already complied with the necessary technologies to reduce mercury and toxic air pollutants.
