Indiana pulls permit for controversial coal-to-diesel plant, says it's 'no longer valid'
After more than five years, the fight over a controversial coal-to-diesel plant in Southern Indiana may finally have come to an end.
On Aug. 1, the Indiana Department of Environmental Management wrote a letter to Riverview Energy informing the company its permit for the Spencer County facility is "no longer valid." Two grassroots groups that have long pushed back against this project declared victory in stopping the plant that would have turned Indiana coal into diesel fuel.
IDEM originally issued the permit in 2019 with the requirement that Riverview Energy commence construction within 18 months. In 2020, the agency then extended the deadline to June 2022.
The company narrowly met that deadline: grading the ground and an access road, completing a barrier fence and pouring a small concrete foundation pad. However, Riverview has not conducted any additional construction activity since that time ― which is more than one year without any progress.
"Based on this evaluation, IDEM has determined that the approval to construct this project has expired," the letter said, adding that the permit is no longer valid.
Riverview did not immediately respond to IndyStar's requests for comment.
The grassroots groups ― Valley Watch and Southwestern Indian Citizens for Quality of Life ― have challenged the permit and the project in numerous ways in recent years. Most recently, Valley Watch sent a message to IDEM in July raising concerns Riverview failed to meet the timely and continuous construction requirement.
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A previous IndyStar investigation also raised questions over pollution levels that were approved under the permit. The review found that the state approved the company’s permit despite exceeding its cancer risk threshold.
The coal-to-diesel plant was expected to increase the risk of cancer in the area by about 13 cases per one million people, according to its permit. At the time of the permit approval, IDEM considered anything above one in one million a “level of concern.”
The state, however, updated its policies after IndyStar's article. The agency’s new policies for air quality modeling no longer mention the one-in-one million standard or promise to do more analysis when industrial facilities exceed it. Instead it mentions only the much lower federal standard for cancer risk from air pollution, which is 100 in one million.
Riverview previously told IndyStar the facility ― which would be the first-of-its-kind in the U.S. ― was needed now more than ever because it would contribute to the push for energy independence across Indiana and the country. The Spencer County plant would have turned Midwest coal into what it claimed was a cleaner diesel fuel.
The company had said the project's importance to energy security “has brought some of the world’s largest and brightest companies to Riverview’s table as we implement our business plan,” but it would not provide more details. Funding for the project also continued to remain unclear.
Riverview has 18 days to file an appeal of IDEM's decision. Despite the revocation, the company is able to reapply for a new permit if it wishes to continue pursuing the project, according to IDEM.
Call IndyStar reporter Sarah Bowman at 317-444-6129 or email at sarah.bowman@indystar.com. Follow her on Twitter and Facebook: @IndyStarSarah. Connect with IndyStar’s environmental reporters: Join The Scrub on Facebook.
IndyStar's environmental reporting project is made possible through the generous support of the nonprofit Nina Mason Pulliam Charitable Trust.
This article originally appeared on Indianapolis Star: State voids permit for controversial coal-to-diesel plant
