EPA v. Virgin Islands Water and Power Authority - Krum Bay

Case summary

Defendant, as an owner and operator of the Krum Bay Facility comprised of six (6) oil-fired gas turbines, one (1) heat recovery steam generating (HRSG) unit and two (2) utility boilers, is subject to the provisions of Sections 110, 111, 114 and 165 of the Act. Defendant is also subject to the Prevention of Significant Deterioration of Air Quality regulations (PSD regulations), 40 C.F.R. 52.21, the New Source Performance Standards (NSPS General Provisions), Subpart GG (Stationary Gas Turbine NSPS), 40 C.F.R. Part 60, the federal NSPS regulations and the federal PSD regulations promulgated. Since at least October 2005 to the present, the Defendant has continued to fall below the data-availability requirements for almost every quarter, for one parameter or other, on one or more units. Throughout this period, the Defendant has failed to operate in compliance with the required NOX emission limits, by operating either without water/steam injection or without proper maintenance of the required water/steam-to-fuel ratio. During this time period, the Defendant has also failed to continuously comply with continuous emission monitoring system (CEMS) and continuous opacity monitoring system (COMS) availability requirements, CEMS/COMS monitoring requirements and CEMS/COMS calibration requirements. Additionally, the Defendant has failed to operate Units 12 and 14 and Boiler 11 in compliance with the 20% opacity emission limits and has continuously failed to identify noncompliance with the Facility's PSD Permit in the Facility's Quarterly PSD Reports and to identify noncompliance in the Facility's NSPS Semiannual Reports. The settlement requires the Defendant to comply with all applicable provisions of CAA which include the New Source Performance Standards (NSPS) Subparts GG and KKKK applicable to stationary gas turbines, the Virgin Islands SIP, and conditions of the Facility Prevention of Significant Deterioration and Title V Operating Permits and violations of the National Emission Standards for Hazardous Air Pollutants for Reciprocal Internal Combustion Engines (RICE NESHAP). The CD also satisfies two Next Generation Compliance Tools (Next Gen) criteria. The CD requires the Defendant to post on its website the kWh of power generated by renewables, burning LPG/LNG, and burning fuel oil on a monthly basis at the St. Thomas Facility. This satisfies the transparency criteria of Next Gen. The Defendant's requirement for third party audits and verifications satisfies the independent third party verification component of Next Gen. The Defendant will spend approximately $75 million to enable the facility to burn LPG. The cost includes building infrastructure (delivery and storage), conversion of units, and the LPG itself. The Defendant will spend approximately $10 million to implement the remaining injunctive relief in the CD which includes air pollution control equipment, monitoring equipment, third party audits and self audits. The Defendant will also pay a $1,300,000 penalty to resolve the past violations and are subject to stipulated penalties for violating terms in the Consent Decree. The Amended CD incorporates replacement turbines into relevant terms of the CD, includes requirements for new reciprocating internal combustion engine (RICE) units, replaces conditions related to a control device damaged during Hurricane Irma, includes a new start date for the 12-month rolling averages relevant to a minimum liquid propane and liquid natural gas (LPG/LNG) fuel usage requirement in the CD, reflects EPA's responses to force majeure requests relating to Hurricane Irma and revises the CD force majeure provisions to accommodate future hurricanes.

Defendants (1)

• Virgin Islands Water and Power AuthorityNamed in complaintNamed in settlement

Facilities (4)

• VI WATER & POWER AUTHORITY (ST THOMAS)

  KRUM BAY, ST. THOMAS ISLAND, VI, 00801

  Registry ID: 110000580960

• VI WATER & POWER AUTHORITY (ST JOHN)

  ENIGHED POND, ST. JOHN ISLAND, VI, 00801

  Registry ID: 110010408558

• VI WATER & POWER AUTHORITY (ST THOMAS)

  KRUM BAY, ST. THOMAS ISLAND, VI, 00801

  Registry ID: 110000580960

• VI WATER & POWER AUTHORITY (ST THOMAS)

  KRUM BAY, ST. THOMAS ISLAND, VI, 00801

  Registry ID: 110000580960

Statutes cited

• CAA 114 — Record keeping, Inspection, Information Request
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 502 — Operating Permits (Title V)
• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards

Enforcement conclusions (2)

• Virgin Islands Water and Power Authority - Krum Bayentered 2016-09-30

  Primary law: CAA

  Federal penalty: $1,300,000

• Virgin Islands Water and Power Authority - Krum Bayentered 2019-01-11

  Primary law: CAA

Timeline (5 milestones)

• 2011-09-19Referred To Dept Of Justice
• 2011-09-21Enforcement Action Data Entered
• 2014-10-30Complaint Filed With Court
• 2018-10-25Final Order Lodged
• 2019-01-11Final Order Entered