Montana and Wyoming Sue Biden Administration Over Plan to Halt Federal Coal Production

The attorneys general of Montana and Wyoming have filed a lawsuit against the Biden administration following its announcement to halt federal coal production in the Powder River Basin. The Basin, which covers 20,000 square miles in northeastern Wyoming and southeastern Montana, accounts for 85% of federal land-produced coal.

In November, the Biden administration made its final decision on a supplemental environmental impact statement (SEIS) and proposed an amendment to end coal mining in the region. A SEIS is issued when significant environmental impacts arise that were not addressed in the original environmental impact statement (EIS) or when new information on environmental concerns becomes relevant.

Montana Attorney General Alex Knudsen criticized the decision, arguing that it would devastate Montana’s coal industry, which is vital to the state’s economy and energy production. “In Montana, we need coal – it fuels our economy and heats our homes in the winter in subzero temperatures,” Knudsen said, accusing the Biden administration of catering to radical environmentalists at the expense of the state’s needs.

In 2023, coal-powered plants accounted for 45% of Montana’s electricity generation. Wyoming, which heavily relies on coal for economic revenue, also voiced strong opposition. Wyoming Gov. Mark Gordon decried the decision, stating that the Bureau of Land Management (BLM) ignored the economic impact on the state. “They did not do their job properly,” Gordon said.

The lawsuit claims that the federal government’s move marks a “new era” in how the BLM will interact with local governments, and it calls the decision a “devastating blow” to the economies of both states. In Wyoming, coal generates over $1 billion in annual revenue.

The lawsuit further argues that the halt of new leasing in the Powder River Basin is “unreasonable, unjustified, and unsupported by federal law.” The plaintiffs are asking the court to vacate and set aside the BLM’s land-use plans.

The lawsuit, filed in the U.S. District Court for the District of Wyoming, highlights the growing concerns over federal overreach and its impact on affordable energy, as Wyoming continues to push back against what it sees as politically-driven policies that ignore the nation’s increasing demand for affordable energy.

Since 2010, coal production in the U.S. has declined by more than 50%, further intensifying debates over the future of coal in America’s energy landscape.

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