A $3.6 billion dollar project to bring more energy to the state has been shut down. The Kansas Department of Health and Environment denied Sunflower Electric Power Corporation air-quality permits to build 2 coal-fired power plants.

"We're obviously very releived that Secretary Bremby decided as he did," says David Kirkbride, chairman of the Sierra Club Southwind Group.

Now the company says the real battle begins. Environmentalists and some lawmakers may have notched a victory against Sunflower, saying the plant would release too much carbon dioxide into the air. But Steve Miller, senior manager of external affairs for Sunflower said that victory could be short lived.

"We have 15 days. We will make the appeal. We will continue to fight until we can get to the business of building this plant," said Miller.

Some local lawmakers say the decision to deny the permits was far from easy and may have been a mistake. "It's a difficult decision and I think that the state made the wrong decision," said Republican Senator Phil Journey, of Haysville.

Now, some say K.D.H.E.'s decision to deny may have stepped on a few toes. With a new legislative session around the corner, the department may a target.

"I can see legislation that would change the jurisdiction of KDHE, perhaps give the Kansas Corporation Commission jurisdiction over power. That seems to be reasonable," said Journey.

Journey worries the move keep Sunflower from building could hurt the state in the long run. "I do see the issue of the business climate in Kansas being defamed by this act and hurting the perception of Kansas all over the country," said Journey.

Environmentalists say granting the permits would have done more damage. "I think if they hadn't considered CO2, that would have been a mistake," said Kirkbride.

Sunflower gathered its legal team Thursday to look at options, but it says backing out of building isn't in the plan.

Sunflower has 15 days to appeal the decision by Secretary Rod Bremby. If permits are denied again, the issue could land in court.