INDIANAPOLIS — Indianapolis Power & Light has reached a settlement with the U.S. Department of Justice and the State of Indiana over alleged violations of the Clean Air Act and Indiana law.
In a statement from the U.S. Department of Justice, the DOJ said IPL has agreed to improve environmental compliance at its Petersburg Generating Station in Pike County.
According to the settlement, IPL will reduce the plant's emissions of nitrogen oxides, sulfur dioxide, particulate matter, and sulfuric acid mist. IPL will install a pollution control device known as a selective non-catalytic reduction system on one of the plant's coal-fired units. The DOJ said the utility will also upgrade its sulfuric acid mitigation system and continually operate all of its pollution control equipment to achieve reductions.
The settlement acknowledges that IPL may permanently retire two of its Petersburg units earlier than planned. If IPL follows through on retirement of those units prior to July 1, 2030, the company does not have to install the SNCR because the emissions reduction from retiring the units would be "significantly greater than any reductions achieved by installing and operating the SNCR."
As part of the settlement, IPL will pay a civil penalty of $1.52 million with $925,000 going to the U.S. and $600,000 to the State of Indiana.
"The citizens of Indiana will breathe cleaner air, thanks to IPL's agreement to significantly decrease its excess emissions," Principal Deputy Assistant Attorney General Jonathan D. Brightbill, of the Justice Department's Environment and Natural Resources Division, said. "We are pleased that our Indiana state counterparts have worked closely with our federal team to achieve this favorable result for the environment."
IPL received notices of violations from the EPA in September 2009, September 2015, and February 2016 alleging IPL violated the Clean Air Act at Petersburg. In a statement, IPL said it believes the actions taken at issue "were in full compliance of the Act and applicable permits," but the company entered the settlement to resolve the claims and avoid uncertainties associated with litigation.
"We are pleased to have worked with federal and state officials to conclude longstanding discussions with an agreement that recognizes our progress in accelerating a safer and greener energy future through pollution control measures and a significant reduction in emissions," Lisa Krueger, president of the U.S. strategic business unit for The AES Corporation, parent company of IPL, said. "Settling this matter now solidifies environmental contributions we will make in Indiana communities and avoids expensive and lengthy litigation."
The company also said it will spend $5 million on a non-emitting generation source at Petersburg and will acquire and donate ecologically significant lands in accordance with the 15-year wildlife refuge habitat management plan.
