Rural Electric COOPs Ask Supreme Court to Reverse New EPA Rule

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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Contending that an April EPA rule regulating coal-fired power plants would cost providers billions of dollars and threaten the grid's reliability, the National Rural Electric COOP Association (NRECA) is seeking court action to overturn the rule. The organization's petition was filed in May, rejected by lower courts, then was rejected by the U.S. Court of Appeals for the District of Columbia Circuit. Now NRECA is asking the U.S. Supreme Court to hear their appeal.

The Issue
The new EPA rule would require most existing coal plants and any new natural gas plants that plan to remain operational in 2039 to capture at least 90% of their carbon emissions by 2032. The NRECA says compliance would require most plants to shut down or spend millions on carbon capture technology--systems that the organization contends are not yet proven, nor commercially available.

In the EPA's April press release announcing the new rules, the Biden administration's National Climate Advisor Ali Zaidi says, "This year, the United States is projected to build more new electric generation capacity than we have in two decades--and 96% of that will be clean."

EPA figures show that 25% of greenhouse gas (GHG) emissions in the U.S. come from coal and gas-fired power plants. The 250 or so coal plants still in operation generated about 16% of the nation's electricity in 2023. Half of those plants already are scheduled to close by 2039.

But the NRECA contends the retirement or restriction of baseline-capable coal plants creates reliability issues, as most of the clean power construction alluded to by Zaidi will be intermittent sources like wind and solar. Jim Matheson, NRECA's chief executive officer, said cooperatives and other power grid suppliers--and consumers--will suffer.

"The path outlined by the EPA is unlawful, unrealistic and unachievable," he said. "It undermines electric reliability and poses grave consequences for an already stressed electric grid."

The Course of Action
After the petition to stay or overturn the EPA's ruling was filed, lower courts, including the court of appeals, declined to take action. So in July they asked the U.S. Supreme Court to intervene.

While NRECA is the petitioner, the document lists a number of other petitioners, including 27 states; several grid organizations; labor unions, including the AFL-CIO, Brotherhood of Boilermakers and Brotherhood of Electrical Workers; and mining unions and companies.

With the high court's conservative supermajority, NRECA may hope to have a better reception there.

Record heat and the growth of high-demand electricity users, such as bitcoin miners and artificial intelligence processers, have counterpunched conservation efforts, leading to a greatly increased strain on the U.S. power grid. The race to build enough generation capacity of green or any other color will be tight. Industrial Info will continue to monitor this appeal.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).