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Virgin Islands Water and Power Authority Signs Legal Arrangement with E.P.A. and U.S. Department of Justice to Reduce Air Pollution at 2 Power Plants

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Category: Air
Type: News
Source: EPA
Date: Thursday, September 24th, 2015

(WASHINGTON) Under an arrangement announced today by the E.P.A. and the Department of Justice, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with the federal Clean Air Act at its Krum Bay facility on Saint Thomas and Cruz Bay facility on Saint John, U.S. Virgin Islands. The settlement resolves numerous violations of the Clean Air Act, including VIWAPA's failure to properly operate pollution control equipment to reduce emissions of nitrogen oxides and particulate matter that can cause serious respiratory illness. These pollutants are linked to health problems, including asthma, lung and heart disease. VIWAPA will spend approximately $12.2 million to comply with the agreement's requirements. VIWAPA will also pay a $1.3 million penalty.

Separate from the settlement, VIWAPA has been in the process of converting several of its oil-fired turbines at the Saint Thomas facility to be capable of burning liquefied petroleum gas or liquefied natural gas. The settlement requires that at least 85 percent of the power VIWAPA generates from the converted units be from burning liquefied petroleum gas or liquefied natural gas at the converted units and renewable sources. The arrangement will result in a reduction of nitrogen oxide emissions by approximately 1,300 tons per year and particulate matter emissions by approximately 185 tons per year. In addition, the conversion to liquefied petroleum gas or liquefied natural gas will reduce the amount of carbon dioxide, a greenhouse gas, from the Saint Thomas facility by approximately 66,000 tons per year and sulfur dioxide by approximately 200 tons per year.

"Today's settlement marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from power plants," said Assistant Attorney General John C. Cruden for the Justice Department's Environment and Natural Resources Division. "This settlement will eliminate thousands of tons of harmful air pollution each year, significantly improving air quality in the Virgin Islands."

"This settlement will drastically reduce the amount of air pollution in the Virgin Islands and bring the Saint Thomas power plant, one of the most significant sources of air pollution in the U.S. Virgin Islands, into compliance with the Clean Air Act," said E.P.A. Regional Administrator Judith A. Enck.

Under the Clean Air Act, large industrial facilities that make modifications that increase air pollution emissions must install best accessible control technology. VIWAPA operates with a permit that requires it to use the best accessible control technology to control emissions of nitrogen oxides and particulate matter. The complaint, which this settlement resolves, alleged numerous violations, including that VIWAPA had not properly operated nor maintained its water injection pollution control system during various times from October 2005 through December 2013. The complaint also alleged that the Saint Thomas facility failed to meet the opacity (smoke) emission limits during normal operations and failed to conduct continuous monitoring to ensure compliance with its limits, and to keep proper records.

Under the agreement, at the Saint Thomas facility, VIWAPA will:

• Properly operate and maintain the water injection pollution control system;

• Properly operate and maintain the continuous monitoring equipment;

• Develop and maintain an inventory of spare parts for the Saint Thomas facility's water injection pollution control system and emission monitoring equipment;

• Arrange for third-party audits and self-audits to ensure compliance with the water injection pollution control system requirements and emission monitoring requirements;

• Install a pollution control device to reduce visible emissions from one unit; and

• Install a video camera system to monitor visible emissions from the stacks and conduct visible emission monitoring when visible emissions are observed.

Under the agreement, at the Saint John facility, VIWAPA will:
• Use cleaner fuel; and

• Submit a request to the Virgin Islands government to modify the permit to designate the unit as an emergency unit.

The E.P.A. has worked with VIWAPA over the past several years to address its violations and operations at the Saint Thomas facility and the Saint John facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the Saint Thomas facility. It replaced its data acquisition system and installed an improved water system, which it now uses in its water injection pollution control system.

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