EPA v. MAUI ELECTRIC COMPANY, LTD.

Case summary

MAUI ELECTRIC COMPANY, LTS (MECO) APPLIED FOR AUTHORITY TO CONSTRUCT (ATC) AND PREVENTION OF SIGNIFICANT DETERIO- RATION (PSD) PERMITS FROM THE HAWAII DEPARTMENT OF HEALTH ON FEBRUARY 23, 1987. MECO APPLIED FOR PERMITS FOR TWO 12.5 MW DIESEL ELECTRIC GENERATORS AT MECO'S MAALAEA GENERATING STATION ON THE ISLAND OF MAUI. ON JULY 2, 1987 THE HAWAII DEPARTMENT OF HEALTH (DOH) GRANTED AN AUTHORITY TO CONSTRUCT PERMIT NO. A-712-654 TO MECO FOR THE TWO DIESEL GENERATORS (CALLED UNITS 12 AND 13). THE ATC LIMITED THE HOURS OF OPERATION OF THE UNITS TO 260 HOURS PER YEAR WHICH LIMITED THE HOURS OF OPERATION OF THE UNITS TO 260 HOURS PER YEAR WHICH LIMITED THE EMISSIONS TO BELOW THE PSD SIGNIFICANCE LEVEL (THAT IS, THE LEVEL TRIGGERING THE REQUIREMENT OF A PSD PERMIT). EPA WAS NOT NOTIFIED OF THE GRANTING OF THE ATC. SINCE UNITS 12 AND 13 ARE BASE LOAD UNITS THAT WILL BE USED ALL THE TIME (NOT 260 HOURS PER YEAR), MECO STILL PURSUED THE PSD APPLICATION. UNKNOWN TO EPA, MECO BEGAN CONSTRUCTION OF UNITS 12 AND 13, COMPLETING CONSTRUCTION OF UNIT 12 ABOUT APRIL 5, 1988. WHEN EPA REGION 9 BECAME AWARE THAT MECO HAD CONSTRUCTED UNIT 12 AND WAS READY TO START OPERATION WITHOUT RECEIVING A PSD PERMIT, EPA ISSUED A NOTICE OF VIOLATION (NOV) TO MECO, DATED APRIL 12, 1988, FOR CONSTRUCTION OF A MAJOR MODIFICATION WITHOUT A PSD PERMIT. LATER, WHEN MECO ADMIT- TED STARTING CONSTRUCTION OF UNIT 13, ANOTHER NOV, DATED APR IL 21, 1988, WAS ISSUED FOR UNIT 13. AS DESCRIBED BELOW, EPA REGION 9'S POSITION IS THAT A MINOR SOURCE PERMIT OBTAINED FOR THE SOLE PURPOSE OF AVOIDING THE DELAY OF PSD PRE-CONSTRUCTION REVIEW IS NOT EFFECTIVE IN EXEMPTING THE SOURCE FROM THE PSD REGULATIONS.

Defendants (1)

• MAUI ELECTRIC COMPANY, LTD.Named in complaintNamed in settlement

Facilities (1)

• MAUI ELECTRIC COMPANY OFFICE COMPLEX

  210 KAMEHAMEHA AVENUE, KAHULUI, HI, 96732

  Registry ID: 110072214832

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• MAUI ELECTRIC COMPANYentered 1989-01-13

  Primary law: CAA

  Federal penalty: $115,000

Timeline (6 milestones)

• 1988-06-30Referred To Dept Of Justice
• 1988-10-03Complaint Filed With Court
• 1989-01-13Final Order Lodged
• 1989-01-13Final Order Entered
• 1989-01-13Concluded
• 1989-04-13Enforcement Action Closed