Updated at 11:45 p.m. to add additional stories
Reuters
reported Tuesday morning:

A federal court on Tuesday vacated an Environmental Protection
Agency’s rule that set strict limits on sulfur dioxide and nitrogen oxide
emissions – pollutants that cause acid rain and smog – in 28 mostly Eastern
states and Texas.

The U.S. Court of Appeals for the
D.C. Circuit sent the rule back to the agency for revision and told it to
administer its existing Clean Air Interstate Rule in the interim.

The rule was designed to reduce
sulfur dioxide emissions by 73 percent and nitrogen oxide by 54 percent at
coal-fired power plants from 2005 levels, according to the EPA.

U.S. natural gas futures dropped
more than 10 cents after the ruling was announced as traders bet it would mean
less demand for the cleaner fuel over the coming months.

The EPA and environmental groups
contended that the rule would improve air quality for 240 million people across
the Eastern United States.

The EPA’s rule aimed to control
emissions from sulfur dioxide and nitrogen oxide — pollutants that cause acid
rain and smog — from power plants in 28 mostly Eastern states. The reasoning
is that unhealthy emissions from those plants cross state lines.

The rule, known as CSAPR, also
established a cap-and-trade system that enabled power producers to comply with
the emission limits by buying, trading and selling pollution permits.

Power generators, such as
Southern Co and Energy Future Holdings Corp, had argued that the Jan. 1
implementation date was too soon and allowed too little time to design and
install pollution control equipment needed to comply.

The state of Texas, along with
the National Mining Association and the International Brotherhood of Electrical
Workers, also challenged the EPA. They said the rule caused undue financial
burden on power producers and could make the power market less reliable by
forcing companies to shut some older plants.


The Associated Press reported
:

WASHINGTON
– A divided federal appeals court Tuesday overturned a regulation clamping down
on power plant pollution that contributes to unhealthy air in neighboring
states.


In a 2-1 decision, a panel of the U.S. Court of Appeals for the District of
Columbia Circuit said the Environmental Protection Agency’s cross-state air
pollution rule exceeded the agency’s statutory authority. The court faulted the
EPA for imposing “massive emissions reduction requirements” on upwind
states without regard to limits imposed by law.


In adopting the regulation a year ago, the EPA sought to reduce downwind
pollution from power plants in more than two-dozen states. The rule was
scheduled to go into effect in January, but several large power companies and
some states sued to stop it. The appeals court agreed last December to suspend
the rule pending its review.


“Our decision today should not be interpreted as a comment on the wisdom
or policy merits of” the EPA rule, wrote Judge Brett Kavanaugh, in a
decision joined by Judge Thomas Griffith , both appointees of Republican
President George W. Bush. “It is not our job to set environmental policy.
Our limited but important role is to independently ensure that the agency stays
within the boundaries Congress has set. EPA did not do so here.”

In a dissent, Judge Judith Rogers, an appointee of Democratic President Bill
Clinton, said that the court had disregarded “limits Congress placed on
its jurisdiction, the plain text of the Clean Air Act, and this court’s settled
precedent interpreting the same statutory provisions at issue today. Any one of
these obstacles should have given the court pause; none did.”


Sulfur dioxide and nitrogen oxide pollution from power plants can be carried
long distances and the pollutants react with other substances to form smog and
soot, which have been linked to illnesses. The cross-border pollution has
prevented many cities from complying with health-based standards set by law.

EPA spokeswoman Alisha Johnson said the agency is reviewing the decision, and
will determine what steps to take after the review is complete.

“EPA remains committed to working with states and the power sector to
address pollution transport issues as required by the Clean Air Act,” she
said. 
 

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