Coal power goes on trial across U.S.

Nilles said the Sierra Club spent about $1 million on such efforts in 2007 and hopes to ratchet that figure up to $10 million this year.

Meanwhile, coal interests are pouring even more into a promotional campaign launched by the industry group Americans for Balanced Energy Choices. It spent $15 million last year and expects to more than double that to $35 million in 2008, said the group's director, Joe Lucas.

Funding for the group comes from coal mining and utility companies such as Peabody and railroads that depend on coal shipments for a large share of their revenues.

Peabody's Svec acknowledged a rush to build new plants, but denied the goal was to beat any of at least seven bills pending before Congress to restrict carbon dioxide emissions — a charge leveled by some environmentalists.

Rather, he said, the construction boom is driven by projections that the country will fall into a power deficit within the next decade if new plants are not built.

Industry attorney Jeffrey Holmstead said that could lead to a future of rolling blackouts as the economy expands and electricity consumption increases. Holmstead was in charge of the U.S. Environmental Protection Agency's air program during the first five years of the current Bush administration.

The power deficit cited by industry officials is based on projections from the North American Electric Reliability Corporation. NERC vice president David Nevius said his group is "neutral" on what kind of plants should be built to meet rising demand.

"We're not saying the lights will go out. We're just saying additional resources are needed," Nevius said. "We don't say coal over gas over wind over solar."

600-plus plants now
Utilities currently burn more than 1 billion tons of coal annually in more than 600 plants. Over the next two decades, the Bush administration projects coal's share of electricity generation will increase to almost 60 percent.

That projection held steady in recent months even as courts and regulators turned back, delayed or asked for changes to plants in at least nine states.

Other projects in Utah, Texas, Wyoming, Florida and several other states have been abandoned or shelved.

Some were canceled over global warming concerns. Utilities backed off others after their price tags climbed over $1 billion due to rising costs for materials and skilled labor.

Environmental opposition to coal plants was galvanized by a U.S. Supreme Court decision in April that said carbon dioxide is a pollutant open to regulation.

The case, Massachusetts vs. U.S. Environmental Protection Agency, involved vehicle emissions. But environmentalists aim to use the decision as a fulcrum to leverage regulators to take a harder line on greenhouse gases in several emerging power plant disputes.

The result could serve as an early barometer of the reach of the Supreme Court ruling.

More tests of the two sides' arguments are certain. Industry groups say at least 15 coal-fired power projects are nearing the end of the approval process and could soon start construction.

More from msnbc.com News Quiz: Which country is near bankruptcy? Dems, GOP battle over voter fraud Can China save the global economy? Gut Check: Is financial crisis affecting your job? Red Tape: AT&T customer caught in 'spam-22'

MORE FROM ENVIRONMENT

Environment Section Front

South Africa will sell ivory to Japan, China Scientists confirm shark's ‘virgin birth’ Canada faces suit over killer whales Court wrangles over Navy sonar, whales N.J. to 'race to the sea' for wind power Orphaned rhino adopted by park rangers Study: Arctic stormier as Earth warms EarthTalk Q&A: Painkillers, electric bikes Deadlines set for polar bear habitat Geothermal energy backers expect rebirth Environment Section Front   Add Environment headlines to your news reader: