Federal court strikes down Trump-era emergency order forcing Michigan coal plant to stay open

The J.H. Campbell coal plant was scheduled to close last year but has been kept running through five consecutive 90-day emergency declarations by the Department of Energy (DOE). The administration relied on Section 202(c) of the Federal Power Act, which allows the DOE to declare an emergency in the event of war or a sudden increase in demand or shortage of electric energy.

In its decision, the court found that the circumstances did not constitute a qualifying emergency. The ruling stated that the DOE’s declaration was contrary to the statute, though the full reasoning is expected to be detailed in the published opinion.

The case was brought by parties including states where coal plants have been targeted for closure. While the ruling directly applies only to the Campbell plant in Michigan, legal experts say the reasoning will set a precedent for challenges to other forced coal plant extensions ordered under the same authority.

The Trump administration had made multiple attempts to prop up the declining coal industry, including ordering plants to remain open even when grid operators said they were not needed.

Why This Matters

The ruling undermines a key tool the Trump administration has used to prevent coal plant retirements, potentially affecting dozens of similar orders.
It reaffirms judicial limits on executive emergency powers in the energy sector, which has implications for grid reliability debates.
The decision could accelerate the closure of aging coal plants that utilities had already slated for retirement, shifting the energy mix further toward natural gas and renewables.

Background

The coal industry has been in structural decline for nearly two decades in the US, driven by cheaper natural gas, renewable energy growth, and environmental regulations. The first Trump administration failed to reverse the trend. In its second term, the administration adopted more aggressive measures, including direct orders under Section 202(c) of the Federal Power Act to keep coal plants running—sometimes even when there was no grid need. The J.H. Campbell plant in Michigan was one of several facilities kept open by successive 90-day emergency declarations.

Key Perspectives

DOE and Administration: Argue that forced plant retirements threaten grid reliability and national security, justifying emergency intervention under existing law.

States and Environmental Challengers: Contend the DOE is misusing emergency powers for policy goals, overriding state energy decisions and market forces without a genuine crisis.

Utilities and Grid Operators: Forced to operate uneconomic plants at public expense, while some express concern about maintaining reliability during the transition.

What to Watch

Whether the administration appeals the DC Circuit ruling or seeks legislation to expand emergency authority.
How the DOE handles the other coal plant closure orders still active in states like Illinois, Indiana, and Ohio.
Whether utilities immediately move to retire the Campbell plant and other affected facilities, or await further legal developments.

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