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IN THE UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF MICHIGAN 

UNITED STATES OF AMERICA, 

Plaintiff 

v. 

) 

) 

) 

) 

j Civil Action No.: J!1 - 1-35 ~ D 

) 

CONSUMERS ENERGY COMPANY, ) 

) 

) 

Defendant. ) 

) 

CONSENT DECREE 
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TABLE OF CONTENTS 

I. JURISDICTION AND VENUE .................................................................................................. 3 

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

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

IV. NOx EMISSION REDUCTIONS AND CONTROLS ........................................................... l6 

V. S02 EMISSION REDUCTIONS AND CONTROLS ............................................................ .25 

VI. PM EMISSION REDUCTIONS AND CONTROLS ............................................................. 34 

VII. PROHIBITION ON NETTING CREDITS OR OFFSETS .................................................. 42 

VIII. WIND POWER COMMITMENT ...................................................................................... .43 

IX. ENVIRONMENTAL MITIGATION PROJECTS ................................................................. 44 

X. CIVIL PENALTY .................................................................................................................... 46 

XI. RESOLUTION OF CIVIL CLAIMS ..................................................................................... 47 

XII. PERIODIC REPORTING ..................................................................................................... 51 

XIII. REVIEW AND APPROVAL OF SUBMITTALS ............................................................. ,54 

XIV. STIPULATED PENALTIES ............................................................................................... 55 

XV. FORCE MAJEURE .............................................................................................................. 67 

XVl. DISPUTE RESOLUTION ................................................................................................... 71 

XVII. PERMITS ........................................................................................................................... 73 

XVIII. INFORMATION COLLECTION AND RETENTION .................................................... 75 

XIX. NOTICES ............................................................................................................................. 76 

XX. SALES OR TRANSFERS OF OPERATIONAL OR OWNERSHIP INTERESTS ........... .78 

XXI. EFFECTIVE DATE ............................................................................................................. 80 
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XXII. RETENTION OF JURISDICTION ................................................................................... 80 

XXIII. MODIFICATION ............................................................................................................. 81 

XXIV. GENERAL PROVISIONS ............................................................................................... 81 

XXV. SIGNATORIES AND SERVICE ...................................................................................... 84 

XXVI. PUBLIC COMMENT ....................................................................................................... 85 

XXVII. TERMINATION ............................................................................................................. 86 

XXVIII. FINAL JUDGMENT ...................................................................................................... 87 

APPENDIX A- ENVIRONMENTAL MITIGATION PROJECTS 

APPENDIX B- APPORTIONMENT OF NOx or SOz MASS EMISSIONS AT UNITS WITH 

COMMON STACKS 

II 
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WHEREAS, Plaintiff, the United States of America ("the United States"), on behalf of 

the United States Environmental Protection Agency ("EPA"), is concurrently filing a Complaint 

and a Consent Decree, for injunctive relief and civil penalties pursuant to Sections 113(b )(2) and 

167 of the Clean Air Act ("CAA'' or the "Act"), 42 U.S.C. §§ 7413(b)(2) and 7477, alleging that 

Defendant, Consumers Energy Company ("Consumers") violated the Prevention of Significant 

Deterioration ("PSD") provisions of Part C of Subchapter I ofthe Act, 42 U.S.C. §§ 7470-7492, 

the requirements ofTitle V ofthe Act, 42 U.S.C. §§ 7661-766lf, and the PSD and opacity 

provisions of the federally enforceable Michigan State Implementation Plan ("Michigan SIP"); 

WHEREAS, on March 30, 2007, and October 17, 2008, EPA issued Notices of Violation 

and Findings of Violation ("NOV/FOV") to Consumers with respect to alleged violations ofthe 

CAA; 

WHEREAS, the United States provided Consumers and the State of Michigan with actual 

notice pertaining to Consumers' alleged violations, in accordance with Section 113 of the Act, 42 

u.s.c. § 7413; 

WHEREAS, in the Complaint, Plaintiff alleges, inter alia, that Consumers made major 

modifications to major emitting facilities, failed to obtain the necessary permits and install and 

operate the controls necessary under the Act to reduce sulfur dioxide ("S02"), oxides of nitrogen 

("NOx"), and/or particulate matter ("PM") emissions, and failed to meet established opacity 

standards, at certain electricity generating stations located in Michigan, and that such emissions 

can damage human health and the environment; 

WHEREAS, in the Complaint, Plaintiff alleges claims upon which relief can be granted 

against Consumers under Sections 113 and 167 ofthe Act, 42 U.S.C. §§ 7413 and 7477; 
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WHEREAS, the United States and Consumers (collectively, the "Parties") have agreed 

that settlement of this action is in the best interest of the Parties and in the public interest, and 

that entry of this Consent Decree without further litigation is the most appropriate means of 

resolving this matter; 

WHEREAS, the Parties anticipate that the installation and operation of pollution control 

equipment and practices pursuant to this Consent Decree, refueling of certain facilities with 

natural gas and/or the retirement of certain facilities required by this Consent Decree, will 

achieve significant reductions of S02, 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, the Parties agree that the United States' filing of the Complaint and entry 

into this Consent Decree constitute diligent prosecution by the United States, under Section 

304(b )(I )(B) of the CAA, 42 U .S.C. § 7604(b )(I )(B), of all matters alleged in the Complaint and 

addressed by this Consent Decree through the Date of Lodging of this Consent Decree; 

WHEREAS, Consumers has cooperated in the resolution of these matters; 

WHEREAS, Consumers 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: 

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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, 1355, and 1367, and pursuant to 

Sections 113 and 167 ofthe 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), because 

violations alleged in the Complaint are alleged to have occurred in, and Consumers conducts 

business in, this judicial district. Consumers consents to and shall not challenge entry of this 

Consent Decree or this Court's jurisdiction to enter and enforce this Consent Decree. Except as 

expressly provided for herein, this Consent Decree shall not create any rights in or obligations of 

any party other than the Parties to this Consent Decree. Except as provided in Section XXVI 

(Public Comment) of this Consent Decree, the Parties consent to entry of this Consent Decree 

without further notice. 

II. APPLICABILITY 

2. Upon entry, the provisions ofthis Consent Decree shall apply to and be binding 

upon the United States, and upon Consumers and any successors, assigns, or other entities or 

persons otherwise bound by law. 

3. Consumers shall provide a copy of this Consent Decree to all vendors, suppliers, 

consultants, contractors, agents, and any other company or other organization retained as of or 

after the Date of Entry to perform any of the work required by this Consent Decree. 

Notwithstanding any retention of contractors, subcontractors, or agents to perform any work 

required under this Consent Decree, Consumers shall be responsible for ensuring that all work is 

performed in accordance with the requirements of this Consent Decree. In any action to enforce 

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this Consent Decree, Consumers shall not assert as a defense the failure of its officers, directors, 

employees, servants, agents, or contractors to take actions necessary to comply with this Consent 

Decree, unless such failure is determined to be a Force Majeure Event in accordance with 

Section XV (Force Majeure) ofthis Consent Decree. 

III. DEFINITIONS 

4. For the purposes of this Consent Decree, every term expressly defined by this 

Section shall have the meaning given that term herein. Every other term used in this Consent 

Decree that is also a term used under the Act or in a federal regulation implementing the Act 

shall mean in this Consent Decree what such term means under the Act or those regulations. 

5. A "30-Day Rolling Average Emission Rate" for a Unit shall be expressed in 

lb/mmBTU and calculated in accordance with the following procedure: first, sum the total 

pounds ofNOx or S02 emitted from the Unit during the current Unit Operating Day and the 

previous 29 Unit Operating Days; second, sum the total heat input to the Unit in mmBTU during 

the current Unit Operating Day and the previous 29 Unit Operating Days; and third, divide the 

total number of pounds ofNOx or S02 emitted during the 30 Unit Operating Days by the total 

heat input during the 30 Unit Operating Days. A new 30-Day Rolling Average Emission Rate 

shall be calculated for each new Unit Operating Day. Each 30-Day Rolling Average Emission 

Rate shall include all emissions that occur during all periods within any Unit Operating Day, 

including emissions from startup, shutdown, and Malfunction, except as otherwise provided by 

Section XV (Force Majeure). 

6. A "90-Day Rolling Average Emission Rate" for a Unit shall be expressed in 

lb/mmBTU and calculated in accordance with the following procedure: first, sum the total 

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pounds ofNOx or S02 emitted from the Unit during the current Unit Operating Day and the 

previous 89 Unit Operating Days; second, sum the total heat input to the Unit in mmBTU during 

the current Unit Operating Day and the previous 89 Unit Operating Days; and third, divide the 

total number of pounds ofNOx or S02 emitted during the 90 Unit Operating Days by the total 

heat input during the 90 Unit Operating Days. A new 90-Day Rolling Average Emission Rate 

shall be calculated for each new Unit Operating Day. Each 90-Day Rolling Average Emission 

Rate shall include all emissions that occur during all periods within any Unit Operating Day, 

including emissions from startup, shutdown, and Malfunction, except as otherwise provided by 

Section XV (Force Majeure). 

7. A "365-Day Rolling Average Emission Rate" for a Unit shall be expressed in 

lb/mmBTU and calculated in accordance with the following procedure: first, sum the pounds of 

the pollutant in question emitted from the Unit during the most recent Unit Operating Day and 

the previous 364 Unit Operating Days; second, sum the total heat input to the Unit in mmBTU 

during the most recent Unit Operating Day and the previous 364 Unit Operating Days; and third, 

divide the total number of pounds of the pollutant emitted during the 365 Unit Operating Days 

by the total heat input during the 365 Unit Operating Days. A new 365-Day Rolling Average 

Emission Rate shall be calculated for each new Unit Operating Day. Each 365-Day Rolling 

Average Emission Rate shall include all emissions that occur during all periods of operation, 

including startup, shutdown, and Malfunction, except as otherwise provided by Section XV 

(Force Majeure). 

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8. "Baghouse" means a full stream (fabric filter or membrane) particulate emissions 

control device. Full stream is defined as capturing the entire stream of exhaust gas with no 

concurrent by-pass. 

9. "Boiler Island" means a Unit's (a) fuel combustion system (including bunker, coal 

pulverizers, crusher, stoker, and fuel burners); (b) combustion air system; (c) steam generating 

system (firebox, boiler tubes, and walls); and (d) draft system (excluding the stack), all as further 

described in "Interpretation of Reconstruction," by John B. Rasnic, U.S. EPA (November 25, 

1986) and attachments thereto. 

I 0. "Campbell" means Consumers' J.H. Campbell Generating Plant consisting of 

three electric utility steam-generating units designated as Unit I (260 MW), Unit 2 (360 MW), 

and Unit 3 (835 MW) and related equipment, located in West Olive, Ottawa County, Michigan. 

Campbell Unit 3 is co-owned by Consumers (approximately 93%) along with Wolverine Power 

Supply Cooperative and the Michigan Public Power Association. 

11. "Capital Expenditures" means all capital expenditures, as defined by Generally 

Accepted Accounting Principles ("GAAP"), as those principles exist at the Date of Entry of this 

Consent Decree, excluding the cost of installing or upgrading pollution control devices. 

12. "CEMS" or "Continuous Emission Monitoring System," means, for obligations 

involving the monitoring ofNOx and S02 emissions under this Consent Decree, the devices 

defined in 40 C.F.R. § 72.2 and installed and maintained as required by 40 C.F.R. Part 75. 

13. "Clean Air Act" or "CAA'' or "Act" means the federal Clean Air Act, 42 U.S.C. 

§§ 7401-767lq, and its implementing regulations. 

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14. "Cobb" means, for purposes of this Consent Decree, Consumers' B.C. Cobb 

Generating Plant consisting of two electric utility steam-generating units designated as Unit 4 

(160 MW) and Unit 5 (160 MW) and related equipment, located in Muskegon, Muskegon 

County, Michigan. 

15. "Consent Decree" means this Consent Decree and the Appendices hereto, which 

are incorporated into the Consent Decree. 

16. "Consumers" or "Defendant" means Consumers Energy Company. 

17. "Consumers System" means the Campbell, Cobb, Karn, Weadock, and Whiting 

facilities as defined herein. 

18. "Continuously Operate" or "Continuous Operation" means that when a pollution 

control technology or combustion control is required to be used at a Unit pursuant to this 

Consent Decree (including, but not limited to, SCR, FGD, DSI, ESP, Baghouse, or Low NOx 

Combustion System), it shall be operated at all times that the Unit it serves is in operation 

(except (a) the SCRs on Campbell Units 2 and 3 need not be operated during scheduled 

maintenance on the applicable Unit's Urea Based Ammonia System and (b) as otherwise 

provided by Section XV (Force Majeure)), consistent with the technological limitations, 

manufacturers' specifications, good engineering and maintenance practices (including Campbell 

Unit 2 and Unit 3 scheduled Urea Based Ammonia System outages), and good air pollution 

control practices for minimizing emissions (as defined in 40 C.F.R. § 60.11(d)), as applicable, 

for such equipment and the Unit. 

19. "Date of Entry" means the date this Consent Decree is approved or signed by the 

United States District Court Judge. 

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20. "Date of Lodging" means the date this Consent Decree is filed for lodging with 

the Clerk of the Court for the United States District Court for the Eastern District of Michigan. 

21. "Day" means calendar day unless otherwise specified in this Consent Decree. 

22. "Dry Sorbent Injection" or "DSJ" means a process in which a sorbent is 

pneumatically injected into the ducting downstream of where the coal is com busted and flue gas 

is produced, and upstream ofthe PM Control Device. 

23. "Electrostatic Precipitator" or "ESP" means a device for removing particulate 

matter from combustion gases by imparting an electric charge to the particles and then attracting 

them to a metal plate or screen of opposite charge before the combustion gases are exhausted to 

the atmosphere. 

24. "Emission Rate" for a given pollutant means the number of pounds of that 

pollutant emitted per million British Thermal Units of heat input (lb/mmBTU), calculated in 

accordance with this Consent Decree. 

25. "Environmental Mitigation Projects" or "Projects" means the projects set forth in 

Section IX (Environmental Mitigation Projects) and Appendix A of this Consent Decree. 

26. "EPA" means the United States Environmental Protection Agency. 

27. "Flue Gas Desulfurization System" or "FGD" means a pollution control device 

that employs flue gas desulfurization technology, including an absorber or absorbers utilizing 

lime or limestone, or a sodium based material, for the reduction of S02 emissions. 

28. "Force Majeure" means Force Majeure as defined in Section XV (Force Majeure) 

of this Consent Decree. 

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29. "Fossil Fuel" means any hydrocarbon fuel, including coal, petroleum coke, 

petroleum oil, or natural gas. 

30. "Full Stream Operation" is defined as the design configuration of a control device 

such that it captures the entire stream of exhaust gas with no concurrent by-pass. 

31. "Greenhouse Gases" means the air pollutant defined at 40 C.F .R. § 86.1818-12(a) 

as of the Date of Lodging of this Consent Decree as the aggregate group of six greenhouse gases: 

carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur 

hexafluoride. This definition continues to apply even if 40 C.F.R. § 86.1818-12(a) is 

subsequently revised, stayed, vacated or otherwise modified. 

32. "Improved Unit" for NOx means a Consumers System Unit equipped with an SCR 

or scheduled under this Consent Decree to be equipped with an SCR. A Unit may be an 

Improved Unit for one pollutant without being an Improved Unit for another pollutant. 

33. "Improved Unit" for S02 means a Consumers System Unit equipped with an FGD 

or scheduled under this Consent Decree to be equipped with an FGD. A Unit may be an 

Improved Unit for one pollutant without being an Improved Unit for another pollutant. 

34. "Karn," for purposes of this Consent Decree, means Consumers' D.E. Karn 

Generating Plant consisting of two electric utility steam-generating units designated as Unit I 

(255 MW) and Unit 2 (260 MW) and related equipment, located in Essexville, Bay County, 

Michigan. Karn does not include the oil-fired electricity generating units designated as Karn 

Units 3 and 4, also located in Essexville, Bay County, Michigan. 

35. "Karn Units 3 and 4" means Consumers' oil-fired Units 3 and 4, in Essexville, 

Bay County, Michigan. 

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36. "KW" means Kilowatt or one thousand watts net. 

37. "lb/mmBTU" means one pound per million British Thermal Units. 

38. "Low NOx Combustion System" means burners and associated combustion air 

control equipment, including Over Fire Air if specified, which control mixing characteristics of 

Fossil Fuel and oxygen, thus restraining the formation ofNOx during combustion of fuel in the 

boiler. 

39. "Malfunction" means a failure to operate in a normal or usual manner by any air 

pollution control equipment, process equipment, or a process, which is sudden, infrequent, and 

not reasonably preventable. Failures that are caused in part by poor maintenance or careless 

operation are not Malfunctions. 

40. "Michigan SIP" means the Michigan State Implementation Plan, and any 

amendments thereto, as approved by EPA pursuant to Section 11 0 of the Act, 42 U .S.C. § 741 0. 

41. "MW" means a megawatt or one million watts net. 

42. "National Ambient Air Quality Standards" or "NAAQS" means national ambient 

air quality standards promulgated pursuant to Section 109 of the Act, 42 U.S.C. § 7409. 

43. "Natural Gas" means natural gas received directly or indirectly through a 

connection to an interstate pipeline transporting natural gas governed by a tariff approved by the 

Federal Energy Regulatory Commission. The Parties recognize that Natural Gas is expected to 

contain no more than 0.5 grains of sulfur per 100 standard cubic feet of Natural Gas. 

44. "Netting" shall mean the process of determining whether a particular physical 

change or change in the method of operation of a major stationary source results in a "net 

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emissions increase" or "net significant emissions increase" as those terms are defined at 40 

C.F .R. § 52.21 (b )(3)(i) and (ii) and in the Michigan SIP. 

45. "NOx'' means oxides of nitrogen, measured in accordance with the provisions of 

this Consent Decree. 

46. "NOx Allowance" means an authorization to emit a specified amount ofNOx that 

is allocated or issued under an emissions trading or marketable permit program of any kind 

established under the Clean Air Act or the Michigan SIP; provided, however, that with respect to 

any such program that first applies to emissions occurring after December 31, 2011, a "NOx 

Allowance" shall include an allowance created and allocated to a Consumers System Unit under 

such program only for control periods starting on or after the fourth anniversary of the Date of 

Entry ofthis Consent Decree. 

47. "Nonattainment NSR" means the new source review program within the meaning 

of Part D of Subchapter I ofthe Act, 42 U.S.C. §§ 7501-7515 and 40 C.F.R. Part 51, and 

corresponding provisions ofthe federally enforceable Michigan SIP. 

48. "Operational or Ownership Interest" means part or all of Consumers' legal or 

equitable operational or ownership interest in any operating, non-Retired Unit. The parties 

recognize that under this definition, Section XX (Sales or Transfers of Operational or Ownership 

Interests) of this Consent Decree does not apply to salvage, scrap, or demolition of a Retired 

Unit. 

49. "Operating Day" means any calendar day on which a Unit fires Fossil Fuel. 

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50. "Other Unit" means any Unit within the Consumers System that is not an 

Improved Unit for the pollutant in question. A Unit may be an Improved Unit for NOx and an 

Other Unit for S02, and vice versa. 

51. "Over Fire Air" or "OF A" mean an in-furnace staged combustion control to 

reduce NOx emissions. 

52. "Parties" means the United States of America on behalf of EPA, and Consumers. 

"Party" means one ofthe named "Parties." 

53. "PM" means total filterable particulate matter, measured in accordance with the 

provisions ofthis Consent Decree. 

54. "PM Continuous Emission Monitoring System" or "PM CEMS" means, for 

obligations involving the monitoring of PM emissions under this Consent Decree, the equipment 

that samples, analyzes, measures, and provides, by readings taken at frequent intervals, an 

electronic and/or paper record of PM emissions. 

55. "PM Control Device" means any device, including an ESP or Baghouse, which 

reduces emissions of PM. 

56. "PM Emission Rate" means the number ofpounds of PM emitted per million 

BTU of heat input (lb/mmBTU). 

57. "Prevention of Significant Deterioration" or "PSD" means the new source review 

program within the meaning of Part C of Subchapter I ofthe Act, 42 U.S.C. §§ 7470-7492 and 

40 C.F.R. Part 52, and corresponding provisions ofthe federally enforceable Michigan SIP. 

58. "Project Dollars" means Consumers' expenditures and payments incurred or 

made in carrying out the Environmental Mitigation Projects identified in Section IX 

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(Environmental Mitigation Projects) of this Consent Decree to the extent that such expenditures 

or payments both: (a) comply with the requirements set forth in Section IX (Environmental 

Mitigation Projects) and Appendix A ofthis Consent Decree, and (b) constitute Consumers' 

direct payments for such projects (or in the case of land acquisition or donation projects required 

by Appendix A, the EPA-approved assessed value of real estate contributed for such projects), or 

Consumers' external costs for contractors, vendors, and equipment. 

59. "Refuel to Natural Gas" or "Refueled to Natural Gas" means, solely for purposes 

of this Consent Decree, the modification of a Unit such that the modified unit generates 

electricity solely through the combustion ofNatural Gas. Nothing herein shall prevent the reuse 

of any equipment at any existing Unit provided that Consumers applies for, and obtains, all 

required permits, including, if applicable, a PSD or Nonattainment NSR permit. 

60. "Retire" or "Retirement" means that Consumers shall permanently shut down and 

cease to operate the Unit such that the Unit cannot physically or legally burn Fossil Fuel, and that 

Consumers shall comply with applicable state and federal requirements for permanently ceasing 

operation of the Unit as a Fossil Fuel-fired electric generating Unit, including removing the Unit 

from Michigan's air emissions inventory, and amending all applicable permits so as to reflect the 

permanent shutdown status of such Unit. Consumers can only subsequently operate such a Unit 

if it is Refueled to Natural Gas within the meaning of this Consent Decree, and Consumers 

obtains any and all required CAA permit(s) for the Refueled to Natural Gas Unit, including but 

not limited to an appropriate permit pursuant to CAA Subchapter I, Parts C and D, and pursuant 

to the applicable Michigan SIP provisions implementing CAA Subchapter I. 

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61. "Selective Catalytic Reduction" or "SCR" means an air pollution control device 

for reducing NOx emissions in which ammonia ("NH3") is added to the flue gas and then passed 

through layers of a catalyst material. The ammonia and NOx in the flue gas stream react on the 

surface of the catalyst, forming nitrogen ("Nz") and water vapor. 

62. "SOz" means sulfur dioxide, measured in accordance with the provisions of this 

Consent Decree. 

63. "SOz Allowance" means an authorization to emit a specified amount of SOz that 

is allocated or issued under an emissions trading or marketable permit program of any kind 

established under the Clean Air Act or the Michigan SIP; provided, however, that with respect to 

any such program that first applies to emissions occurring after December 3I, 20 II, an "S02 

Allowance" shall include an allowance created and allocated to a Consumers System Unit under 

such program only for control periods starting on or after the fourth anniversary of the Date of 

Entry ofthis Consent Decree. 

64. "State" means the State of Michigan. 

65. "State Implementation Plan" or "SIP" means regulations and other materials 

promulgated by a state for purposes of meeting the requirements of the Act that have been 

approved by EPA pursuant to Section IIO ofthe Act, 42 U.S.C. § 74IO. 

66. "Surrender" or "Surrender of Allowances" means, for purposes of SOz or NOx 

Allowances, permanently surrendering allowances from the accounts administered by EPA and 

Michigan for all Units in the Consumers System, so that such allowances can never be used 

thereafter to meet any compliance requirements under the Act, a SIP, or this Consent Decree. 

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67. "System-Wide Annual NOx Tonnage Limitation" means the limitations, as 

specified in this Consent Decree, on the number of tons ofNOx that may be emitted from 

Campbell, Cobb, Kam, Weadock, and Whiting, collectively, during the relevant calendar year 

(i.e., January I through December 31 ), and shall include all emissions ofNOx during all periods 

of operations, including startup, shutdown, and Malfunction. 

68. "System-Wide Annual S02 Tonnage Limitation" means the limitations, as 

specified in this Consent Decree, on the number of tons of S02 that may be emitted from 

Campbell, Cobb, Kam, Weadock, and Whiting, collectively, during the relevant calendar year 

(i.e., January 1 through December 31 ), and shall include all emissions of S02 during all periods 

of operations, including startup, shutdown, and Malfunction. 

69. ''Title V Permit" means the permit required of Consumers' major sources 

pursuant to Subchapter V ofthe Act, 42 U.S.C. §§ 7661-7661e. 

70. "Unit" means collectively, the coal pulverizer, stationary equipment that feeds 

coal to the boiler, the boiler that produces steam for the steam turbine, the steam turbine, the 

generator, the equipment necessary to operate the generator, steam turbine, and boiler, and all 

ancillary equipment, including pollution control equipment and systems necessary for production 

of electricity. An electric steam generating station may comprise one or more Units. 

71. "Urea Based Ammonia System" or "UBAS" means a type of ammonia feed 

system for SCRs where solid urea pellets are stored in a silo. Upon use, the solid urea is heated 

to liquid, thermally decomposed to ammonia, and injected into the SCR as the reagent for the 

NOx reduction reaction. 

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72. "Weadock" means, for purposes of this Consent Decree, Consumers' J.C. 

Weadock Generating Plant consisting of two electric utility steam-generating Units designated as 

Unit 7 (155 MW) and Unit 8 (155 MW) and related equipment, located in Essexville, Bay 

County, Michigan. 

73. "Whiting" means, for purposes of this Consent Decree, Consumers' Whiting 

Generation Station consisting of three electric utility steam-generating Units designated as Unit I 

(l 02 MW), Unit 2 (1 02 MW), and Unit 3 (124 MW) and related equipment, located in Luna Pier, 

Monroe County, Michigan. 

74. "Wind Power" means capacity installed by Consumers or Power Purchase 

Agreements ("PP As") entered into by Consumers for capacity using wind turbines. 

IV. NOx EMISSION REDUCTIONS AND CONTROLS 

A. Unit-Specific NOx Requirements at Campbell Units 1, 2 and 3 

75. Commencing upon the Date of Entry, Consumers shall Continuously Operate the 

existing Low NOx Combustion System (including OFA) at Campbell Unit 1. 

76. Commencing no later than 365 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall Continuously Operate the Low NOx Combustion System 

(including OF A) at Campbell Unit I so that it achieves and maintains a 365-Day Rolling 

Average Emission Rate for NOx of no greater than 0.220 lb/mmBTU. 

77. Commencing upon the Date of Entry and continuing thereafter, Consumers shall 

Continuously Operate an SCR at Campbell Unit 2. 

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78. Commencing no later than 60 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall continuously achieve and maintain a 30-Day Rolling 

Average Emission Rate for NOx of no greater than 0.100 lb/mmBTU at Campbell Unit 2. 

79. Commencing no later than 180 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall continuously achieve and maintain a 90-Day Rolling 

Average Emission Rate for NOx of no greater than 0.080 lb/mmBTU at Campbell Unit 2. 

80. Commencing upon the Date of Entry and continuing thereafter, Consumers shall 

Continuously Operate an SCR at Campbell Unit 3. 

81. Commencing no later than 60 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall continuously achieve and maintain a 30-Day Rolling 

Average Emission Rate for NOx of no greater than 0.100 lb/mmBTU at Campbell Unit 3. 

82. Commencing no later than 180 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall continuously achieve and maintain a 90-Day Rolling 

Average Emission Rate for NOx of no greater than 0.080 lb/mmBTU at Campbell Unit 3. 

83. Campbell Unit 1 and Unit 2 exhaust to a common stack where all mass emissions 

are monitored. Accordingly, so long as the two Units exhaust to a common stack, the procedures 

of Appendix B shall be used for purposes of apportionment of the common stack NOx mass 

emissions and heat input to individual Campbell Units l and 2 for purposes of determining NOx 

lb/mmBtu emission rates. Consumers reserves the right to monitor NOx mass emissions at each 

unit individually if it becomes technically feasible to do so. 

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B. Unit-Specific NOx Requirements at Karn Units 1 and 2 

84. Commencing upon the Date of Entry, Consumers shall Continuously Operate the 

existing SCR at Kam Unit I. 

85. Commencing no later than 60 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall Continuously Operate the SCR at Kam Unit I so as to 

achieve and maintain a 30-Day Rolling Average Emission Rate for NOx of no greater than 0.080 

lb/mmBTU. 

86. Commencing upon the Date of Entry, Consumers shall Continuously Operate the 

existing SCR at Kam Unit 2. 

87. Commencing no later than 60 Operating Days after the Date of Entry and 

continuing thereafter, Consumers shall Continuously Operate the SCR at Kam Unit 2 so as to 

achieve and maintain a 30-Day Rolling Average Emission Rate for NOx of no greater than 0.080 

lb/mmBTU. 

C. Unit-Specific NOx Requirements at Cobb Units 4 and 5 

88. Commencing upon the Date of Entry, and continuing until the Unit is Retired or 

Refueled to Natural Gas pursuant to this Consent Decree, Consumers shall Continuously Operate 

the existing Low NOx Combustion System (including OFA) at Cobb Unit 5. 

89. Commencing no later than 365 Operating Days after the Date of Entry, and 

continuing until the Unit is Retired or Refueled to Natural Gas pursuant to this Consent Decree, 

Consumers shall Continuously Operate the Low NOx Combustion System (including OF A) at 

Cobb Unit 5 so that it achieves and maintains a 365-Day Rolling Average Emission Rate for NOx 

of no greater than 0.220 lb/mmBTU. 

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90. By no later than April 15,2016, Consumers shall (a) either Retire or Refuel to 

Natural Gas Cobb Unit 4 and (b) either Retire or Refuel to Natural Gas Cobb Unit 5. No later 

than one year from the Date of Entry, Consumers shall notify Plaintiff in writing which optionRetire or Refuel to Natural Gas- it elects for Cobb Units 4 and 5. If Consumers Refuels to 

Natural Gas Cobb Units 4 and/or 5, Consumers shall permanently cease burning coal at the 

unit(s) and shall continuously achieve and maintain a 365-Day Rolling Average Emission Rate 

for NOx of no greater than 0.200 lb/mmBTU. Furthermore, each such Refueled Unit shall not 

exceed a capacity factor of 20.0 percent in any single calendar year, and shall not exceed a threeyear rolling average capacity factor of 10.0 percent, based on an electrical output capacity of 135 

MW gross per Unit. 

D. Unit-Specific NOx Requirements at Weadock Units 7 and 8 

91. Commencing upon the Date of Entry, and continuing until the Unit is Retired 

pursuant to this Consent Decree, Consumers shall Continuously Operate the existing Low NOx 

Combustion Systems at Weadock Units 7 and 8. 

92. Commencing no later than 365 Operating Days after the Date of Entry, and 

continuing until the Unit is Retired pursuant to this Consent Decree, Consumers shall 

Continuously Operate the Low NOx Combustion Systems at Weadock Units 7 and 8 so that each 

Unit achieves and maintains a 365-Day Rolling Average Emission Rate for NOx of no greater 

than 0.340 lb/mmBTU. 

93. Weadock Units 7 and 8 exhaust through a common duct to a common stack. 

Accordingly, so long as the two Units exhaust to a common duct, notwithstanding any other 

provision, any NOx Emission Rates set forth under this Consent Decree as applicable to each of 

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Weadock Unit 7 and Unit 8 shall be measured and calculated for the two Units together as if they 

were a single Unit (e.g., where the Consent Decree specifies that Consumers shall operate 

Weadock Unit 7 and Unit 8 to achieve and maintain a 365-Day Rolling Average Emissions Rate 

for NOx of0.34 lb/mmBTU at each Unit, the emissions rate calculation for the Weadock Units 

will be based on the total NOx emissions and heat input for the two Units together measured at 

the common duct). A violation of any such rate based on common duct measurements shall be 

presumed to be two violations, unless Consumers proves to EPA's satisfaction that the violation 

is due solely to the mal-performance of one of the two Units. The procedures in Appendix Bare 

an acceptable means of demonstrating that a violation based on the common duct measurements 

is due solely to the mal-performance of one of the two Units. 

94. By no later than April15, 2016, Consumers shall Retire Weadock Units 7 and 8. 

E. Unit-Specific NOx Requirements at Whiting Units 1, 2, and 3 

95. Commencing upon the Date of Entry, and continuing until the Unitis Retired 

pursuant to this Consent Decree, Consumers shall Continuously Operate the existing Low NOx 

Combustion Systems at Whiting Units I, 2, and 3. 

96. Commencing no later than 365 Operating Days after the Date of Entry, and 

continuing until the Unit is Retired pursuant to this Consent Decree, Consumers shall 

Continuously Operate the Low NOx Combustion Systems at Whiting Units 1, 2, and 3 so that 

each Unit achieves and maintains a 365-Day Rolling Average Emission Rate for NOx of no 

greater than 0.280 lb/mmBTU. 

97. By no later than April 15, 2016, Consumers shall Retire Whiting Units 1, 2, and 3. 

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F. System-Wide Annual NOx Tonnage Limitations 

98. The Consumers System, collectively, shall operate so as not to exceed the 

following System-Wide Annual NOx Tonnage Limitations: 

For the Calendar Year Specified Below: System-Wide Annual NOx Tonnage 

Limitation: 

2015 15,245 

2016 9,319 

2017 and continuing each calendar year 6,912 [cap shall adjust to 6,600 if Consumers 

thereafter elects to Retire Cobb 4 and 5 L-----------~~~~~-----------~------

G. Monitoring ofNOx Emissions 

99. In determining a 30-Day Rolling Average Emission Rate for NOx, a 90-Day 

Rolling Average Emission Rate for NOx, or a 365-Day Rolling Average Emission Rate for NOx, 

Consumers shall use CEMS in accordance with the procedures of 40 C.P.R. Part 75, except that 

the NOx emissions data need not be bias adjusted and the missing data substitution procedures of 

40 C.P.R. Part 75 shall not apply. If applicable, diluent capping (i.e., 5% C02) will be applied to 

the NOx emission rate for any hours where the measured C02 concentration is less than 5% 

following the procedures in 40 C.P.R. Part 75, Appendix F, Section 3.3.4.1. 

I 00. For purposes of calculating the System-Wide Annual NOx Tonnage Limitations, 

Consumers shall use CEMS in accordance with the procedures specified in 40 C.P.R. Part 75, 

which includes the requirements associated with the concepts of bias adjustments and missing 

data substitution. 

H. Use and Surrender of NOx Allowances 

1 01. Except as may be necessary to comply with Section XIV (Stipulated Penalties), 

Consumers shall not use NOx Allowances to comply with any requirement of this Consent 

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Decree, including by claiming compliance with any emission limitation required by this Consent 

Decree by using, tendering, or otherwise applying NOx Allowances to offset any excess 

emissions. 

I 02. Except as provided in this Consent Decree, Consumers shall not sell, bank, trade, 

or transfer any NOx Allowances allocated to the Consumers System Units. Nothing in this 

Consent Decree shall restrict Consumers' ability to transfer NOx Allowances among its own 

facility or general accounts. 

I 03. Beginning with the year 2014 compliance period, and continuing each year 

thereafter, Consumers shall Surrender all NOx Allowances allocated to the Consumers System 

for that year's compliance period that Consumers does not need in order to meet its own federal 

and/or state CAA regulatory requirements for the Consumers System Units. However, NOx 

Allowances allocated to the Consumers System may be used by Consumers to meet its own 

federal and/or state CAA regulatory requirements for such Units. 

104. Nothing in this Consent Decree shall prevent Consumers from purchasing or 

otherwise obtaining NOx Allowances from another source for purposes of complying with 

federal and/or state CAA regulatory requirements to the extent otherwise allowed by law. 

105. The requirements of this Consent Decree pertaining to Consumers' use and 

Surrender ofNOx Allowances are permanent injunctions not subject to any termination provision 

ofthis Consent Decree. 

I. Super-Compliant NOx Allowances 

106. Notwithstanding Section IV.H (Use and Surrender ofNOx Allowances) of this 

Consent Decree, beginning with the year 2014 and continuing in each year thereafter, Consumers 

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may sell, bank, use, trade, or transfer NOx Allowances allocated to the Consumers System that 

are made available in that year's compliance period solely as a result of: 

a. the installation and operation of any NOx pollution control that is not otherwise 

required by, or necessary to maintain compliance with, any provision of this Consent 

Decree, and is not otherwise required by law; 

b. the use of SCR prior to the date established by this Consent Decree; or 

c. achievement and maintenance of an Emission Rate below a 365-Day Rolling 

Average Emission Rate for NOx at the following Units: (i) at Campbell Unit I: 0.200 

lb/mmBTU; (ii) at Campbell Unit 2: 0.070 lb/mmBTU; (iii) at Campbell Unit 3: 0.070 

lb/mmBTU; (iv) at Cobb Unit 5: 0.200 lb/mmBTU; (v) at Kam Unit I: 0.070 lb/mmBTU; 

(vi) at Kam Unit 2: 0.070 lb/mmBTU; 

provided that Consumers is also in compliance for that calendar year with all emission 

limitations for NOx set forth in this Consent Decree. Consumers shall timely report the 

generation of such super-compliant Allowances in accordance with Section XII (Periodic 

Reporting) of this Consent Decree. 

J. Method for Surrender of NOx Allowances 

I 07. Consumers shall Surrender, or transfer to a non-profit third-party selected by 

Consumers for Surrender, all NOx Allowances required to be Surrendered pursuant to Section 

IV.H (Use and Surrender ofNOx Allowances) of this Consent Decree by June 30 of the 

immediately following calendar year. Such Surrender need not include the specific NOx 

Allowances that were allocated to Consumers System Units, so long as Consumers Surrenders 

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NOx Allowances that are from the same year or an earlier year and that are equal to the number 

required to be Surrendered under this Consent Decree. 

I 08. If any NOx Allowances required to be Surrendered under this Consent Decree are 

transferred directly to a non-profit third-party, Consumers shall include a description of such 

transfer in the next report submitted to EPA pursuant to Section XII (Periodic Reporting) of this 

Consent Decree. Such report shall: (a) identify the non-profit third-party recipient(s) of the NOx 

Allowances and list the serial numbers of the transferred NOx Allowances; and (b) include a 

certification by the third-party recipient(s) stating that the recipient(s) will not sell, trade, or 

otherwise exchange any of the NOx Allowances and will not use any of the NOx Allowances to 

meet any obligation imposed by any environmental law. No later than the third periodic report 

due after the transfer of any NOx Allowances, Consumers shall include a statement that the thirdparty recipient(s) Surrendered the NOx Allowances for permanent Surrender to EPA in 

accordance with the provisions of the following Paragraph I 09 within one year after Consumers 

transferred the NOx Allowances to them. Consumers shall not have complied with the NOx 

Allowance Surrender requirements of this Paragraph I 08 until all third-party recipient(s) have 

actually Surrendered the transferred NOx Allowances to EPA. 

I 09. For all NOx Allowances required to be Surrendered, Consumers or the third-party 

recipient(s) (as the case may be) shall first submit a NOx Allowance transfer request to EPA's 

Office of Air and Radiation's Clean Air Markets Division directing the transfer of such NOx 

Allowances to the EPA Enforcement Surrender Account or to any other EPA account that EPA 

may direct in writing. Such NOx Allowance transfer requests may be made in an electronic 

manner using EPA's Clean Air Markets Division Business System or similar system provided by 

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EPA. As part of submitting these transfer requests, Consumers or the third-party recipient(s) 

shall irrevocably authorize the transfer of these NOx Allowances and identify- by name of 

account and any applicable serial or other identification numbers or station names- the source 

and location of the NOx Allowances being Surrendered. 

V. S02 EMISSION REDUCTIONS AND CONTROLS 

A. Unit-Specific S02 Requirements at Campbell Units 1, 2, and 3 

II 0. Commencing no later than 60 Operating Days after the Date of Entry, Consumers 

shall Continuously Operate Campbell Units I and 2 so that the Units achieve and maintain a 

combined 30-Day Rolling Average Emission Rate for S02 of no greater than 1.00 lb/mmBTU. 

Ill. Commencing no later than 60 Operating Days after the Date of Entry, Consumers 

shall Continuously Operate Campbell Unit 3 so that the Unit achieves and maintains a 30-Day 

Rolling Average Emission Rate for S02 of no greater than 1.00 lb/mmBTU. 

112. Consumers shall install an FGD at Campbell Unit 3 and, commencing on 

December 31, 2016, Consumers shall Continuously Operate such FGD. Commencing no later 

than 60 Operating Days thereafter, Consumers shall Continuously Operate such FGD so as to 

achieve and maintain a 30-Day Rolling Average Emission Rate for S02 of no greater than 0.085 

lb/mmBTU. Commencing no later than 365 Operating Days after December 31,2016, 

Consumers shall Continuously Operate such FGD so as to achieve and maintain a 365-Day 

Rolling Average Emission Rate for S02 of no greater than 0.070 lb/mmBTU. 

113. Consumers shall install DSI at Campbell Unit 1 and, commencing on June 30, 

2016, Consumers shall Continuously Operate such DSI. Commencing no later than 60 

Operating Days after June 30, 2016, Consumers shall Continuously Operate DS1 at Campbell 

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Unit 1 so as to achieve and maintain a 30-Day Rolling Average Emission Rate for S02 of no 

greater than 0.350 lb/mmBTU. Commencing no later than 180 Operating Days after June 30, 

2016, Consumers shall Continuously Operate DSI at Campbell Unit 1 so as to achieve and 

maintain a 90-Day Rolling Average Emission Rate for S02 of no greater than 0.290 Jb/mmBTU. 

114. Consumers shall install DSI at Campbell Unit 2 and, commencing on June 30, 

2016, Consumers shall Continuously Operate such DSI. Commencing no later than 365 

Operating Days after June 30, 2016, Consumers shall Continuously Operate DSI at Campbell 

Unit 2 so as to achieve and maintain a 365-Day Rolling Average Emission Rate for S02 of no 

greater than 0.320 lb/mmBTU. 

115. Campbell Unit 1 and Unit 2 exhaust to a common stack where all mass emissions 

are monitored. Prior to June 30, 2016, so long as the two Units exhaust to a common stack, 

notwithstanding any other provision, any S02 Emission Rates set forth under this Consent 

Decree as applicable to each of Campbell Unit I and Unit 2 shall be measured and calculated for 

the two Units together as if they were a single Unit. For example, where the Consent Decree 

specifies Campbell Unit 1 and Unit 2 shall achieve and maintain a 30-Day Rolling Average 

Emissions Rate for S02 of 1.00 lb/mmBTU, the emissions rate calculation for the Campbell 

Units will be based on the total S02 emissions and heat input for the two Units together 

measured at the common stack. A violation of any such rate based on common stack 

measurements shall be presumed to be two violations, unless Consumers proves to EPA's 

satisfaction that the violation is due solely to the mal-performance of one of the two units. 

116. By June 30, 2016, Consumers shall either (a) install, certify, and operate unit level 

S02 CEMS on Campbell Units 1 and 2 and follow the procedures in Appendix B to calculate 

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unit level S02 mass emissions or (b) install, certify, and operate unit level S02 CEMS and flow 

CEMS on Campbell Units 1 and 2 to allow the direct determination of unit level S02 mass 

emissions. Installation and certification of the S02 CEMS and flow CEMS, as applicable, shall 

follow the procedures of 40 C.F .R. Part 75, Appendix A. 

B. Unit-Specific S02 Requirements at Karn Units 1 and 2 

117. Consumers shall install an FGD at Karn Unit 1 and, commencing on December 

31, 2014, Consumers shall Continuously Operate such FGD. Commencing no later than 60 

Operating Days thereafter, Consumers shall Continuously Operate such FGD so as to achieve 

and maintain a 30-Day Rolling Average Emission Rate for S02 of no greater than 0.090 

lb/mmBTU. Commencing no later than 365 Operating Days after December 31, 2014, 

Consumers shall Continuously Operate such FGD so as to achieve and maintain a 365-Day 

Rolling Average Emission Rate for S02 of no greater than 0.075 lb/mmBTU. 

118. Consumers shall install an FGD at Karn Unit 2 and, commencing on April 15, 

2015, Consumers shall Continuously Operate such FGD. Commencing no later than 60 

Operating Days thereafter, Consumers shall Continuously Operate such FGD so as to achieve 

and maintain a 30-Day Rolling Average Emission Rate for S02 of no greater than 0.090 

lb/mmBTU. Commencing no later than 365 Operating Days after April 15, 2015, Consumers 

shall Continuously Operate such FGD so as to achieve and maintain a 365-Day Rolling Average 

Emission Rate for S02 of no greater than 0.075 lb/mmBTU. 

C. Unit-Specific S02 Requirements at Cobb Units 4 and 5 

119. Commencing no later than 60 Operating Days after the Date of Entry, and 

continuing until the Unit is Retired or Refueled to Natural Gas pursuant to this Consent Decree, 

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Consumers shall Continuously Operate Cobb Units 4 and 5 so that each Unit achieves and 

maintains a 30-Day Rolling Average Emission Rate for S02 ofno greater than 1.40 lb/mmBTU. 

120. Commencing no later than 365 Operating Days after the Date of Entry, and 

continuing until the Unit is Retired or Refueled to Natural Gas pursuant to this Consent Decree, 

Consumers shall Continuously Operate Cobb Units 4 and 5 so that each Unit achieves and 

maintains a 365-Day Rolling Average Emission Rate for S02 of no greater than 1.20 lb/mmBTU. 

121. By no later than April 15, 2016, Consumers shall either Retire or Refuel to 

Natural Gas Cobb Units 4 and 5. No later than one year from the Date of Entry, Consumers shall 

notify Plaintiff in writing which option- Retire or Refuel to Natural Gas- it elects for Cobb 

Units 4 and 5. 

D. Unit-Specific S02 Requirements at Weadock Units 7 and 8 

122. Commencing no later than 60 Operating Days after the Date of Entry, Consumers 

shall Continuously Operate Weadock Units 7 and 8 so that each Unit achieves and maintains a 

30-Day Rolling Average Emission Rate for S02 of no greater than 1.40 lb/mmBTU. 

123. Commencing no later than 365 Operating Days after the Date of Entry, 

Consumers shall Continuously Operate Weadock Units 7 and 8 so that each Unit achieves and 

maintains a 365-Day Rolling Average Emission Rate for S02 of no greater than 1.20 lb/mmBTU. 

124. Weadock Units 7 and 8 exhaust through a common duct to a common stack. 

Accordingly, so long as the two Units exhaust to a common duct, notwithstanding any other 

provision, any S02 Emission Rates set forth under this Consent Decree as applicable to each of 

Weadock Unit 7 and Unit 8 shall be measured and calculated for the two Units together as if they 

were a single Unit (e.g., where the Consent Decree specifies that Consumers shall operate 

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Weadock Unit 7 and Unit 8 to achieve and maintain a 30-Day Rolling Average Emissions Rate 

for S02 of 1.40 lb/mmBTU at each Unit, the emissions rate calculation for the Weadock Units 

will be based on the total S02 emissions and heat input for the two Units together measured at 

the common duct). A violation of any such rate based on common duct measurements shall be 

presumed to be two violations, unless Consumers proves to EPA's satisfaction that the violation 

is due solely to the mal-performance of one of the two Units. 

125. By no later than April 15, 2016, Consumers shall Retire Weadock Units 7 and 8. 

E. Unit-Specific S02 Requirements at Whiting Units 1, 2, and 3 

126. Commencing no later than 60 Operating Days after the Date of Entry, Consumers 

shall Continuously Operate Whiting Units I, 2, and 3 so that each Unit achieves and maintains a 

30-Day Rolling Average Emission Rate for S02 of no greater than 1.40 lb/mmBTU. 

127. Commencing no later than 365 Operating Days after the Date of Entry, 

Consumers shall Continuously Operate Whiting Units l, 2, and 3 so that each Unit achieves and 

maintains a 365-Day Rolling Average Emission Rate for S02 of no greater than 0.90 lb/mmBTU. 

128. By no later than April 15, 2016, Consumers shall Retire Whiting Units I, 2, and 3. 

F. System-Wide Annual S02 Tonnage Limitation. 

129. The Consumers System, collectively, shall operate so as not to exceed the 

following System-Wide Annual S02 Tonnage Limitations: 

For the Calendar Year Specified Below: System-Wide Annual SOz Tonnage 

Limitation: 

2015 57,900 

2016 34,000 

2017 and continuing each calendar year 10,900 thereafter 

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G. Monitoring of S02 Emissions 

130. In determining a 30-Day Rolling Average Emission Rate for S02, a 90-Day 

Rolling Average Emission Rate for S02, or a 365-Day Rolling Average Emission Rate for S02, 

Consumers shall use CEMS in accordance with the procedures of 40 C.F.R. Part 75, except that 

the S02 emissions data need not be bias adjusted and the missing data substitution procedures of 

40 C.F.R. Part 75 shall not apply. If Consumers elects to install unit level S02 CEMS on 

Campbell Units 1 and 2 (in lieu of installing both unit level S02 and flow CEMS) and calculates 

unit level S02 mass emission according to the procedures in Appendix B, diluent capping (i.e., 

5% C02) will be applied to the S02 emission rate for any hours where the measured C02 

concentration is less than 5% following the procedures in 40 C.F.R. Part 75, Appendix F, Section 

3.3.4.1. 

131. For purposes of calculating the System-Wide Annual S02 Tonnage Limitation, 

Consumers shall use CEMS in accordance with the procedures specified in 40 C.F .R. Part 75, 

which includes the requirements associated with the concepts of bias adjustments and missing 

data substitution. 

H. Use and Surrender of S02 Allowances 

132. Except as may be necessary to comply with Section XIV (Stipulated Penalties), 

Consumers shall not use S02 Allowances to comply with any requirement of this Consent 

Decree, including by claiming compliance with any emission limitation required by this Consent 

Decree by using, tendering, or otherwise applying S02 Allowances to offset any excess 

emissions. 

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133. Except as provided in this Consent Decree, Consumers shall not sell, bank, trade, 

or transfer any S02 Allowances allocated to the Consumers System Units. Nothing in this 

Consent Decree shall restrict Consumers' ability to transfer S02 Allowances among its own 

facility or general accounts. 

134. Beginning with the year 2014 compliance period, and continuing each year 

thereafter, Consumers shall Surrender all S02 Allowances allocated to the Consumers System for 

that year's compliance period that Consumers does not need in order to meet its own federal 

and/or state CAA regulatory requirements for the Consumers System Units. However, S02 

Allowances allocated to the Consumers System Units may be used by Consumers to meet its 

own federal and/or state CAA regulatory requirements for such Units. 

135. Nothing in this Consent Decree shall prevent Consumers from purchasing or 

otherwise obtaining S02 Allowances from another source for purposes of complying with federal 

and/or state CAA regulatory requirements to the extent otherwise allowed by law. 

136. The requirements of this Consent Decree pertaining to Consumers' use and 

Surrender of S02 Allowances are permanent injunctions not subject to any termination provision 

ofthis Consent Decree. 

I. Super-Compliant S02 Allowances 

137. Notwithstanding Section V.H (Use of Surrender of S02 Allowances) of this 

Consent Decree, beginning with the year 2014 and continuing in each calendar year thereafter, 

Consumers may sell, bank, use, trade, or transfer S02 Allowances made available in that year's 

compliance period solely as a result of: 

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a. the installation and operation of any S02 pollution control that is not otherwise 

required by, or necessary to maintain compliance with, any provision of this Consent 

Decree, and is not otherwise required by law; 

b. the use of FGD or DSI prior to the date established by this Consent Decree; or 

c. achievement and maintenance of an Emission Rate below a 365-Day Rolling 

Average Emission Rate for S02 at the following Units: (i) at Campbell Units I and 2: 

0.260 lb/mmBTU; (ii) at Campbell Unit 3: 0.060 lb/mmBTU; (iii) at Karn Unit I: 0.075 

lb/mmBTU, (iv) at Karn Unit 2: 0.075 lb/mmBTU; 

provided that Consumers is also in compliance for that calendar year with all emission 

limitations for S02 set forth in this Consent Decree. Consumers shall timely report the 

generation of such super-compliant Allowances in accordance with Section XII (Periodic 

Reporting) of this Consent Decree. 

J. Method for Surrender of S02 Allowances. 

138. Consumers shall Surrender, or transfer to a non-profit third party selected by 

Consumers for Surrender, all S02 Allowances required to be Surrendered pursuant to Section 

V.H (Use and Surrender of S02 Allowances) of this Consent Decree by June 30 of the 

immediately following calendar year. Such Surrender need not include the specific S02 

Allowances that were allocated to Consumers System Units, so long as Consumers Surrenders 

S02 Allowances that are from the same year or an earlier year and that are equal to the number 

required to be Surrendered under this Consent Decree. 

139. If any S02 Allowances required to be Surrendered under this Consent Decree are 

transferred directly to a non-profit third party, Consumers shall include a description of such 

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~------------

transfer in the next report submitted to EPA pursuant to Section XII (Periodic Reporting) ofthis 

Consent Decree. Such report shall: (a) identify the non-profit third party recipient(s) of the S02 

Allowances and Jist the serial numbers of the transferred S02 Allowances; and (b) include a 

certification by the non-profit third party recipient(s) stating that the recipient(s) will not sell, 

trade, or otherwise exchange any of the allowances and will not use any ofthe S02 Allowances 

to meet any obligation imposed by any environmental law. No later than the third periodic 

report due after the transfer of any S02 Allowances, Consumers shall include a statement that the 

non-profit third party recipient(s) Surrendered the S02 Allowances for permanent Surrender to 

EPA in accordance with the provisions of the following Paragraph 140 within one year after 

Consumers transferred the S02 Allowances to them. Consumers shall not have complied with 

the S02 Allowance Surrender requirements of this Paragraph 139 until all third party recipient(s) 

have actually Surrendered the transferred S02 Allowances to EPA. 

140. For all S02 Allowances required to be Surrendered, Consumers or the third party 

recipient(s) (as the case may be) shall first submit an S02 Allowance transfer request to EPA's 

Office of Air and Radiation's Clean Air Markets Division directing the transfer of such S02 

Allowances to the EPA Enforcement Surrender Account or to any other EPA account that EPA 

may direct in writing. Such S02 Allowance transfer requests may be made in an electronic 

manner using EPA's Clean Air Markets Division Business System or similar system provided by 

EPA. As part of submitting these transfer requests, Consumers or the third party recipient(s) 

shall irrevocably authorize the transfer of these S02 Allowances and identify- by name of 

account and any applicable serial or other identification numbers or station names- the source 

and location ofthe S02 Allowances being Surrendered. 

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VI. PM EMISSION REDUCTIONS AND CONTROLS 

A. Optimization of Baghouses and ESPs 

141. By no later than 60 Operating Days from Entry of this Consent Decree and 

continuing thereafter, Consumers shall Continuously Operate each PM Control Device on each 

Unit in the Consumers System and use good air pollution control practices to maximize the PM 

emission reductions at all times when the Unit is in operation. Consumers shall: 

(a), at a minimum, to the extent practicable: (i) fully energize each section of the ESP for 

each Unit, where applicable; operate each compartment of the Baghouse as designed for 

Full Stream Operation for each Unit, where applicable (regardless of whether those 

actions are needed to comply with opacity limits); (ii) operate automatic control systems 

on each ESP to maximize PM collection efficiency, where applicable; (iii) maintain and 

replace bags on each Baghouse as needed to maximize collection efficiency, where 

applicable; (iv) maintain power levels delivered to the ESPs, consistent with 

manufacturers' specifications, the operational design ofthe Unit, and good engineering 

practices; and (v) evaluate and restore the plate-cleaning and discharge-electrodecleaning systems for the ESPs at each Unit by varying the cycle time, cycle frequency, 

rapper-vibrator intensity, and number of strikes per cleaning event; and 

(b) during the next planned Unit outage (or unplanned outage of sufficient length), 

optimize the PM controls on that Unit by inspecting for and repairing any failed ESP 

section or Baghouse compartment and any openings in ESP casings, ductwork and 

expansion joints to minimize air leakage. 

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B. Unit-Specific PM Requirements at Campbell Units 1, 2, and 3 

142. Commencing no later than 60 Operating Days after the Date of Entry, and 

continuing through May 1, 2016, Consumers shall Continuously Operate the PM Control 

Devices being vented to a combined stack at Campbell Units I and 2 so as to achieve and 

maintain a PM Emission Rate of no greater than 0.030 lb/mmBTU at the common stack. 

143. Commencing no later than 60 Operating Days after the Date of Entry, and 

continuing through December 30, 2016, Consumers shall Continuously Operate the existing ESP 

at Campbell Unit 3 so as to achieve and maintain a PM Emission Rate of no greater than 0.030 

lb/mmBTU. 

144. Consumers shall install a Baghouse at Campbell Unit 1 and, commencing on 

April 1, 2016, and continuing thereafter, Consumers shall Continuously Operate such Baghouse 

so that it achieves and maintains a PM Emission Rate of no greater than 0.015 lb/mmBTU. 

145. Consumers shall install a Baghouse at Campbell Unit 2 and, commencing no later 

than 30 Operating Days after the Date of Entry, and continuing thereafter, Consumers shall 

Continuously Operate such Baghouse so that it achieves and maintains a PM Emission Rate of 

no greater than 0.015 lb/mmBTU. 

146. Consumers shall install a Baghouse at Campbell Unit 3 and, commencing on 

December 31, 2016, and continuing thereafter, Consumers shall Continuously Operate such 

Baghouse so that it achieves and maintains a PM Emission Rate of no greater than 0.015 

lb/mmBTU. 

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C. Unit-Specific PM Requirements at Karn Units 1 and 2 

14 7. Commencing no later than 30 Operating Days after the Date of Entry, and 

continuing thereafter, Consumers shall Continuously Operate the existing Baghouse at Karn Unit 

I so as to achieve and maintain a PM Emission Rate of no greater than 0.015 lb/mmBTU. 

148. Commencing no later than 30 Operating Days after the Date of Entry, and 

continuing thereafter, Consumers shall Continuously Operate the existing Baghouse at Karn Unit 

2 so as to achieve and maintain a PM Emission Rate of no greater than 0.015 lb/mmBTU. 

D. Unit-Specific PM Requirements at Cobb Units 4 and 5 

149. By no later than April 15, 2016, Consumers shall either Retire or Refuel to 

Natural Gas Cobb Units 4 and 5. No later than one year from the Date of Entry, Consumers shall 

notify Plaintiff in writing which option- Retire or Refuel to Natural Gas- it elects for Cobb 

Units 4 and 5. 

E. Unit-Specific PM Requirements at Weadock Units 7 and 8, and Whiting 

Units 1, 2, and 3 

150. By no later than April 15, 2016, Consumers shall Retire Weadock Units 7 and 8, 

and Whiting Units I, 2, and 3. 

F. Opacity Limits 

151. Subject to and consistent with provisions of the Michigan SIP, by no later than 60 

Operating Days after the date of the initial Continuous Operation of the Baghouses at Campbell 

Unit I, Campbell Unit 2, Campbell Unit 3, Karn Unit I, and Karn Unit 2 as required by Section 

VI (PM Emission Reductions and Controls) of this Consent Decree and continuing thereafter, 

Consumers shall Continuously Operate each such Unit so as to maintain compliance with the 

opacity limit set forth in the Michigan SIP and Title V Permit for each Unit. 

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152. Subject to and consistent with provisions of the Michigan SIP, by no later than 60 

Operating Days after the date of optimization of PM controls on Cobb Unit 4, Cobb Unit 5, 

Weadock Unit 7, Weadock Unit 8, Whiting Unit I, Whiting Unit 2, and Whiting Unit 3 as 

required by Paragraph 141(b) ofthis Consent Decree and continuing thereafter, Consumers shall 

Continuously Operate each such Unit and the oil-fired Kam Units 3 and 4 so as to maintain 

compliance with the opacity limit set forth in the Michigan SIP and Title V Permit for each Unit. 

G. PM Emissions Testing and Monitoring Requirements 

153. Within 12 months of the Date of Entry, and continuing annually thereafter (unless 

a Unit is Retired or Refueled to Natural Gas), Consumers shall conduct a stack test for PM 

pursuant to Paragraphs 154, 155, and 156. The annual performance test requirement imposed on 

Consumers by this Paragraph 153 may be satisfied by stack tests conducted by Consumers as 

may be required by its permits from the State of Michigan for any year that such stack tests are 

required under the permits. Consumers may perform testing every other year, rather than every 

year, provided that two of the most recently completed test results from tests conducted in 

accordance with the methods and procedures specified in this Consent Decree demonstrate that 

the PM emissions are equal to or less than 0.015 lb/mmBTU if the applicable rate is 0.030 

lb/mmBTU, and 0.010 lb/mmBTU if the applicable rate is 0.015 lb/mmBTU. Consumers shall 

perform testing every year, rather than every other year, beginning in the year immediately 

following any test result demonstrating that the PM emissions are greater than 0.015 lb/mmBTU 

ifthe applicable rate is 0.030 lb/mmBTU, and 0.010 lb/mmBTU ifthe applicable rate is 0.015 

lb/mmBTU. 

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154. To determine compliance with the PM Emission Rate established in Subsections 

VI.B and (Unit-Specific PM Requirements at Campbell Units 1, 2 and 3) and C (Unit-Specific 

PM Requirements at Kam Units 1 and 2), Consumers shall use the applicable reference methods 

and procedures (filterable portion only) specified in its CAA permits and the Michigan SIP for 

Campbell Units 1 and 2 (combined stack testing or individual unit testing), Campbell Unit 3, and 

Kam Units 1 and 2. Each test shall consist of three separate runs performed under representative 

operating conditions not including periods of startup, shutdown, or Malfunction. The sampling 

time for each run associated with a Unit controlled by a Baghouse shall be at least 120 minutes 

and the volume of each run shall be at least 1.70 dry standard cubic meters (60 dry standard 

cubic feet). The sampling time for each run associated with a Unit controlled by an ESP shall be 

at least 60 minutes and the volume of each run shall be at least 30 dry standard cubic feet. 

Consumers shall calculate the PM Emission Rate from the stack test results in accordance with 

40 C.F.R. § 60.8(f). The results of each PM stack test shall be submitted to EPA within 60 Days 

of completion of each test. 

155. Consumers shall use the applicable reference methods and procedures (filterable 

portion only) for compliance demonstrations with the PM emission rates specified in its CAA 

permits and the Michigan SIP for Cobb Units 4 and 5, Weadock Units 7 and 8 and Whiting Units 

1, 2 and 3. Each test shall consist of three separate runs performed under representative 

operating conditions not including periods of startup, shutdown, or Malfunction. Unless 

otherwise specified in its CAA permit, the sampling time for each run shall be at least 60 minutes 

and the volume of each run shall be at least 30 dry standard cubic feet. The results of each PM 

stack test shall be submitted to EPA within 60 Days of completion of each test. 

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156. Within 12 months of the Date of Entry, and continuing annually thereafter in 

accordance with the testing frequency established in Paragraph 153, Consumers shall also 

conduct a PM stack test for condensable PM at Campbell Units 1 and 2 (combined stack testing 

or individual unit testing), Campbell Unit 3, and Kam Units 1 and 2 using the reference methods 

and procedures set forth at 40 C.F .R. Part 51, Appendix M, Method 202. Each test shall consist 

of three separate runs performed under representative operating conditions not including periods 

of startup, shutdown, or Malfunction. The sampling time for each run shall be at least 120 

minutes and the volume of each run shall be at least 1.70 dry standard cubic meters (60 dry 

standard cubic feet). Consumers shall calculate the number of pounds of condensable PM 

emitted per million BTU of heat input (lb/mmBTU) from the stack test results in accordance 

with 40 C.F.R. § 60.8(f). The results of the PM stack test conducted pursuant to this Paragraph 

156 shall not be used for the purpose of determining compliance with the PM Emission Rates 

required by this Consent Decree. The results of each PM stack test shall be submitted to EPA 

within 60 Days of completion of each test. 

157. As an alternative to the PM testing required in this Section VI.G (PM Emissions 

Testing and Monitoring Requirements) of this Consent Decree, following the installation and 

operation of PM CEMS as required by Section VI.H ofthis Consent Decree, Consumers, at its 

sole discretion, may seek EPA approval pursuant to Section XIII (Review and Approval of 

Submittals) of this Consent Decree to forego stack testing and instead demonstrate continuous 

compliance with an applicable filterable PM Emission Rate by using the PM CEMS data on a 3-

hour rolling average basis. If EPA approves a request to demonstrate continuous compliance 

with an applicable PM Emission Rate at a Unit using PM CEMS under this Paragraph 157, stack 

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testing for condensable PM pursuant to this Consent Decree using the reference methods and 

procedures set forth at 40 C.F.R. Part 51, Appendix M, Method 202 is not required for that Unit. 

158. When Consumers submits the application for modification of its Title V Permit 

pursuant to Section XVII (Permits) of this Consent Decree, that application shall include a 

Compliance Assurance Monitoring ("CAM") plan, under 40 C.F.R. Part 64, for any applicable 

PM Emission Rate in Subsections VI.B (Unit-Specific PM Requirements at Campbell Units 1, 2 

and 3) and C (Unit-Specific PM Requirements at Karn Units I and 2). The PM CEMS required 

under Paragraph 159 may be used in that CAM plan. 

H. PMCEMS 

159. Consumers shall install, correlate, maintain, and operate three PM CEMS as 

specified below. The PM CEMS shall comprise a continuous particle mass monitor measuring 

particulate matter concentration, directly or indirectly, on an hourly average basis and a diluent 

monitor used to convert the concentration to units expressed in lb/mmBTU. The PM CEMS 

installed at each Unit must be appropriate for the anticipated stack conditions and capable of 

measuring PM concentrations on an hourly average basis. Consumers shall maintain, in an 

electronic database, the hourly average emission values of all PM CEMS in lb/mmBTU. Except 

for periods of monitor malfunction, maintenance, calibration, or repair, Consumers shall 

continuously operate the PM CEMS at all times when the Unit it serves is operating. 

160. By no later than six (6) months from the Date of Entry of this Consent Decree, 

Consumers shall submit to EPA for review and approval pursuant to Section XIII (Review and 

Approval of Submittals) of this Consent Decree a plan for the installation and correlation of three 

PM CEMS at Campbell Unit 3, Karn Unit I, and Karn Unit 2. 

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161. By no later than six months from the submittal of plans in the prior Paragraph 

160, Consumers shall submit to EPA for review and approval pursuant to Section XIII (Review 

and Approval of Submittals) of this Consent Decree a proposed Quality Assurance/Quality 

Control ("QA/QC") protocol that shall be followed for such PM CEMS. 

162. In developing both the plan for installation and correlation of the PM CEMS and 

the QA/QC protocol, Consumers shall use the criteria set forth in 40 C.F.R. Part 60, Appendix B, 

Performance Specification 11, and Appendix F, Procedure 2. Following EPA's approval ofthe 

plan described in Paragraph 160 and the QA/QC protocol described in Paragraph 161, 

Consumers shall thereafter operate the PM CEMS in accordance with the approved plan and 

QAIQC protocol. Notwithstanding any other provision of this Consent Decree, exceedances of 

the PM Emission Rate that occur as a result of de-optimizing emission controls and/or spiking 

the exhaust gas with excess particulate required to achieve the high level PM test runs during the 

correlation testing shall not be a violation of the requirements of this Consent Decree (or credible 

evidence thereof) and shall not be subject to stipulated penalties; provided, however, that 

Consumers shall make best efforts to keep the high level PM test runs during such correlation 

testing below the applicable PM Emission Rate. 

163. By no later than eighteen (18) months after the date that EPA approves the plan 

described in Paragraph 160, Consumers shall install, correlate, maintain, and commence 

Continuous Operation ofthe PM CEMS approved by EPA at Kam Units 1 and 2, conduct 

performance specification tests on the PM CEMS, and demonstrate compliance with the PM 

CEMS installation and correlation plans submitted to and approved by EPA. By March 31, 

2017, Consumers shall install, correlate, maintain, and commence Continuous Operation of the 

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PM CEMS approved by EPA at Campbell Unit 3, conduct performance specification tests on the 

PM CEMS, and demonstrate compliance with the PM CEMS installation and correlation plans 

submitted to and approved by EPA. Consumers shall report, pursuant to Section XII (Periodic 

Reporting), the data recorded by the PM CEMS, expressed in lb/mmBTU on a rolling average 3-

hour basis in electronic format to EPA and identify in the report any PM emission rates in excess 

of the applicable PM Emission Rate and any concentrations measured by the PM CEMS that are 

greater than 125% of the highest PM concentration level used in the most recent correlation 

testing performed pursuant to Performance Specification 11 in 40 C.F.R. Part 60, Appendix B. 

I. General PM Provisions 

164. Except as approved pursuant to Paragraph 157, stack testing shall be used to 

determine compliance with the PM Emission Rates established by this Consent Decree. Data 

from PM CEMS shall be used, at a minimum, to provide information to operators on PM 

emissions rate trends on a continuous basis. 

165. Nothing in this Consent Decree is intended to, or shall, alter or waive any 

applicable law (including but not limited to any defenses, entitlements, challenges, or 

clarifications related to the Credible Evidence Rule, 62 Fed. Reg. 8314 (Feb. 24, 1997)) 

concerning the use of data for any purpose under the Act. 

VII. PROHIBITION ON NETTING CREDITS OR OFFSETS 

166. Emission reductions that result from actions to be taken by Consumers after the 

Date of Entry of this Consent Decree to comply with the requirements of this Consent Decree 

shall not be considered as a creditable contemporaneous emission decrease for the purpose of 

obtaining a Netting credit or offset under the CAA's Nonattainment NSR and PSD programs, 

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and shall not be used in any way to determine whether or not a project would result in either a 

"significant emissions increase" or a "significant net emissions increase" under the 

Nonattainment NSR and PSD programs. 

167. The limitations on the generation and use of Netting credits and offsets set forth in 

the previous Paragraph 1 66 do not apply to emission reductions achieved by a particular 

Consumers System Unit that are greater than those required under this Consent Decree for that 

particular Consumers System Unit. For purposes of this Paragraph, emission reductions from a 

Consumers System Unit are greater than those required under this Consent Decree if they result 

from such Unit's compliance with federally-enforceable emission limits that are more stringent 

than those limits imposed on the Unit under this Consent Decree and under applicable provisions 

of the CAA or the Michigan SIP. 

168. Nothing in this Consent Decree is intended to preclude the emission reductions 

generated under this Consent Decree from being considered by the applicable state regulatory 

agency or EPA for the purpose of attainment demonstrations submitted pursuant to § 11 0 of the 

Act, 42 U.S.C. § 7410, or in determining impacts on National Ambient Air Quality Standards, 

PSD increment, or air quality related values, including visibility, in a Class I area. 

VIII. WIND POWER COMMITMENT 

169. Consumers shall install and operate, or enter long-term power purchase 

agreements ("PPAs") with a duration of at least 20 years from the date of the PPA, for 400 MW 

(nameplate) of new Wind Power generating capacity. To satisfy this requirement, Consumers 

must contract for or commence operation of such new Wind Power generating capacity between 

June 10, 2009 and December 31, 2015. 

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IX. ENVIRONMENTAL MITIGATION PROJECTS 

170. Consumers shall implement the Environmental Mitigation Projects ("Projects") 

described in Appendix A to this Consent Decree in compliance with the approved plans and 

schedules for such Projects and other terms of this Consent Decree. In implementing the 

Projects, Consumers shall spend no less than $7.7 million in Project Dollars. Consumers shall 

not include its own personnel costs in overseeing the implementation of the Projects as Project 

Dollars. 

171 . Consumers shall maintain, and present to EPA upon request, all documents to 

substantiate the Project Dollars expended to implement the Projects described in Appendix A, 

and shall provide these documents to EPA within 30 Days of such request. 

172. All plans and reports prepared by Consumers pursuant to the requirements of this 

Section lX (Environmental Mitigation Projects) of the Consent Decree and required to be 

submitted to EPA shall be publicly available from Consumers without charge. 

173. Consumers shall certify, as part of each plan submitted to EPA for any Project, 

that Consumers is not otherwise required by law to perform the Project described in the plan, that 

Consumers is unaware of any other person who is required by Jaw to perform the Project, and 

that Consumers will not use any Project, or portion thereof, to satisfy any obligations that it may 

have under other applicable requirements of Jaw, including but not limited to any applicable 

renewable or energy efficiency portfolio standards. 

174. Consumers shall use good faith efforts to secure as much environmental benefit as 

possible for the Project Dollars expended, consistent with the applicable requirements and limits 

ofthis Consent Decree. 

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175. 1fConsumers elects (where such an election is allowed) to undertake a Project by 

contributing funds to another person or entity that will carry out the Project in lieu of Consumers, 

but not including Consumers' agents or contractors, that person or instrumentality must, in 

writing: (a) identify its legal authority for accepting such funding; and (b) identify its legal 

authority to conduct the Project for which Consumers contributes the funds. Regardless of 

whether Consumers elects (where such election is allowed) to undertake a Project by itself or to 

do so by contributing funds or real estate to another person or instrumentality that will carry out 

the Project, Consumers acknowledges that it will receive credit for the expenditure of such funds 

or real estate contributed as Project Dollars only if Consumers demonstrates that the funds or real 

estate transfer have been spent/completed by either Consumers or by the person or 

instrumentality receiving them, and that such expenditures meet all requirements of this Consent 

Decree. 

176. Consumers shall comply with the reporting requirements described in Appendix 

A. 

177. 1n connection with any communication to the public or to shareholders regarding 

Consumers' actions or expenditures relating in any way to the Environmental Mitigation Projects 

in this Consent Decree, Consumers shall include prominently in the communication the 

information that the actions and expenditures were required by this Consent Decree. 

178. Within 60 Days following the completion of each Project required under this 

Consent Decree (including any applicable periods of demonstration or testing), Consumers shall 

submit to the United States a report that documents the date that the Project was completed, the 

results achieved by implementing the Project, including the emission reductions or other 

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environmental benefits, and the Project Dollars expended by Consumers in implementing the 

Project. 

X. CIVIL PENALTY 

179. Within 30 Days after the Date of Entry of this Consent Decree, Consumers shall 

pay to the United States a civil penalty in the amount of $2.75 million dollars. The civil penalty 

shall be paid by Electronic Funds Transfer ("EFT") to the United States Department of Justice, in 

accordance with current EFT procedures, referencing USAO File Number 2014V00933, DOJ 

Case Number 90-5-2-1-09771, and the civil action case name and case number of this action. 

The costs of such EFT shall be Consumers' responsibility. Payment shall be made in accordance 

with instructions provided to Consumers by the Financial Litigation Unit of the U.S. Attorney's 

Office for the Eastern District of Michigan. Any funds received after 2:00 p.m. EDT shall be 

credited on the next business day. At the time of payment, Consumers shall provide notice of 

payment, referencing the USAO File Number, the DOJ Case Number, and the civil action case 

name and case number, to the Department of Justice and to EPA in accordance with Section XIX 

(Notices) of this Consent Decree. 

180. Failure to timely pay the civil penalty shall subject Consumers to interest accruing 

from the date payment is due until the date payment is made at the rate prescribed by 28 U.S.C. 

§ 1961, and shall render Consumers liable for all charges, costs, fees, and penalties established 

by law for the benefit of a creditor or of the United States in securing payment. 

181. Payments made pursuant to this Section are penalties within the meaning of 

Section 162(f) of the Internal Revenue Code, 26 U.S.C. § 162(£), and are not tax-deductible 

expenditures for purposes of federal law. 

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XI. RESOLUTION OF CIVIL CLAIMS 

A. Resolution of U.S. Civil Claims 

182. Claims of the United States Based on Modifications Occurring Before the Date of 

Lodging of this Consent Decree. Entry of this Consent Decree shall resolve all civil claims of 

the United States against Consumers that arose from any modifications commenced at any 

Consumers System Unit prior to the Date of Lodging of this Consent Decree, including but not 

limited to those claims alleged in the Complaint in this action and the NOVs issued by EPA to 

Consumers on March 30, 2007 and October 17, 2008, under any or all of: (a) Parts CorD of 

Subchapter I ofthe CAA, 42 U.S.C. §§ 7470-7492,7501-7515, and the implementing PSD and 

Nonattainment NSR provisions of the Michigan SIP; (b) Section 111 of the Act, 42 U.S.C. § 

7411, and 40 C.F.R. § 60.14; and (c) Title V of the Act, 42 U.S.C. § 7661-7661 f, but only to the 

extent that such Title V claims are based on Consumers' failure to obtain an operating permit 

that reflects applicable requirements imposed under Parts C or D of Subchapter I of the Clean 

Air Act. Entry of this Consent Decree shall also resolve the civil claims of the United States for 

any opacity claims at any Consumers System Unit and at Kam Units 3 and 4 that occurred prior 

to the Date of Lodging of this Consent Decree. 

183. Claims of the United States Based on Modifications after the Date of Lodging of 

this Consent Decree. Entry of this Consent Decree also shall resolve all civil claims of the 

United States that arise from a modification commenced before December 31, 2017, for 

pollutants regulated under Parts CorD of Subchapter I of the Act and under regulations 

promulgated thereunder as of the Date of Lodging except as provided below, and: 

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a. where such modification is commenced at any Consumers System Unit after the 

Date of Lodging of this Consent Decree, or 

b. where such modification is one this Consent Decree expressly directs Consumers 

to undertake._ 

The term "modification" as used in this Paragraph 183 shall have the meaning that term is given 

under the CAA and under the regulations in effect as of the Date of Lodging ofthis Consent 

Decree. The claims resolved by this Paragraph 183 shall not include claims based upon 

Greenhouse Gases and sulfuric acid mist. 

184. Reopener. The resolution ofthe United States' civil claims against Consumers, as 

provided by this Section XI. A (Resolution of U.S. Civil Claims), is subject to the provisions of 

Section XI.B (Pursuit of Civil Claims Otherwise Resolved by Section XI.A). 

B. Pursuit of Civil Claims Otherwise Resolved by Section XI.A 

185. Bases for Pursuing Resolved Claims for the Consumers System. If Consumers 

violates a System-Wide Annual NOx Tonnage Limitation or System-Wide Annual S02 Tonnage 

Limitation; or fails by more than 90 Days to Retire any Unit as required by this Consent Decree; 

or fails by more than 90 Days to install, upgrade, or commence Continuous Operation of any 

emission control device or achieve any Emission Rate or limitation required pursuant to this 

Consent Decree, then the United States may pursue any claim at any Consumers System Unit 

that is otherwise resolved under Section XI.A (Resolution of U.S. Civil Claims), subject to 

subparagraphs (a) and (b) below. 

a. For any claims based on modifications undertaken at an Other Unit (i.e., any Unit 

of the Consumers System that is not an Improved Unit for the pollutant in question), claims may 

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be pursued only where the modification(s) on which such claim is based was commenced within 

the five (5) years preceding the violation or failure specified in this Paragraph 185a. 

b. For any claims based on modifications undertaken at an Improved Unit, claims 

may be pursued only where the modification(s) on which such claim is based was commenced: 

(I) after the Date of Lodging of this Consent Decree, and (2) within the five (5) years preceding 

the violation or failure specified in this Paragraph 185.b. 

186. Additional Bases for Pursuing Resolved Claims for Modifications at an Improved 

Unit: Solely with respect to Improved Units, the United States may also pursue claims arising 

from a modification (or collection of modifications) at an Improved Unit that have otherwise 

been resolved under Section XI.A (Resolution of U.S. Civil Claims), ifthe modification (or 

collection of modifications) at the Improved Unit on which such claim is based (a) was 

commenced after the Date of Lodging, and (b) individually (or collectively) increased the 

maximum hourly emission rate of that Unit for NOx or S02 (as measured by 40 C.F.R. § 

60.14(b) and (h)) by more than 10%. 

187. Additional Bases for Pursuing Resolved Claims for Modification at an Other 

Unit: Solely with respect to Other Units, the United States may also pursue claims arising from a 

modification (or collection of modifications) at an Other Unit that have otherwise been resolved 

under Section XI.A (Resolution of U.S. Civil Claims), if the modification (or collection of 

modifications) at the Other Unit on which such claim is based was commenced within the five 

years preceding any of the following events: 

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a. a modification (or collection of modifications) at such Other Unit commenced 

after the Date of Lodging of this Consent Decree increases the maximum hourly emission rate 

for such Other Unit for the relevant pollutant (NOx or S02), as measured by 40 C.F.R. § 60.14(b) 

and (h); 

b. the aggregate of all Capital Expenditures made at such Other Unit exceed 

$150/K W on the Unit's Boiler Island (based on the generating capacities identified in this 

Consent Decree) during the period from the Date of Entry of this Consent Decree through 

December 31, 2017 (Capital Expenditures shall be measured in calendar year 2013 constant 

dollars, as adjusted by the McGraw-Hill Engineering News-Record Construction Cost Index); or 

c. a modification (or collection of modifications) at such Other Unit commenced 

after the Date of Lodging of this Consent Decree results in an emissions increase ofNOx and/or 

S02 at such Other Unit, and such increase: (I) presents, by itself, or in combination with other 

emissions or sources, "an imminent and substantial endangerment" within the meaning of 

Section 303 of the Act, 42 U.S.C. § 7603; (2) causes or contributes to violation of a NAAQS in 

any Air Quality Control Area that is in attainment with that NAAQS; (3) causes or contributes to 

violation of a PSD increment; or ( 4) causes or contributes to any adverse impact on any 

formally-recognized air quality and related values in any Class I area. The introduction of any 

new or changed NAAQS shall not, standing alone, provide the showing needed under this 

Subparagraph 187.c. to pursue any claim for a modification at an Other Unit resolved under 

Section XI.A (Resolution of U.S. Civil Claims). 

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XII. PERIODIC REPORTING 

188. After entry of this Consent Decree, Consumers shall submit to the United States a 

periodic report, within 75 Days after the end of each half of the calendar year (January through 

June and July through December). The report shall include the following information: 

a. all information necessary to determine compliance with the requirements of the 

following provisions of this Consent Decree: Section IV (NOx Emission Reductions and 

Controls) concerning NOx emissions and monitoring, and the Use and Surrender ofNOx 

Allowances; Section V (S02 Emission Reductions and Controls) concerning S02 

emissions and monitoring, and the Use and Surrender of S02 Allowances; and Section VI 

(PM Emission Reductions and Controls) concerning PM emissions and monitoring. Such 

information includes but it not limited to (I) summaries of all 30-Day Rolling Average 

Emission Rates, 90-Day Rolling Average Emission Rates, and 365-Day Rolling Average 

Emission Rates, (2) calculations of System-Wide Annual NOx and S02 Tonnage 

Limitations, and (3) specific calculations demonstrating the basis and specific amounts of 

NOx Allowances and S02 Allowances to be Surrendered; 

b. 3-hour rolling average PM CEMS data as required by Paragraph 157, identifying 

all periods of monitor malfunction, maintenance, and/or repair as provided in Paragraph 

159; 

c. all information relating to super-compliant NOx and S02 Allowances that 

Consumers claims to have generated in accordance with Sections IV.I (Super-Compliant 

NOx Allowances) and V.I (Super-Compliant S02 Allowances) through compliance 

beyond the requirements of this Consent Decree, including a detailed description of the 

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basis for such claim and the specific amount of super-compliant NOx and S02 

Allowances generated at each Unit; 

d. subject to the provisions of the Michigan SIP, a report of all 6-minute average 

opacity measurements in excess of the requirements of Paragraphs 151 and 152, and the 

reasons for any such exceedances and a description of corrective actions undertaken; 

e. documentation of any Capital Expenditures at an Other Unit's Boiler Island made 

during the reporting period and cumulative Boiler Island Capital Expenditures to date; 

f. all information indicating that the installation or upgrade and commencement of 

operation of a new or upgraded pollution control device may be delayed, including the 

nature and cause of the delay, and any steps taken by Consumers to mitigate such delay; 

g. all affirmative defenses asserted pursuant to Paragraphs 208 through 213 during 

the reporting period; 

h. an identification of all periods when any pollution control device required by this 

Consent Decree to Continuously Operate was not operating, the reason(s) for the 

equipment not operating, and the basis for Consumers' compliance or non-compliance 

with the Continuous Operation requirements ofthis Consent Decree; 

1. a summary of actions implemented pursuant to implementation ofthe Wind 

Power Commitment pursuant to Section VIII (Wind Power Commitment); and 

J. a summary of actions implemented and expenditures made pursuant to 

implementation of the Environmental Mitigation Projects required pursuant to Section 

IX. (Environmental Mitigation Projects) 

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189. In any periodic report submitted pursuant to this Section, Consumers may 

incorporate by reference information previously submitted under its Title V permitting 

requirements, provided that Consumers attaches the Title V Permit report (or the pertinent 

portions of such report) and provides a specific reference to the provisions of the Title V Permit 

report that are responsive to the information required in the periodic report. 

190. In addition to the reports required pursuant to this Section XII (Periodic 

Reporting), if Consumers violates or deviates from any provision (excluding emissions which 

will be reported pursuant to Paragraph 188.d) of this Consent Decree, Consumers shall submit to 

the United States a report on the violation or deviation within 10 business days after Consumers 

knew or should have known of the event. In the report, Consumers shall explain the cause or 

causes of the violation or deviation and any measures taken or to be taken by Consumers to cure 

the reported violation or deviation or to prevent such violation or deviation in the future. If at 

any time, the provisions of this Consent Decree are included in Title V Permits, consistent with 

the requirements for such inclusion in this Consent Decree, then the semiannual deviation reports 

required under applicable Title V regulations shall be deemed to satisfy all the requirements of 

this Paragraph 190. 

191. Each Consumers report shall be signed by a Responsible Official as defined in 

Title V of the Clean Air Act for Campbell, Kam, Kam Units 3 and 4, Cobb, Weadock, and 

Whiting, as appropriate, and shall contain the following certification: 

This information was prepared either by me or under my direction or supervision 

in accordance with a system designed to assure that qualified personnel properly 

gather and evaluate the information submitted. Based on my evaluation, or my 

inquiry of the person(s) who manage(s) the system, or the person(s) directly 

responsible for gathering the information, I hereby certify under penalty of law 

that, to the best of my knowledge and belief, this information is true, accurate, 

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and complete. I understand that there are significant penalties for submitting 

false, inaccurate, or incomplete information to the United States. 

192. If any NOx or S02 Allowances are Surrendered to any non-profit third party 

pursuant to Paragraphs I 08 and/or 139, the non-profit third party's certification shall be signed 

by a managing officer of the non-profit third party and shall contain the following language: 

I certify under penalty of law that [name of non-profit third 

party] will not sell, trade, or otherwise exchange any of the allowances and will 

not use any of the allowances to meet any obligation imposed by any 

environmental law. I understand that there are significant penalties for making 

misrepresentations to or misleading the United States. 

XIII. REVIEW AND APPROVAL OF SUBMITTALS 

193. Consumers shall submit each plan, report, or other submission required by this 

Consent Decree to the United States whenever such a document is required to be submitted for 

review or approval pursuant to this Consent Decree. EPA may approve the submittal or decline 

to approve it and provide written comments explaining the bases for declining such approval as 

soon as reasonably practicable. Within 60 Days of receiving written comments from EPA, 

Consumers shall either: (a) revise the submittal consistent with the written comments and 

provide the revised submittal to EPA; or (b) submit the matter for dispute resolution, including 

the period of informal negotiations, under Section XVI (Dispute Resolution) of this Consent 

Decree. 

194. Upon receipt of EPA's final approval of the submittal, or upon completion of the 

submittal pursuant to dispute resolution, Consumers shall implement the approved submittal in 

accordance with the schedule specified therein or another EPA-approved schedule. 

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XIV. STIPULATED PENALTIES 

195. For any failure by Consumers to comply with the terms of this Consent Decree, 

and subject to the provisions of Sections XV (Force Majeure) and XVI (Dispute Resolution), 

Consumers shall pay, within 30 Days after receipt of written demand to Consumers by the 

United States, the following stipulated penalties to the United States: 

Consent Decree Violation Stipulated Penalty 

a. Failure to pay the civil penalty as specified in Section X $10,000 per Day 

(Civil Penalty) ofthis Consent Decree 

b. Failure to comply with any applicable 30-Day Rolling $2,500 per Day per violation 

Average Emission Rate where the violation is less than 

5% in excess ofthe lb/mmBTU 

limits 

$5,000 per Day per violation 

where the violation is equal to 

or greater than 5% but less than 

1 0% in excess of the 

lb/mmBTU limits 

$10,000 per Day per violation 

where the violation is equal to 

or greater than 1 0% in excess of 

the lb/mmBTU limits 

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c. Failure to comply with any applicable 90-Day Rolling $1,000 per Day per violation 

where the violation is less than Average Emission Rate 

5% in excess ofthe lb/mmBTU 

limits 

$1,750 per Day per violation 

where the violation is equal to 

or greater than 5% but Jess than 

1 0% in excess of the 

Jb/mmBTU limits 

$2,500 per Day per violation 

where the violation is equal to 

or greater than 1 0% in excess of 

the Ib/mmBTU limits 

d. Failure to comply with any applicable 365-Day Rolling $350 per Day per violation for a 

Average Emission Rate, where the violation is Jess than 5% 365-Day Rolling Average in excess of the limits set forth in this Consent Dec.ree Emission Rate violation, plus 

$4,000 for each subsequent 365-

Day Rolling Average Emission 

Rate violation that includes any 

day in a previously assessed 

365-Day Rolling Average 

Emission Rate violation (e.g., if 

a violation ofthe 365-Day 

Rolling Average Emission Rate 

for a Unit first occurs on June 1, 

2013, occurs again on June 2, 

2013, and again on May 31, 

2014, the total stipulated 

penalty assessed for these three 

violations would equal 

$135,750) 

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e. Failure to comply with any applicable 365-Day Rolling $450 per Day per violation for a 

Average Emission Rate, where the violation is equal to or 365-Day Rolling Average 

greater than 5% but less than 10% in excess of the limits set Emission Rate violation, plus 

forth in this Consent Decree $5,000 for each subsequent 365-

Day Rolling Average Emission 

Rate violation that includes any 

day in a previously assessed 

365-Day Rolling Average 

Emission Rate violation (e.g., if 

a violation ofthe 365-Day 

Rolling Average Emission Rate 

for a Unit first occurs on June 1, 

2013, occurs again on June 2, 

2013, and again on May 31, 

2014, the total stipulated 

penalty assessed for these three 

violations would equal 

$174,250) 

f. Failure to comply with any applicable 365-Day Rolling $600 per Day per violation for a 

Average Emission Rate, where the violation is equal to or 365-Day Rolling Average 

greater than 10% in excess ofthe limits set forth in this Emission Rate violation, plus 

Consent Decree $6,000 for each subsequent 365-

Day Rolling Average Emission 

Rate violation that includes any 

day in a previously assessed 

365-Day Rolling Average 

Emission Rate violation (e.g., if 

a violation ofthe 365-Day 

Rolling Average Emission Rate 

for a Unit first occurs on June 1 ' 2013, occurs again on June 2, 

2013, and again on May 31, 

2014, the total stipulated 

penalty assessed for these three 

violations would equal 

$231 ,000) 

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g. Failure to comply with the applicable System-Wide 5,000 per ton for first 100 tons, 

Annual Tonnage Limitations established by this Consent $1 0,000 per ton for each 

Decree additional ton above I 00 tons, 

plus the Surrender ofNOx or 

SOz Allowances in an amount 

equal to two times the number 

of tons ofNOx or S02 emitted 

that exceeded the System-Wide 

Annual Tonnage Limitation 

h. Failure to comply with any applicable PM Emission Rate $2,500 per Operating Day per 

specified in Section VI.B (Unit-Specific PM Requirements violation, starting on the day a 

at Campbell Units I, 2 and 3) or C (Unit-Specific PM stack test result demonstrates a 

Requirements at Kam Units I and 2) ofthis Consent violation and continuing each 

Decree, where the violation is Jess than five percent (5%) in day thereafter unti I and 

excess ofthe lb/mmBTU limit excluding such day on which a 

subsequent stack test* 

demonstrates compliance with 

the applicable PM Emission 

Rate 

i. Failure to comply with any applicable PM Emission Rate $5,000 per Operating Day per 

specified in Section VI.B or C of this Consent Decree, violation, starting on the day a 

where the violation is equal to or greater than 5% but Jess stack test result demonstrates a 

than 10% in excess ofthe Jb/mmBTU limit violation and continuing each 

day thereafter until and 

excluding such day on which a 

subsequent stack test* 

demonstrates compliance with 

the applicable PM Emission 

Rate 

j. Failure to comply with any applicable PM Emission Rate $10,000 per Operating Day per 

specified in Section VI.B or C of this Consent Decree, violation, starting on the day a 

where the violation is equal to or greater than I 0% in excess stack test result demonstrates a 

ofthe lb/mmBTU limit violation and continuing each 

day thereafter until and 

excluding such day on which a 

subsequent stack test* 

demonstrates compliance with 

the applicable PM Emission 

Rate 

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k. Failure to install, commence Continuous Operation, or $10,000 per Day per violation 

Continuously Operate a NOx, S02, or PM control device as during the first 30 Days; 

required under this Consent Decree $37,500 per Day per violation 

thereafter 

I. Failure to Retire a Unit as required under this Consent $10,000 per Day per violation 

Decree during the first 30 Days; 

$37,500 per Day per violation 

thereafter 

m. Failure to conduct a stack test for PM as required by $5,000 per Day per violation 

subsection VI.G PM Emissions Testing and Monitoring 

Requirements) of this Consent Decree 

n. Failure to install or operate NOx, S02, and/or PM CEMS $1 ,000 per Day per violation 

as required in this Consent Decree 

o. Failure to apply for any permit required by Section XVII $1,000 per Day per violation 

(Permits) 

p. Failure to timely submit, modify, or implement, as $750 per Day per violation 

approved, the reports, plans, studies, analyses, protocols, or during the first I 0 Days; $1,000 

other submittals required by this Consent Decree per Day per violation thereafter 

q. Failure to Surrender NOx Allowances as required under $37,500 per Day, plus $1,000 

this Consent Decree per NOx Allowance not 

Surrendered 

r. Failure to Surrender S02 Allowances as required under $37,500 per Day, plus $1,000 

this Consent Decree per S02 Allowance not 

Surrendered 

s. Using, selling, banking, trading, or transferring NOx The Surrender of Allowances in 

Allowances or S02 Allowances except as permitted under an amount equal to four times 

this Consent Decree the number of Allowances used, 

sold, banked, traded, or 

transferred in violation of this 

Consent Decree 

t. Failure to demonstrate the third-party Surrender of a NOx $2,500 per Day per violation 

or S02 Allowance in accordance with Paragraphs 108 and 

139 

u. Failure to optimize ESPs and Baghouses as required by $1,000 per Day per violation 

Paragraph 141 

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v. Failure to undertake and complete any of the $1,000 per Day per violation 

Environmental Mitigation Projects in compliance with during the first 30 Days; $5,000 

Section IX (Environmental Mitigation Projects) and per Day per violation thereafter 

Appendix A of this Consent Decree 

w. A violation of the opacity standard under Paragraph 151 $1,000 per Day per violation 

or 152 

X. Any other violation of this Consent Decree $1,000 per Day per violation 

*Consumers shall not be requ1red to make any subm1ss1on, mcludmg any not1ce or test protocol, or to 

obtain any approval to or from EPA in advance of conducting such a subsequent stack test, provided 

that Consumers uses the test methods and procedures specified within Paragraphs 154, 155, and 156 or 

test protocols otherwise previously approved by EPA. 

196. Violations of any limit based on a 30-Day Rolling Average Emission Rate 

constitute 30 Days of violation but where such a violation (for the same pollutant and from the 

same Unit) recurs within periods less than 30 Operating Days, Consumers shall not be obligated 

to pay a daily stipulated penalty for any Day of the recurrence for which a stipulated penalty has 

already been paid. 

197. Violations of any limit based on a 90-Day Rolling Average Emission Rate 

constitute 90 Days of violation but where such a violation (for the same pollutant and from the 

same Unit) recurs within periods less than 90 Operating Days, Consumers shall not be obligated 

to pay a daily stipulated penalty for any Day of the recurrence for which a stipulated penalty has 

already been paid. 

198. Violations of any limit based on a 365-Day Rolling Average Emission Rate 

constitute 365 Days of violation but where such a violation (for the same pollutant and from the 

same Unit) recurs within periods less than 365 Operating Days, Consumers shall not be obligated 

to pay a daily stipulated penalty for any Day of the recurrence for which a stipulated penalty has 

already been paid. 

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199. Consumers shall not be subject to stipulated penalties for a failure to comply with 

any 30-Day Rolling Average Emission Rate for NOx, or any 30-Day Rolling Average Emission 

Rate for S02 that will be met through the use of FGD as required by Paragraphs 112, 117, and 

118, due to a startup or shutdown event provided that (a) Consumer's emissions do not exceed 

the 30-Day Rolling Average NOx or S02 Emission Rate by more than 0.015 lb/mmBTU, (b) in 

the next periodic reporting period, Consumers provides EPA with data and calculations to 

demonstrate a startup or shutdown event occurred and but for the startup or shutdown event, 

Consumers would have achieved and maintained compliance with the applicable 30-Day Rolling 

Average Emission Rate for NOx or S02, and (c) Consumers identifies the time period of the 

event, provides EPA with data regarding the flue gas temperature entering each applicable 

control device during the startup or shutdown event and provides a brief description of why such 

startup/shutdown conditions limited or impeded the operation of applicable pollution control 

device(s). For all Units other than those at the Campbell plant, Consumers may only invoke this 

provision in relation to five startup or shutdown events per calendar year per Unit during the 

term of this Consent Decree. For Units at the Campbell plant, Consumers may only invoke this 

provision in relation to seven startup or shutdown events per calendar year per Unit during the 

term of this Consent Decree. For purposes of this Paragraph 199, a startup or shutdown event 

may not extend more than 72 hours. This provision applies only to the calculation of stipulated 

penalties, and shall not be included in any permit. 

200. In addition, only for purposes of the 90-Day Rolling Average Emission Rate for 

NOx required by Paragraphs 79 and 82 for Campbell Units 2 and 3, Consumers shall not be 

subject to stipulated penalties for a failure to comply with the 90-Day Rolling Average Emission 

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Rate for NOx due to a startup or shutdown event provided that (a) Consumer's emissions do not 

exceed the 90-Day Rolling Average NOx Emission Rate by more than 0.0151b/mmBTU, (b) in 

the next periodic reporting period, Consumers provides EPA with data and calculations to 

demonstrate a startup or shutdown event occurred and but for the startup or shutdown event, 

Consumers would have achieved and maintained compliance with the applicable 90-Day Rolling 

Average Emission Rate forNOx, and (c) Consumers identifies the time period ofthe event, 

provides EPA with data regarding the flue gas temperature entering each applicable control 

device during the startup or shutdown event and provides a brief description of why such 

startup/shutdown conditions limited or impeded the operation of applicable pollution control 

device(s). For all Units other than those at the Campbell plant, Consumers may only invoke this 

provision in relation to five startup or shutdown events per calendar year per Unit during the 

term of this Consent Decree. For Units at the Campbell plant, Consumers may only invoke this 

provision in relation to seven startup or shutdown events per calendar year per Unit during the 

term of this Consent Decree. For purposes of this Paragraph 200, a startup or shutdown event 

may not extend more than 72 hours. This provision applies only to the calculation of stipulated 

penalties, and shall not be included in any permit. 

201. All stipulated penalties shall begin to accrue on the Day after the performance is 

due or on the Day a violation occurs, whichever is applicable, and shall continue to accrue until 

performance is satisfactorily completed or until the violation ceases, whichever is applicable. 

Nothing in this Consent Decree shall prevent the simultaneous accrual of separate stipulated 

penalties for separate violations of this Consent Decree. 

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202. For purposes of the stipulated penalty Surrender of Allowances required pursuant 

to subparagraphs 195(g) and (s), Consumers shall make the Surrender of any Allowances 

required by such subparagraphs by June 30 of the immediately following calendar year. 

203. Consumers shall pay all stipulated penalties to the United States within 30 Days 

of receipt of written demand to Consumers from the United States, and shall continue to make 

such payments every 30 Days thereafter until the violation(s) no longer continues, unless 

Consumers elects within 20 Days of receipt of written demand to Consumers from the United 

States to dispute the accrual of stipulated penalties in accordance with the provisions in Section 

XVI (Dispute Resolution) of this Consent Decree. 

204. Stipulated penalties shall continue to accrue as provided in accordance with 

Paragraph 20 I during any dispute, with interest on accrued stipulated penalties payable and 

calculated at the rate established by the Secretary of the Treasury, pursuant to 28 U .S.C. § 1961, 

but need not be paid until the following: 

a. If the dispute is resolved by agreement, or by a decision of the United States 

pursuant to Section XVI (Dispute Resolution) of this Consent Decree that is not appealed 

to the Court, accrued stipulated penalties agreed or determined to be owing, together with 

accrued interest, shall be paid within 30 Days of the effective date of the agreement or of 

the receipt of the United States' decision; 

b. If the dispute is appealed to the Court and the United States prevails in whole or 

in part, Consumers shall, within 30 Days of receipt of the Court's decision or order, pay 

all accrued stipulated penalties determined by the Court to be owing, together with 

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interest accrued on such penalties determined by the Court to be owing, except as 

provided in subparagraph c, below; 

c. If the Court's decision is appealed by either Party, Consumers shall, within 15 

Days of receipt of the final appellate court decision, pay all accrued stipulated penalties 

determined by the appellate court to be owing, together with interest accrued on such 

stipulated penalties. 

Notwithstanding any other provision of this Consent Decree, the accrued stipulated penalties 

agreed by the United States and Consumers, or determined by the United States through Dispute 

Resolution, to be owing may be less than the stipulated penalty amounts set forth in Paragraph 

195. 

205. All monetary stipulated penalties shall be paid in the manner set forth in Section 

X (Civil Penalty) of this Consent Decree and all Surrender of Allowances stipulated penalties 

shall comply with the Surrender of Allowances procedures ofParagraphs 107-109 and 138-140. 

206. Should Consumers fail to pay stipulated penalties in compliance with the terms of 

this Consent Decree, the United States shall be entitled to collect interest on such penalties, as 

provided for in 28 U .S.C. § 1961. 

207. The stipulated penalties provided for in this Consent Decree shall be in addition to 

any other rights, remedies, or sanctions available to the United States by reason of Consumers' 

failure to comply with any requirement of this Consent Decree or applicable law, except that for 

any violation of the Act (including the Act's implementing regulations and permits) for which 

this Consent Decree provides for payment of a stipulated penalty, Consumers shall be allowed a 

credit for stipulated penalties paid against any statutory penalties also imposed for such violation. 

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208. Affirmative Defense as to Stipulated Penalties for Excess Emissions Occurring 

During Malfunctions: If any of Consumers' Units exceed an applicable 30-Day or 90-Day 

Rolling Average Emission Rate for NOx or 30-Day or 90-Day Rolling Average Emission Rate 

for SOz set forth in this Consent Decree due to Malfunction, Consumers, bearing the burden of 

proof, has an affirmative defense to stipulated penalties under this Consent Decree, if Consumers 

has complied with the reporting requirements of Paragraphs 21 0 and 211 and has demonstrated 

all ofthe following: 

a. the excess emissions were caused by a sudden, unavoidable breakdown of 

techno logy, beyond Consumers' contro I; 

b. the excess emissions (1) did not stem from any activity or event that could have 

been foreseen and avoided, or planned for, and (2) could not have been avoided 

by better operation and maintenance practices; 

c. to the maximum extent practicable, the air pollution control equipment and 

processes were maintained and operated in a manner consistent with good 

practice for minimizing emissions; 

d. repairs were made in an expeditious fashion when Consumers knew or should 

have known that an applicable 30-Day or 90-Day Rolling Average Emission Rate 

was being exceeded. Off-shift labor and overtime must have been utilized, to the 

extent practicable, to ensure that such repairs were made as expeditiously as 

practicable; 

e. the amount and duration of the excess emissions (including any bypass) were 

minimized to the maximum extent practicable during periods of such emissions; 

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f. all possible steps were taken to minimize the impact of the excess emissions on 

ambient air quality; 

g. all emission monitoring systems were kept in operation if at all possible; 

h. Consumers' actions in response to the excess emissions were documented by 

validated, contemporaneous operating logs, or other relevant evidence; 

i. the excess emissions were not part of a recurring pattern indicative of inadequate 

design, operation, or maintenance; and 

J. Consumers properly and promptly notified EPA as required by this Consent 

Decree. 

209. To assert an affirmative defense for Malfunction under Paragraph 208, 

Consumers shall submit all data demonstrating the actual emissions for the Day the Malfunction 

occurs and the 29-Day or 89-Day period, as applicable, following the Day the Malfunction 

occurs. Consumers may, if it elects, submit emissions data for the same 30-Day or 90-Day period 

but that excludes the excess emissions. 

210. For an affirmative defense under Paragraph 208, Consumers, bearing the burden 

of proof, shall demonstrate, through submission ofthe data and information under the reporting 

provisions of this Section, that all reasonable and practicable measures within Consumers' 

control were implemented to prevent the occurrence of the excess emissions. 

211. Consumers shall provide notice to Plaintiff in writing of Consumers' intent to 

assert an affirmative defense for Malfunction under Paragraph 208, in Consumers' semi-annual 

progress reports as required by Paragraph 188. This notice shall be submitted pursuant to the 

provisions of Section XIX (Notices). The notice shall contain: 

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a. The identity of each stack or other emission point where the excess emissions 

occurred; 

b. The magnitude ofthe excess emissions expressed in lb/mmBTU and the operating 

data and calculations used in determining the magnitude of the excess emissions; 

c. The time and duration or expected duration of the excess emissions; 

d. The identity ofthe equipment from which the excess emissions emanated; 

e. The nature and cause of the excess emissions; 

f. The steps taken to remedy the Malfunction and the steps taken or planned to 

prevent the recurrence of the Malfunction; 

g. The steps that were or are being taken to limit the excess emissions; and 

h. If applicable, a list of the steps taken to comply with permit conditions governing 

Unit operation during periods of Malfunction. 

212. A Malfunction shall not constitute a Force Majeure Event unless the Malfunction 

also meets the definition of a Force Majeure Event, as provided in Section XV (Force Majeure). 

213. The affirmative defense provided herein is only an affirmative defense to 

stipulated penalties for violations of this Consent Decree, and not a defense to any civil or 

administrative action for injunctive relief. 

XV. FORCE MAJEURE 

214. For purposes ofthis Consent Decree, a "Force Majeure Event" shall mean an 

event that has been or will be caused by circumstances beyond the control of Consumers, its 

contractors, or any entity controlled by Consumers that delays qompliance with any provision of 

this Consent Decree or otherwise causes a violation of any provision of this Consent Decree 

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despite Consumers' best efforts to fulfill the obligation. "Best efforts to fulfill the obligation" 

include using the best efforts to anticipate any potential Force Majeure Event and to address the 

effects of any such event (a) as it is occurring and (b) after it has occurred, such that the delay 

and any adverse environmental effect ofthe delay or violation is minimized to the greatest extent 

possible. 

215. Notice of Force Majeure Events. If any event occurs or has occurred that may 

delay compliance with or otherwise cause a violation of any obligation under this Consent 

Decree, as to which Consumers intends to assert a claim of Force Majeure, Consumers shall 

notify Plaintiff in writing as soon as practicable, but in no event later than 21 Days following the 

date Consumers first knew, or by the exercise of due diligence should have known, that the event 

caused or may cause such delay or violation. In this notice, Consumers shall reference this 

Paragraph 215 of this Consent Decree and describe the anticipated length of time that the delay 

or violation may persist, the cause or causes of the delay or violation, all measures taken or to be 

taken by Consumers to prevent or minimize the delay and any adverse environmental effect of 

the delay or violation, the schedule by which Consumers proposes to implement those measures, 

and Consumers' rationale for attributing a delay or violation to a Force Majeure Event. 

Consumers shall adopt all reasonable measures to avoid or minimize such delays or violations. 

Consumers shall be deemed to know of any circumstance which Consumers, its contractors, or 

any entity controlled by Consumers knew or should have known. 

216. Failure to Give Notice. If Consumers fails to comply with the notice 

requirements of this Section, the United States may void Consumers' claim for Force Majeure as 

to the specific event for which Consumers has failed to comply with such notice requirement. 

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217. United States' Response. The United States shall notify Consumers in writing 

regarding Consumers' claim of Force Majeure as soon as reasonably practicable. If the United 

States agrees that a Force Majeure Event has delayed or prevented, or will delay or prevent, 

compliance with any provision of this Consent Decree, or has otherwise caused or will cause 

noncompliance with any provision of this Consent Decree, the United States and Consumers 

shall stipulate to an extension of deadline(s) for performance of the affected compliance 

requirement(s) by a period equal to the delay or period of noncompliance actually caused by the 

event. In such circumstances, an appropriate modification shall be made pursuant to Section 

XXIII (Modification) ofthis Consent Decree. 

218. Disagreement. Ifthe United States does not accept Consumers' claim of Force 

Majeure, or if the United States and Consumers cannot agree on the length of the delay actually 

caused by the Force Majeure Event, the matter shall be resolved in accordance with Section XVI 

(Dispute Resolution) ofthis Consent Decree. 

219. Burden of Proof. In any dispute regarding Force Majeure, Consumers shall bear 

the burden of proving that any delay in performance or any other violation of any requirement of 

this Consent Decree was caused by or will be caused by a Force Majeure Event. Consumers 

shall also bear the burden of proving that Consumers gave the notice required by this Section XV 

(Force Majeure) and the burden of proving the anticipated duration and extent of any delay(s) 

attributable to a Force Majeure Event. An extension of one compliance date based on a 

particular event may, but will not necessarily, result in an extension of a subsequent compliance 

date. 

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220. Events Excluded. Unanticipated or increased costs or expenses associated with 

the performance of Consumers' obligations under this Consent Decree shall not constitute a 

Force Majeure Event. 

221. Potential Force Majeure Events. The Parties agree that, depending upon the 

circumstances related to an event and Consumers' response to such circumstances, the kinds of 

events listed below are among those that could qualify as Force Majeure Events within the 

meaning of this Section: construction, labor, or equipment delays; Malfunction of a Unit or 

emission control device; unanticipated coal supply or pollution control reagent delivery 

interruptions; acts of God; acts of war or terrorism; and orders by a government official, 

government agency, other regulatory authority, or a regional transmission organization, acting 

under and authorized by applicable Jaw, that directs Consumers to supply electricity in response 

to a system-wide (state-wide or regional) emergency or is necessary to preserve the reliability of 

the bulk power system. Depending upon the circumstances and Consumers' response to such 

circumstances, failure of a permitting authority to issue a necessary permit in a timely fashion 

may constitute a Force Majeure Event where the failure of the permitting authority to act is 

beyond the control of Consumers and Consumers has taken all steps available to it to obtain the 

necessary permit, including, but not limited to: submitting a complete permit application; 

responding to requests for additional information by the permitting authority in a timely fashion; 

and accepting lawful permit terms and conditions after expeditiously exhausting any legal rights 

to appeal terms and conditions imposed by the permitting authority. 

222. As part of the resolution of any matter submitted to this Court under Section XVI 

(Dispute Resolution) regarding a claim of Force Majeure, the United States and Consumers by 

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agreement, or this Court by order, may in appropriate circumstances extend or modify the 

schedule for completion of work under this Consent Decree to account for the delay in the work 

that occurred as a result of any delay agreed to by the United States or approved by the Court. 

Consumers shall be liable for stipulated penalties pursuant to Section XIV (Stipulated Penalties) 

for its failure thereafter to complete the work in accordance with the extended or modified 

schedule (provided that Consumers shall not be precluded from making a further claim of Force 

Majeure with regard to meeting any such extended or modified schedule). 

XVI. DISPUTE RESOLUTION 

223. The dispute resolution procedure provided by this Section XVI (Dispute 

Resolution) shall be available to resolve all disputes arising under this Consent Decree, provided 

that the Party invoking such procedure has first made a good faith attempt to resolve the matter 

with the other Party. 

224. The dispute resolution procedure required herein shall be invoked by one Party 

giving written notice to the other Party advising of a dispute pursuant to this Section. The notice 

shall describe the nature of the dispute and shall state the noticing Party's position with regard to 

such dispute. The Party receiving such a notice shall acknowledge receipt of the notice, and the 

Parties in dispute shall expeditiously schedule a meeting to discuss the dispute informally not 

later than 14 Days following receipt of such notice. 

225. Disputes submitted to dispute resolution under this Section shall, in the first 

instance, be the subject of informal negotiations between the Parties. Such period of informal 

negotiations shall not extend beyond 30 Days from the date of the first meeting between the 

Parties' representatives unless they agree in writing to shorten or extend this period. 

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226. If the Parties are unable to reach agreement during the informal negotiation 

period, the United States shall provide Consumers with a written summary of their position 

regarding the dispute. The written position provided by the United States shall be considered 

binding unless, within 45 Days thereafter, Consumers seeks judicial resolution of the dispute by 

filing a petition with this Court. The United States may submit a response to the petition within 

45 Days of filing. 

227. The time periods set out in this Section XVI (Dispute Resolution) may be 

shortened or lengthened upon motion to the Court of one of the Parties to the dispute, explaining 

the Party's basis for seeking such a scheduling modification. 

228. This Court shall not draw any inferences nor establish any presumptions adverse 

to either Party as a result of invocation of this Section XVI (Dispute Resolution) or the Parties' 

inability to reach agreement. 

229. As part of the resolution of any dispute under this Section XVI (Dispute 

Resolution), in appropriate circumstances the Parties may agree, or this Court may order, an 

extension or modification of the schedule for the completion of the activities required under this 

Consent Decree to account for the delay that occurred as a result of dispute resolution. 

Consumers shall be liable for stipulated penalties pursuant to Section XIV (Stipulated Penalties) 

for its failure thereafter to complete the work in accordance with the extended or modified 

schedule, provided that Consumers shall not be precluded from asserting that a Force Majeure 

Event has caused or may cause a delay in complying with the extended or modified schedule. 

230. The Court shall decide all disputes pursuant to applicable principles of law for 

resolving such disputes. In their filings with the Court under Paragraph 226, the Parties shall 

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state their respective positions as to the applicable standard of law for resolving the particular 

dispute. 

XVII. PERMITS 

231. Unless expressly stated otherwise in this Consent Decree, in any instance where 

otherwise applicable law or this Consent Decree requires Consumers to secure a permit to 

authorize construction or operation of any device, including all preconstruction, construction, 

and operating permits required under State law, Consumers shall make such application in a 

timely manner. EPA will use its best efforts to review expeditiously all permit applications 

submitted by Consumers in order to meet the requirements of this Consent Decree. 

232. Notwithstanding the previous Paragraph 231, nothing in this Consent Decree shall 

be construed to require Consumers to apply for or obtain an NSR permit for physical changes in, 

or change in the method of operation of, any Consumers System Unit that would give rise to 

claims resolved by Paragraph 182 through 183, subject to Paragraphs 184 through 187 ofthis 

Consent Decree. 

233. When permits are required, Consumers shall complete and submit applications for 

such permits to the applicable agency to allow sufficient time for all legally required processing 

and review ofthe permit request, including requests for additional information by the applicable 

agency. Any failure by Consumers to submit a timely permit application for a Consumers 

System Unit shall bar any use by Consumers of Section XV (Force Majeure) ofthis Consent 

Decree, where a Force Majeure claim is based on permitting delays. 

234. Notwithstanding the reference to Consumers' Title V Permits in this Consent 

Decree, the enforcement of such permits shall be in accordance with their own terms and the Act 

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and its implementing regulations. Consumers' Title V Permits shall not be enforceable under 

this Consent Decree, although any term or limit established by or under this Consent Decree 

shall be enforceable under this Consent Decree regardless of whether such term has or will 

become part of a Title V Permit, subject to the terms of Section XXVII (Termination) ofthis 

Consent Decree. 

235. Within 180 Days after the Date of Entry of this Consent Decree, Consumers shall 

modify any applicable Title V Permit application(s) for the Campbell and Kam plants, or apply 

for modifications of its Title V Permits, to include a schedule for all Unit-specific, plant-specific, 

and system-specific performance, operational, maintenance, and control technology requirements 

established by this Consent Decree including, but not limited to, any (a) 30-Day, 90-Day and 

365-Day Rolling Average Emission Rates, (b) System-Wide Annual NOx and S02 Tonnage 

Limitations, (c) the requirements pertaining to the Surrender ofNOx and S02 Allowances, (d) 

PM Emission Rate and annual stack test requirements, and (e) PM CEMS monitoring 

requirements. 

236. Within one year from the Date of Entry of this Consent Decree, Consumers shall 

either apply to permanently include the requirements and limitations enumerated in Paragraph 

235 of this Consent Decree into a federally enforceable non-Title V permit or request a sitespecific revision to the Michigan SIP to include such requirements and limitations. 

237. Consumers shall provide the United States with a copy of each application for a 

federally enforceable permit or Michigan SIP amendment, as well as a copy of any permit 

proposed as a result of such application, to allow for timely participation in any public comment 

opportunity. 

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238. Prior to termination of this Consent Decree, Consumers shall obtain enforceable 

provisions in its Title V permits that incorporate all Unit-specific, plant-specific, and systemspecific performance, operational, maintenance, and control technology requirements 

enumerated in Paragraph 235 of this Consent Decree. 

239. If Consumers proposes to sell or transfer to an entity unrelated to Consumers 

("Third Party Purchaser") part or all of its Operational or Ownership Interest covered under this 

Consent Decree, Consumers shall comply with the requirements of Section XX (Sales or 

Transfers of Operational or Ownership Interests) ofthis Consent Decree with regard to that 

Operational or Ownership Interest prior to any such sale or transfer. 

XVIII. INFORMATION COLLECTION AND RETENTION 

240. Any authorized representative ofthe United States, including its attorneys, 

contractors, and consultants, upon presentation of credentials, shall have a right of entry upon the 

premises of a Consumers System Unit at any reasonable time for the purpose of: 

a. monitoring the progress of activities required under this Consent Decree; 

b. verifying any data or information submitted to the United States in accordance 

with the terms of this Consent Decree; 

c. obtaining samples and, upon request, splits of any samples taken by Consumers or 

its representatives, contractors, or consultants; and 

d. assessing Consumers' compliance with this Consent Decree. 

241. Consumers shall retain, and instruct its contractors and agents to preserve, all nonidentical copies of all records and documents (including records and documents in electronic 

form) now in its or its contractors' or agents' possession or control, and that directly relate to 

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Consumers' performance of its obligations under this Consent Decree for the following periods: 

(a) until December 31, 2023, for records concerning physical or operational changes undertaken 

in accordance with Section IV (NOx Emission Reductions and Controls), Section V (S02 

Emission Reductions and Controls), and Section VI (PM Emission Reductions and Controls); 

and (b) until December 31, 2019, for all other records. This record retention requirement shall 

apply regardless of any corporate document retention policy to the contrary. 

242. All information and documents submitted by Consumers pursuant to this Consent 

Decree shall be subject to any requests under applicable law providing public disclosure of 

documents unless (a) the information and documents are subject to legal privileges or protection 

or (b) Consumers claims and substantiates in accordance with 40 C.F .R. Part 2 that the 

information and documents contain confidential business information. 

243. Nothing in this Consent Decree shall limit the authority of EPA to conduct tests 

and inspections at Consumers' facilities under Section 114 of the Act, 42 U.S.C. § 7414, or any 

other applicable federal law, regulation, or permit. 

XIX. NOTICES 

244. Unless otherwise provided herein, whenever notifications, submissions, or 

communications are required by this Consent Decree, they shall be made in writing and 

addressed as follows: 

As to the United States of America: 

(ifby mail service) 

Chief, Environmental Enforcement Section 

Environment and Natural Resources Division 

U.S. Department of Justice 

P.O. Box 7611, Ben Franklin Station 

Washington, DC 20044-7611 

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------- 

OJ# 90-5-2-1-09771 

(if by commercial delivery service) 

Chief, Environmental Enforcement Section 

Environment and Natural Resources Division 

U.S. Department of Justice 

ENRD Mailroom, Room 2121 

60 I D Street, NW 

Washington, DC 20004 

OJ# 90-5-2-1-09771 

and 

(ifby mail service) 

Director, Air Enforcement Division 

Office of Enforcement and Compliance Assurance 

U.S. Environmental Protection Agency 

Mail Code 2242A 

1200 Pennsylvania A venue, NW 

Washington, DC 20460 

(ifby commercial delivery service) 

Director, Air Enforcement Division 

Office of Enforcement and Compliance Assurance 

U.S. Environmental Protection Agency 

Ariel Rios South Building, Room 1119 

1200 Pennsylvania A venue, NW 

Washington, DC 20004 

and 

Director, Air Division 

U.S. EPA Region 5 

77 W. Jackson Blvd. (AE-17J) 

Chicago, IL 60604 

As to Consumers: 

Catherine M. Reynolds 

General Counsel 

Consumers Energy Company 

One Energy Plaza 

Jackson, MI 49201 

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~------------------------------------~~------------ --

and 

Kevin .1. Finto 

Hunton & Williams LLP 

Riverfront Plaza, East Tower 

951 East Byrd Street 

Richmond, VA 23219 

245. All notifications, communications, or submissions made pursuant to this Section 

shall be sent either by: (a) overnight mail or overnight delivery service with signature required 

for delivery, or (b) certified or registered mail, return receipt requested. All notifications, 

communications, and submissions (a) sent by overnight, certified, or registered mail shall be 

deemed submitted on the date they are postmarked, or (b) sent by overnight delivery service shall 

be deemed submitted on the date they are delivered to the delivery service. 

246. Either Party may change either the notice recipient or the address for providing 

notices to it by serving the other Party with a notice setting forth such new notice recipient or 

address. 

XX. SALES OR TRANSFERS OF OPERATIONAL OR OWNERSHIP INTERESTS 

247. If Consumers proposes to sell or transfer an Operational or Ownership Interest to 

a Third Party Purchaser, Consumers shall advise the Third Party Purchaser in writing ofthe 

existence of this Consent Decree prior to such sale or transfer, and shall send a copy of such 

written notification to the Plaintiff pursuant to Section XIX (Notices) of this Consent Decree at 

least 60 Days before such proposed sale or transfer. 

248. No sale or transfer of an Operational or Ownership Interest shall take place before 

the Third Party Purchaser and the United States have executed, and the Court has approved, a 

modification pursuant to Section XXIII (Modification) of this Consent Decree making the Third 

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Party Purchaser a party to this Consent Decree and jointly and severally liable with Consumers 

for all the requirements of this Consent Decree that may be applicable to the transferred or 

purchased Operational or Ownership Interests. 

249. This Consent Decree shall not be construed to impede the transfer of any 

Operational or Ownership Interests between Consumers and any Third Party Purchaser so long 

as the requirements of this Consent Decree are met. This Consent Decree shall not be construed 

to prohibit a contractual allocation -as between Consumers and any Third Party Purchaser of 

Operational or Ownership Interests- of the burdens of compliance with this Consent Decree, 

provided that both Consumers and such Third Party Purchaser shall remain jointly and severally 

liable to the United States for the obligations of this Consent Decree applicable to the transferred 

or purchased Operational or Ownership Interests. 

250. Ifthe United States agrees, the United States, Consumers, and the Third Party 

Purchaser that has become a party to this Consent Decree pursuant to Paragraph 248 may 

execute a modification that relieves Consumers of its liability under this Consent Decree for, and 

makes the Third Party Purchaser liable for, all obligations and liabilities applicable to the 

purchased or transferred Operational or Ownership Interests. Notwithstanding the foregoing, 

however, Consumers may not assign, and may not be released from, any obligation under this 

Consent Decree that is not specific to the purchased or transferred Operational or Ownership 

Interests, including the obligations set forth in Sections IX (Environmental Mitigation Projects) 

and X (Civil Penalty). Consumers may propose and the United States may agree to restrict the 

scope of the joint and several liability of any purchaser or transferee for any obligations of this 

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Consent Decree that are not specific to the transferred or purchased Operational or Ownership 

Interests, to the extent such obligations may be adequately separated in an enforceable manner. 

251. Paragraphs 248 through 250 of this Consent Decree do not apply if an Ownership 

Interest is transferred solely as collateral security in order to consummate a financing 

arrangement (not including a sale-leaseback), so long as Consumers: (a) remains the operator (as 

that terms is used and interpreted under the Act) ofthe subject Unit(s); (b) remains subject to and 

liable for all obligations and liabilities ofthis Consent Decree; and (c) supplies the United States 

with the following certification within 30 Days after the transfer: 

Certification of Change in Ownership Interest Solely for Purpose of Consummating 

Financing. We, the Chief Executive Officer and General Counsel of Consumers 

Energy Company ("Consumers"), hereby jointly certify under Title 18 U .S.C. Section 

I 00 I, on our own behalf and on behalf of Consumers, that any change in Consumer's 

Ownership Interest in any Unit that is caused by the creation of a collateral security 

interest in such Unit(s) pursuant to the financing agreement consummated on [insert 

applicable date] between Consumers and [insert applicable entity]: a) is made solely 

for purpose of providing collateral security in order to consummate a financing 

arrangement; b) does not impair Consumer's ability, legally or otherwise, to comply 

timely with all terms and provisions of the Consent Decree entered in United States 

v. Consumers Energy Company, Civil Action ; c) does not affect Consumers' 

operational control of any Unit covered by that Consent Decree in a manner that is 

inconsistent with Consumers' performance of its obligations under the Consent 

Decree; and d) in no way affects the status of Consumers' obligations or liabilities 

under that Consent Decree. 

XXI. EFFECTIVE DATE 

252. The effective date of this Consent Decree shall be the Date of Entry. 

XXII. RETENTION OF JURISDICTION 

253. This Court shall retain jurisdiction of this case after entry of this Consent Decree 

to enforce compliance with the terms and conditions ofthis Consent Decree and to take any 

action necessary or appropriate for the interpretation, construction, execution, or modification of 

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the Consent Decree, or for adjudication of disputes. During the term of this Consent Decree, 

either Party to this Consent Decree may apply to this Court for any relief necessary to construe 

or effectuate this Consent Decree. 

XXIII. MODIFICATION 

254. The terms of this Consent Decree may be modified only by a subsequent written 

agreement signed by the United States and Consumers. Where the modification constitutes a 

material change to any term of this Consent Decree, it shall be effective only upon approval by 

this Court. 

XXIV. GENERAL PROVISIONS 

255. When this Consent Decree specifies that Consumers shall achieve and maintain a 

30-Day Rolling Average Emission Rate, the Parties expressly recognize that compliance with 

such 30-Day Rolling Average Emission Rate shall commence immediately upon the date 

specified and that compliance as of such specified date (e.g., December 30) shall be determined 

based on data from the specified compliance date and the 29 prior Unit Operating Days (e.g., 

December 1-30). 

256. When this Consent Decree specifies that Consumers shall achieve and maintain a 

90-Day Rolling Average Emission Rate, the Parties expressly recognize that compliance with 

such 90-Day Rolling Average Emission Rate shall commence immediately upon the date 

specified and that compliance as of such specified date (e.g., December 30) shall be determined 

based on data from the specified compliance date and the 89 prior Unit Operating Days (e.g., 

October 2 to December 30). 

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257. When this Consent Decree specifies that Consumers shall achieve and maintain a 

365-Day Rolling Average Emission Rate, the Parties expressly recognize that compliance with 

such 365-Day Rolling Average Emission Rate shall commence immediately upon the date 

specified and that compliance as of such specified date (e.g., 365 Days from the Date of Entry) 

shall be determined based on data from the specified compliance date and the 364 prior Unit 

Operating Days (e.g., the 365 Days immediately following the Date ofEntry). Similarly, ifthe 

specified date is June 30, 2015, compliance as of such specified date shall be determined based 

on data from July I, 2014 to June 30, 2015. 

258. This Consent Decree is not a permit. Compliance with the terms of this Consent 

Decree does not guarantee compliance with all applicable federal, state, or local laws or 

regulations. The emission rates and removal efficiencies set forth herein do not relieve 

Consumers from any obligation to comply with other state and federal requirements under the 

Clean Air Act, including Consumers' obligation to satisfy any State modeling requirements set 

forth in the Michigan SIP. 

259. This Consent Decree does not apply to any claim(s) of alleged criminal liability. 

260. In any subsequent administrative or judicial action initiated by the United States 

for injunctive relief or civil penalties relating to the facilities covered by this Consent Decree, 

Consumers shall not assert any defense or claim based upon principles of waiver, res judicata, 

collateral estoppel, issue preclusion, claim preclusion, or claim splitting, or any other defense 

based upon the contention that the claims raised by the United States in the subsequent 

proceeding were brought, or should have been brought, in the instant case; provided, however, 

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that nothing in this Paragraph is intended to affect the validity of Section XI (Resolution of Civil 

Claims). 

261. Nothing in this Consent Decree shall relieve Consumers of its obligation to 

comply with all applicable federal, state, and local laws and regulations, including, but not 

limited to, the Clean Water Act and the National Pollutant Discharge Elimination System 

(NPDES) implementing regulations, National Ambient Air Quality Standards, the National 

Emission Standards for Hazardous Air Pollutants From Coal and Oil-Fired Electric Utility Steam 

Generating Units (Utility MACT or MATS), Standards of Performance for Fossil-Fuel-Fired 

Electric Utility, Industrial-Commercial-Institutional, and Small Industrial CommercialInstitutional Steam Generating Units (Utility NSPS). Nothing in this Consent Decree should be 

construed to provide any relief from the emission limits or deadlines specified in such 

regulations, including, but not limited to, deadlines for the installation of pollution controls 

required by any such regulations, nor shall this Consent Decree be construed as a predetermination of eligibility for the one year extension that may be provided under 42 U.S.C. § 

7412(i)(3)(B). 

262. Subject to the provisions in Section XI (Resolution of Civil Claims), nothing 

contained in this Consent Decree shall be construed to prevent or limit the rights of the United 

States to obtain penalties or injunctive relief under the Act or other federal, state, or local 

statutes, regulations, or permits. 

263. Each limit and/or other requirement established by or under this Consent Decree 

is a separate, independent requirement. 

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264. Performance standards, emissions limits, and other quantitative standards set by 

or under this Consent Decree must be met to the number of significant digits in which the 

standard or limit is expressed. For example, an Emission Rate ofO.lOO is not met if the actual 

Emission Rate is 0.1 0 I. Consumers shall round the fourth significant digit to the nearest third 

significant digit, or the third significant digit to the nearest second significant digit, depending 

upon whether the limit is expressed to three or two significant digits. For example, if an actual 

Emission Rate is 0.1004, that shall be reported as 0.1 00, and shall be in compliance with an 

Emission Rate of 0.1 00, and if an actual Emission Rate is 0.1005, that shall be reported as 0.101, 

and shall not be in compliance with an Emission Rate of 0.1 00. Consumers shall report data to 

the number of significant digits in which the standard or limit is expressed. 

265. This Consent Decree does not limit, enlarge, or affect the rights of any Party to 

this Consent Decree as against any third parties. 

266. This Consent Decree constitutes the final, complete, and exclusive agreement and 

understanding among the Parties with respect to the settlement embodied in this Consent Decree, 

and supersedes all prior agreements and understandings among the Parties related to the subject 

matter herein. No document, representation, inducement, agreement, understanding, or promise 

constitutes any part of this Consent Decree or the settlement it represents, nor shall they be used 

in construing the terms of this Consent Decree. 

267. Each Party to this action shall bear its own costs and attorneys' fees. 

XXV. SIGNATORIES AND SERVICE 

268. The undersigned representative of Consumers, and the Assistant Attorney General 

for the Environment and Natural Resources Division of the Department of Justice, certifies that 

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r----------------------------------------------------

he or she is fully authorized to enter into the terms and conditions of this Consent Decree and to 

execute and legally bind to this document the Party he or she represents. 

269. This Consent Decree may be signed in counterparts, and such counterpart 

signature pages shall be given full force and effect. 

270. Each Party hereby agrees to accept service of process by mail with respect to all 

matters arising under or relating to this Consent Decree and to waive the formal service 

requirements set forth in Rule 4 of the Federal Rules of Civil Procedure and any applicable Local 

Rules of this Court including, but not limited to, service of a summons. 

271. Unless otherwise ordered by the Court, the Plaintiff agrees that Consumers will 

not be required to file any answer or other pleading responsive to the concurrently filed 

Complaint in this matter until and unless the Court expressly declines to enter this Consent 

Decree, in which case Consumers shall have no less than 30 days after receiving notice of such 

express declination to file an answer or other pleading in response to the Complaint 

XXVI. PUBLIC COMMENT 

272. The Parties agree and acknowledge that final approval by the United States and 

entry ofthis Consent Decree is subject to the procedures of28 C.F.R. § 50.7, providing for 

notice of the lodging of this Consent Decree in the Federal Register, an opportunity for public 

comment, and the right of the United States to withdraw or withhold consent if the comments 

disclose facts or considerations that indicate that this Consent Decree is inappropriate, improper, 

or inadequate. Consumers shall not oppose entry of this Consent Decree by this Court or 

challenge any provision of this Consent Decree unless the United States has notified Consumers, 

in writing, that the United States no longer supports entry of this Consent Decree. 

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XXVII. TERMINATION 

273. Once Consumers has: 

a. completed the requirements of Sections IV (NOx Emission Reductions and 

Controls), V (S02 Emission Reductions and Controls), VI (PM Emission 

Reductions and Controls), VIII (Wind Power Commitment), IX (Environmental 

Mitigation Projects); 

b. maintained continuous compliance with this Consent Decree, including 

continuous operation of all pollution controls required by this Consent Decree, for 

a period of 24 months, and has successfully completed all actions necessary to 

Retire or Refuel to Natural Gas any Unit required or elected to be Retired or 

Refueled to Natural Gas as required by this Consent Decree; 

c. paid the civil penalty and any accrued stipulated penalties as required by this 

Consent Decree; 

d. either included the requirements and limitations enumerated in this Consent 

Decree into a federally enforceable permit or obtained a site-specific amendment 

to the Michigan SIP for each plant in the Consumers System, as required by 

Section XVII (Permits) of this Consent Decree such that the requirements and 

limitations enumerated in this Consent Decree, including all Unit-specific, plantspecific, and system-specific performance, operational, maintenance, and control 

technology requirements established by this Consent Decree become and remain 

"applicable requirements" as that term is defined in 40 C.F .R. Part 70.2; and 

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e. certified that the date of Consumers' Request for Termination is later than 

December 31, 2019, 

Consumers may serve upon the United States a Request for Termination, stating that Consumers 

has satisfied those requirements, together with all necessary supporting documentation. 

274. Following receipt by the United States of Consumers' Request for Termination, 

the Parties shall confer informally concerning the Request and any disagreement that the Parties 

may have as to whether Consumers has complied with the requirements for termination of this 

Consent Decree. If the United States agrees that the Decree may be terminated, the Parties shall 

submit, for the Court's approval, a joint stipulation terminating the Decree. 

275. If the United States does not agree that the Decree may be terminated, Consumers 

may invoke Dispute Resolution under Section XVI of this Decree. However, Consumers shall 

not seek Dispute Resolution of any dispute regarding termination, under Paragraph 224 of 

Section XVI, until 60 days after service of its Request for Termination or receipt of an adverse 

decision from the United States, whichever is earlier. 

XXVIII. FINAL JUDGMENT 

276. Upon approval and entry of this Consent Decree by this Court, this Consent 

Decree shall constitute a final judgment between the Parties. 

87 
 

Signature Page for United States of America v. Consumers Energy Company Consent Decree 

FOR THE UNITED STATES DEPARTMENT OF JUSUCE 

Respectfully submitted, 

SAM HIRSCH 

Acting Assistant Attorney General 

Environment and Natural Resources 

Division 

United States Department of Justice 

Senior Attorney 

Environmental Enforcement Section 

Environment and Natural Resources 

Division 

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Signature Page for United States of America v. Consumers Energy Company Consent Decree 

FOR THE UNITED STATES DEPARTMENT OF JUSTICE 

Respectfully submitted, 

BARBARA L. McQuade 

United States Attorney 

Eastern District of Michigan 

ELLEN CHRISTENSEN 

Assistant United States Attorney 

Eastern District of Michigan 

211 W. Fort St., Suite 2001 

Detroit, MI 48226 

88a 

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Signature Page for United States of America v. Consumers Energy Company Consent Decree 

FOR TIIE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

Assist dministrator 

Office ofEnforcement and 

Compliance Assurance 

United States Environmental 

Protection Agency 

Director, ir Enforcement Division 

United States Environmental 

Protection Agency 

Attorney-Advisor 

United States Environmental 

Protection Agency 

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Signature Page for United States of America v. Consumers Energy Company Consent Decree 

FOR THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

Respectfully submitted, 

SUSAN HEDMAN 

Regional Administrator 

United States Environmental 

Protection Agency, Region 5 

t/! \h-·-/ 

Regional Counsel 

United Stated Environmental 

Protection Agency, Region 5 

Associate Regional Counsel 

United States Environmental 

Protection Agency, Region 5 

MICHAEL R. BERMAN 

Associate Regional Counsel 

United States Environmental 

Protection Agency, Region 5 

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Signature Page for United States of America v. Consumers Energy Company Consent Decree 

FOR CONSUMERS ENERGY COMPANY 

By: 

ackson Hanson 

Senior Vice-President 

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APPENDIX A 

ENVIRONMENTAL MITIGATION PROJECTS 

Consumers shall spend no less than$ 7.7 million and shall comply with the 

requirements of this Appendix and with Section IX (Environmental Mitigation Projects) ofthe 

Consent Decree to implement and secure the environmental benefits of each Project. Nothing 

in the Consent Decree or in this Appendix shall require Consumers to spend any more than a 

total of$7.7 million on Environmental Mitigation Projects. 

I. National Park Service Ecological Restoration ($500,000) 

A. Within 45 Days from the Date of Entry of the Consent Decree, Consumers shall pay 

$500,000 to the National Park Service in accordance with 16 U .S.C. § 19jj for the 

restoration of land, watersheds, vegetation, and forests using techniques designed to 

improve ecosystem health and mitigate harmful effects from air pollution. Projects will 

focus on ecological restoration or invasive species remediation in the Cuyahoga Valley 

National Park and the Sleeping Bear Dunes National Lakeshore Park. 

B. Payment of the amount specified in the preceding Paragraph shall be made to the 

Natural Resources Damage and Assessment Fund managed by the United States 

Department of the Interior. Instructions for transferring funds will be provided to 

Consumers by the National Park Service. Notwithstanding Section I.A ofthis 

Appendix, payment of funds is not due until ten (10) days after receipt ofpayment 

instructions. Upon payment of the required funds into the Natural Resource Damage 

and Assessment Fund, Consumers shall have no further responsibilities regarding the 

implementation of the ecological restoration or invasive species projects implemented 

by the National Park Service in connection with this provision. 

II. Overall Schedule and Budget for Additional Environmental Mitigation Projects 

A. Within 180 Days from the Date of Entry, unless otherwise specified by this Appendix, 

Consumers shall submit proposed plans (Project Plans) to EPA for review and approval 

pursuant to Section XIII of the Consent Decree (Review and Approval of Submittals) for 

spending$ 7.2 million in Project Dollars for the Projects specified in Sections Ill-VII of 

this Appendix. EPA reserves the right to disapprove any project after an analysis of its 

Project Plan. 

B. Consumers may, at its election, consolidate the Project Plans required by this Appendix 

into one or more Project Plans. 

C. Unless otherwise specified by this Appendix, Consumers may, at its election, spread its 

payments for Environmental Mitigation Projects over a five-year period commencing 

upon the Date of Entry. Consumers may also accelerate its payments to better effectuate 

a Project Plan, but Consumers shall not be entitled to any reduction in the nominal 

amount of the required payments by virtue of the early expenditures. Any funds 
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designated for a specific Project that are left unspent, or are projected to be left unspent, 

at the Project's completion may be redirected by Consumers, after consultation with and 

approval by EPA, to one or more ofthe Projects listed in Sections III-VII below. 

D. All proposed Project Plans shall include the following: 

I. A plan for implementing the Project. 

2. A summary-level budget for the Project. 

3. A time line for implementation of the Project. 

4. A description of the anticipated environmental benefits of the Project including an 

estimate of any emission reductions or mitigation expected to be realized, and the 

methodology and any calculations used in the derivation of such expected benefits, 

reductions, or mitigation. 

5. An estimate of the cost-effectiveness of the proposed Project expressed in dollars per 

ton of pollutant reduction. 

E. Upon approval by EPA ofthe Project Plan(s) required by this Appendix, Consumers 

shall complete the approved Projects according to the approved Project Plan(s). Nothing 

in the Consent Decree shall be interpreted to prohibit Consumers from completing the 

Projects ahead of schedule. 

F. If Consumers opts not to perform a Project for which it has submitted a Plan that has 

been approved by EPA, then it shall indicate withdrawal from the Project in its next 

progress report due pursuant to Section XII (Periodic Reporting) of the Consent Decree. 

Consumers will not have any obligation for such Project pursuant to the Consent Decree, 

provided that Consumers is otherwise in compliance with the Environmental Mitigation 

Project requirements of the Consent Decree, which may include performing one or more 

Projects approved by EPA pursuant to Sections III-VII ofthis Appendix. 

G. Nothing in this Appendix shall relieve Consumers of its obligation to comply with all 

applicable federal, state, and local laws and regulations, including, but not limited to, 

any obligations to obtain any permits pursuant to the Clean Water Act or Clean Air Act. 

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III. Vehicle Replacement, Retrofit and Fueling Infrastructure Projects (Up to $3.0 million) 

A. Consistent with the requirements of the Consent Decree and Appendix, Consumers shall 

propose a Plan and shall spend up to$ 3.0 million on vehicle replacement and/or retrofit 

projects and/or fueling infrastructure projects. 

B. Definitions: 

I. "Alternative Fuel Vehicle" means a vehicle that runs exclusively or partially on a 

non-petroleum fuel (e.g., Compressed Natural Gas (CNG), Plug-in Extended Range 

Hybrid Vehicle (PHEV), or Plug-in Electric Vehicle (PEV)). 

2. "Compressed Natural Gas (CNG) Vehicle" means a vehicle that runs exclusively on 

CNG. 

3. "Plug-In Electric Vehicle (PEV)" means a vehicle that does not utilize an internal 

combustion engine and instead relies entirely on battery power for propulsion. 

4. "Plug-in Extended Range Hybrid Vehicle (PHEV)" means a vehicle that can be 

charged from an external source and can generate, store, and utilize electric power to 

reduce the vehicle's consumption of fossil fuel. These vehicles typically operate 

exclusively under battery power for a designated range, switching to gasoline when 

battery power is depleted. 

5. "Renewable Energy Credit" means a credit granted pursuant to MCL 460.1039 or 

the national Green-e Energy program that represents generated renewable energy. 

C. Vehicle Replacement and Retrofit Projects 

1. Vehicle Replacement Projects 

a. Consumers would replace existing gasoline and/or diesel powered vehicles 

(passenger cars, light trucks, and heavy duty service vehicles) with newly 

manufactured Alternative Fuel Vehicles and/or CNG Vehicles (collectively, 

Vehicle Replacement Project). Such vehicles may be owned by Consumers or 

shall be publicly owned motor vehicles. 

b. All Vehicle Replacement Project vehicles shall meet all applicable engine 

standards, certifications, and/or verifications and shall be retained and operated 

for their useful life. 

c. Consumers shall receive Project Dollar credit for only the incremental cost of a 

Vehicle Replacement Project vehicle, as compared to the cost of a newly 

manufactured, similar motor vehicle powered by conventional diesel or gasoline 

engmes 

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d. Vehicles that are being replaced shall be permanently retired from use by 

Consumers or any other entity and shall be disposed of in accordance with all 

applicable laws. Consumers reserves the right to sell the vehicles for salvage. 

e. Consumers may consider and implement additional options to enhance 

Alternative Fuel Vehicle and/or CNG vehicle usage, such as to: 

I) Provide a purchase incentive for acquisition ofPHEV, PEV, CNG vehicle; 

2) Fund low-interest loans through banks and dealers for such vehicles; or 

3) Provide direct cash incentives to consumers for such vehicle purchase. 

2. Vehicle Retrofit Projects 

a. Consumers would retrofit existing diesel engines with engines that have emission 

control equipment designed to reduce emissions ofNOx, particulates, and/or 

ozone precursors. Such engines may be owned by Consumers or shall be 

publicly owned motor vehicles. 

b. Consumers must provide a mechanism for each replaced engine to be properly 

disposed of, which must include destruction ofthe engine block. 

c. Consumers shall receive Project Dollar credit for only the cost of the new engine 

and the retrofit process of an engine for a Vehicle Retrofit Project. 

d. For any third party whom Consumers might contract with to carry out any of the 

project, Consumers shall establish minimum standards that include prior 

experience in performing engine retrofits. 

3. The following vehicles shall be prioritized for retrofit or replacement in the Project: 

(a) diesel vehicles (b) older model vehicles, (c) high use vehicles, (d) vehicles in 

areas with poor air quality, and (e) vehicles in areas with public health concerns 

related to vehicle pollution, which may include environmental justice communities. 

4. Jn addition to the information required to be included in periodic reports submitted 

pursuant to Paragraph 188 of the Consent Decree, for each Vehicle Replacement 

Project, Consumers shall include the following information (unless such information 

has already been submitted in a prior report or plan): (a) identification of the 

vehicles replaced or retrofitted during the period covered by the periodic report, (b) 

the method to account for the amount of Project Dollars that will be credited for each 

Vehicle Replacement Project vehicle, (c) the per vehicle Project Dollars spent during 

the period covered by the periodic report, and (d) identification of any additional 

incentive option programs that will be administered to encourage vehicle 

replacements for Alternative Fuel Vehicles and/or CNG vehicles. 

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D. Fuel Infrastructure Projects 

1. Fuel infrastructure projects shall be designed to enhance the electric vehicle charging 

infrastructure or compressed natural gas fueling infrastructure in Michigan. 

2. Consumers may undertake enhancements to the electric vehicle charging or 

compressed natural gas fueling infrastructure by funding creation of one or more 

charging stations for electric vehicles or natural gas fueling stations. Prioritization 

shall be consistent with the Vehicle Replacement or Retrofit Projects and at locations 

in Bay, Monroe, Muskegon, Ottawa, Jackson and adjacent counties in Michigan, but 

may also be selected in accordance with Subsection 3 below. 

3. If Consumers elects to undertake this Project, it may partner with third party 

organizations to handle funding and selection of locations in Michigan. Locations 

would be sought to maximize the number of vehicles that could utilize the chargers 

or natural gas fueling station while striving to expand the network of electric vehicle 

charging stations or natural gas fueling stations in Michigan. Potential sites could 

consist of locations that provide public access, including parking lots at mass transit 

terminals/stops, large industrial facilities or similar employers, residences, and 

shopping malls. Locations for charging stations could be targeted for areas where 

vehicles could be left for several hours to fully charge the electric vehicle's battery 

system or which meet the U.S. Department of Energy's Workplace Charging 

Initiative. 

4. Emission reductions - overall emissions reductions would depend upon the number 

of vehicles utilizing the facilities and would be based upon the type of vehicle the 

Alternative Fuels Vehicle or CNG vehicle replaces in the general geographic area, 

the emissions characteristics and the annual vehicle miles traveled (VMT). For five 

years post-charging station installation, Consumers would commit to effectively offset the electrical usage associated with the vehicle charging station(s) through the 

use of renewable energy credits (RECs), as defined. 

E. In addition to the other requirements of this Appendix, the Project Plan required to be 

submitted pursuant to Section II of this Appendix shall include the following: 

1. The process and criteria for selection of vehicles and locations to participate in a 

Vehicle Replacement or Retrofit Project or Fueling Infrastructure Project; 

2. Any third party(ies) that Consumers proposes would have a coordination or 

management role in the Vehicle Replacement or Retrofit Project or Fueling 

Infrastructure Project(s), but not including vehicle manufacturers or dealers who 

would provide vehicles; and 

3. The basis (including a discussion of cost) for selecting the make and model of the 

Vehicle Replacement Project or Vehicle Retrofit Project Vehicle chosen for this 

Project, including information about other available vehicles and why such vehicles 

were not selected. 

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4. The cost and anticipated emissions reductions from the Project. 

IV. Renewable Energy (Wind Energy, Solar Photovoltaic (PV) or Anaerobic Digestion) 

Development or Installation Projects (Up to$ 4.0 million) 

A. Consistent with the requirements of the Consent Decree, Consumers shall propose a 

Plan and shall spend up to$ 4.0 million on Wind Energy, Solar Photovoltaic (PV), or 

Anaerobic Digestion with Nutrient Recovery/Removal Development or Installation 

Projects. 

B. Definitions: 

I. "Anaerobic digestion" is a biological process in which microorganisms break down 

organic matter in the absence of oxygen. A biodigester or digester !s an airtight 

chamber in which anaerobic digestion of manure, biosolids, food waste, other organic 

wastewater streams or a combination of these feedstocks occurs. This process 

produces commodities such as biogas (a blend of methane and carbon dioxide), 

animal bedding, and fertilizer. 

2. "Development Projects" are projects that involve Consumers proposing to execute a 

long-term power purchase agreement ("PPA") with one or more third-party project 

developers (the "Project Developers") with respect to development of a new or an 

expansion of an existing "Renewable Energy System 1

" as defined by Michigan 

Public Act 2952 and located within Michigan. 

3. "Installation Projects" are projects that involve Consumers contributing monetary 

funds or equivalent equipment to Project Developers and/or Non-Profits for 

installation of a new or expansion to an existing Renewable Energy System located 

in Michigan and owned by Non-Profits or installed at local schools, government or 

municipality-owned (or co-owned) facilities/property, or facilities/property owned 

by non-profit groups, or at farm(s). 

4. "Nutrient Recovery" is the recovery of stable and useful nutrient-containing products 

from wastewater and solids, including anaerobically digested manure. 

5. "Nutrient Removal" is the reduction, elimination, or rendering insoluble of nutrient 

constituents in wastewater and solids, including anaerobically digested manure. 

6. "Project Contract Beneficiary" is the party(s) who receives renewable energy system 

operation and maintenance funding and/or other related services or financial benefits 

1 PA 295 defines a Renewable Energy System as a facility, electricity generation system, or set of electricity 

generation systems that use 1 or more renewable energy resources to generate electricity and defines renewable 

energy resource. 2 Michigan Clean, Renewable, and Energy Efficiency Act of 2008, Public Act 295. 

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from Consumers and who owns the site upon which the renewable energy system is 

installed. 

7. "Project Escrow" is the monetary fund or account that is separate from other site 

owner's project development funding and is set aside to support the operation and 

maintenance activities ofthe system. 

8. "Project Service Contract" is the renewable energy system service contract that 

provides for operation and maintenance of the renewable energy system. Such 

Project Service Contract would include annual system checkups and normal 

component replacements, including installation of new system components as 

needed to ensure the ongoing operation and maintenance and performance ofthe 

system. 

9. "Solar PV" involves Projects that generate electricity using a Solar Photovoltaic (PV) 

system. 

I 0. "Wind Energy" involves Projects that generate electricity using a wind energy 

conversion system as defined by Michigan Public Act 295. 

C. Development or Installation Project Plans 

I. Consumers shall describe in the Plans submitted to EPA for review and approval, 

how Consumers shall maintain the emissions avoided or reduced by the Wind 

Energy, Anaerobic Digestion with Nutrient Recovery/Removal and/or Solar PV 

Project(s) it implements. 

2. The Plan required to be submitted pursuant to this Section of this Appendix, shall 

also satisfy the following criteria: 

a Describe how the proposed Projects in the Plan are consistent with the 

requirements of this Section and the Consent Decree, and how the Projects will 

result in the emission reductions projected to be reduced pursuant to this Section. 

b. Include a budget and schedule for completing each Wind Energy, Anaerobic 

Digestion with Nutrient Recovery/Removal and/or Solar PV Project on a phased 

schedule (if applicable), and the supporting methodologies and calculations for 

the budget. 

c. Describe the methodology and include any calculations that Consumers proposes 

to use in order to document the emission reductions associated with any 

proposed Project to be implemented as part of this Section. 

d. Describe the process and criteria Consumers will use to select the potential 

Project Beneficiaries, including such factors as base electricity usage, wind or 

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solar or anaerobic digester feedstock access availability, and other relevant 

criteria. 

e. Provide the supporting costs and activities associated with the Project Service 

Contract, including the schedule and monetary installments for deposits to the 

Project Escrow to support the operation and maintenance activities of the system 

and a demonstration that the Project Escrow includes appropriate restrictions on 

the Project Contract Beneficiary's use of escrow funds in accordance with the 

requirements ofthis section. 

f. Identify any person or entity, other than Consumers, that will be involved in the 

Project(s) and describe the third-party's role in the Project and the basis for 

asserting that such entity is able and suited to perform the intended role. Any 

proposed third-party must be legally authorized to perform the proposed role and 

to receive Project Dollars. This does not include contractors or installers who 

would complete the siting analysis and/or installation of the Wind Energy, 

Anaerobic Digestion with Nutrient Recovery/Removal, or Solar PV systems but 

does include any proposed affiliate or third party who would have a coordination 

or project management role in the Project. 

g. Identify the expected nameplate capacity (kilowatts-ac for Wind Energy, 

kilowatts for Anaerobic Digestion with Nutrient Recovery/Removal, and 

kilowatts-de for Solar PV) and energy output of each system. 

3. Upon EPA's approval of the Plan, Consumers shall complete the Wind Energy, 

Anaerobic Digestion with Nutrient Recovery/Removal and/or Solar PV Project(s) 

according to the approved plan and schedule. 

D. Development Projects with Consumers (i.e., PPAs) 

1. Consistent with the requirements of this Appendix, Consumers may propose a Plan 

to execute a PP A with one or more Project Developers with respect to the 

development of a new or an expansion to an existing Wind Energy and/or Solar PV 

installation or installations in Michigan. 

2. Consumers shall execute the PPA as quickly as practicable, but in any event, no later 

than 2 years after plan approval. Consumers shall only be credited Project Dollars 

on this Project within the first 5 years of performance (as measured from the day that 

power is first purchased under each PPA). For purposes of calculating the Project 

Dollars, Consumers shall only count the increment between the wholesale price of 

wind generated or solar generated electricity (including the cost of the Renewable 

Energy Credits ("RECs") 3) that is charged under the PPA(s) with respect to any 

period, minus Consumers' average market clearing cost at the Midcontinent 

Independent System Operator ("MISO") system level for such period. 

3 RECs refer to a program in which credits are generated from the creation of Renewable Energy Systems, which 

include wind, solar, and biomass/anaerobic digestion developments. RECs are known as Renewable Energy 

Credits in Michigan and are further defined in PA 295. 

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3. The PPA will include a term of at least I 0 years for which Consumers commits to 

purchase the power generated and, if generated, acquire associated RECs from the 

Wind Energy or Solar PV installations. 

4. Consumers shall not use and will retire all RECs generated during the first I 0 years 

of performance (as measured from the day the power is first purchased under each 

PPA) (the "Initial 10 Years") in accordance with all applicable rules, and shall 

identify these RECs as retired in the Michigan Renewable Energy Certification 

System ("MIRECS") or any other tracking system designated as acceptable by the 

program recognizing the RECs. Consumers shall not use the RECs generated during 

the Initial 10 Years of the PPA(s) for compliance with any renewable portfolio 

standard ("RPS") or for any other REC compliance purpose during the Initial 10 

Years. 

5. The Project shall be considered completed for purposes ofthe Consent Decree after 

the Initial 10 Years. Consumers may choose to continue to purchase power or 

otherwise continue the Project(s) following the Initial 10 Years, but will no longer be 

bound by the terms governing Environmental Mitigation Projects identified in 

Section IX of the Consent Decree and this Appendix, including but not limited to 

limitations of the use of RECs. RECs generated following the Initial 10 Years may 

be used for any purpose authorized by Jaw, including but not limited to satisfying 

regulatory requirements or sales of RECs to help offset the additional costs of the 

PPA. 

6. In addition to the other requirements of this Appendix, the Project Plan required to 

be submitted pursuant to this Section II ofthis Appendix shall include the following: 

a. Describe how the proposed Project in the Plan is consistent with the requirements 

of this Section and the Consent Decree, and how the Project will result in 

emissions reductions pursuant to this Section. 

b. Provide that Consumers will enter into a long-term PPA with one or more Project 

Developers by no later than 2 years after the date of Plan approval. 

c. Include an anticipated schedule for issuing Requests for Proposals ("RFPs") for 

Renewable Energy System development and an overall schedule for 

implementing this project. 

d. Describe the process that Consumers will use to select appropriate Renewable 

Energy System development(s) to participate in the Project. 

e. Identify the Project Developer that Consumers proposes for the PPA, including 

any proposed third-party who would have a coordination or project management 

role in the Project, but not including prospective developers who would respond 

to a RFP. 

f. In the case of Solar PV, provide that the development will have at least a 

combined aggregate 250 kW of generating capacity (direct current) and will be 

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interconnected with the utility grid with appropriate metering and monitoring to 

track the net power output and identify the expected capacity (kW) and energy 

output of the development(s); 

g. In the case of Wind Energy, provide that ~he development will have at least a 

combined aggregate I 00 kW of generating capacity (alternating current) and will 

be interconnected with the utility grid with appropriate metering and monitoring 

to track the net power output and identify the expected capacity (kW) and energy 

output of the development(s); 

h. Provide that Consumers shall report the actual kW hours generated each year for 

the initial I 0 years in each report required by Paragraph 188 of the Consent 

Decree. 

1. In addition to the information required to be included in each report required by 

Paragraph 188 of the Consent Decree, Consumers shall include in that report the 

identity of the details of the Wind Energy or Solar PV, including the total 

generating capacity (kW) of each system and development, components installed, 

total cost, expected energy output, environmental benefits, and the actual kWhours generated for the Initial 10 Years. 

E. Installation Projects 

Consistent with the requirements of this Appendix, Consumers may propose a plan to install 

Wind Energy, Anaerobic Digestion with Nutrient Recovery/Removal or Solar PV Projects 

at federal, state, local, or Tribal government-owned buildings, facilities, property, schools, 

and/or buildings, facilities and/or property owned by nonprofit organizations or at a farm at 

any location within the State of Michigan. 

1. Wind Energy 

a. For a Wind Energy Project, the development(s) should consist, at a minimum, of: 

(1) installation of wind turbine(s) at a single location with unrestricted wind 

access, producing a total installed capacity of at least 10 kW alternating current; 

(2) appropriate wind turbine foundation or mounting equipment for the type of 

roof or Project site location; (3) wiring, conduit, and associated switch gear and 

metering equipment required for interconnecting the wind turbine(s) to the utility 

grid; ( 4) appropriate monitoring equipment and controls to enable staff tracking 

and monitoring of the total and hourly energy output of the system (kW hours), 

hourly ambient wind speed (m/s), and appropriate voltage, power, and current 

metrics. 

b. The Wind Energy Project shall be installed on the customer side of the meter and 

ownership of the system, and any environmental benefits that result from the 

installation of the Wind Project(s), including associated RECs, shall be conveyed 

to the owner at the site (the "Project Beneficiary"). 

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c. Consumers shall ensure that there is a manufacturer parts warranty ("Parts 

Warranty") in place for the major subcomponents of the Wind Energy Project, 

which, at a minimum, covers the wind turbine for I 0 years. 

d. Consumers also shall fund one or more service contracts ("Project Service 

Contract(s)") for the benefit of the Project Beneficiary that provides for 

operation and maintenance of the Wind Energy project for 20 years from the date 

of installation. The Project Service Contract shall, at a minimum, provide for 

annual system checkups and for normal component replacements, including 

installation of new system components as needed to ensure the ongoing 

maintenance and performance of the system for no less than 20 years for Wind 

Energy. 

e. Consumers shall fund the cost of the Project Service Contract by depositing 

funds in an escrow account ("Project Escrow") that limits the use of the Project 

Escrow funds by the Project Beneficiary to use for purposes of maintaining the 

Wind Energy Project. · 

f. Services under the Parts Warranty and Project Service Contract may be 

performed by third-party provider(s) and administered by the Project Beneficiary 

by way of payment from the Payment Escrow. Other than with respect to its 

funding of the escrow, Consumers is not responsible for any repair and 

maintenance costs for the Wind Energy Project. 

2. Anaerobic Digestion with Nutrient Recovery/Removal 

a. For an Anaerobic Digestion with Nutrient Recovery/Removal Project(s), the 

Project(s), at a minimum, must consist, of: (1) the installation of the anaerobic 

digester system, which includes the digester, engine-generator set, and all related 

piping, pumps, and controls at a single location with planned biomass feedstock 

access, producing a total installed capacity of at least 150 kW alternating current; 

(2) the appropriate anaerobic digester system foundation and structural 

equipment for the project site location; (3) wiring, conduit, and associated 

switch gear and metering equipment required for interconnecting the anaerobic 

digester system generator(s) to the utility grid; (4) digestate storage and 

feedstock storage (if the project accepts off-site feedstocks) that minimizes, to 

the greatest extent practicable, any loss of feedstock or digestate to the 

environment; (5) technology for nutrient recovery or nutrient removal; (6) 

appropriate monitoring equipment and controls to enable staff tracking and 

monitoring of the total and hourly energy output of the system (kW hours), 

hourly digester temperature (

0C), biogas production and appropriate voltage, 

power, and current metrics; (7) monitoring system and data collection to track 

and monitor nutrient recovery or removal effectiveness, including total volume 

of feedstock digested, total volume of digester outputs treated, nutrient 

recovery/removal efficiencies, and nutrient content ratio of generated products, 

and data shall be made available to the EPA; (8) a contingency plan for fate of 

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nutrients in the event of system failure (i.e., enough crop-land on-site for 

agronomic application of digester outputs); and (9) a plan for the disposition or 

use of the digestate that ensures minimal migration of nutrients into any waters 

of the State or waters of the United States. 

b. The Anaerobic Digestion with Nutrient Recovery/Removal Project(s) shall be 

installed on the customer side ofthe meter and ownership of the system, and any 

environmental benefits that result from the installation of the Anaerobic 

Digestion with Nutrient Recovery/Removal Project(s), including associated 

RECs, shall be conveyed to the Project Beneficiary. 

c. Consumers shall ensure that there is a Parts Warranty in place for the major 

subcomponents of the Anaerobic Digestion with Nutrient Recovery/Removal 

Project(s), which, at a minimum, covers the digester design for 10 years, digester 

equipment for 3 years, and engine-generator set for 1 year. 

d. Consumers also shall fund one or more Project Service Contract(s) for the benefit 

of the Project Beneficiary that provides for operation and maintenance of the 

Anaerobic Digestion with Nutrient Removal/Recovery Project(s) for 20 years 

from the date of operation. The Project Service Contract(s) shall, at a minimum, 

provide for annual system checkups and for normal component maintenance and 

replacements, including installation of new system components as needed to 

ensure the ongoing maintenance and performance of the system for no less than 

20 years. Consumers shall fund the escrow in aggregate amount equal to 50% of 

the anticipated operation and maintenance of the Anaerobic Digestion with 

Nutrient Recovery/Removal Project(s) for 20 years. Consumers shall ensure that 

the Project Beneficiary has a binding obligation to fund or otherwise secure the 

funding for the remaining 50% of the operation and maintenance of the 

Anaerobic Digestion with Nutrient Recovery/Removal Project(s) from the date 

of operation. 

e. Consumers shall fund the cost of the Project Service Contract by depositing 

funds in Project Escrow that limits the use of the Project Escrow funds by the 

Project Beneficiary to use for purposes of maintaining the Anaerobic Digestion 

with Nutrient Removal/Recovery Project(s). 

f. Services under the Parts Warranty and Project Service Contract may be 

performed by third-party provider(s) and administered by the Project Beneficiary 

by way of payment from the Payment Escrow. Other than with respect to its 

funding of the escrow, Consumers is not responsible for any repair and 

maintenance costs for the Anaerobic Digestion with Nutrient Removal/Recovery 

Project(s). 

g. In addition to the other requirements of this Appendix, the Project Plan required 

to be submitted pursuant to this Section of this Appendix shall also include a 

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project feasibility study that analyzes the technical and financial viability of the 

proposed project and identifies any additional sources of project funding. 

3. Solar PV Project 

a. For a Solar PV Project, the development(s) should consist, at a minimum, of: (I) 

the installation of conventional flat panel or thin film solar photovoltaics ("PV 

Projects") at a single location with unrestricted solar access, producing a total 

installed capacity of at least 10 kW direct current; (2) a grid-tie inverter, 

appropriately sized for the capacity of solar panels installed at the location; (3) 

the appropriate solar panel mounting equipment for the type of roof or project 

site location; (4) wiring, conduit, and associated switch gear and metering 

equipment required for interconnecting the solar generator(s) to the utility grid; 

and (5) appropriate monitoring equipment to enable the school students and/or 

staff to track and monitor the total and hourly energy output of the system (kW 

hours), environmental benefits delivered (e.g. approximate pounds ofNOx, SOz, 

and COz avoided), hourly ambient temperature and cell temperature (°C), 

irradiance (W 1M2

), and appropriate voltage, power, and current metrics. 

b. The Solar PV Project shall be installed on the customer side of the meter and 

ownership of the system, and any environmental benefits that result from the 

installation of the Solar PV Project(s), including associated RECs, shall be 

conveyed to the Project Beneficiary. 

c. Consumers shall ensure that there is a Parts Warranty in place for the major 

subcomponents of the Solar PV Project(s), which, at a minimum, covers the solar 

panels (modules) for 25 years and the inverters for I 0 years. 

d. Consumers also shall fund one or more Project Service Contract(s) for the 

benefit of the Project Beneficiary that provides for operation and maintenance of 

the Solar PV Project(s) for 25 years from date of installation. The Project 

Service Contract(s), at a minimum, provide for annual system checkups, solar 

panel (module) cleaning, and for normal component replacements, including 

installation of new system components as needed to ensure the ongomg 

maintenance and performance of the system for no less than 20 years. 

e. Consumers shall fund the cost of the Project Service Contract by depositing 

funds in Project Escrow that limits the use of the Project Escrow funds by the 

Project Beneficiary to use for purposes of maintaining the Solar PV Project(s). 

f. Services under the Parts Warranty and Project Service Contract may be 

performed by third-party provider(s) and administered by the Project Beneficiary 

by way of payment from the Payment Escrow. Other than with respect to its 

funding of the escrow, Consumers is not responsible for any repair and 

maintenance costs for the Solar PV Project(s). 

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4. In addition to the information required to be included in each report required by 

Paragraph 188 of the Consent Decree, Consumers shall include in that report the 

identity of the buildings/property where the Wind Energy, Anaerobic Digestion with 

Nutrient Recovery/Removal, or Solar PV system(s) are installed, the total capacity 

(kilowatts) of each system, components installed, total cost, expected energy output, 

actual kW-hours generated, and environmental benefits realized. 

V. Wood Burning Appliances Project (No less than $1.0 million and up to $2.0 million) 

A. Consistent with the requirements of Section II of this Appendix, Consumers shall 

propose a plan to spend no less than $1.0 million and up to $2.0 million in Project 

Dollars to sponsor a wood-burning appliance replacement and/or retrofit project (WBAR 

Project) that Consumers shall ensure shall be implemented by one or more state, local or 

tribal air pollution control agencies, or by one or more third-party non-profit 

organizations or entities. 

B. The WBAR Project shall replace or retrofit inefficient, higher-polluting wood-burning 

or coal appliances with cleaner-burning, more energy-efficient heating appliances and 

technologies, such as by: (1) retrofitting older hydronic heaters (a.k.a., outdoor wood 

boilers) to meet EPA Phase II hydronic heater standards; (2) replacing older hydronic 

heaters with EPA Phase II hydronic heaters, or with EPA-certified wood stoves, other 

cleaner-burning, more energy-efficient hearth appliances (e.g., wood pellet, gas, or 

propane appliances), or EPA Energy Star qualified heating appliances; (3) replacing 

non-EPA-certified wood stoves with EPA-certified wood stoves or cleaner-burning, 

more energy-efficient hearth appliances; and (4) replacing or retrofitting wood-burning 

fireplaces with EPA Phase II qualified retrofit devices or cleaner-burning natural gas 

fireplaces. The appliances that are replaced under the WBAR Project shall be 

permanently removed from use and appropriately disposed. 

C. The WBAR Project shall provide incentives for the wood-burning appliance 

replacements and retrofits through rebates, vouchers, discounts, and for incomequalified residential homeowners, full replacement costs. A wood moisture meter shall 

be provided to every WBAR Project participant that receives a new wood-burning 

appliance or retrofits an existing wood-burning appliance. 

D. To qualify for the WBAR Project, the wood-burning appliance or fireplace must be in 

regular use in a primary residence or in a frequently used non-residential building (e.g., 

churches, greenhouses, schools) during the heating season, and preference shall be given 

to those appliances that are a primary or a significant source of heat. 

E. The WBAR Project shall be implemented within the Lower Peninsula of the State of 

Michigan. In determining the specific areas to implement this project within the 

aforementioned geographic areas, Consumers shall give priority to: (I) areas with high 

amounts of air pollution (e.g., non-attainment areas); (2) areas located within a 

geography and topography that make them susceptible to high levels of particle 

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2:14-cv-13580-SJM-RSW Doc # 2-1 Filed 09/16/14 Pg 110 of 115 Pg ID 131 

pollution; (3) areas that have a significant number of older and/or higher-polluting wood 

or coal-burning appliances; and/or (4) areas with dense residential populations. 

F. No greater than 15% of the Project Dollars provided to the Implementing Entity shall 

go towards administrative support and outreach costs associated with implementation 

ofthe WBAR Project. 

G. Each WBAR Project participant shall receive information related to proper operation of 

their new appliance and the benefits of proper operation (e.g., lower emissions, better 

efficiency), including, if applicable, the importance ofburning dry seasoned wood. The 

costs associated with this element ofthe WBAR Project shall not be considered part of 

the 15% administrative costs, and shall be marginal as compared to the total Project 

Dollars attributed to the WBAR Project. 

H. Consumers shall ensure that the Implementing Entity consult with EPA's Residential 

Wood Smoke Reduction Team and implement the Wood Burning Appliances Project 

consistent with the materials available on EPA's Burn Wise website at 

http://www .epa.gov /burnwise. 

I. Consumers shall complete the WBAR Project not later than three years after approval of 

the Project Plan(s), except that Consumers may request an extension of time to complete 

the Project if it appears likely that all Project Dollars designated under the Plan will not 

be spent within such three year period despite Consumers' best efforts to implement the 

WBAR Project. 

J. In addition to the information required to be included in periodic reports 

submitted pursuant to Paragraph 188 of the Consent Decree, Consumers shall 

include the following information with respect to the WBAR Project for each 

period covered by the periodic report: (I) a description of the proposed outreach 

to raise awareness within the geographic area of the WBAR Project, and (2) the 

number and type of appliances made available through the WBAR Project, the 

cost per unit, and the value of the rebate or incentive per unit. 

K. In addition to the information required to be included in the Project completion report 

submitted pursuant to Paragraph 178 of the Consent Decree, Consumers shall include 

the following information with respect to the WBAR Project: (I) the number and type of 

appliances made available through the WBAR Project, (2) the cost per unit, and (3) the 

value of the rebate or incentive per unit. 

L. Consumers shall describe how the proposed Project in the plan required to be submitted 

pursuant to Section II of this Appendix is consistent with the requirements of this 

Section and of the Consent Decree. In that plan, Consumers shall also include the 

following information: (I) identification of the proposed Implementing Entity, (2) 

identification of any other entities with which the Implementing Entity proposes to 

partner to implement the WBAR Project (e.g., the Hearth, Patio, and Barbecue 

Association of America, the Chimney Safety Institute of America, the American Lung 

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Association, weatherization offices, individual stove retailers, entities that will dispose 

of the old appliances), (3) a description of the schedule and the budgetary increments in 

which Consumers shall provide the Project Dollars to implement the WBAR Project, 

(4) an estimate ofthe number and type of appliances Consumers intends to subsidize or 

make available through the WBAR Project, the cost per unit, and the value of the rebate 

or incentive per unit, (5) the criteria the Implementing Entity will use to determine 

which income-qualified owners shall be eligible for full cost replacement, and (6) a 

description of proposed outreach to raise awareness within the geographic area ofthe 

WBAR Project. 

M. Performance: Upon approval ofthe WBAR Project Plan by EPA, Consumers shall 

complete the Project according to the approved plan and schedule. 

VI. Energy Efficiency Projects (Up to $500,000) 

A. Consistent with the requirements of Section II of this Appendix, Consumers shall 

propose a plan to spend up to $500,000 in Project Dollars on Energy Efficiency Projects 

for low income residents and/or public schools to reduce or avoid emissions of criteria 

pollutants. 

B. Consumers shall submit a Plan to EPA for review and approval consistent with Section 

II of this Appendix. Consumers shall describe in the Plan submitted to EPA how 

Consumers shall achieve and maintain the emission reductions associated with the 

Energy Efficiency Projects. 

C. The Plan required to be submitted pursuant to this Section of this Appendix shall also 

satisfy the following criteria: 

1. Describe how the proposed Projects in the Plan are consistent with the requirements 

of this Section and the Consent Decree, and how the Projects will result in the 

emission reductions projected to be reduced pursuant to this Section. 

2. Include a budget and schedule for completing the Energy Efficiency Projects and the 

supporting methodologies and calculations for the budget. 

3. Describe the methodology and include any calculations that Consumers proposes to 

use in order to document the emission reductions associated with any proposed 

Project to be implemented as part of this Section. 

D. Upon EPA's approval of the Plan, Consumers shall complete the Projects according to 

the Plan and schedule. 

E. For purposes of this Section, Energy Efficiency Projects include but are not limited to: 

"Extreme Energy Makeovers" for communities of homes or public schools located in 

Michigan. This Project would retrofit a community of low-income housing residences 

or public schools, with the most cost-effective energy-reduction packages on actual 

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homes or school buildings and monitor the results, with a goal to achieve 25% energy 

use reduction. 

VII. Land Acquisition, Donation and Ecological Restoration Project (Up to$ 2.0 

million) 

A. Consistent with the requirements of Section II of this Appendix, Consumers must submit 

a Plan to EPA for review and approval for the use of up to $ 2.0 million in Project 

Dollars for acquisition, donation, and/or restoration of ecologically significant lands, 

watersheds, vegetation, and/or forests that are part of, adjacent to, or near the Consumers 

service territories (Land Acquisition and Restoration Project). The Project Dollars for 

this Project are in addition to the funding described in Section I of this Appendix 

(National Park Service Ecological Restoration). The goal of this Project is the protection 

through acquisition, donation, and/or restoration of ecologically significant land, 

watersheds, vegetation, and forests using adaptive management techniques designed to 

improve ecosystem health and mitigate harmful effects from air pollution. 

B. Definitions. 

1. "Land Acquisition" means purchase of interests in land, including fee ownership, 

easements, or other restrictions that run with the land that provide for the perpetual 

protection ofthe acquired land. 

2. "Land Donation" means transfer of ownership of Consumers land in fee or direct 

payment of funds to a non-profit organization or governmental agency to acquire and 

provide for perpetual protection of the land. 

3. "Restoration" may include (but is not limited to) reforestation or revegetation (using 

plants native to the area) and/or removal of non-native invasive plant species, as well 

as land restoration work for supporting such vegetative restorations. 

C. Land Acquisition, Donation, and Restoration Project(s) shall apply to land that is 

ecologically and/or environmentally significant. Prioritization shall be considered in 

Bay, Monroe, Muskegon, or Ottawa Counties in the state of Michigan, but may be 

considered for any ecologically and/or environmentally significant property in the State 

D. Land Acquisition, Donation, and Restoration Project(s) must also incorporate sufficient 

provisions to ensure the perpetual protection of the acquired, donated and/or restored 

land, unless the land is already under the ownership of a governmental entity or nonprofit that has a legal duty to conserve the land in perpetuity. Any proposal for 

acquisition or donation of land must identify fully all owners of the interests in the land. 

Every proposal for acquisition or transfer of land must identify the ultimate holder of the 

interests and provide a basis for concluding that the proposed holder of title is 

appropriate for long-term protection of the ecological and/or environmental benefits 

sought to be achieved through the acquisition or donation. 

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E. Consumers shall submit a Plan to acquire, donate, and/or restore ecologically significant 

land that includes: 

1. A general description of the area proposed to be acquired, donated, and/or restored, 

including a map clearly identifying the location of the land relative to the Units 

addressed in the Consent Decree. The map should also clearly identify all city, state 

or federal publicly protected lands/parks in the area surrounding the proposed land to 

be acquired, donated, or restored. 

2. A justification of why the area should be considered ecologically and/or 

environmentally significant and warrants preservation and/or restoration. 

3. A description of the projected cost of the land acquisition, donation, and/or 

restoration. 

4. Identification of any person or entity, other than Consumers, that will be involved in 

the Land Acquisition, Donation, or Restoration project. Consumers' plan shall 

describe the third-party's role in the action and the basis for asserting that such entity 

is able and suited to perform the intended role, including any proposed third party 

who would have a coordination or project management role. 

5. A schedule for completing and funding each portion of the Land Acquisition, 

Donation, or Restoration Project. 

F. Upon EPA's approval of the Project Plan, Consumers may transfer up to $2,000,000 of 

Project Dollars to one or more land acquisition funds or non-profit organization(s), for 

partial or full implementation of the land acquisitions and/or restoration described in the 

Project Plan. 

G. Performance: All Project Dollars shall be expended in accordance with subsections A 

through F above. 

H. Project Completion Report: In addition to the information required by Section II of this 

Appendix, Consumers' project completion report for this Project shall include any 

reports related to this Project that any applicable third party fund or organization provide 

to Consumers. 

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APPENDIXB 

Determination of Unit Specific NOx or SOz Mass Emissions for Those Units Where 40 CFR 

Part 75 NOx or SOz Mass Emissions Are Measured at a Common Stack 

For JH Campbell Units 1 and 2 and JC Weadock Units 7 and 8, as of the Date of Entry, NOx 

mass emission rates are monitored at the associated common stacks via the use ofNOx 

concentration and flow CEMS. In addition, each of the preceding individual units are equipped 

with duct-level NOx and diluent (i.e., C02) concentration CEMS to permit the determination of 

unit specific NOx lb/mmBtu emission rates. The following procedures shall be used to calculate 

unit level NOx mass emission rates for purposes of conducting rolling average NOx lb/mmBtu 

calculations. If Campbell Units 1 and 2 elect to install unit level S02 CEMS only in lieu of 

installing both unit level S02 CEMS and Flow CEMS, the same procedure shall be followed for 

calculating unit level S02 mass emissions except that the value ofK in Paragraph c. shall equal 

1.660x I o-7 (lb/scf)/ppm. 

a. From 40 C.F.R. Part 75, Appendix F, equation F-15 (already calculated and reported under 

Part 75), common stack heat input shall be calculated as follows: 

Where, 

HI 

Qw 

Fe 

Common stack hourly heat input rate during unit operation, mmBtulhr 

Hourly average volumetric flow rate during unit operation, wet basis, 

scfh 

Carbon-based F-factor, listed in 40 CFR 75, Appendix A, Section 

3.3.5 for each fuel, scf/mmBtu 

%C02w Hourly concentration of C02 during unit operation, percent C02 

b. From 40 C.F.R. Part 75, Appendix F, Equation F-21a (already calculated and reported under 

Part 75), individual unit heat input shall be calculated as follows: 

Where, 

HI; Heat input rate for a unit, mmBtu/hr 

Hies Heat input rate at the common stack, mmBtulhr 

MW; Gross electrical output, MWe 

tc Unit operating time, hour or fraction of an hour 

tcs Common stack or common pipe operating time, hour or fraction of an 

hour 

n Total number of units using the common stack 

Designation of a particular unit 
2:14-cv-13580-SJM-RSW Doc # 2-1 Filed 09/16/14 Pg 115 of 115 Pg ID 136 

c. From 40 C.F.R. Part 75, Appendix F, Equation F-6 (already calculated and reported under Part 

75), individual unit NOx lb/mmBtu emission rates shall be calculated as follows: 

Where, 

100 

E = K X Ch X Fe X %C0

2 

Pollutant emission rate during unit operation, lblmmBtu 

1.194xlfJ7 for NOx (lb/scj)lppm 

Hourly average NOx concentration during unit operation, ppm 

Carbon-based F-factor, listed in 40 CFR 75, Appendix A, Section 

3.3.5 for each fuel, scf/mmBtu 

Hourly concentration of C02 during unit operation, percent C02 

d. To calculate unit level NOx mass emissions in each operating hour (not calculated or reported 

under Part 75), the following calculation shall be performed: 

Where, 

E(NOx)h 

E 

Hh 

Where, 

M(NOx)h 

E(NOx)h 

th 

E(NOx)h = E X H li 

NOx mass emission rate for hour "h ", in lbs/hr 

Pollutant emission rate during unit operation, lblmmBtu 

Heat input rate for a unit, mmBtulhr 

NOx mass emissions for hour "h ", lbs 

NOx mass emission rate for hour "h ", in lbslhr 

Unit operating time for hour "h ", in hours or fraction of an hour 

e. The preceding unit specific NOx mass emissions data shall then be used in accordance with 

Paragraphs 5, 6, and 7 to calculate 30-day rolling, 90-day rolling and 365-day rolling NOx 

lb/mmBtu emission rates, respectively (as applicable).