[JURIST] The US Court of Appeals for the DC Circuit [official website] Friday ruled [PDF text] that the "cap-and-trade" policy, to be implemented in 2010 by the Environmental Protection Agency (EPA) [official website] to regulate electrical power plant mercury emissions, is effectively invalid. The policy would permit power plants whose mercury emissions exceed the regulatory cap to buy "credits" from other power plants whose emissions fall below the cap. The ruling also struck down the EPA's decision to remove coal- and oil-fueled power plants from the list of utilities subject to the strictest emissions controls.

The lawsuit [JURIST report] was brought by a coalition of 16 states that argued that the mercury pollution rules would endanger children living near power plants that buy credits to pollute over the EPA limit. The EPA argued that its Clean Air Mercury Rule [EPA backgrounder; JURIST report] would result in a more than 70 percent reduction in mercury emissions from utilities. AP has more.