Energy companies warned the Biden administration’s attempt to limit mercury emissions threaten Montana’s power grid.
WASHINGTON (CN) — Fossil fuel companies asked the Supreme Court for emergency action on Thursday to prevent the U.S. Environmental Protection Agency from enforcing mercury emissions regulations.
Two coal and natural gas utility providers asked the justices to block the Biden administration’s updates to the Mercury and Air Toxics Standards — often abbreviated as MATS — for coal-fired power plants. They claim the new rule would cost millions for public health benefits that amount to “statistical noise.”
Talen Montana and NorthWestern Energy say “requiring hundreds of millions of dollars to be expended for such infinitesimal benefits is not a rational result from reasoned decision-making.”
In April, the administration finalized its Mercury and Air Toxics Standards, limiting filterable air pollutants by 67% and reducing mercury emissions for low-grade coal power plants by 70%.
Marking a significant update to the 2012 standards, EPA Administrator Michael Regan said the rule made good on the Biden administration’s goal to tackle climate change while protecting communities from pollution.
“By developing these standards in a clear, transparent, inclusive manner, EPA is cutting pollution while ensuring that power companies can make smart investments and continue to deliver reliable electricity for all Americans,” Regan said in a statement when the rule was finalized.
Talen operates Colstrip power plant — the largest coal-fired power plant west of the Mississippi River. The plant supplies power throughout Montana and the Pacific Northwest and provides about 3,000 jobs and over $1 billion in economic output to Montana.
Colstrip’s emissions are slightly higher than those of other plants, forcing the plant to install a new baghouse — a filter for air pollution — to meet the rule’s emissions limit. Talen said the addition will cost $350 million — 42% of the regulatory costs entire rule.
Talen said the rule put Colstrip’s future in jeopardy, suggesting the plant could close in the next three years instead of operating for the next three decades.
NorthWestern, a regulated utility, said it would struggle to fill the gap left by Colstrip.
“Should Colstrip choose the accelerated retirement path, it would surely destabilize Montana’s grid and drive major rate hikes,” the companies wrote.
A mining advocacy group filed an emergency appeal against the rule. NACCO Natural Resources Corporation claimed that if the regulations start now, any meaningful relief from the litigation would be lost.
“EPA should not once again be permitted to win by losing; this court should therefore grant relief,” NACCO wrote in its brief before the court.
The power plant industry has been fighting the Clean Air Act’s emissions regulations for nearly a decade, claiming that the cost of new standards outweigh their potential benefits.
In 2015’s Michigan v. EPA, the Supreme Court sided with these groups, finding that the agency must consider the economic costs in return for health or environmental benefits. However, the justices’ ruling only came after the rule had already been in effect for three years and the majority of power plants had been forced to comply.
NACCO warned the government against repeating history. The group put the rule’s cost at $860 million, noting that mercury regulations are just one of many clean energy provisions targeting the coal industry.
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Read More: Big Oil urges justices to save Montana power plant from EPA mercury rules