The Michigan appeals court says state regulators legally approved the city of Holland's application to expand one of its coal-fired power plants.
Environmental groups sued in 2011, saying the plan didn't comply with the Clean Air Act and that the state didn't consider cleaner technologies.
But the appeals court disagreed in a ruling released Friday that affirmed a decision from an Ingham County judge. The three-judge panel says the Department of Environmental Quality conducted an adequate analysis of the best available power-generating technologies.
In 2011, state environmental officials reversed an earlier decision and approved a permit to install a 78-megawatt boiler at a city-owned plant. It was to replace an 11-megawatt coal generator built in 1953.