EPA v. ARBOR HILLS - FORTISTAR

Case summary

The Clean Air Act (CAA) violations at issue took place at AHE?s landfill gas-to-energy facility (AHE Facility) in Northville, Michigan. The AHE Facility is adjacent to the Arbor Hills Landfill in Northville, which is owned and operated by another company. The AHE Facility converts landfill gas (LFG), which is generated by decomposition of waste in the landfill, into electricity by burning it as fuel in four gas turbines. Arbor Hills RNG LLC (AHRNG), an affiliate of AHE, is a party to the CD and will be responsible for implementing one of the two possible compliance pathways set forth in the CD. The complaint alleges that AHE violated: (1) Title V of the CAA, the federally approved Michigan Title V program, and Section 3 of the applicable Renewable Operating Permit (ROP) by emitting SO2 at levels that exceed emissions limits at all four of the AHE Facility?s turbines and all three of its duct burners; (2) the New Source Performance Standards (NSPS) General Provisions and the National Emission Standards for Hazardous Air Pollutants (NESHAP) General Provisions, by failing to operate the AHE Facility and air pollution control equipment in a manner consistent with good air pollution control practices for minimizing emissions; (3) the NSPS for Stationary Gas Turbines, by using diesel fuel as an unpermitted alternative to LFG for startup of the plant?s three stationary gas turbines and by failing to monitor the sulfur content of the fuel; (4) the NESHAP for Municipal Solid Waste (MSW) Landfills and the MSW Landfill NSPS, by allowing compressor stacks to vent untreated LFG when the compressors are turned off; and (5) Mich. Admin. Code R. 336.2003 by failing to perform stack testing under representative conditions. AHE raised no affirmative or other defenses. By March 31, 2023, either (1) AHRNG will develop and construct a fully operational renewable natural gas facility (RNG Facility) that converts LFG into pipeline quality natural gas and has a conditioning system that virtually eliminates SO2 emissions; or (2) AHE will install, continuously operate, and send all of the LFG routed to the AHE Facility to a Sulfur Treatment System (STS) that limits combined SO2 emissions from the AHE Facility to 44.6 tons per year. The injunctive relief set forth above has a mitigation-related component by reducing SO2 emissions from the Facility, thus mitigating some of the impact of past SO2 emission violations. The injunctive relief will result in mitigation of the 161.7 tons of SO2 emissions exceedances from the AHE Facility from the past 5 years. Due to the current status of Supplemental Environmental Project (SEP) authority, no SEPs are included in the CD. AHE will pay a civil penalty of $750,000 in three installments over a two-year period. The payment amount and installment plan take into account an assessment of AHE?s ability to pay by financial expert Industrial Economics, Inc. The total penalty, including each installment payment, will be shared equally between the United States and Michigan. The Michigan Department of Environment, Great Lakes, and Energy (?EGLE?) is co-plaintiff in the case, and the State of Michigan is a party to the CD.

Defendants (1)

• ARBOR HILLS - FORTISTARNamed in complaintNamed in settlement

Facilities (2)

• FORTISTAR

  10690 W SIX MILE ROAD, NORTHVILLE, MI, 48167

  Registry ID: 110015815402

• FORTISTAR

  10690 W SIX MILE ROAD, NORTHVILLE, MI, 48167

  Registry ID: 110015815402

Statutes cited

• CAA 112D — MACT Standards
• CAA 502 — Operating Permits (Title V)
• CAA 111 — New Source Performance Standards

Enforcement conclusions (2)

• ARBOR HILLS - FORTISTARentered 2021-12-15

  Primary law: CAA

  Federal penalty: $375,000 · State/local: $375,000

• ARBOR HILLS - FORTISTARentered 2022-08-22

  Primary law: CAA

Timeline (5 milestones)

• 2019-09-06Referred To Dept Of Justice
• 2019-09-13Enforcement Action Data Entered
• 2021-09-09Complaint Filed With Court
• 2022-08-22Final Order Lodged
• 2022-08-22Final Order Entered