Key facts
- A federal appeals court rejected the Department of Energy's "emergency" declarations that kept the J.H. Campbell coal plant open.
- The court found the DOE failed to demonstrate a critical supply shortage or sudden increase in demand.
- The J.H. Campbell plant was scheduled for closure but had been kept open by five 90-day emergency declarations.
- The court cited the plant's age, inefficiency, and pollution, estimating its emissions would cause 30 deaths annually.
- The decision voids the DOE's emergency declaration, allowing Michigan to proceed with the plant's planned shutdown.
- The ruling's logic is expected to apply to other coal plants kept open by the DOE's emergency authority.
A federal appeals court has rejected the Department of Energy's (DOE) justification for keeping the J.H. Campbell coal-fired power plant in Michigan open, ruling that the agency improperly declared an energy "emergency." The decision, issued by a unanimous three-judge panel from the DC Circuit’s Court of Appeals, found that the DOE could not provide sufficient evidence of a critical supply shortage or a sudden increase in demand to warrant its actions.
The J.H. Campbell plant, an aging and polluting facility, was scheduled to close last year. However, the DOE issued five emergency declarations, each limited to 90 days under the Federal Power Act, to keep it operational. This authority, outlined in section 202(c) of the Act, allows the DOE to intervene in cases of war or sudden shortfalls in electric energy.
Michigan and environmental organizations challenged these declarations, arguing that no emergency existed. They highlighted the plant's inefficiency and pollution, with the court noting estimates that its emissions could cause 30 deaths annually. The closure plan had been carefully evaluated and approved by state utility commissions and the Midcontinent Independent System Operator (MISO), which manages the regional grid, concluding it would not lead to service shortfalls.
The court found the government's defense, based on reports of potential low generating reserves and seasonal demand peaks, insufficient to meet the statutory definition of an emergency. The judges stated that "indeterminate assertions of summer electricity shortfalls are not what Congress meant by 'emergency.'" They emphasized that the Federal Power Act generally leaves generation regulation to states and that federal intervention should be rare and for immediate shortfalls.
By voiding the DOE's emergency declaration, the court's decision allows Michigan to proceed with the planned shutdown of the J.H. Campbell plant, potentially saving ratepayers costs associated with maintaining its readiness. The reasoning is also expected to apply to other coal plants that the DOE has kept open through similar emergency orders, potentially reversing the Trump administration's efforts to prop up coal use.