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EPA Pollution Rule Overturned by D.C. Court of Appeals

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published August 22, 2012

By Author - LawCrossing
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08/22/12

On Tuesday, in a 2-1 decision, the U.S. Court of Appeals, D.C. Circuit said that the EPA had exceeded its mandate with the rule, which was primarily meant to limit sulfur dioxide and nitrogen oxide emissions from power plants. The rule is applicable to only 28 Eastern States and Texas.


In this latest setback to the key Obama administration rule, the market reacted positively with a rally in coal company shares. The court sent back the Cross-State Air Rule for revision, asking the agency to administer its existing Clean Air Interstate Rule in the interim period. The EPA said it was reviewing the decision of the court.

President Barack Obama's environmental policies have been at the receiving end of Republican campaigns, and this latest setback to EPA led to elation among some Republicans. Opponents of the new environmental policies hold that the EPA is endangering the economic recovery by burdening running industries with costly new rules and forcing them to go out of business.

Republican Senator James Inhofe said, “The Obama-EPA continues to demonstrate that it will stop at nothing in its determination to kill coal … With so much economic pain in store, it is fortunate that the EPA was sent back to the drawing board.”

According to EPA estimates, compliance with the new rules would have cost power industries an extra $ 800 million annually from 2014. Scott Segal, director of the Electric Reliability Coordinating Council said, “The court was clear in finding that EPA had overstepped its legal authority in developing the rule.”

This year has been exceptionally hard for the coal industry as the demand for coal from power companies reduced with increase in supply of cheap natural gas, an alternative that helped power companies to comply better with environmental laws.

The new decision asking the EPA to review its rules, and in the interim period keep applying the Bush-era rules, saw coal company stocks rise in the market. Stocks of Arch Coal rose 1.1 per cent while stocks of Peabody Energy rose by 3.7 percent. At the same time U.S. natural gas futures fell by 3 percent for a brief period, but recovered by mid-day.

The situation was summed up by Andrew Weissman, senior energy adviser at the law firm of Haynes and Boone, who said, “It gives the EPA a little bit more of a black eye … But in the bigger picture, it may not be important in terms of the practical consequences.”


  1. Legal Jobs
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  6. EPA Pollution Rule Overturned by D.C. Court of Appeals

published August 22, 2012

By Author - LawCrossing
( 1 vote, average: 4.8 out of 5)
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