Attorney General Eliot
Spitzer's Press Release
GOVERNOR AND ATTORNEY
GENERAL ANNOUNCE NEW YORK'S LARGEST COAL PLANTS TO SLASH POLLUTION
LEVELS
Largest Reductions in Air Pollution Levels Ever Attained Through
A Settlement Landmark Agreements Will Enhance Air Quality throughout
the State, Improve Public Health and Reduce Acid Rain
For Immediate Release
January 11, 2005
Governor George E. Pataki and
Attorney General Eliot Spitzer today 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.
Combined, the settlements represent
the largest reduction in air pollution levels ever attained through
settlement in New York. Together they will reduce NOx emissions
by more than 18,000 tons annually – the equivalent of removing
2.5 million cars from New York’s roads. 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.
“These historic agreements
will dramatically enhance air quality in New York, 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 over 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 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.”
Under a settlement of the state’s
lawsuit with NRG Energy Inc. (NRG), 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.
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 nitrogen
oxide (NOx) at the four plants by at least 70 percent and sulfur
dioxide (SO2) by at least 90 percent.
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.
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 the
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.”
Michael E. Jesanis, National
Grid’s president and chief executive officer said, “We’re
pleased to have been able to work cooperatively with Gov. Pataki,
Attorney General Spitzer and Commissioner Crotty in reaching
a settlement that provides significant economic and environmental
benefits to our customers in Western New York and preserves valuable,
environmentally sensitive land for all New Yorkers.”
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, 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.
As part of its agreement with
the state, AES, as the 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
shutdown 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
Responsible 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.”
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 exempted
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.
Today's settlements build on
a national clean air initiative begun by Spitzer in September
1999. The Attorney General, citing Clean Air Act violations,
sued eight utilities that operate 17 Midwest power plants. One
of those companies, VEPCO, settled in 2003, agreeing to significant
reductions in emissions. Cases against companies in Ohio, West
Virginia and Indiana, are pending.
Governor George Pataki is recognized
as a national leader on air quality issues. During his tenure,
New York 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.
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 that ever before.”
Brian L. Houseal, Executive Director
of the Adirondack Council, the Park’s largest environmental
organization said, “This is a momentous day in the history
Adirondack Park. When the state’s two most powerful public
officials, from opposing parties, team up to make such dramatic
progress on acid rain, we can only stand in awe and say ‘thank
you.’ This agreement is a testament to the importance of
the Adirondack Park and to the dire need to stop the acid rain
that is killing it. It’s also a testament to the commitment
both Governor Pataki and Attorney General Spitzer feel toward
the Adirondacks and the entire state’s environmental and
public health. The deep emissions reductions resulting from this
agreement will have a long-term beneficial impact on the survival
rate of the Adirondack Park’s lakes, forests and wildlife.
And it will make the simple act of breathing much easier for
millions of New Yorkers. We can all be proud of the shining example
they have set for the rest of the nation.”
Stanton H. Hudson, Jr., CEO of
the American Lung Association of New York State, Inc. said, “We
thank Governor Pataki and Attorney General Spitzer for taking
this significant step to help protect the health of everyone
who breathes in New York State. The agreements reached with these
power companies are important legal as well as public health
achievements. They will assure that these major polluters will
dramatically cut the unhealthful pollution belched from their
smokestacks.”
John Adams, president of the
Natural Resources Defense Council, said, “Thanks to the
leadership of Governor Pataki and Attorney General Spitzer, this
historic settlement will lead to huge cuts in urban smog, soot
and acid-rain pollution, allowing New Yorkers to breathe easier
and enjoy a cleaner environment. Once again, New York State is
taking the lead in enforcing this nation's Clean Air Act and
showing that we can meet our energy and environmental needs at
the same time. We urge the federal government and other states
to follow New York in enforcing the Clean Air Act to the fullest
extent against every coal-burning power plant that violates the
law.”
The Attorney General's office,
working with the state Department of Environmental Conservation,
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.
Both the NRG/NiMo and AES/NYSEG
settlements are available for public review on the Attorney General's
website at www.oag.state.ny.us
or at the Attorney General's regional office in Buffalo and
will be published by the DEC in the Environmental Notice Bulletin.
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.
For more information please contact
Jennifer Meicht in Governor Pataki’s Press Office at 518-474-8418
and Marc Violette in the Attorney General’s Office at 518-473-5525.
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