Environment DEC
From the February 2005 issue
New York State's Largest Coal Plants to Slash Pollution Levels
Governor George E. Pataki and Attorney General Eliot Spitzer announced two landmark agreements that will dramatically reduce emissions from six upstate coal-fired power plants, including the state's two largest polluting power plants.
These agreements represent the largest reduction in air pollution levels ever attained through settlement in New York State. Together they will reduce nitrogen oxide (NOx) emissions by more than 18,000 tons annually-the equivalent of removing 2.5 million cars from the state's roads. Sulfur dioxide (SO2) emissions will decrease by more than 123,000 tons per year-the equivalent of removing every diesel truck and bus operating in the United States.
Reduced emissions result in cleaner air
"These historic agreements will dramatically enhance air quality in New York State, improve public health and help preserve the state's greatest natural treasure, the Adirondack Park," Governor Pataki said. "They are also innovative settlements that will help promote clean energy technologies, preserve open space, and assist lower-income home owners and school districts in New York. New York truly is an environmental leader, and these agreements build on the unprecedented progress we've made during the last ten years to reduce harmful emissions and protect the air we breathe for future generations."
Attorney General Spitzer said, "These settlements have enormous benefits for New York State and also demonstrate that there is no double standard when it comes to our continuing efforts to protect the environment and public health. Just as we expect out-of-state plants to adhere to the law, we are holding New York's in-state power plants accountable as well."
Settlement Specifics
Under a settlement of the state's lawsuit with NRG Energy, Inc., the company will reduce sulfur dioxide emissions by 87 percent and nitrogen oxide emissions by 81 percent at its Huntley and Dunkirk power plants in western New York State.
In addition, the state has reached an agreement with AES and New York State Electric and Gas Corporation (NYSEG) to reduce emissions at four former NYSEG coal-burning power plants in the Finger Lakes and Southern Tier. Under the terms of the agreement, AES will reduce emissions of NOx at the four plants by at least 70 percent and SO2 by at least 90 percent.
The consent decrees
will remove pollutants from
the air that contribute to
acid rain
The Governor and Attorney General thanked each of the companies for working with the state to settle these actions in a way that provides significant environmental and public health benefits.
NRG Energy, Inc.
Under its agreement with the state, NRG will reduce emissions through a combination of installing new pollution controls, switching to cleaner burning low-sulfur coal, and retiring the four oldest and most inefficient units of the Huntley Coal Plant.
"This milestone agreement signifies NRG's commitment to the State of New York and the environment; it delivers many benefits to the state and its residents, including a faster reduction in emissions than might have otherwise occurred with federal or state legislation," said David Crane, President and Chief Executive Officer. "NRG is committed to the communities where we live and do business and has worked constructively with New York's Office of the Governor, the Attorney General and DEC to achieve major environmental improvements. The settlement provides us with the regulatory certainty that we need to ensure these plants continue to meet consumer demand for electricity-in an environmentally sound manner-into the next decade."
Niagara Mohawk Power Corp.
The agreement also requires the previous owner of the plants, Niagara Mohawk Power Corp. (NiMo), to pay a $3 million penalty and provide an additional $3 million to support several environmental benefit projects in western New York State, including weatherizing low-income housing and adding pollution controls to school buses.
NiMo also has agreed to convey 2,500 acres of environmentally sensitive land along the Salmon River to the state. The Oswego County parcel is valued at more than $2.5 million.
AES and NYSEG
As part of its agreement with the state, AES, current owner of the plants, will install innovative clean coal technology at its Greenidge Power Plant in the Town of Torrey as a demonstration project approved and partially funded by the Department of Energy. AES will also either shut down or install new pollution controls at its Hickling facility in Corning, the Westover plant in Johnson City and the Jennison facility in Bainbridge. AES already is utilizing state-of-the-art pollution control equipment at other major facilities in the towns of Barker and Lansing.
In addition, a $700,000 penalty has been assessed against NYSEG, and AES will provide $1 million toward energy efficiency, renewable energy or clean air projects.
Dan Rothaupt, AES Vice President for North America East Generation said, "This agreement continues AES' leadership role among its peers in the installation of equipment that improves air quality for the people and environment in New York State. AES is proud to have been the first company in New York State voluntarily to install state-of-the-art pollution control equipment (selective catalytic control) at a large fossil fuel electric generating plant in New York State in 1999 immediately after we purchased our New York fleet of plants. And we are equally proud to continue this cooperative approach with government today."
Lawsuit
In the original lawsuit against NRG and NiMo in 2002, the state charged that NiMo had made major modifications at its Huntley and Dunkirk plants while failing to install the necessary state-of-the-art pollution controls as the law requires, and that NRG, which bought the plants in 1999, also violated the law by continuing to operate the plants without proper pollution controls.
In May 2000, the state identified similar violations by NYSEG at the Westover and Greenidge plants. However, AES agreed to the settlement without being sued by the state.
Under the Clean Air Act, older power plants like those now operated by NRG and AES were exempt from having to comply with the stricter air pollution standards under the new source review rules unless they underwent major modifications that increased their pollution. This "grandfathering" was based on the assumption that these plants would be retired and replaced by new cleaner power plants. However, some companies, as alleged in these cases, modified their power plants to extend their life span while claiming that the modifications were routine maintenance and therefore exempt from the stricter pollution control requirements.
Clean Air Initiative
Governor George Pataki is recognized as a national leader on air quality issues. During his tenure, New York State has implemented the toughest acid rain emission regulations for power plants in the country and has exceeded the requirements of the Clean Air Act by adopting the most stringent standards for new automobiles and requiring strict emission controls on stationary sources, such as factories and utilities. The Governor also is spearheading a regional greenhouse gas initiative to develop a flexible, market-based cap and trade program to reduce carbon dioxide emissions from power plants from Maine to Maryland and has called for stronger federal action to further improve air quality.
Commissioner Crotty thanks
Governor Pataki for his
leadership in environmental
initiatives
Department of Environmental Conservation (DEC) Commissioner Erin M. Crotty said, "These settlements will have long-lasting benefits for both public health and the environment for generations to come. Under the leadership of Governor Pataki, New York State continues to be a leader in environmental conservation, whether it be protecting hundreds of thousands of acres of open space, or promulgating the toughest acid rain standards in the nation. These latest settlements are evidence of how our aggressive efforts are helping make New York's environment cleaner, healthier and more protected than ever before."
The Attorney General's Office, working with DEC, previously settled clean air cases with Orange and Rockland Utilities and Mirant, the past and current operators of another in-state plant, in June 2003.
AG and DEC
The cases were handled in the Attorney General's Environmental Protection Bureau by assistant attorneys general Peter Lehner, Jared Snyder, Michael Myers, Jacob Hollinger and Marie Chery-Sekhobo. For DEC, the cases were handled by Associate Counsel Michelle Crew and General Counsel James Ferreira with assistance from staff in DEC's Division of Air Resources.
