News Release: US Settlement with Michigan Utility to Reduce Emissions at Its Coal-Fired Power Plants, Fund Projects to Benefit Environment and Communities

FOR IMMEDIATE RELEASE
September 16, 2014 


US
Settlement with Michigan Utility to Reduce Emissions at Its Coal-Fired
Power Plants, Fund Projects to Benefit Environment and Communities


WASHINGTON
– In a settlement with the United States, Consumers Energy, a
subsidiary of CMS Energy Corporation, has agreed to install pollution
control technology, continue operating existing pollution controls and
comply with emission rates to reduce harmful air pollution from the
company’s five coal-fired power plants located in West Olive,
Essexville, Muskegon and Luna Pier, Michigan, the Department of Justice
and the U.S. Environmental Protection Agency (EPA) announced today. The
settlement will resolve claims that the company violated the Clean Air
Act by modifying their facilities in a way that caused the release of
excess sulfur dioxide and nitrogen oxide.


EPA
expects that the actions required by the settlement will reduce harmful
emissions by over 46,500 tons per year, which includes approximately
38,400 tons per year of sulfur dioxide (SO₂) and 8,100 tons
per year of nitrogen oxide (NOx). The company estimates that it will
spend over $1 billion to implement the required measures. The pollution
reductions will be achieved through the installation, upgrade, and
operation of state-of-the-art pollution control devices designed to
reduce emissions and protect public health. Consumers Energy will also
take several coal-fired units offline and may repower additional
coal-fired units with natural gas.


The
settlement requires the company to pay a civil penalty of $2.75 million
to resolve Clean Air Act violations and spend at least $7.7 million on
environmental projects to help mitigate the harmful effects of air
pollution on the environment and benefit local communities. 


“The
required pollution controls and funding for mitigation projects will
reduce harmful pollution in American communities,” said Cynthia Giles,
assistant administrator for EPA’s Office of Enforcement and Compliance
Assurance. “This case demonstrates that energy can be provided to local
communities in a responsible way that significantly reduces sulfur
dioxide and nitrogen oxide known to contribute to serious health
concerns.”


“Today’s
settlement will bring cleaner air to residents in Michigan by removing
tens of thousands of tons of harmful air pollution from the atmosphere,”
said Sam Hirsch, the Acting Assistant Attorney General of the Justice
Department’s Environment and Natural Resources Division.  “This
agreement will render benefits to communities far into the future with
pollution-reduction projects that will improve public health and help
restore natural resources downwind of the plants."  


The
settlement requires the company install to pollution control technology
and implement other measures to reduce sulfur dioxide, and particulate
matter emissions from its five coal-fired power plants, comprising 12
operating units. Among other requirements, the company must comply with
declining system-wide limits for SO₂ and NOx and meet
emission rates. In addition, the company must retire or refuel two units
to natural gas and retire an additional five units.


SO₂ and
NOx, two predominant pollutants emitted from power plants, have
numerous adverse effects on human health and are significant
contributors to acid rain, smog, and haze. These pollutants are
converted in the air to particulate matter that can cause severe
respiratory and cardiovascular impacts, and premature death.


The
settlement also requires Consumers Energy to spend at least $7.7
million on projects that will benefit the environment and local
communities, including paying $500,000 to the National Park Service for
the restoration of land, watersheds, vegetation and forests or combating
invasive species in the Cuyahoga Valley National Park and the Sleeping
Bear Dunes National Lakeshore Park. 


The
remaining $7.2 million will be spent on a series of mitigation
projects. Potential projects include efforts to reduce vehicle
emissions, install renewable energy and energy efficiency projects,
replace or retrofit wood burning appliances, and protect and restore
ecologically significant lands in Michigan. Consumers Energy has five
years to complete its selected projects.


This
settlement is part of EPA’s national enforcement initiative to control
harmful emissions from large sources of pollution, which includes
coal-fired power plants, under the Clean Air Act’s Prevention of
Significant Deterioration requirements. The total combined SO₂
and NOx emission reductions secured from all these settlements will
exceed 2 million tons each year once all the required pollution controls
have been installed and implemented.


Consumers
Energy is Michigan’s second-largest electric and natural gas utility,
providing electric service to more than 6 million people in the Lower
Peninsula of Michigan.


The
settlement was lodged with the U.S. District Court for the Eastern
District of Michigan and is subject to a 30-day public comment period
and final court approval.


More on the settlement: http://www2.epa.gov/enforcement/consumers-energy-clean-air-act-settlement


More information about EPA’s enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html