Sunday, December 23, 2001
Settlement over Cinergy plants stalls
Environmentalists say deal awaits Bush action
By Mike Boyer
The Cincinnati Enquirer
A long-sought goal of environmental groups to reduce pollutants from Cinergy Corp.'s power plants has been in plain view for a year. But just when or whether it becomes a reality is in limbo pending the outcome of a review of federal environmental policies by the Bush administration.
The administration may disclose its plans for a section of the Clean Air Act known as New Source Review (NSR) as soon as this week.
In effect, we're about five yards from the goal line, said Kurt Waltzer, clean air program manager for the Ohio Environmental Council, which fears that the administration will roll back NSR enforcement.
The NSR requires older power plants, oil refineries and industrial plants to install the latest pollution controls when they are upgraded or modified for other than routine maintenance.
Under the Clinton administration, the EPA took a narrow view of what was considered routine maintenance, resulting in a series of lawsuits against Cinergy and other utilities operating more than 100 coal-fired boilers.
A year ago this past Friday, Cinergy and Clinton-administration officials announced a tentative $1.4 billion settlement in what then-EPA Administrator Carol Browner called the largest enforcement action under the Clean Air Act.
But that tentative settlement was subject to negotiation of a final court order, which has to be approved by the judge overseeing the lawsuits in U.S. District Court in Indianapolis.
Last summer, as part of the Bush administration's NSR review, the Justice Department froze enforcement actions. The administration said it feared tougher NSR enforcement was jeopardizing adequate supplies of electricity.
Some environmentalists think Cinergy is backing away from the tentative settlement in light of the Bush administration review.
But Steve Brash, Cinergy spokesman said, We're willing to continue to negotiate.
The settlement talks are confidential, but environmentalists and others familiar with the negotia tions say the Cinergy agreement is awaiting the Bush administration's action on NSR.
Oh, yeah, it's frustrating, said Andy Knott of the Hoosier Environmental Council, which, like the Ohio group, is a party to the settlement. We thought we were very close a year ago. And we're still hopeful.
Under the tentative settlement, Cinergy agreed to a series of actions. These included shutting down or repowering with cleaner-burning natural gas nine of its smaller coal-fired boilers. The agreement would also require Cinergy to operate nitrogen oxide control technology now being installed at 11 of its power-plant boilers year-round rather than just during the peak summer smog season.
The EPA said the agreement would reduce sulfur dioxide emissions in the Ohio Valley by 400,000 tons annually and cut nitrogen oxide emissions by 100,000 tons annually.
Last summer, the Boston-based Clean Air Task Force estimated implementation of the Cinergy settlement alone would dramatically reduce respiratory illnesses and mean up to 600 fewer premature deaths annually in the Midwest.
You can lay it right at the door of Attorney General (John) Ashcroft and Vice President (Dick) Cheney. They are right now deciding whether they will kill off enforcement of the New Source Review provision, said David Wooley, attorney for both the Ohio and Hoosier Environmental Councils.
The Wall Street Journal reported last week that the Bush administration will continue the pending enforcement cases while proposing a series of new rules to simplify compliance with the emissions rules.
Two months ago, Mr. Wooley said, he thought there was no way federal officials would back away from the Cinergy settlement.
Now, I'm worried, he said.
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