The recommendation Wednesday by hearing officer Michael O'Malley for a final air permit goes to the Arkansas Pollution Control and Ecology Commission.
The 600-megawatt plant is under construction about 15 miles northeast of Texarkana.
The Arkansas Department of Environmental Quality approved the permit in November 2008, but the Sierra Club and nearby landowners appealed.
Sierra Club associate field organizer Lev Guter says the organization is disappointed and will continue fighting the permit and will explore all legal options.
SWEPCO is also still waiting for several permits for the plant from the U.S. Army Corps of Engineers and the Department of Environmental Quality.
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