Court Blocks Trump's Michigan Coal Plant Order

A federal appeals court has ruled that the U.S. Department of Energy acted outside its legal authority when it forced a Michigan coal plant to keep running last year. The unanimous decision from a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit, issued on Friday, challenges the Trump administration's use of emergency powers to prevent aging fossil-fuel power plants from closing.

According to the court, the DOE was "unpersuaded by DOE's sweeping conception of its 'emergency' authority." The ruling upheld a challenge brought by the attorneys general of Michigan, Minnesota, and Illinois, along with several environmental groups. It specifically addresses the first emergency order issued to the J.H. Campbell power plant in May 2025, just days before its planned retirement.

The Legal Challenge to Emergency Powers

The Department of Energy, under President Donald Trump, has used emergency powers from Section 202(c) of the 1935 Federal Power Act to issue seven must-run orders to fossil-fuel plants. Energy Secretary Chris Wright has argued the agency is justified in halting planned retirements to prevent grid reliability emergencies. Robert Stander, a deputy assistant attorney general, told the court in May that the DOE had "sole discretion" over how to use that power.

The court rejected this broad interpretation. It found that "for almost a century states have exercised authority, preserved by the Federal Power Act, to regulate in-state power plants for the economic and environmental benefit of their citizens." Michael Lenoff, a senior attorney at Earthjustice, said the decision shows the DOE "grossly overstepped its authority."

Grid Reliability and Economic Impact

Energy experts and the states involved have disputed the existence of a grid emergency requiring the plant's continued operation. The retirement of the J.H. Campbell plant was first planned in 2021 as part of Michigan's effort to meet a clean power mandate with lower-cost resources. The closure was approved by utilities, state regulators, and the regional grid operator, and was projected to save customers $600 million through 2040.

Instead of saving money, the emergency order has imposed costs. Michigan Attorney General Dana Nessel stated the order had cost customers of the utility Consumers Energy $180 million through March of this year. The Sierra Club estimates the total cost of all seven DOE must-run orders has reached nearly $550 million.

Broader Implications for Plant Retirements

The court's ruling applies only to the first order for the J.H. Campbell plant, not the six subsequent 90-day extensions that have kept it online. The DOE has issued similar orders to coal plants in Colorado, Florida, Indiana, and Washington state, and to an oil and gas plant in Pennsylvania. All were facing imminent closure before federal intervention.

Legal challenges are pending against each of the other DOE orders. Sanjay Narayan, the Sierra Club's chief appellate counsel, said Friday's decision lends weight to those efforts. He argued that in each case, the states were prepared to address any potential power shortages. "That's why these coal plants were being shut down, it saves money, and saves kids trips to the emergency room for asthma," Narayan said. He characterized the must-run orders as an effort to force "particular sources of high-polluting, expensive energy down the public's collective throat."

The DOE could ask the full D.C. Circuit Court to rehear the case or appeal to the U.S. Supreme Court. The agency did not immediately respond to a request for comment from Canary Media.