Colorado Sues Trump’s Energy Department Over Coal Plant Order

Mar 20, 2026, 2:41 AM
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Colorado has taken legal action against the US Department of Energy (DOE) following an emergency order that requires a coal-fired power plant in Craig to remain operational. The lawsuits, filed by Colorado Attorney General Phil Weiser alongside environmental groups such as the Sierra Club, Vote Solar, and the Environmental Defense Fund, aim to overturn the order issued on December 30, 2025, which halts the plant's planned retirement set for the following day.
The DOE's order, invoked under section 202(c) of the Federal Power Act, allows the agency to keep power plants running during emergencies, such as energy shortages or wartime situations. However, Weiser and the environmental advocates assert that there is no legitimate energy emergency justifying this action. "Stopping the Craig unit's retirement would not ease any imagined energy need," Weiser stated, emphasizing that the order represents an unlawful abuse of emergency authority that could lead to increased costs for Coloradans and further pollution in the region.
The Craig Station Unit 1, which was slated for closure, has faced criticisms regarding its economic viability and environmental impact. Local utilities, including Tri-State Generation and Transmission Association and the Platte River Power Authority, have indicated that they planned for the plant's retirement and have already replaced its capacity with cleaner energy sources. According to statements made by the plant's owners, keeping the Craig plant operational could impose significant costs on ratepayers, potentially amounting to $85 million annually if the plant operates under the DOE's mandates.
Environmental advocates argue that the DOE's intervention is politically motivated rather than based on actual energy needs. They have pointed out that the Trump administration has a history of using claims of energy emergencies to sustain coal plants across the country, despite evidence indicating that many of these plants are outdated and financially burdensome to operate. "The federal government has manufactured a fake emergency to revive a coal plant that was literally broken at the time DOE claimed the plant is needed," said Margaret Kran-Annexstein, Director of the Colorado Sierra Club.
Opponents of the order stress that it undermines years of planning by Colorado communities and utility regulators to transition towards cleaner energy solutions, which are not only more cost-effective but also crucial for reducing pollution and protecting public health. "Families deserve solutions that lower bills and strengthen the grid, not federal requirements that lock in outdated infrastructure," stated Kate Bowman, the Vote Solar Regulatory Director for the West. She added that overriding the planned retirement of the Craig plant jeopardizes public trust and increases the financial burden on families.
The emergency order is part of a broader trend within the Trump administration, which has sought to maintain coal plants that are no longer economically viable. Critics argue that this not only contradicts market forces favoring renewable energy but also poses risks to public health due to increased emissions from coal plants. Studies indicate that coal plants like Craig are among the dirtiest and least reliable sources of energy, and keeping them online will ultimately lead to greater environmental degradation and health issues in surrounding communities.
In response to the growing concerns, Colorado lawmakers are advancing measures aimed at mitigating the impacts of federal interventions on local energy policies. Proposed legislation, House Bill 1226, would require coal plant operators to disclose costs associated with federal mandates and create mechanisms to manage those costs without burdening ratepayers. The bill also seeks to impose stricter environmental regulations on any coal plants that remain operational beyond their scheduled retirement dates, including enforcing emission controls and regular reporting of pollution data to state authorities.
As the legal battle unfolds, it remains to be seen whether the DOE will respond to the lawsuits or if further court challenges will be needed to enforce the state's clean energy goals. The situation highlights the ongoing conflict between federal energy policies and state-level environmental initiatives, particularly in the context of the Trump administration's broader energy strategy that prioritizes coal over renewable energy sources.
In summary, Colorado's lawsuits against the DOE underscore a critical confrontation over energy policy and environmental protection, with significant implications for the state's future energy landscape and public health. The outcomes of these legal challenges could set important precedents for how federal authority is exercised in relation to state energy planning and the transition to cleaner energy sources in the United States.

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