EPA v. HAWAIIAN ELECTRIC COMPANY, INC.

Case summary

EPA GRANTED A PSD PERMIT FOR KAHE UNIT 6, A LARGE OIL- FIRED ELECTRICITY-GENERATING UNIT OWNED BY THE HAWAIIAN ELECTRIC COMPANY ( HECO ) IN JANUARY 1979. IN APRIL 1982, EPA ISSUED A NOTICE OF VIOLATION ( NOV ) TO HECO FOR VIOLA- TION OF THE PERMIT'S EMISSION LIMITS FOR OXIDES OF NITROGEN ( NOX ) AND PARTICULATE MATTER ( PM ), BASED ON RESULTS OF A PERFORMANCE TEST CONDUCTED IN JULY 1981. AT AN ENFORCE- MENT CONFERENCE IN 1982, HECO ARGUED THAT IT WAS NOT POSSI- BLE TO MEET THE PERMIT CONDITIONS AND REQUESTED THAT EPA MODIFY THE PERMIT. EPA AND HECO HAVE BEEN NEGOTIATING OVER THE PERMIT LIMITS WITHOUT RESOLUTION SINCE 1982. HECO HAS BEEN IN VIOLATION OF THE PERMIT LIMITS SINCE 1981 AND IS REGION 9'S OLDEST SIGNIFICANT VIOLATOR. HECO HAS TRIED A NUMBER OF DIFFERENT TECHNIQUES BUT HAS FAILED TO ACHIEVE COMPLIANCE WITH THE PERMIT. IN FEBRUARY 1987, HECO APPLIED FOR A PSD PERMIT MODIFICATION TO RETROFIT KAHE UNIT 6 FOR NOX COMBUSTION CONTROL (LOW- NOX BURNER) AND TO COMPLY WITH NEW EMISSION LIMITS FOR NOX AND PM BY DECEMBER 1988. HECO ESTIMATES THE NEW PRO- JECT COST TO BE ABOUT $3,400,000. EPA REGION 9 INDICATED THAT HECO'S LATEST PROPOSAL WAS ACCEPTABLE IF EMBODIED IN A CONSENT DECREE WITH APPROPRIATE CONSTRUCTION AND COMPLIANCE SCHEDULES AND CIVIL PENALTIES TO RESOLVE THE ENFORCEMENT ACTION. HECO INITIALLY REFUSED, INSISTING THAT ITS NONCOMPLIANCE IS NOT AN ENFORCEMENT MATTER. HECO HAS SUBSEQUENTLY SAID THAT ITS FEBRUARY, 1987 PROPOSAL WAS OFF THE TABLE. ON SEPTEMBER 28, 1987, THE PARTIES AGREED TO BEGIN NEGOTIATIONS ON PENALTIES. THIS REFERRAL REQUESTS FILING A COMPLAINT TO ENFORCE THE ORIGINAL PERMIT LIMITS, IN THE EVENT THAT WE CANNOT RE- SOLVE THE MATTER WITH A CONSENT DECREE. IT IS REGION 9'S POSITION THAT THE ORIGINAL PERMIT LIMITS ARE ENFORCEABLE, AS HECO DID NOT CHALLENGE THE PERMIT DURING THE APPROPRIATE TIME PERIOD AND THAT THE DISTRICT COURT WOULD BE WITHOUT JURISDICTION TO HEAR ANY PRESENT CHALLENGE TO THE PERMIT. ALSO, WE BELIEVE HECO CAN MEET THE EXISTING PM PERMIT LIMIT BY BURNING LOWER SULFUR CONTENT FUEL OIL. HECO CAN MEET THE EXISTING NOX PERMIT LIMITS WITH EITHER COMBUSTION MODIFICATIONS OR AMMONIA INJECTION. IT SHOULD BE MADE CLEAR THAT REGION 9 FEELS THAT THIS CASE SHOULD SETTLE. AS DETAILED IN THIS LITIGATION REPORT, HECO AND EPA HAVE BEEN NEGOTIATING OVER THE PERMIT LIMITS FOR A LONG TIME. WHILE HECO'S FEBRUARY, 1987 PROPOSAL TO AMENT THE PSD PERMIT IS BASICALLY ACCEPTABLE, IT DOES NOT RESOLVE THE ENFORCEMENT ACTION. IF HECO REFUSES TO ENTER INTO A CONSENT DECREE WITH APPROPRIATE CIVIL PENALTIES, HECO WILL FORCE EPA TO FILE THE COMPLAINT AND LITIGATE THIS ACTION.

Defendants (1)

• HAWAIIAN ELECTRIC COMPANY, INC.Named in complaintNamed in settlement

Facilities (1)

• HAWAIIAN ELECTRIC CO INC

  92 200 HARRINGTON HWY, HONOLULU, HI, 96840

  Registry ID: 110010595579

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• HAWAIIAN ELECTRIC CO., INC.entered 1989-02-08

  Primary law: CAA

  Federal penalty: $79,000

Timeline (6 milestones)

• 1987-09-30Referred To Dept Of Justice
• 1988-10-03Complaint Filed With Court
• 1989-02-08Final Order Entered
• 1989-02-08Concluded
• 1989-02-08Final Order Lodged
• 1993-07-15Enforcement Action Closed