EPA v. MUSKINGUM RIVER STATION, AEP (OHIO POWER) (NATIONAL CASE) (LEAD)

Case summary

Region 5 participated in a global New Source Review (NSR) settlement with American Electric Power (AEP) which resulted in a Consent Decree (CD) in December of 2007 covering 45 coal-fired electricity generating units at 16 plants. The 2007 Consent Decree and subsequent modifications included, among other terms, requirements to retrofit, retire, refuel or repower specific units at plants in the AEP Eastern System as well as adherence to system-wide NOx and SO2 emission caps. Unlike other utility settlements, the AEP Consent Decree does not include unit-specific emission rate limitations. To date, the CD has been modified six times. On July 21, 2017, AEP filed a motion with the District Court seeking a fifth modification of the Consent Decree, which is currently stayed pending the outcome of negotiations. AEP argued in its motion that, due to a contract dispute with the owner and lessor of Rockport Unit 2, the circumstances upon which the Consent Decree was based have changed to such an extent that the modification of the Consent Decree is warranted. AEP requested relief from the obligation to install pollution control equipment at the Rockport plant. After extensive negotiations, the parties have agreed that the proposed fifth modification embodies a net benefit for the environment and human health, takes into consideration AEP?s economic considerations, and allows the United States and our co-plaintiffs to avoid protracted litigation of AEP?s motion. The central provisions of the proposed modification are: ? Removal of obligation to retrofit, repower, refuel or retire Rockport Unit 2 ? Imposition of a 0.09 lb/mmBTU NOx emission limit at Rockport Units 1 and 2 ? Obligation to install and operate an enhanced DSI system at Rockport Units 1 and 2 ? Imposition of 0.15 lb/mmBTU SO2 at Rockport Units 1 and 2 ? Reduction in AEP Eastern System NOx and SO2 caps Based on the overall ratcheting down of the system-wide caps, shown in the table below, the average annual emissions reduction over the next ten years is 11,200 tons of SO2 and 19,800 tons of NOx. Years Current SO2 Cap New SO2 Cap Current NOx Cap New NOx Cap 2019-2020 113,000 113,000 72,000 62,000 2021 113,000 94,000 72,000 52,000 2022-2025 110,000 94,000 72,000 52,000 2026-2028 102,000 94,000 72,000 52,000 2029+ after 94,000 89,000 72,000 44,000 The modified CD was lodged on May 29, 2019, in the United States District Court for the Southern District of Ohio, Eastern Division.

Defendants (1)

• AMERICAN ELECTRIC POWERNamed in complaintNamed in settlement

Facilities (10)

• GENERAL JAMES M. GAVIN POWER PLANT

  7397 N. ST RT #7, CHESHIRE, OH, 456200271

  Registry ID: 110043788327

• CARDINAL POWER PLANT (CARDINAL OPERATING COMPANY)

  306 COUNTY ROAD 7 EAST, BRILLIANT, OH, 439131088

  Registry ID: 110000605426

• TANNERS CREEK DEVELOPMENT LLC

  800 AEP DR, LAWRENCEBURG, IN, 47025-2510

  Registry ID: 110000605587

• CONESVILLE INDUSTRIAL PARK

  47201 COUNTY ROAD 273, CONESVILLE, OH, 438119799

  Registry ID: 110000605417

• GENERAL JAMES M. GAVIN POWER PLANT

  7397 N. ST RT #7, CHESHIRE, OH, 456200271

  Registry ID: 110043788327

• PICWAY POWER PLANT

  9301 U.S. ROUTE 23, LOCKBOURNE, OH, 431379631

  Registry ID: 110000382069

• CONESVILLE INDUSTRIAL PARK

  47201 COUNTY ROAD 273, CONESVILLE, OH, 438119799

  Registry ID: 110000605417

• INDIANA MICHIGAN POWER COMPANY DBA AEP ROCKPORT PLANT

  2791 US HWY 231 N, ROCKPORT, IN, 47635-8883

  Registry ID: 110000747924

• CARDINAL POWER PLANT (CARDINAL OPERATING COMPANY)

  306 COUNTY ROAD 7 EAST, BRILLIANT, OH, 439131088

  Registry ID: 110000605426

• MUSKINGUM RIVER DEVELOPMENT, LLC

  1501 SPARLING ROAD, WATERFORD, OH, 45786

  Registry ID: 110000591930

Statutes cited

• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 111 — New Source Performance Standards
• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (4)

• MUSKINGUM RIVER STATION, AEP (OHIO POWER) (NATIONAL CASE) (LEAD)entered 2019-07-17

  Primary law: CAA

• MUSKINGUM RIVER STATION, AEP (OHIO POWER) (NATIONAL CASE) (LEAD)entered 2020-08-26

  Primary law: CAA

• MUSKINGUM RIVER STATION, AEP (OHIO POWER) (NATIONAL CASE) (LEAD)entered 2007-12-10

  Primary law: CAA

  Federal penalty: $8,025,000

• MUSKINGUM RIVER STATION, AEP (OHIO POWER) (NATIONAL CASE) (LEAD)entered 2013-05-14

  Primary law: CAA

Timeline (5 milestones)

• 1999-08-27Referred To Dept Of Justice
• 1999-10-12Enforcement Action Data Entered
• 1999-11-03Complaint Filed With Court
• 2020-08-26Final Order Entered
• 2020-08-26Final Order Lodged