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It may not be what DNREC officials originally had in mind, but a new agreement between the department and NRG Energy just might be a better deal to clean up the air.
NRG Energy, owners of the Indian River power plant, has agreed to reduce emissions and shut down two of the oldest turbines by 2012.
NRG officials filed an appeal against the Delaware Department of Natural Resources and Environmental Control (DNREC) after Secretary John Hughes signed multi-pollutant regulations in November 2006. Now, after months of reviewing their options, NRG officials have reached an agreement on pollution controls that satisfies both the company and DNREC.
“This is a fair deal for both parties,” said John Ragan, president of NRG’s northeast region. “It’s good to have the settlement completed so we can move forward. It’s good for the state of Delaware and good for NRG.”
The terms of the agreement include:
• Upon signing the consent decree, NRG will dismiss the Environmental Appeals Board appeal
• Within 60 days of signing, NRG will submit paperwork to PJM grid officials, who control electric power supply in Pennsylvania, New Jersey and Maryland, to allow the closing of units 1 and 2
• Reducing mercury emissions by 2009, with further reductions by 2013
• Reducing nitrogen oxides by about 2,900 tons annually
• Reducing sulfur dioxide by about 4,300 tons annually
• Ceasing operation of unit 2 by May 2010
• Ceasing operation of unit 1 by May 2011
• Meeting emissions level standards on the two largest units by 2012
• After May 1, 2008, NRG will fire only coal with sulfur content of 1.2 percent or less
• After Jan. 1, 2012, NRG will not operate units 3 or 4 unless they are in full compliance with the emission limitations required by this agreement
The reductions of nitrogen oxide and sulfur dioxide are 25 percent greater than what would have been required through the DNREC regulation for the two largest units at Indian River power plant outside Millsboro, said Hughes.
“Achieving greater levels of reductions in major emissions at the plant than are required under our regulation is a vital component of this agreement,” said Hughes. “The health and environmental benefits of phased-in and long-term emissions reductions at this plant outweigh the uncertainties of a protracted court case, and I’m grateful that we have reached this agreement with NRG.”
The agreement will be formalized in coming weeks and a consent order will be filed in Superior NRG
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Court, said Hughes.
“NRG is very committed to the environment,” said Ragan. “The appeals process has no timeline, so by doing this, we’ve accelerated the timeline. We will have full implementation by 2012.”
NRG officials will now complete engineering and design of emissions control equipment. Then they will order it and install it at Indian River, said Ragan.
“NRG has always been forward-thinking with environmental controls,” said Ragan, who explained that the company did not install controls prior to release of the regulations because it did not know what the regulations would require.
“It’s difficult for us to put in the investment necessary without knowing what future regulations will be. We have to think of our shareholders, as well as the environment.”
While the two oldest units at Indian River, units 1 and 2, will be shut down in the future, Ragan said the company has no plans to shrink the workforce.
“We will work with the union leadership and work to minimize any impact at all,” said Ragan. “We are hopeful to win the gas plant for the offshore wind project. If that happens there will be no impact to our workforce.”
All of the 166 employees at Indian River live in the area, said Ragan, “Our employees are very supportive of the settlement,” said Ragan. “NRG is very concerned about the health and welfare of our employees and the people in the state of Delaware.”
NRG purchased the Indian River power plant from Conectiv in 2001. The four-unit coal-fired power plant has the capacity to produce 780 net megawatts of electricity.
Conectiv, which also appealed the DNREC pollution regulations, will follow suit with NRG and resolve its appeal in Superior Court. The Environmental Appeals Board hearing was scheduled for Monday, Aug. 27, and Tuesday, Aug. 28, but will no longer be held because of the agreement.
Environmentalists respond
The Citizens for Clean Power (CCP), a grassroots organization based in Lewes, has been following the work of DNREC on pollution regulations, and while members are pleased a plan is now in place, they worry about what the delay will cost the public, said Patricia Gearity of CCP.
“The public will pay a high price for the delay in implementing the 2006 multi-pollutant regulations, in terms of increased healthcare costs and so-called ‘mortality-based benefits.’ Mortality-based benefits is a term which quantifies the value of a human life which ends prematurely,” said Gearity.
“We calculate that, even with the benefit of lower emissions rates in 2012, it will take at least 10 years to make up the increased costs for healthcare and mortality-based benefits. The dollar figures cannot begin to reflect the continued suffering, worry, frustration, ravages of disease and loss of loved ones prematurely for area residents, all of which will remain largely undiminished for the next four years.”
Gearity said the group is pleased NRG will significantly reduce mercury emissions by 2009, but says even with that, the emissions from NRG will not be significantly reduced until at least 2011.
Gearity said Citizens for Clean Power calls on DNREC to install at least three PM2.5 fine particulate monitors and three gas analyzers to measure toxic substances in the suspected nonattainment zone around Indian River power plant. “One or two of each will be inadequate to provide reliable information on the extent of the pollution that is impacting the region’s high heart disease, cancer, asthma and infant mortality rates.”
Even with the proposed agreement, John Austin of Citizens for Clean Power said he is disappointed the emissions will not be controlled sooner, and that local leaders did not take more of a stand.
“I am particularly disappointed in local leaders who still fail to grasp that what these regulations are about is stopping illness and premature deaths caused by the pollution from such plants,” said Austin. “Excuses that people were exposed to carcinogens before they moved here or that people living here smoked more than others are excuses for their not upholding the public’s trust.”
NRG to pay for exceeding emissions
For the 2009 through 2011 ozone seasons, NRG will comply with a cap of 1,700 tons of nitrogen oxides. If NRG fails to meet this requirement, the company agreed to pay:
• $750 per ton from 1,701 to 1,799 tons;
• $1,100 per ton from 1,800 to 1,999 tons;
• $2,000 per ton from 2,000 to 2,199 tons; and
• $2,500 per ton for 2,200 tons or more.
Contact Rachel Swick at: rswick@capegazette.com
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