A federal appeals court is hearing a legal challenge to the EPA’s plan to regulate carbon monoxide and other greenhouse gas emissions from coal-fired power plants. Coal producers – including Peabody Energy are arguing against the new rules. From Phoenix, KJZZ’s Terry Ward reports.

TERRY WARD : A lawsuit filed by large coal companies and some energy-producing states claims the EPA has gotten the science wrong, and that the new rules would have a huge cost for some states and industries. But EarthJustice attorney Tim Ballo says the plaintiffs will have a tough time convincing the court that that the agency acted irresponsibly when it decided pollutants are a threat to people. He says some states are ready to accept the new rules.

TIM BALLO: Those states and those utilities that have invested in renewable energy and can meet these new standards versus the states and the utilities that have clung to fossil fuels.

WARD: Peabody Energy which operates mines in Arizona is the nation’s largest private sector coal company. The company says there is no basis for greenhouse gas regulations that could harm an already fragile economy — one that relies heavily on coal for electricity.