Court approves coal ash cleanup settlement agreement

Jun. 10—Dynegy Midwest Generation, LLC, owner of the retired Vermilion Power Station, announced it has agreed to and obtained judicial approval of a comprehensive settlement regarding alleged violations of the Illinois Environmental Protection Act at the former power plant.

The agreement includes interim protective measures the company will take during Illinois EPA's (IEPA) closure application and permit review period, an overall coal ash pond closure plan that can begin once the environmental agency issues a permit, and payments by the company, according to a company press release.

Given the company's commitment to environmental stewardship and to facilitate the resolution of closure activities at the site, the company proactively worked with the Office of the Illinois Attorney General to enter into an agreed judicial process, the press release states.

While submitting the settlement and obtaining judicial approval is an important milestone, the closure plans are subject to environmental review and permitting by the IEPA. It is estimated that the impoundment closure process will take more than 12 years from the commencement of construction activities.

Statement of Dynegy Midwest Generation, LLC, site owner, and party to the judicial settlement: "Since acquiring the former Vermilion plant site in 2018, the company has prioritized obtaining consensus on a responsible closure method that protects the environment, groundwater resources, and public health. With this settlement agreement, we are one step closer to implementing an impoundment closure that is consistent with our company's commitment to environmental stewardship and meets the unique challenges presented by this property and the legacy coal plant. No two coal plant sites are the same, and it is critical to follow the science and a site-by-site approach to determine the best path for a responsible closure of a coal combustion residuals impoundment, instead of a one size fits all approach. Our company is demonstrating our commitment to closing its coal ash ponds through responsible and environmentally sound methods based on the unique factors at each coal plant site."

Overview of the Proposed Vermilion Power Station settlement:

* The company will implement interim measures to protect the Middle Fork River while the IEPA reviews the pending coal ash impoundment closure plans and while the company removes the coal combustion residuals. Interim measures include: implementing an IEPA-approved Safety Emergency Response Plan; construction of an IEPA-approved groundwater collection trench intended to prevent contaminated groundwater from leaving the site; and IEPA-approved plans for de-watering the coal ash impoundments.

* The company will conduct monthly inspections to evaluate the riverbank and will implement any temporary bank stabilization activities as necessary.

* Given the unique nature of the site and to bring resolution to the matter, the company agrees that if IEPA issues a final closure permit, the company will demolish the former power station and submit for approval to construct an on-site landfill within the footprint of the former plant to store and manage the coal ash.

* The company agrees to pay a civil penalty of $100,000 and contribute to two projects to benefit the environment in Vermilion County.

* The company has agreed to contribute $200,000 to the Illinois Department of Natural Resources to support projects in the Middle Fork State Fish and Wildlife Area. In consultation with the Vermilion Conservation District and the Vermilion County Conservation District Foundation, the company will contribute $200,000 to projects to improve Kennekuk County Park. These projects will be undertaken in connection with the settlement of the enforcement action taken by the Illinois Attorney General, the Vermilion County State's Attorney, and the Illinois EPA for alleged violations of the Illinois Environmental Protection Act and regulations promulgated thereunder.

Under the terms of the consent order, Dynegy agreed to dig up, and move to a safer location onsite, the approximately 3 million cubic yards of coal ash sitting in leaking, unlined impoundments that loom over Illinois' only national scenic river, according to the Prairie Rivers Network.

For years, Eco-Justice Collaborative and Prairie Rivers Network called attention to the damaging pollution and grave threat at the site, demanding that Dynegy move the toxic coal ash out of the floodplain to avoid a catastrophic collapse as the riverbank continued to erode.

On behalf of Prairie Rivers Network, Earthjustice brought two lawsuits—one in federal court, one before the Illinois Pollution Control Board—to demand that Dynegy comply with environmental laws and stop polluting the river.

In 2018, Illinois EPA issued Dynegy a violation notice for pollution caused by the coal ash. That violation was referred to the Illinois Attorney General in May 2019, resulting in this week's consent order. Earthjustice intervened in that lawsuit on behalf of Prairie Rivers Network.

In order to carry out the consent order, Dynegy will still need Illinois EPA approval for its plan to remove the coal ash as well as a permit to discharge the waters stored in the ash ponds. A draft water discharge permit for the site is out for public comment until July 5.

Andrew Rehn, water resources engineer with Prairie Rivers Network states, "This cements a big victory for the Middle Fork. Today, we lock in some hard-fought wins from over a decade of advocacy. Dynegy will move their coal ash, demolish their power plant, build a landfill onsite, and move their coal ash into that landfill. Additionally, they will pay fines to help restore nearby natural spaces and clean up their leftover gabions and riprap that create an eyesore on the river. This is what proper coal ash cleanup looks like."

Jenny Cassel, senior attorney at Earthjustice, stated, "The Vermilion Power Station became emblematic of how the 2015 EPA coal ash rule failed to adequately address coal ash, even when the threat was as obvious as the brightly-colored toxic pollutants seeping through the riverbank. The local community fought for years to draw attention to the unsafe storage of coal ash by the scenic river as the threat of catastrophic collapse grew. (Thursday's) agreement means Dynegy will finally remove coal ash from the banks of the Middle Fork and restore the river, modeling the type of protections so desperately needed at unlined legacy coal ash ponds and other sites where coal ash threatens nearby waters and communities."

Also commenting, through the Prairie Rivers Network press release, Lan Richart, co-director of Eco-Justice Collaborative, stated, "The approval of the Consent Order marks an important milestone in the long campaign calling for the clean-up of toxic coal ash along the Middle Fork. What seemed impossible five years ago is now coming to fruition, as the process moves beyond litigation and into the important work of restoring the natural integrity of Illinois' only National Scenic River. This is a victory for all who worked so hard to protect this valuable resource."

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