FEDERAL GOVERNMENT ANNOUNCES SETTLEMENT WITH COAL-FIRED POWER PLANT First Settlement in Western U.S. Requiring State-of-the-Art Nitrogen Oxide Retrofit

Release date: 08/12/2008

Contact Information: Dave Ryan, (202) 564-4355 / ryan.dave@epa.gov

(Washington, D.C. – August 12, 2008) As part of the fifteenth settlement secured by the U.S. Environmental Protection Agency and the U.S. Department of Justice to control harmful air pollution from coal-fired power plants, the owner and operator of a plant in St. Johns, Ariz., has agreed to install pollution controls at an estimated cost of $400 million to reduce harmful emissions and pay a $950,000 civil penalty. Today's settlement resolves alleged violations of the New Source Review requirements of the Clean Air Act.

“This settlement marks a significant step in controlling harmful nitrogen oxide emissions in the Western United States,” said Granta Nakayama, assistant administrator for EPA’s enforcement and compliance assurance program. “The installation of state-of-the-art technology sets an important benchmark for the control of this harmful pollutant. EPA is committed to ensuring coal-fired power plants comply with the Clean Air Act.”

"The reductions in harmful emissions secured by this settlement are substantial and will have a beneficial impact on air quality in Arizona and downwind areas," said Ronald J. Tenpas, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "SRP's willingness to settle rather than litigate the various issues in this case allowed the parties to focus their efforts on securing the best results for the environment. The Justice Department will continue our efforts to pursue emission reductions from power plants across the country to achieve the benefits envisioned by the Clean Air Act."


The Salt River Project Agricultural Improvement and Power District (SRP) has agreed to install and operate new pollution control equipment on both generating units at its Coronado Generating Station. The controls will reduce combined emissions of sulfur dioxide (SO₂) and nitrogen oxides (NO_x) by over 21,000 tons each year.

SRP will install flue gas desulfurization devices, known as scrubbers, to control SO₂ at both units and selective catalytic reduction (SCR) controls to limit NO_x at one of the units. This is the first settlement ever to secure an SCR retrofit of an existing coal-fired electric generating unit in the Western United States.

In addition, SRP will spend $4 million on environmentally beneficial projects to reduce air emissions and mitigate the impacts of the alleged violations. The projects include the following:

• Retrofit public school bus diesel engines in the Phoenix metropolitan area with pollution control equipment;
• Install solar photovoltaic panels on school buildings in Arizona, and fund the maintenance of the panels for at least 10 years;
• Offer incentives to residential homeowners, such as rebates, toward the replacement of pre-1988 wood stoves with cleaner burning, energy-efficient stoves or hearth appliances.