The plan required power plants in Texas to install upgrades to their generators, which opponents argued were costly and unnecessary.
“We are pleased that the 5th Circuit left its stay in place. The decision gives the new administration the opportunity to reconsider the Obama administration’s unlawful action,” Paxton said. “We look forward to the opportunity to work with the new administration on a lawful course of action.”
Last July, the 5th Circuit granted Texas’ stay motion while rejecting the EPA’s motion to dismiss or transfer, explaining that the plan was likely unlawful, and the costs of compliance with the rule would increase rates for Texas consumers as well as endanger grid reliability if power plants were forced to close.
At the time, the court also explained that Texas “demonstrated a strong likelihood of success in establishing that the EPA acted arbitrarily, capriciously, and in excess of its statutory authority when it disapproved the Texas and Oklahoma implementation plans and imposed a federal implementation plan.”