The U.S. Court of Appeals for the D.C. Circuit determined on Friday that the Department of Energy lacked proper legal grounds to mandate continued operation of the J.H. Campbell coal plant in Michigan. The facility, which is 64 years old, was scheduled to retire last May when the Trump administration’s Energy Department invoked emergency powers under the Federal Power Act to keep it operating. Officials cited concerns about potential power outages and energy demands from data centers as justification for the action.
Judge Cornelia Pillard’s ruling emphasized that emergency authority under the relevant statute constitutes a narrow, last-resort mechanism rather than a broad discretionary tool. The decision represents one of the first successful legal challenges to the administration’s use of emergency powers to increase fossil fuel production, a policy initiated after the president declared a “national energy emergency” in 2025. The court’s determination does not eliminate the government’s authority to declare such emergencies but rather restricts how those declarations can be practically implemented.
Since resuming operations, the Campbell plant has released substantial quantities of pollutants, including 1,000 tons of nitrogen oxides, 2,000 tons of sulfur dioxide, and 140 tons of particulate matter through June. Environmental groups estimate this pollution could cause approximately 100 additional asthma cases among residents of nearby West Olive, Michigan. Continued operation has incurred $259 million in costs, which utility company Consumers Energy Company seeks to recover from ratepayers across Michigan and ten other states.
The ruling does not mandate immediate plant closure but instead establishes legal precedent requiring genuine emergency conditions to justify keeping facilities open. The administration may pursue further appeals through rehearing requests or Supreme Court review. Multiple similar lawsuits challenging other fossil fuel plants have been awaiting this decision, with comparable legal arguments, suggesting the ruling could influence outcomes in those cases.
Environmental observers noted inconsistency between the stated energy emergency rationale and administration policies blocking renewable energy development, including approximately $4 billion in payouts to halt offshore wind projects.
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