EPA v. EAST KENTUCKY POWER COOPERATIVE

Case summary

THIS REFERRAL INVOLVES ALLEGED VIOLATIONS OF THE ACID RAIN PROVISIONS OF THE CAA AND THE KY NOx SIP, PURSUANT TO SECTION 110 OF THE CAA. IN 1998, EAST KY POWER COOPERATIVE (EKPC) REPLACED TWO GENERATORS AT UNITS 1 & 2 OF ITS DALE PLANT WITH TWO NEW GENERATORS HAVING NAMEPLATE RATINGS OF 27 MEGAWATTS (MW), THEREBY SUBJECTING UNITS 1 & 2 TO THE PROVISIONS OF THE ACID RAIN REQUIREMENTS OF THE TITLE IV OF THE ACT, FOR BOTH SULFUR DIOXIDE (S02) AND NITROGEN OXIDES (NOx), AS WELL AS THE NOx SIP CALL REQUIREMENTS AS CONTAINED IN THE KY STATE IMPLEMENTATION PLAN (SIP). AS A RESULT OF EKPC'S FAILURE TO PURCHASE ALLOWANCES FOR ITS S02 EMISSIONS FROM UNITS 1 & 2 DURING 2000-2004 (AND POSSIBLY 2005), EPA ALLEGES THAT EKPC IS LAIBLE FOR MILLIONS OF DOLLARS IN FEES AND PENALTIES TO THE U.S. ADDITIONALLY, EPA ALLEGES THAT EKPC IS LIABLE FOR MILLIONS OF DOLLARS IN FEES AND PENALTIES FOR FAILURE TO PURCHASE NOx CREDITS UNDER BOTH TITLE IV AND THE NOx SIP CALL. EKPC IS A NOT-FOR-PROFIT ELECTRIC GENERATING UTILITY HEADQUARTERED IN WINCHESTER, KY. THE RELIEF SOUGHT CONSISTS OF PENALTIES AND FEES FOR THE S02 AND NOx EMISSIONS, AND INJUNCTIVE RELIEF REQUIRING EKPC TO OBTAIN AN AMENDED TITLE V AIR PERMIT, INSTALL AIR POLLUTION CONTROL EQUIPMENT, PERFORM INCREASED MONITORING, AND SUBMIT ANNUAL CERTIFICATION FOR UNITS 1 & 2 AT THE DALE PLANT. THIS CASE APPEARS TO BE THE FIRST ENFORCEMENT ACTION NATIONALLY UNDER SECTION 411 OF THE ACT, AND INVOLVES MILLIONS OF DOLLARS IN FEES AND PENALTIES TO THE U.S. BOTH OECA AND DOJ ARE ALREADY AWARE OF THE ISSUES IN THIS CASE AND HAVE BEEN WORKING WITH THE REGION ON THIS MATTER. FURTHERMORE, EPA IS CURRENTLY IS LITIGATION WITH EKPC OVER NEW SOURCE REVIEW (NSR) AND NEW SOURCE PERFORMANCE STANDARDS (NSPS) VIOLATIONS AT ITS SPURLOCK AND DALE PLANTS (INVOLVING DLE UNITS 3 & 4). TRIAL IS SCHEDULED FOR MAY 23, 2006 IN THE EASTERN DISTRICT OF KENTUCKY.

Defendants (1)

• EAST KENTUCKY POWER COOPERATIVENamed in complaintNamed in settlement

Facilities (2)

• EAST KY POWER COOP - DALE STATION

  1925 FORD RD, WINCHESTER, KY, 40391

  Registry ID: 110008359542

• EAST KY POWER COOP - DALE STATION

  1925 FORD RD, WINCHESTER, KY, 40391

  Registry ID: 110008359542

Statutes cited

• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 502 — Operating Permits (Title V)
• CAA 412 — Acid Rain Requirements

Enforcement conclusions (4)

• EAST KENTUCKY POWER COOPERATIVEentered 2007-11-30

  Primary law: CAA

  Federal penalty: $11,400,000

• EAST KENTUCKY POWER COOPERATIVE (FINAL CONTINGENCY PENALTY ASSESSMENT)entered 2013-04-12

  Primary law: CAA

  Federal penalty: $7,599,951

• EAST KENTUCKY POWER COOPERATIVE (CONTINGENCY PENALTY ASSESSMENT)entered 2011-04-14

  Primary law: CAA

  Federal penalty: $3,541,740

• EAST KENTUCKY POWER COOPERATIVE (CONTINGENCY PENALTY ASSESSMENT)entered 2012-04-12

  Primary law: CAA

  Federal penalty: $8,142,880

Timeline (6 milestones)

• 2006-03-31Referred To Dept Of Justice
• 2006-04-12Enforcement Action Data Entered
• 2006-06-30Complaint Filed With Court
• 2007-09-20Final Order Lodged
• 2013-04-12Final Order Entered
• 2014-02-20Enforcement Action Closed