EPA v. INDIANAPOLIS POWER AND LIGHT COMPANY (AES INDIANA)

Case summary

EPA initially issued a Notice and Finding of Violation (NOV/FOV) to IPL in 2009, alleging that it had made ?major modifications? under the regulations for the Prevention of Significant Deterioration (PSD) at its Petersburg, Harding Street, and Eagle Valley Stations, without meeting PSD requirements including Best Available Control Technology (BACT) for sulfur dioxide (SO2), nitrogen oxides (NOx) and Particulate Matter (PM). In 2015 and 2016, EPA issued additional NOVs/FOVs to IPL alleging additional PSD violations and excess emissions of opacity at the Petersburg Generating Station in violation of the applicable New Source Performance Standards, Indiana State Implementation Plan and operating permit issued under Title V of the CAA. Prior to this Decree, IPL retired the Eagle Valley Station and converted the Harding Station units to natural gas. In settlement of this case, IPL agreed to, among other things, operate a sulfuric acid mist mitigation system on all four Petersburg Units and meet a federally enforceable sulfuric acid emission limitation on each unit (to reduce opacity from the Units). IPL also agreed to install a Selective Non-Catalytic Reduction system on Petersburg Station Unit 4 to reduce NOx, and to continuously operate existing air pollution controls for NOx and SO2. IPL requested and the U.S. agreed that should IPL retire Units 1 and 2 prior to 2023 then it shall be relieved of its obligation to install and operate the SNCR on Unit 4. In addition, the CD requires monitoring, stack testing, and reporting to ensure continuous compliance with all terms. As part of the settlement, IPL will pay a civil penalty of $1.525 million: $ 925,000 will be paid to the United States, and $600,000 will be paid to Indiana. In addition, IPL is required to implement a $ 5,000,000 On-Site Solar Mitigation Project. Furthermore, the Decree contains a State-Only Environmentally Beneficial Project requiring IPL to spend at least $325,000 to help prevent deforestation and help restore and preserve ecologically significant parcels of land in the area of the Petersburg Station. EPA estimates that this settlement would reduce NOx, SO2, PM, and H2SO4 emissions by 4,532, 58,055, 2,630, and 2,630 tons per year, respectively. The proposed settlement is in the public interest and, therefore, EPA recommends that DOJ sign and lodge the CD at its earliest convenience.

Defendants (3)

• INDIANAPOLIS POWER & LIGHT CO. EAGLE VALLEYNamed in complaint
• INDIANAPOLIS POWER & LIGHT COMPANY - HARDINGNamed in complaint
• INDIANAPOLIS POWER AND LIGHT - PETERSBURGNamed in complaintNamed in settlement

Facilities (4)

• INDIANAPOLIS POWER & LIGHT COMPANY DBA AES INDIANA - HARDING

  3700 S HARDING ST, INDIANAPOLIS, IN, 46217-3333

  Registry ID: 110000396991

• AES INDIANA PETERSBURG GENERATING STATION

  6925 N STATE ROAD 57, PETERSBURG, IN, 47567

  Registry ID: 110037247912

• INDIANAPOLIS POWER & LIGHT COMPANY DBA AES INDIANA - HARDING

  3700 S HARDING ST, INDIANAPOLIS, IN, 46217-3333

  Registry ID: 110000396991

• AES INDIANA EAGLE VALLEY GENERATING STATION

  4040 BLUE BLUFF RD, MARTINSVILLE, IN, 46151-7887

  Registry ID: 110000396606

Statutes cited

• CAA 502 — Operating Permits (Title V)
• CAA 111 — New Source Performance Standards
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• INDIANAPOLIS POWER AND LIGHT COMPANY (AES INDIANA)entered 2021-03-23

  Primary law: CAA

  Federal penalty: $925,000 · State/local: $600,000

Timeline (5 milestones)

• 2016-09-30Referred To Dept Of Justice
• 2016-10-03Enforcement Action Data Entered
• 2020-08-30Final Order Lodged
• 2020-08-30Complaint Filed With Court
• 2021-03-23Final Order Entered