The mostly Democratic-led states say that the E.P.A. acted unlawfully when it erased Biden-era limits on carbon dioxide from coal- and gas-fired plants.
President Trump has pushed to dismantle many federal policies that aim to tackle climate change, including Biden-era rules that limited planet-warming emissions from power plants.
A federal judge ruled that the new law, which would force fossil fuel companies to pay $75 billion to help cover the costs of climate change, was unconstitutional.