Utility Sued for Air Act Violations

A Wisconsin utility, Dairyland Power Cooperative (DPC), has been sued for violating the Clean Air Act, resulting in a settlement that will require the company to invest $150 million in pollution control technology and reduce emissions by 29,000 tons annually. The settlement, reached with the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice, will also require DPC to spend $5 million on environmental mitigation projects and pay a civil penalty of $950,000.

“This settlement will improve air quality in Wisconsin and downwind areas by significantly reducing releases of sulfur dioxide, nitrogen oxide and other harmful pollutants,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “This agreement also demonstrates the Justice Department’s commitment to enforcing the New Source Review provisions of the Clean Air Act, which help ensure cleaner air for those communities located near large sources of air pollution.”

Under the settlement, DPC must install pollution control technology on its three largest units and will be required to comply with stringent emission rates and annual tonnage limitations. The settlement also requires DPC to permanently retire three additional coal-fired units at the Alma plant, which have been out of operation since last year. The permanent retirement of these units will ensure that they do not restart without first complying with the Clean Air Act.

The actions taken by DPC to comply with this settlement will result in annual reductions of sulfur dioxide (SO2) emissions by 23,000 tons and nitrogen oxides (NOx) emissions by 6,000 tons from 2008 levels, in addition to significant reductions of particulate matter emissions. This settlement covers all seven coal-fired boilers at DPC’s three power plants.

The settlement also requires DPC to spend $5 million on projects that will benefit the environment and human health in communities located near the DPC facilities. DPC must pay $250,000 each to the U.S. Forest Service and the National Park Service, to be used on projects to address the damage done from DPC’s alleged excess emissions. At least $2 million will be spent on a major solar photovoltaic development project. The remaining mitigation funding will be spent on one or more of the following projects; installation of solar photovoltaic panels, home weatherization projects, and the replacement of DPC’s standard vehicle fleet with cleaner burning vehicles.

The Sierra Club is a party to the settlement, which will also resolve violations alleged by the Sierra Club in related litigation. Reducing air pollution from the largest sources of emissions, including coal-fired power plants, is one of EPA’s National Enforcement Initiatives for 2011-2013. SO2 and NOx, two key pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze.

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