Case 1:13-cv-00010-WCG Filed 01/04/13 Page 1 of 88 ...

Case 1:13-cv-00010-WCG Filed 01/04/13 Page 1 of 88 Document 2-1

TABLE OF CONTENTS

I. JURISDICTION AND VENUE............................................................ 2

II. APPLICABILITY........................................................................... 3

III. DEFINITIONS............................................................................... 4

IV. REQUIREMENT TO RETIRE, REFUEL OR REPOWER UNITS..................... 14

V. NOx EMISSION REDUCTIONS AND CONTROLS.................................. 14

VI. SO2 EMISSION REDUCTIONS AND CONTROLS................................... 19

VII. PM EMISSION REDUCTIONS AND CONTROLS.................................... 23

VIII. PROHIBITION ON NETTING CREDITS OR OFFSETS............................. 29

IX. ENVIRONMENTAL MITIGATION PROJECTS...................................... 30

X. CIVIL PENALTY............................................................................ 32

XI. RESOLUTION OF PAST CIVIL CLAIMS ................................................. 33

XII. PERIODIC REPORTING................................................................... 33

XIII. REVIEW AND APPROVAL OF SUBMITTALS...................................... 36

XIV. STIPULATED PENALTIES............................................................... 36

XV. FORCE MAJEURE......................................................................... 49

XVI. DISPUTE RESOLUTION................................................................. 52

XVII. PERMITS..................................................................................... 54

XVIII. INFORMATION COLLECTION AND RETENTION................................ 57

XIX. NOTICES..................................................................................... 58

XX. SALES OR TRANSFERS OF OPERATIONAL OR OWNERSHIP INTERESTS....... 60

XXI. EFFECTIVE DATE.......................................................................... 62

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XXII. RETENTION OF JURISDICTION........................................................ 62

XXIII. MODIFICATION............................................................................ 62

XXIV. GENERAL PROVISIONS.................................................................. 62

XXV. SIGNATORIES AND SERVICE.......................................................... 65

XXVI. PUBLIC COMMENT/AGENCY REVIEW.............................................. 66

XXVII. CONDITIONAL TERMINATION OF ENFORCEMENT UNDER CONSENT

DECREE...................................................................................... 67

XXVIII. FINAL JUDGMENT........................................................................ 68

APPENDIX A -- ENVIRONMENTAL MITIGATION PROJECTS

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Case 1:13-cv-00010-WCG Filed 01/04/13 Page 3 of 88 Document 2-1

WHEREAS, the United States of America ("the United States"), on behalf of the United States Environmental Protection Agency ("EPA"), is concurrently filing a Complaint and Consent Decree, for injunctive relief and civil penalties pursuant to Sections 113(b)(2) and 167 of the Clean Air Act (the "Act"), 42 U.S.C. ?? 7413(b)(2) and 7477, alleging that Wisconsin Public Service Corporation ("WPS") violated the Prevention of Significant Deterioration ("PSD") provisions of Part C of Subchapter I of the Act, 42 U.S.C. ?? 7470-7492, requirements of Title V of the Act, 42 U.S.C. ?? 7661-7661f, and the federally enforceable Wisconsin State Implementation Plan ("Wisconsin SIP");

WHEREAS, on November 18, 2009, EPA issued a Notice of Violation and Finding of Violation ("NOV/FOV") to WPS with respect to alleged violations of the CAA;

WHEREAS, the United States provided WPS and the State of Wisconsin with actual notice pertaining to WPS's alleged violations, in accordance with Section 113(a)(1) and (b) of the Act, 42 U.S.C. ? 7413(a)(1) and (b);

WHEREAS, in the Complaint, the United States alleges, inter alia, that WPS made major modifications to major emitting facilities, and failed to obtain the necessary permits and install and operate the controls necessary under the Act to reduce sulfur dioxide ("SO2"), oxides of nitrogen ("NOx"), and/or particulate matter ("PM") at certain electricity generating stations located in Wisconsin, and that such emissions damage human health and the environment;

WHEREAS, in the Complaint, the United States alleges claims upon which relief can be granted against WPS under Sections 113 and 167 of the Act, 42 U.S.C. ?? 7413 and 7477;

WHEREAS, the United States and WPS (collectively, the "Parties") have agreed that settlement of this action is in the best interests of the Parties and in the public interest, and that

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entry of this Consent Decree without further litigation is the most appropriate means of resolving these matters;

WHEREAS, the Parties anticipate that the installation and operation of pollution control equipment and practices pursuant to this Consent Decree, and the retirement, refueling or repowering of certain facilities required by this Consent Decree, will achieve significant reductions of SO2, NOx, and PM emissions and improve air quality;

WHEREAS, the Parties have agreed, and this Court by entering this Consent Decree finds, that this Consent Decree has been negotiated in good faith and at arm's length and that this Consent Decree is fair, reasonable, in the public interest, and consistent with the goals of the Act;

WHEREAS, WPS has cooperated in the resolution of these matters; WHEREAS, WPS denies the violations alleged in the Complaint, and nothing herein shall constitute an admission of liability; and WHEREAS, the Parties have consented to entry of this Consent Decree without trial of any issues; NOW, THEREFORE, without any admission of fact or law, it is hereby ORDERED, ADJUDGED, AND DECREED as follows:

I. JURISDICTION AND VENUE 1. This Court has jurisdiction over this action, the subject matter herein, and the Parties consenting hereto, pursuant to 28 U.S.C. ?? 1331, 1345, and 1355, and 1367, and pursuant to Sections 113 and 167 of the Act, 42 U.S.C. ?? 7413 and 7477. Venue is proper under Section 113(b) of the Act, 42 U.S.C. ? 7413(b), and under 28 U.S.C. ? 1391(b) and (c). Solely for the purposes of this Consent Decree and the underlying Complaint, and for no other purpose, WPS waives all objections and defenses that it may have to the Court's jurisdiction over

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