A federal court has struck down an Environmental Protection Agency rule that forces cuts in soot- and smog-forming power plant emissions that cross state lines, dealing a major blow to the White House’s air quality agenda.

The U.S. Court of Appeals for the District of Columbia Circuit vacated the Cross-State Air Pollution Rule that forces cuts from plants in 28 states in the eastern half of the country, finding that it exceeds EPA’s powers under the Clean Air Act.

The 2-1 court decision Tuesday is a victory for industry groups, some states and GOP lawmakers, who alleged the rule would create economic burdens and force the closure of substantial numbers of coal-fired power plants.

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