________________________________________________ 

 

 

 

 

 

 

 

 

 

 

 

________________________________________________ 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 1 of 107 

IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF WISCONSIN 

) 

UNITED STATES OF AMERICA, ) 

) 

Plaintiff, ) 

) 

) 

v. ) Civil Action No.: 13-cv-266 

) 

WISCONSIN POWER AND LIGHT COMPANY, ) 

MADISON GAS AND ELECTRIC COMPANY, ) 

WISCONSIN ELECTRIC POWER COMPANY, and ) 

WISCONSIN PUBLIC SERVICE CORPORATION, ) 

) 

) 

Defendants. ) 

) 

________________________________________________) 

) 

SIERRA CLUB, ) 

) 

Plaintiff, ) 

) 

) 

v. ) Civil Action No.: 13-cv-265 

) 

WISCONSIN POWER AND LIGHT COMPANY ) 

) 

) 

Defendant. ) 

) 

________________________________________________) 

CONSENT DECREE 
Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 2 of 107 

TABLE OF CONTENTS
 

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

II. APPLICABILITY..............................................................................................................4
 

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

IV. REQUIREMENT TO RETIRE, REFUEL, OR REPOWER UNITS ..............................18
 

V. NOx EMISSION REDUCTIONS AND CONTROLS ....................................................18
 

VI. SO2 EMISSION REDUCTIONS AND CONTROLS.....................................................25
 

VII. PM EMISSION REDUCTIONS AND CONTROLS......................................................31
 

VIII. PROHIBITION ON NETTING CREDITS OR OFFSETS .............................................38
 

IX. ENVIRONMENTAL MITIGATION PROJECTS..........................................................39
 

X. CIVIL PENALTY............................................................................................................41
 

XI. RESOLUTION OF CLAIMS ..........................................................................................42
 

XII. PERIODIC REPORTING................................................................................................50
 

XIII. REVIEW AND APPROVAL OF SUBMITTALS ..........................................................53
 

XIV. STIPULATED PENALTIES ...........................................................................................53
 

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

XVI. DISPUTE RESOLUTION...............................................................................................72
 

XVII. PERMITS.........................................................................................................................74
 

XVIII. INFORMATION COLLECTION AND RETENTION ..................................................77
 

XIX. NOTICES.........................................................................................................................79
 

XX. SALES OR TRANSFERS OF OPERATIONAL OR OWNERSHIP INTERESTS ...................82
 

XXI. EFFECTIVE DATE.........................................................................................................85
 

i 
Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 3 of 107 

XXII. RETENTION OF JURISDICTION.................................................................................85
 

XXIII. MODIFICATION ............................................................................................................86
 

XXIV. GENERAL PROVISIONS ..............................................................................................86
 

XXV.	 SIGNATORIES AND SERVICE ....................................................................................91
 

XXVI.	 PUBLIC COMMENT/AGENCY REVIEW....................................................................91
 

XXVII.	 CONDITIONAL TERMINATION OF ENFORCEMENT UNDER
 

CONSENT DECREE.......................................................................................................92
 

XXVIII.	 FINAL JUDGMENT .......................................................................................................94
 

APPENDIX A -- ENVIRONMENTAL MITIGATION PROJECTS 

ii 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 4 of 107 

WHEREAS, on September 9, 2010, Plaintiff, Sierra Club (“Sierra Club”), filed a 

Complaint for civil penalties, declaratory and injunctive relief, with costs and fees, under the 

Clean Air Act (“CAA” or the “Act”), 42 U.S.C. §§ 7401-7671q, and specifically the CAA’s 

citizen suit provision, 42 U.S.C. § 7604, against Defendant, Wisconsin Power and Light 

Company (“WPL”), Civil Action No. 10-CV-511 (W.D. Wis.), and on May 8, 2012, dismissed 

that action by stipulation, without prejudice, in anticipation of this Consent Decree and is refiling 

its Complaint concurrently with this Consent Decree; 

WHEREAS, on September 24, 2010, Sierra Club, filed a Complaint for civil penalties, 

declaratory and injunctive relief, with costs and fees, under the Clean Air Act (“CAA or the 

“Act”), 42 U.S.C. §§ 7401-7671q, and specifically the CAA’s citizen suit provision, 42 U.S.C. § 

7604, against Defendant WPL, Civil Action No. 10-cv-00835-AEG (E.D. Wis.); 

WHEREAS, the United States of America (“United States”), on behalf of the United 

States Environmental Protection Agency (“EPA”), is concurrently filing a Complaint and this 

Consent Decree, for injunctive relief and civil penalties pursuant to Sections 113(b)(2) and 167 

of the Act 42 U.S.C. §§ 7413(b)(2) and 7477, alleging that WPL, Madison Gas and Electric 

Company (“MGE”), Wisconsin Electric Power Company (“We Energies”), and Wisconsin 

Public Service Corporation (“WPSC”) (collectively “Defendants”), violated the Prevention of 

Significant Deterioration (“PSD”) provisions of Part C of Subchapter I of the Act, 42 U.S.C. 

§§ 7470-7492, the requirements of Title V of the Act, 42 U.S.C. §§ 7661-7661f, and the 

federally enforceable Wisconsin State Implementation Plan (“Wisconsin SIP”); 

WHEREAS, on December 14, 2009, EPA issued a Notice and Finding of Violation 

(“NOV/FOV”) to Defendants with respect to alleged violations of the CAA; 

1 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 5 of 107 

WHEREAS, the United States provided Defendants and the State of Wisconsin with 

actual notice pertaining to Defendants’ alleged violations, in accordance with Sections 113(a)(1) 

and (b) of the Act, 42 U.S.C. § 7413(a)(1) and (b); 

WHEREAS, in their Complaints, the United States and the Sierra Club (hereinafter 

collectively “Plaintiffs”) allege, inter alia, that one or more Defendants made major 

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

and operate the controls necessary under the Act to reduce sulfur dioxide (“SO2”), oxides of 

nitrogen (“NOx”), and/or particulate matter (“PM”), at certain electricity generating stations 

located in Wisconsin, and that such emissions damage human health and the environment; 

WHEREAS, the Sierra Club alleges in its Complaint, Case 10-cv-00835-AEG, that WPL 

exceeded its opacity permit limits at the Edgewater Generating Station; 

WHEREAS, in their Complaints, the Plaintiffs allege claims upon which relief can be 

granted against the Defendants under Sections 113, 167, and 304 of the Act, 42 U.S.C. §§ 7413, 

7477, and 7604; 

WHEREAS, the Plaintiffs and Defendants (collectively, the “Parties”) have agreed that 

settlement of these actions is in the best interests 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 

these matters; 

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

equipment and practices pursuant to this Consent Decree, and the retirement, refueling, or 

repowering of certain facilities required by this Consent Decree, will achieve significant 

reductions of SO2, NOx, and PM emissions and improve air quality; 

2 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 6 of 107 

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 Defendants have cooperated in the resolution of these matters; 

WHEREAS, the Defendants deny the violations alleged in the Complaints, and nothing 

herein shall constitute an admission of liability; and 

WHEREAS, the Parties have consented to entry of this Consent Decree without trial of 

any issues; 

NOW, THEREFORE, without any admission of fact or law, it is hereby ORDERED, 

ADJUDGED, AND DECREED as follows: 

I. JURISDICTION AND VENUE 

1. This Court has jurisdiction over this action, the subject matter herein, and the 

Parties consenting hereto, pursuant to 28 U.S.C. §§ 1331, 1345, 1355, and 1367, and pursuant to 

Sections 113, 167, and 304 of the Act, 42 U.S.C. §§ 7413, 7477, and 7604. Venue is proper in 

the Western District of Wisconsin pursuant to Sections 113(b) and 304(c) of the Act, 42 U.S.C. 

§§ 7413(b) and 7604(c), and 28 U.S.C. §§ 1391(b) and (c). Solely for the purposes of this 

Consent Decree and the underlying Complaints, and for no other purpose, the Defendants waive 

all objections and defenses that they may have to the Court’s jurisdiction over this action, to the 

sufficiency of any pre-suit notices required by Section 113 or 304 of the Act, to the Court’s 

jurisdiction over the Defendants, and to venue in this district. The Defendants consent 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 

3 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 7 of 107 

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/Agency Review) of this Consent Decree, 

the Parties consent to entry of this Consent Decree without further notice. Notwithstanding the 

foregoing, should this Consent Decree not be entered by this Court, then the waivers and 

consents set forth in this Section I (Jurisdiction and Venue) shall be null and void and of no 

effect. 

II. APPLICABILITY 

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

upon the United States and upon the Sierra Club, the Defendants, and their respective successors 

and assigns or other entities or persons otherwise bound by law. 

3. A Defendant performing work under this Consent Decree shall provide a copy of 

this Consent Decree to all vendors, suppliers, consultants, contractors, agents, and any other 

company or other organization retained to perform such work at issue. Notwithstanding any 

retention of contractors, subcontractors, or agents to perform any work required under this 

Consent Decree, each Defendant shall ensure that all work it is required to undertake is 

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

this Consent Decree, except as expressly provided herein (e.g., Section XV Force Majeure), 

Defendants 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. 

III. DEFINITIONS 

4. 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 

4 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 8 of 107 

or in a regulation implementing the Act, including regulations approved as part of the Wisconsin 

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

5. A “12-Month Rolling Average Emission Rate” shall be determined by calculating 

an arithmetic average of all hourly emission rates in lb/mmBTU for the current month and all 

hourly emission rates in lb/mmBTU for the previous 11 Unit Operating Months. A new 12-

Month Rolling Average Emission Rate shall be calculated for each new complete month in 

accordance with the provisions of this Consent Decree. Each 12-Month Rolling Average 

Emission Rate shall include all emissions of the applicable pollutant that occur during all periods 

of operation, including startup, shutdown, and Malfunction. For purposes of calculating a “12-

Month Rolling Average Emission Rate,” a “Unit Operating Month” means any month during 

which a Unit fires Fossil Fuel. 

6. A “30-Day Rolling Average Emission Rate” for a Unit shall be determined by 

calculating an arithmetic average of all hourly emission rates in lb/mmBTU for the current Unit 

Operating Day and all hourly emission rates in lb/mmBTU for the previous 29 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 of the 

applicable pollutant that occur during all periods within any Unit Operating Day, including 

emissions from startup, shutdown, and Malfunction. 

7. A “24-Hour Rolling Average Emission Rate” for a Unit shall be determined by 

calculating an arithmetic average of the current Unit Operating Hour emission rate in lb/mm 

BTU and the previous 23 Unit Operating Hours. A new 24-Hour Rolling Average Emission 

Rate shall be calculated for each new Unit Operating Hour. Each 24-Hour Rolling Average 

5 
 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 9 of 107 

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

including startup, shutdown, and Malfunction. 

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

control device on the main boilers. 

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. 

10. “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. 

11. “CEMS” or “Continuous Emission Monitoring System,” means, for obligations 

involving the monitoring of NOx, SO2, and PM 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 60 and 40 

C.F.R. Part 75. 

12. “Clean Air Act,” “CAA,” or “Act” means the federal Clean Air Act, 42 U.S.C. 

§§ 7401-7671q, and its implementing regulations. 

13. “Columbia Generating Station” or “Columbia Station” or “Columbia” means 

solely for purposes of this Consent Decree, the Columbia Energy Center consisting of two 

existing coal-fired boilers designated as Unit 1 (512 MW) and Unit 2 (511 MW), which is 

6 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 10 of 107 

located in Columbia County, Wisconsin. Columbia is operated by WPL and jointly owned by 

WPL, MGE, and WPSC. 

14. “Consent Decree” means this Consent Decree and the Appendices hereto, which 

are incorporated into the Consent Decree. 

15. “Continuously Operate” or “Continuous Operation” means that when a pollution 

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

to this Consent Decree (including, but not limited to, SCR, SNCR, DFGD, ESP, Baghouse, or 

Low NOx Combustion System), it shall be operated at all times such Unit is in operation (except 

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

limitations, manufacturers’ specifications, good engineering and maintenance practices, and 

good air pollution control practices for minimizing emissions (as defined in 40 C.F.R. § 

60.11(d)) for such equipment and the Unit. 

16. “Date of Entry” means the date this Consent Decree is approved or signed by the 

United States District Court Judge. 

17. “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 Western District of Wisconsin. 

18. “Day” means calendar day unless otherwise specified in this Consent Decree. 

19. “Defendants” means Wisconsin Power and Light Company (“WPL”), Madison 

Gas and Electric Company (“MGE”), Wisconsin Electric Power Company (“We Energies”), and 

Wisconsin Public Service Corporation (“WPSC”). “Defendant” means one of the Defendants. 

20. “Dry Flue Gas Desulfurization” or “Dry FGD” or “DFGD” means an add-on air 

pollution control system for the reduction of SO2 located downstream of a boiler that sprays an 

7 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 11 of 107 

alkaline sorbent slurry in one or more absorber vessels designed to provide intimate contact 

between an alkaline slurry and the flue gas stream to react with and remove SO2 from the exhaust 

stream forming a dry powder material which is captured in a downstream particulate control 

device. The Parties acknowledge that what was approved by the Public Service Commission of 

Wisconsin on March 11, 2011, in Docket No. 05-CE-138, to be installed at Columbia Units 1 

and 2 would qualify as a DFGD for purposes of this Consent Decree. Likewise, the Parties 

acknowledge that what was filed on July 27, 2012, with the Public Service Commission of 

Wisconsin in Docket No. 6680-CE-174 to be installed at Edgewater Unit 5 would qualify as a 

DFGD for purposes of this Consent Decree. 

21. “Edgewater Generating Station” or “Edgewater Station” or “Edgewater” means 

solely for purposes of this Consent Decree, the Edgewater Generating Station consisting of three 

existing coal-fired boilers designated as Unit 3 (60 MW), Unit 4 (330 MW), and Unit 5 (380 

MW), which is located in Sheboygan County, Wisconsin. Edgewater Unit 3 is owned by WPL, 

Edgewater Unit 4 is jointly owned by WPL and WPSC, and Edgewater Unit 5 is owned by WPL 

and was formerly jointly owned by WPL and We Energies. WPL is the operator of Edgewater 

Units 3, 4, and 5. 

22. “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. 

8 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 12 of 107 

23. “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), measured in 

accordance with this Consent Decree. 

24. “Environmental Mitigation Projects” or “Projects” means the projects set forth in 

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

other project undertaken for the purpose of fulfilling a Defendant’s obligations under Section IX 

and approved for that purpose by the EPA pursuant to Section XIII (Review and Approval of 

Submittals). 

25. “EPA” means the United States Environmental Protection Agency. 

26. “Fossil Fuel” means any hydrocarbon fuel, including but not limited to coal, 

metallurgical coke, petroleum coke, petroleum oil, natural gas, or any other fuel made or derived 

from the foregoing. 

27. “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. 

28. “Improved Unit” for NOx means a 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. Columbia Unit 2 

and Edgewater Unit 5 are Improved Units for NOx. 

9 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 13 of 107 

29. “Improved Unit” for SO2 means a System Unit equipped with a DFGD or 

scheduled under this Consent Decree to be equipped with a DFGD. A Unit may be an Improved 

Unit for one pollutant without being an Improved Unit for another pollutant. Columbia Units 1 

and 2 and Edgewater Unit 5 are Improved Units for SO2. 

30. “kW” means Kilowatt or one thousand watts. 

31. “lb/mmBTU” means pound per million British thermal units. 

32. “Low NOx Combustion System” means burners and associated combustion air 

control equipment, including Overfire Air and Rich Reagent Injection (if installed at the Unit), 

which control mixing characteristics of Fossil Fuel and oxygen, thus restraining the formation of 

NOx during combustion of fuel in the boiler. 

33. “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. 

34. “MGE” means Defendant, Madison Gas and Electric Co., a co-owner of the 

Columbia Station. 

35. “Natural Gas” means natural gas received directly or indirectly through a 

connection to an interstate pipeline. 

36. “Nelson Dewey Generating Station” or “Nelson Dewey Station” or “Nelson 

Dewey” means, solely for purposes of this Consent Decree, the Nelson Dewey Generating 

Station consisting of two existing coal-fired boilers designated as Unit 1 (100 MW) and Unit 2 

10 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 14 of 107 

(100 MW), which is located in Grant County, Wisconsin. Nelson Dewey is owned and operated 

by WPL. 

37. “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 

emissions increase,” as that term is defined at 40 C.F.R. §§ 51.165(a)(2)(vi), 52.21(b)(3)(i), and 

in the Wisconsin SIP. 

38. “NOx” means oxides of nitrogen. 

39. “NOx Allowance” means an authorization to emit a specified amount of NOx that 

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

established under the Clean Air Act or applicable State Implementation Plan; 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 under such program 

only for control periods starting on or after the fourth anniversary of the Date of Entry of this 

Consent Decree. 

40. “Nonattainment NSR” means the new source review program within the meaning 

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

corresponding provisions of the federally enforceable Wisconsin SIP. 

41. “Operational Interest” means part or all of a Defendant’s right to be the operator 

(as that term is used and interpreted under the Act) of any Unit. 

42. “Ownership Interest” with respect to a Unit means part or all of a Defendant’s 

legal or equitable ownership interest in any Unit. A Defendant has an “Ownership Interest” with 

respect to a Plant if the Defendant is a Unit Owner of any Unit included within that Plant. 

11 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 15 of 107 

43. “Other Unit” means any Unit within the 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 SO2, 

and vice versa. 

44. “Over-Fire Air” or “OFA” means an in-furnace staged combustion control to 

reduce NOx emissions. 

45. “Parties” means the United States of America on behalf of EPA, the Sierra Club, 

and the Defendants. “Party” means one of the named “Parties.” 

46. “Plant” means each of the following individually: (i) the Columbia Generating 

Station (consisting of Units 1 & 2); (ii) Edgewater Generating Station (consisting of Units 3, 4 & 

5); or (iii) the Nelson Dewey Generating Station (consisting of Units 1 & 2). 

47. “Plant-Wide Annual Tonnage Limitation” for a pollutant means the sum of the 

tons of the pollutant emitted from all the Units at a Plant including, without limitations, all tons 

of that pollutant emitted during periods of startup, shutdown, and Malfunction, in the designated 

year. 

48. “PM” means total filterable particulate matter, measured in accordance with the 

provisions of this Consent Decree. 

49. “PM CEMS” or “PM Continuous Emission Monitoring System” 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. 

12 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 16 of 107 

50. “PM Control Device” means any device, including an ESP or Baghouse, which 

reduces emissions of PM. Where a Unit is equipped with both an ESP and a Baghouse, the 

Baghouse, and not the ESP, shall be considered the PM Control Device for that Unit. 

51. “PM Emission Rate” means the number of pounds of PM emitted per million 

BTU of heat input (lb/mmBTU). 

52. “Prevention of Significant Deterioration” or “PSD” means the new source review 

program within the meaning of Part C of Subchapter I of the Clean Air Act, 42 U.S.C. §§ 7470-

7492 and 40 C.F.R. Part 52, and corresponding provisions of the federally enforceable 

Wisconsin SIP. 

53. “Project Dollars” means expenditures and payments incurred or made by a 

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

(Environmental Mitigation Projects) of this Consent Decree for which such Defendant is 

responsible to the extent that such expenditures or payments both: (a) comply with the 

requirements set forth in Section IX and Appendix A of this Consent Decree, and (b) constitute a 

Defendant’s direct payments for such projects, or a Defendant’s external costs for contractors, 

vendors, and equipment. 

54. “Refuel” or “Refueled” means that a Unit is either Refueled to Natural Gas or 

Refueled to Another Non-Fossil Fuel Approved by EPA within the meaning of this Consent 

Decree. 

55. “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 of Natural Gas rather than coal, including installation 

13 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 17 of 107 

of at least the following combustion controls to reduce emissions of NOx: low-NOx natural gas 

burners and an overfire air system. Nothing herein shall prevent the reuse of any equipment at 

any existing unit or new emissions unit, provided that the Unit Owner(s) applies for, and obtains, 

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

56. “Refuel to Another Non-Fossil Fuel Approved by EPA” or “Refueled to Another 

Non-Fossil Fuel Approved by EPA” means, solely for purposes of this Consent Decree, the 

modification of a unit such that the modified unit generates electricity solely through the 

combustion of a non-fossil fuel approved by EPA pursuant to Section XIII (Review and 

Approval of Submittals). Nothing herein shall prevent the reuse of any equipment at any 

existing unit or new emissions unit, provided that the Unit Owner(s) applies for, and obtains, all 

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

57. “Repower” or “Repowered” means, solely for purposes of this Consent Decree, 

the removal and replacement of the Unit components such that the replaced unit generates 

electricity solely through the combustion of Natural Gas rather than coal, through the use of a 

combined cycle combustion turbine technology. Nothing herein shall prevent the reuse of any 

equipment at any existing unit or new emissions unit, provided that the Unit Owner(s) applies 

for, and obtains, all required permits, including, if applicable, a PSD or Nonattainment NSR 

permit. 

58. “Retire” means to permanently shut down a Unit such that the Unit cannot 

physically or legally burn coal, and with respect to the applicable Unit Owner(s) and/or Unit 

Operator, to comply with applicable state and federal requirements for permanently ceasing 

operation of the Unit as a coal-fired electric generating Unit, including removing the Unit from 

14 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 18 of 107 

Wisconsin’s air emissions inventory, and amending all applicable permits so as to reflect the 

permanent shutdown status of such Unit. The Unit Owners can choose to not retire and to 

continue to operate such a Unit only if it is Refueled or Repowered within the meaning of this 

Consent Decree, and such Unit Owner(s) obtains any and all required CAA permit(s) for the 

Refueled or Repowered Unit, including but not limited to an appropriate permit pursuant to CAA 

Subchapter I, Parts C and D, and pursuant to the applicable Wisconsin SIP provisions 

implementing CAA Subchapter I. 

59. “Rich Reagent Injection” means a process of adding NOx reducing agents in a 

staged fuel rich region of the lower furnace to reduce the formation of NOx. 

60. “SCR” or “Selective Catalytic Reduction” means a pollution control device for 

reducing NOx emissions through the use of selective catalytic reduction technology. 

61. “SNCR” or “Selective Non-Catalytic Reduction” means a pollution control device 

for the reduction of NOx emissions through the use of selective non-catalytic reduction 

technology that utilizes ammonia or urea injection into the boiler. 

62. “SO2” means sulfur dioxide. 

63. “SO2 Allowance” means an authorization to emit a specified amount of SO2 that 

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

established under the Clean Air Act or applicable State Implementation Plan; provided, however, 

that with respect to any such program that first applies to emissions occurring after December 31, 

2011, a “SO2 Allowance” shall include an allowance created and allocated under such program 

only for control periods starting on or after the fourth anniversary of the Date of Entry of this 

Consent Decree. 

15 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 19 of 107 

64. “State” means the State of Wisconsin. 

65. “Super-Compliant Allowance” means a NOx Allowance or SO2 Allowance 

attributable to reductions beyond the requirements of this Consent Decree, as described in 

Paragraphs 98 and 113. 

66. “Surrender” or “Surrender of Allowances” means, for purposes of SO2 or NOx 

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

the State of Wisconsin, if applicable, so that such allowances can never be used thereafter to 

meet any compliance requirements under the CAA, a state implementation plan, or this Consent 

Decree. 

67. “System” means collectively, and solely for purposes of this Consent Decree, the 

Columbia Generating Station (consisting of Units 1 & 2), the Edgewater Generating Station 

(consisting of Units 3, 4 & 5), and the Nelson Dewey Generating Station (consisting of Units 1 

& 2). 

68. “Title V Permit” means the permit required of major sources pursuant to 

Subchapter V of the Act, 42 U.S.C. §§ 7661-7661e. 

69. “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 be comprised of one or more Units. 

70. “Unit Operating Day” means any Day on which a Unit fires Fossil Fuel. 

16 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 20 of 107 

71. “Unit Operating Hour” means each clock hour during which any fuel is 

combusted at any time in the Unit. 

72. “Unit Operator” means the operator (as that term is used and interpreted under the 

Act) of a Unit. For purposes of this Consent Decree, “Unit Operator” means WPL. 

73. “Unit Owner” or “Unit Owners” means, with respect to any Unit addressed in this 

Consent Decree, in singular form, WPL, MGE, or WPSC, each of which has ownership interests, 

in whole or in part, in the following Units addressed in this Consent Decree: Nelson Dewey 

Units 1 & 2 - WPL; Columbia Units 1 & 2 - WPL, MGE, and WPSC; Edgewater Unit 3 - WPL; 

Edgewater Unit 4 - WPL and WPSC; and Edgewater Unit 5 – WPL, and in plural form, means 

all Unit Owners that have an Ownership Interest in the particular Unit or Units addressed. 

74. “Unit-Specific Annual Tonnage Cap” for a Unit means the sum of the tons of the 

pollutant in question emitted from the Unit including, without limitations, all tons of that 

pollutant emitted during periods of operation, startup, shutdown, and Malfunction, in the 

designated calendar year. 

75. “We Energies” means Defendant, Wisconsin Electric Power Company, a former 

co-owner of Edgewater Unit 5. 

76. “Wisconsin SIP” means the Wisconsin State Implementation Plan, and any 

amendments thereto, as approved by EPA pursuant to Section 110 of the Act, 42 U.S.C. § 7410. 

77. “Working Day” means a day other than a Saturday, Sunday, or Federal Holiday. 

In computing any period of time under this Consent Decree, where the last day would fall on a 

Saturday, Sunday, or Federal Holiday, the period shall run until the close of business on the next 

Working Day. 

17 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 21 of 107 

78. “WPL” means Defendant, Wisconsin Power and Light Company, the operator and 

the owner or co-owner of the Columbia Station, the Edgewater Station, and the Nelson Dewey 

Station. 

79. “WPSC” means Defendant, Wisconsin Public Service Corporation, a co-owner of 

the Columbia Station and Edgewater Unit 4. 

IV. REQUIREMENT TO RETIRE, REFUEL, OR REPOWER UNITS 

80. By no later than December 31, 2015, WPL shall Retire, Refuel, or Repower 

Nelson Dewey Units 1 and 2. 

81. By no later than December 31, 2015, WPL shall Retire, Refuel, or Repower 

Edgewater Unit 3. 

82. By no later than December 31, 2018, WPL and WPSC shall ensure that 

Edgewater Unit 4 is Retired, Refueled, or Repowered. 

V. NOx EMISSION REDUCTIONS AND CONTROLS 

A. Installation, Operation, and Performance NOx Requirements at Columbia Station 

83. Commencing no later than 90 Days after the Date of Entry of this Consent 

Decree, and continuing thereafter, WPL, MGE, and WPSC shall ensure the Continuous 

Operation of the Low NOx Combustion System at Columbia Units 1 and 2 so that Units 1 and 2 

each achieves and maintains a 12-Month Rolling Average Emission Rate for NOx of no greater 

than 0.150 lb/mmBTU. 

84. WPL, MGE, and WPSC shall install an SCR at Columbia Unit 2 on or before 

December 31, 2018. Commencing on January 1, 2019, and continuing thereafter, WPL, MGE, 

and WPSC shall ensure Continuous Operation of the SCR. Commencing no later than 30 

18 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 22 of 107 

Operating Days after January 1, 2019, WPL, MGE, and WPSC shall ensure Continuous 

Operation of the SCR so that Unit 2 achieves and maintains a 30-Day Rolling Average Emission 

Rate for NOx of no greater than 0.080 lb/mmBTU and a 12-Month Rolling Average Emission 

Rate for NOx of no greater than 0.070 lb/mmBTU. 

B. Installation, Operation, and Performance NOx Requirements at Edgewater Unit 5 

85. WPL shall install an SCR at Edgewater Unit 5 on or before May 1, 2013. 

Commencing on May 1, 2013, and continuing thereafter, WPL shall Continuously Operate the 

SCR. Commencing no later than 30 Operating Days after May 1, 2013, WPL shall Continuously 

Operate the SCR so that Unit 5 achieves and maintains a 30-Day Rolling Average Emission Rate 

for NOx of no greater than 0.080 lb/mmBTU and a 12-Month Rolling Average Emission Rate for 

NOx of no greater than 0.070 lb/mmBTU. 

C.	 Operation and Performance Requirements for Existing Selective Non-Catalytic 

Reduction, Overfire Air, and Rich Reagent Injection at Edgewater Unit 4 

86. Commencing immediately upon the Date of Entry of this Consent Decree, and 

continuing until January 1, 2014, WPL and WPSC shall ensure that the existing Selective NonCatalytic Reduction System and Low NOx Combustion System at Edgewater Unit 4 is 

Continuously Operated. Commencing no later than 30 Operating Days after the Date of Entry of 

this Consent Decree, WPL and WPSC shall ensure Continuous Operation of the existing 

Selective Non-Catalytic Reduction System and Low NOx Combustion System so that Unit 4 

achieves and maintains a 30-Day Rolling Average Emission Rate for NOx of no greater than 

0.170 lb/mmBTU. 

87. Commencing on January 1, 2014, and continuing thereafter, WPL and WPSC 

shall ensure that the existing Selective Non-Catalytic Reduction System and Low NOx 

19 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 23 of 107 

Combustion System at Edgewater Unit 4 is Continuously Operated so that Unit 4 achieves and 

maintains a 12-Month Rolling Average Emission Rate for NOx of no greater than 0.150 

lb/mmBTU. 

D. Unit-Specific Annual Tonnage Cap for NOx for Edgewater Unit 3 

88. Commencing with calendar year 2013, and continuing each calendar year 

thereafter until the Edgewater Unit 3 is Retired, Refueled, or Repowered as required by 

Paragraph 81, WPL shall not exceed a Unit-Specific Annual Tonnage Cap of 250 tons of NOx 

emissions each year at Edgewater Unit 3. 

E.	 Requirement to Cease Burning Petcoke and Commence Burning 100% PRB Coal or 

Equivalent at Nelson Dewey Units 1 and 2________________________________ 

89. Commencing immediately upon the Date of Entry of this Consent Decree, and 

continuing thereafter, WPL shall cease burning Petcoke in the boilers of Nelson Dewey Units 1 

and 2 and shall commence burning 100% Powder River Basin (“PRB”) or equivalent fuel 

containing ≤ (less than or equal to) 1.00 lb/mmBTU of SO2. 

90. Commencing on the first Day of the month following the Date of Entry of this 

Consent Decree, and continuing thereafter, WPL shall achieve and maintain a combined 12-

Month Rolling Average Emission Rate for NOx at Nelson Dewey Units 1 and 2 of no greater 

than 0.300 lb/mmBTU. 

F.	 Plant-Wide Annual Tonnage Limitations for NOx 

91. For each calendar year as specified below, the Unit Owners of each Plant shall, 

with respect to the Plant(s) in which they have an Ownership Interest, ensure that the following 

Plant-Wide Annual Tonnage Limitations for NOx are not exceeded for such Plants: 

20 
 

 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 24 of 107 

Plant For the Calendar Year Plant-Wide NOx Cap (TPY) 

(Unit Owners) Specified Below 

Each calendar year from 2013 2,500 

Nelson Dewey Units 1 & 2 through 2015 

(WPL) 2016 and continuing each calendar 0 

year thereafter 

Each calendar year from 2013 5,550 

Columbia Units 1& 2 through 2018 

(WPL, MGE, and WPSC) 2019 and continuing each calendar 4,300 

year thereafter 

Calendar year 2013 3,600 

Edgewater Units 3, 4 & 5 Each calendar year from 2014 2,500 

(WPL for Units 3 & 5) through 2018 

WPL and WPSC for Unit 4 

only) 2019 and continuing each calendar 1,100[1

] 

year thereafter 

G. Monitoring of NOx Emissions 

92. In determining a 30-Day Rolling Average Emission Rate for NOx or a 12-Month 

Rolling Average Emission Rate for NOx, Unit Owners shall use NOx emission data obtained 

from a CEMS in accordance with the procedures of 40 C.F.R. Part 75, except that NOx emissions 

data need not be bias adjusted and the missing data substitution procedures of 40 C.F.R. Part 75 

shall not apply to such determinations. Diluent capping (i.e., 5% CO2) will be applied to the 

NOx emission rate for any hours where the measured CO2 concentration is less than 5% 

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

93. For purposes of determining compliance with any Plant-Wide Annual Tonnage 

Limitation and Unit-Specific Annual Tonnage Cap for NOx, Unit Owners shall, with respect to 

1 If Edgewater Unit 4 is Refueled or Repowered to Natural Gas, the Plant-Wide NOx cap shall be 1,600 TPY. In this 

event, Unit 4 shall be operated so that the combined emission rate of Units 4 and 5 achieve and maintain a 12-Month 

Rolling Average Emission Rate for NOx of no greater than 0.100 lb/mmBTU, commencing on January 1, 2019, and 

continuing each calendar year thereafter. 

21 
 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 25 of 107 

the Units in which they have an Ownership Interest, ensure that NOx emission data are obtained 

from a CEMS in accordance with the procedures specified in 40 C.F.R. Part 75. 

H. Use and Surrender of NOx Allowances 

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

no Unit Owner shall use NOx Allowances to comply with any requirement of this Consent 

Decree at plants in which it has an Ownership Interest, 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. 

95. Except as provided in this Consent Decree, and specifically in paragraphs 96 and 

97, beginning in calendar year 2013 and continuing each calendar year thereafter, no Unit Owner 

shall sell, bank, trade, or transfer its interest in any NOx Allowances allocated to Units in the 

System. 

96. Beginning in calendar year 2013, and continuing each calendar year thereafter, 

the Unit Owners shall ensure the Surrender of all NOx Allowances allocated to the Units in the 

System in which they have an Ownership Interest for that calendar year that are not needed to 

meet federal and/or state CAA regulatory requirements for (a) the System Units, or (b) any 

electricity generating unit in the State of Wisconsin in which any Unit Owner has an Operational 

Interest or Ownership Interest, that is subject to a federal consent decree addressing PSD and/or 

Nonattainment NSR violations to which the United States is a party. 

97. Nothing in this Consent Decree shall prevent any Unit Owner from purchasing or 

otherwise obtaining NOx Allowances from another source or from another Unit Owner for 

purposes of complying with federal and/or state CAA regulatory requirements to the extent 

22 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 26 of 107 

otherwise allowed by law. The requirements of this Consent Decree pertaining to Unit Owners’ 

use and Surrender of NOx Allowances are permanent and are not subject to any termination 

provision of this Consent Decree. 

I. Super-Compliant NOx Allowances 

98. Notwithstanding Paragraphs 95 and 96, in each calendar year beginning in 2013, 

and continuing thereafter, each Unit Owner may sell, bank, use, trade, or transfer NOx 

Allowances allocated to the Units in the System for which the Unit Owner has an Ownership 

Interest that are made available in that calendar year solely as a result of: 

a. the installation and operation of any NOx air pollution control equipment that is 

not otherwise required under this Consent Decree, and is not otherwise required 

by law; 

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

c. achievement and maintenance of an Emission Rate below an applicable 30-Day 

Rolling Average Emission Rate and 12-Month Rolling Average Emission Rate for 

NOx; 

provided that such Unit Owner is also in compliance for that calendar year with all emission 

limitations for NOx set forth in this Consent Decree. Each Unit Owner shall ensure the reporting 

of 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 

99. Each Unit Owner shall Surrender, or transfer to a non-profit third-party selected 

by that Unit Owner for Surrender, all NOx Allowances required to be Surrendered pursuant to 

23 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 27 of 107 

Paragraph 96 by June 30 of the immediately following calendar year. If any NOx Allowances 

required to be Surrendered under this Consent Decree are transferred directly to a non-profit 

third-party, the Unit Owner 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 thirdparty 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, the Unit Owner shall include a statement that the third-party recipient(s) 

Surrendered the NOx Allowances for permanent Surrender to EPA in accordance with the 

provisions of Paragraph 100 within one year after the Unit Owner transferred the NOx 

Allowances to them. The Unit Owner shall not have complied with the NOx Allowance 

Surrender requirements of this Paragraph until all third-party recipient(s) have actually 

Surrendered the transferred NOx Allowances to EPA. 

100. For all NOx Allowances required to be Surrendered, each Unit Owner shall, with 

respect to the NOx Allowances that the Unit Owner is to Surrender, ensure that a NOx Allowance 

transfer request form is first submitted 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 the EPA’s Clean Air Markets 

Division Business System, or similar system provided by EPA. As part of submitting these 

24 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 28 of 107 

transfer requests, each Unit Owner shall ensure that the transfer of its NOx Allowances are 

irrevocably authorized and that the source and location of the NOx Allowances being 

Surrendered are identified by name of account and any applicable serial or other identification 

numbers or station names. 

VI. SO2 EMISSION REDUCTIONS AND CONTROLS 

A.	 SO2 Emission Limitations and Control Performance Requirements at 

Columbia Station_____________________________________________ 

101. WPL, MGE, and WPSC shall install DFGDs at Columbia Unit 1 and Columbia 

Unit 2 on or before December 31, 2014. Commencing on January 1, 2015, and continuing 

thereafter, WPL, MGE, and WPSC shall ensure the Continuous Operation of the DFGDs. 

Commencing no later than 30 Operating Days after January 1, 2015, WPL, MGE, and WPSC 

shall ensure Continuous Operation of the DFGDs so that Units 1 and 2 achieve and maintain a 

30-Day Rolling Average Emission Rate for SO2 of no greater than 0.075 lb/mmBTU at each 

Unit. 

B. SO2 Emission Limitations and Control Performance Requirements at 

Edgewater Station___________________________________________ 

102. WPL shall install a DFGD at Edgewater Unit 5 on or before December 31, 2016. 

Commencing on January 1, 2017, and continuing thereafter, WPL shall Continuously Operate 

the DFGD. Commencing no later than 30 Operating Days after January 1, 2017, WPL shall 

Continuously Operate the DFGD so that Unit 5 achieves and maintains a 30-Day Rolling 

Average Emission Rate for SO2 of no greater than 0.075 lb/mmBTU. 

103. Commencing no later than 30 Operating Days after the Date of Entry of this 

Consent Decree, and continuing thereafter, WPL and WPSC shall achieve and maintain a 12-

25 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 29 of 107 

Month Rolling Average Emission Rate for SO2 of no greater than 0.700 lb/mmBTU for 

Edgewater Unit 4. 

C. Unit-Specific Annual Tonnage Cap for SO2 for Edgewater Unit 3 

104. Commencing with calendar year 2013, and continuing each calendar year 

thereafter until the date the Unit is Retired, Refueled, or Repowered as required by Paragraph 81, 

WPL shall not exceed a Unit-Specific Annual Tonnage Cap of 700 Tons of SO2 per year at 

Edgewater Unit 3. 

D. SO2 Emission Limitations and Control Requirements at Nelson Dewey Units 1 and 2 

105. Commencing on the first Day of the month following the Date of Entry of this 

Consent Decree, and continuing thereafter, WPL shall achieve and maintain a combined 12-

Month Rolling Average Emission Rate for SO2 at Nelson Dewey Units 1 and 2 of no greater than 

0.800 lb/mmBTU. 

E. Plant-Wide Annual SO2 Tonnage Limitation. 

106. For each calendar year as specified below, the Unit Owners of each Plant shall, 

with respect to the Plant(s) in which they have an Ownership Interest, ensure that the following 

Plant-Wide Annual Tonnage Limitations for SO2 are not exceeded for the Plants in which they 

have an Ownership Interest: 

Plant For the Calendar Year Plant-Wide Cap (TPY) 

(Unit Owner(s)) Specified Below 

Nelson Dewey Units 1 & 2 

Each calendar year from 2013 

through 2015 

6,300 

(WPL) 2016 and continuing each 

calendar year thereafter 

0 

Each calendar year from 2013 28,537 

26 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 30 of 107 

Columbia Units 1 & 2 through 2014 

(WPL, MGE, andWPSC) 2015 and continuing each 

calendar year thereafter 

3,286 

Edgewater Units 3, 4 & 5 

Each calendar year from 2013 

through 2015 

14,500 

(WPL for Units 3 & 5; 2016 12,500 

WPL and WPSC for Unit 

4 only) 

Each calendar year from 2017 

through 2018 

6,000 

2019 and continuing each 

calendar year thereafter 

1,100 

F. Monitoring of SO2 Emissions 

107. In determining a 30-Day Rolling Average Emission Rate for SO2 or a 12-Month 

Rolling Average Emission Rate for SO2, Unit Owners shall, with respect to Units in which they 

have an Ownership Interest, ensure the use of SO2 emission data obtained from a CEMS in 

accordance with the procedures of 40 C.F.R. Part 75, except that SO2 emissions data need not be 

bias adjusted and the missing data substitution procedures of 40 C.F.R. Part 75 shall not apply to 

such determinations. Diluent capping (i.e., 5% CO2) will be applied to the SO2 Emission Rate 

for any hours where the measured CO2 concentration is less than 5% following the procedures in 

40 C.F.R. Part 75, Appendix F, Section 3.3.4.1. 

108. For purposes of determining compliance with any Plant-Wide Annual Tonnage 

Limitation and Unit-Specific Annual Tonnage Cap for SO2, Unit Owners shall, with respect to 

Units in which they have an Ownership Interest, ensure the use of SO2 emission data obtained 

from a CEMS in accordance with the procedures specified in 40 C.F.R. Part 75. 

G. Use and Surrender of SO2 Allowances 

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

no Unit Owner shall use SO2 Allowances to comply with any requirement of this Consent 

27 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 31 of 107 

Decree at Plants in which they have an Ownership Interest, including by claiming compliance 

with any emission limitation required by this Consent Decree by using, tendering, or otherwise 

applying SO2 Allowances to offset any excess emissions. 

110. Except as provided in this Consent Decree, and specifically in Paragraphs 111 and 

112, beginning in calendar year 2013 and continuing each calendar year thereafter, no Unit 

Owner shall sell, bank, trade, or transfer any SO2 Allowances allocated to Units in the System. 

111. Beginning in calendar year 2013, and continuing each calendar year thereafter, 

the Unit Owners shall ensure the Surrender of all SO2 Allowances allocated to the Units in the 

System in which they have an Ownership Interest for that calendar year that are not needed to 

meet federal and/or state CAA regulatory requirements for (a) the System Units, or (b) any 

electricity generating unit in the State of Wisconsin in which any Unit Owner has an Operational 

Interest or Ownership Interest, that is subject to a federal consent decree addressing PSD and/or 

Nonattainment NSR violations to which the United States is a party. 

112. Nothing in this Consent Decree shall prevent any Unit Owners from purchasing or 

otherwise obtaining SO2 Allowances from another source or from another Unit Owner for 

purposes of complying with federal and/or state CAA regulatory requirements to the extent 

otherwise allowed by law. The requirements of this Consent Decree pertaining to Unit Owners’ 

use and Surrender of SO2 Allowances are permanent and are not subject to any termination 

provision of this Consent Decree. 

H. Super-Compliant SO2 Allowances 

113. Notwithstanding Paragraphs 110 and 111, in each calendar year beginning in 

2013, and continuing thereafter, each Unit Owner may sell, bank, use, trade, or transfer SO2 

28 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 32 of 107 

Allowances allocated to the Units in the System for which they have an Ownership Interest that 

are made available in that calendar year solely as a result of: 

a. the installation and operation of any SO2 air pollution control equipment that is 

not otherwise required under this Consent Decree, and is not otherwise required 

by law; 

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

c. achievement and maintenance of an Emission Rate below an applicable 30-Day 

Rolling Average Emission Rate and 12-Month Rolling Average Emission Rate for 

SO2; 

provided that such Unit Owners are also in compliance for that calendar year with all emission 

limitations for SO2 set forth in this Consent Decree. Each Unit Owner shall ensure the reporting 

of the generation of such Super-Compliant Allowances in accordance with Section XII (Periodic 

Reporting) of this Consent Decree. 

I. Method for Surrender of SO2 Allowances. 

114. Each Unit Owner shall Surrender, or transfer to a non-profit third-party selected 

by that Unit Owner for Surrender, all SO2 Allowances required to be Surrendered pursuant to 

Paragraph 111 by June 30 of the immediately following calendar year. If any SO2 Allowances 

required to be Surrendered under this Consent Decree are transferred directly to a non-profit 

third-party, the Unit Owner 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 SO2 Allowances and list the 

serial numbers of the transferred SO2 Allowances; and (b) include a certification by the third29 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 33 of 107 

party recipient(s) stating that the recipient(s) will not sell, trade, or otherwise exchange any of 

the SO2 Allowances and will not use any of the SO2 Allowances to meet any obligation imposed 

by any environmental law. No later than the third periodic report due after the transfer of any 

SO2 Allowances, the Unit Owner shall include a statement that the third-party recipient(s) 

Surrendered the SO2 Allowances for permanent Surrender to EPA in accordance with the 

provisions of Paragraph 115 within one year after the Unit Owner transferred the SO2 

Allowances to them. The Unit Owner shall not have complied with the SO2 Allowance 

Surrender requirements of this Paragraph until all third-party recipient(s) have actually 

Surrendered the transferred SO2 Allowances to EPA. 

115. For all SO2 Allowances required to be Surrendered, each Unit Owner shall, with 

respect to its SO2 Allowances that the Unit Owner is to Surrender, ensure that an SO2 Allowance 

transfer request form is first submitted to EPA’s Office of Air and Radiation’s Clean Air Markets 

Division directing the transfer of such SO2 Allowances to the EPA Enforcement Surrender 

Account or to any other EPA account that EPA may direct in writing. Such SO2 Allowance 

transfer requests may be made in an electronic manner, using the EPA’s Clean Air Act Markets 

Division Business System, or similar system provided by EPA. As part of submitting these 

transfer requests, each Unit Owner shall ensure that the transfer of its SO2 Allowances are 

irrevocably authorized and that the source and location of the SO2 Allowances being Surrendered 

are identified – by name of account and any applicable serial or other identification numbers and 

station names. 

30 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 34 of 107 

VII. PM EMISSION REDUCTIONS AND CONTROLS 

A. Optimization of ESPs and Baghouses 

116. By no later than 90 Days from the Date of Entry of this Consent Decree, and 

continuing thereafter, with respect to each Unit in which they have an Ownership Interest, the 

Unit Owners shall ensure the Continuous Operation of each PM Control Device on such Unit to 

maximize PM emission reductions at all times when the Unit is in operation. Notwithstanding 

the foregoing sentence in this Paragraph, the Unit Owners shall not be required to Continuously 

Operate an ESP on any Unit if a Baghouse is installed and operating to replace the PM Control 

Device function of the ESP at that Unit. Except as required during correlation testing under 40 

C.F.R. Part 60, Appendix B, Performance Specification 11, and Quality Assurance Requirements 

under Appendix F, Procedure 2, as required by this Consent Decree, with respect to each Unit in 

which they have an Ownership Interest, the Unit Owners shall, at a minimum, ensure that to the 

extent practicable: (a) where the PM Control Device is an ESP, each section of each ESP at such 

Unit is fully energized, and where the PM Control Device is a Baghouse, each compartment, 

except for any compartment specifically designated and designed as a spare compartment, of 

each Baghouse at such Unit remains operational; (b) repair any failed ESP section or Baghouse 

compartment at the next planned outage (or unplanned outage of sufficient length); (c) the 

automatic control systems on each ESP at such Unit are operated to maximize PM collection 

efficiency, where applicable; (d) each opening in the casings, ductwork, and expansion joints for 

each ESP and each Baghouse at such Unit is inspected and repaired during the next planned Unit 

outage (or unplanned outage of sufficient length) to minimize air leakage; (e) the power levels 

delivered to each ESP at such Unit are maintained, where applicable, consistent with 

31 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 35 of 107 

manufacturers’ specifications, the operational design of the Unit, and good engineering practices; 

(f) the plate-cleaning and discharge-electrode-cleaning systems for each ESP at such Unit are 

optimized, where applicable, by varying the cycle time, cycle frequency, rapper-vibrator 

intensity, and number of strikes per cleaning event; and (g) for each such Unit with one or more 

Baghouses, a bag leak detection program is developed and implemented to ensure that leaking 

bags are promptly replaced. 

B. Operation and Performance Requirements for PM Controls at Columbia Station 

117. WPL, MGE, and WPSC shall ensure a Baghouse is installed on each of Columbia 

Units 1 and 2. Commencing not later than December 31, 2014, and continuing thereafter, WPL, 

MGE, and WPSC shall ensure each such Baghouse is Continuously Operated so that it achieves 

and maintains a filterable PM Emission Rate of no greater than 0.015 lb/mmBTU for each Unit 

based on a 24-Hour Rolling Average Emission Rate determined by PM CEMS. Notwithstanding 

this PM Emission Rate requirement, WPL, MGE, and WPSC may ensure that each of Columbia 

Units 1 and 2 achieves a filterable PM Emission Rate of no greater than 0.030 lb/mmBTU during 

periods of level 3 (high range) correlation testing under PS-11, Section 8.6(4), provided that such 

correlation testing is conducted in accordance with the procedures approved by EPA as part of 

the correlation plan required by Paragraph 126. Once a Baghouse is in Continuous Operation at 

a Unit, the PM optimization requirements of Paragraph 116 related to an ESP at that Unit are no 

longer applicable. 

C. Operation and Performance Requirements for PM Controls at Edgewater Station 

118. WPL shall install a Baghouse on Edgewater Unit 5, and commencing on or before 

December 31, 2016, and continuing thereafter, shall Continuously Operate such Baghouse so 

32 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 36 of 107 

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

based on a 24-Hour Rolling Average Emission Rate determined by PM CEMS. Notwithstanding 

this PM Emission Rate requirement, WPL may ensure that Edgewater Unit 5 achieves a 

filterable PM Emission Rate of no greater than 0.030 lb/mmBTU during periods of level 3 (high 

range) correlation testing under PS-11, Section 8.6(4), provided that such correlation testing is 

conducted in accordance with the procedures approved by EPA as part of the correlation plan 

required by Paragraph 126. Once a Baghouse is in Continuous Operation at a Unit, the PM 

optimization requirements of Paragraph 116 related to an ESP at that Unit are no longer 

applicable. 

119. Commencing no later than December 31, 2013, and continuing thereafter, WPL 

and WPSC shall ensure the Continuous Operation of the existing ESP on Edgewater Unit 4 so 

that it achieves and maintains a filterable PM Emission Rate of no greater than 0.030 lb/mmBTU 

based on a 3-hour average. 

D.	 Operation and Performance Requirements for PM Controls at 

Nelson Dewey Units 1 and 2 

120. Commencing immediately upon the Date of Entry of this Consent Decree, and 

continuing thereafter, WPL shall achieve and maintain at Nelson Dewey Units 1 and 2 a 

filterable PM Emission Rate of no greater than 0.100 lbs/mmBTU at each Unit based on a 3-hour 

average, and shall also comply with other applicable emission limitations. 

E.	 Annual PM Stack Tests 

121. Commencing in calendar year 2013, and continuing annually thereafter, for each 

Unit in which they have an Ownership Interest, Unit Owners shall ensure that stack tests are 

conducted for PM once per calendar year pursuant to Paragraphs 122 and 123, unless the Unit is 

33 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 37 of 107 

Retired, Refueled, or Repowered to Natural Gas by December 31 of the prior calendar year, at 

which point this requirement shall no longer apply. 

122. To determine compliance with the PM Emission Rates established in Paragraphs 

119 and 120, the Unit Operator shall ensure that EPA Method 5 (filterable portion only), or any 

alternate method approved by EPA under the terms of this Consent Decree, is employed during 

stack testing required by Paragraph 121. Each stack 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 60 minutes and the volume of 

each run shall be at least 0.85 dry standard cubic meters (30 dry standard cubic feet). The Unit 

Operator shall ensure that the PM Emission Rate from the stack test results is calculated in 

accordance with 40 C.F.R. § 60.8(f). The results of each PM stack test shall be submitted to 

Plaintiffs by the Unit Operator within 60 Days of completion of each test. 

123. Commencing in calendar year 2013, and continuing annually thereafter, for each 

Unit in which they have an Ownership Interest, Unit Owners shall ensure that a PM stack test is 

conducted for condensable PM using the reference methods and procedures set forth at 40 C.F.R. 

Part 51, Appendix M, Method 202, or any alternate method approved by EPA under the terms of 

this Consent Decree. 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 60 minutes and the volume of each run shall be 

at least 0.85 dry standard cubic meters (30 dry standard cubic feet). The Unit Operator shall 

ensure that the number of pounds of condensable PM emitted per million BTU of heat input 

(lb/mmBTU) from the stack test results are calculated in accordance with 40 C.F.R. § 60.8(f). 

34 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 38 of 107 

The results of the PM stack test conducted pursuant to this Paragraph 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 Plaintiffs by the Unit Operator 

within 60 Days of completion of each test. 

124. When the Unit Operator submits the applications for amendment to the Title V 

Permits pursuant to Paragraph 202, those applications shall include a Compliance Assurance 

Monitoring (“CAM”) plan, under 40 C.F.R. Part 64, for the PM Emission Rate in Paragraphs 

117, 118, 119, and 120. The PM CEMS required under Paragraph 125 may be used in that CAM 

plan. 

F. PM Continuous Emissions Monitoring Systems (“CEMS”) 

125. By no later than December 31, 2014, WPL, MGE, and WPSC shall ensure that 

PM CEMS are installed, correlated, maintained, and operating on Columbia Units 1 and 2. By 

no later than December 31, 2016, WPL shall install, correlate, maintain, and operate a PM 

CEMS on Edgewater Unit 5. The PM CEMS shall comprise a continuous particle mass monitor 

measuring filterable 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 filterable PM concentrations on an hourly average basis. For each 

Unit in the System that is subject to this Paragraph, the Unit Owners with an Ownership Interest 

in such Unit shall ensure that there will be maintained, in an electronic database that maintains 

data for at least five years, the hourly average emission values of all PM CEMS at such Unit in 

lb/mmBTU. Except for periods of monitor Malfunction, maintenance, or repair, for each Unit in 

35 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 39 of 107 

the System that is subject to this Paragraph, the Unit Operator shall Continuously Operate the 

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

126. By no later than December 31, 2013, WPL, MGE, and WPSC shall ensure that a 

plan for the installation and correlation of the PM CEMS for Columbia Units 1 and 2 is 

submitted to EPA for review and approval pursuant to Section XIII (Review and Approval of 

Submittals) of this Consent Decree. By no later than December 31, 2015, WPL 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 the PM CEMS for Edgewater 

Unit 5. 

127. By no later than June 30, 2014, WPL, MGE, and WPSC shall ensure that a 

proposed Quality Assurance/Quality Control (“QA/QC”) protocol for Columbia Units 1 and 2 is 

submitted to EPA for review and approval pursuant to Section XIII (Review and Approval of 

Submittals) of the Consent Decree. By no later than June 30, 2016, WPL 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 the PM CEMS at Edgewater Unit 5. 

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

the QA/QC protocol, Unit Owners shall ensure that the criteria set forth in 40 C.F.R. Part 60, 

Appendix B, Performance Specification 11, and 40 C.F.R. Part 60, Appendix F, Procedure 2 are 

used. Following EPA’s approval of the plan described in Paragraph 126 and the QA/QC 

protocol described in Paragraph 127, Unit Owners shall thereafter operate the PM CEMS in 

accordance with the approved plan and QA/QC protocol. 

36 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 40 of 107 

129. By no later than December 31, 2014, for Columbia Units 1 and 2, and by no later 

than December 31, 2016, for Edgewater Unit 5, WPL, MGE, and WPSC for Columbia Units 1 

and 2 and WPL for Edgewater Unit 5 shall ensure that the PM CEMS at the Columbia and 

Edgewater Generating Stations are installed, correlated, maintained, and Continuously Operated. 

WPL, MGE, and WPSC for Columbia Units 1 and 2 and WPL for Edgewater Unit 5 shall ensure 

that performance specification tests on the PM CEMS are conducted, and shall ensure 

compliance with the PM CEMS installation and correlation plans submitted to and approved by 

EPA in accordance with Paragraphs 126 and 127 is demonstrated. The PM CEMS shall be 

operated in accordance with the approved plan and QA/QC protocol. Pursuant to Section XII 

(Periodic Reporting), the data recorded by the PM CEMS during Unit operation, expressed in 

lb/mmBTU on a 24-Hour Rolling Average, shall be reported in electronic format to EPA, 

identifying 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. 

130. For purposes of determining compliance with Paragraphs 119 and 120 of this 

Consent Decree, stack testing using EPA Method 5 (filterable only) or any alternate method 

approved by EPA under the terms of this Consent Decree shall be the compliance method for the 

PM Emission Rates established by this Consent Decree. 

131. 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. 8,314 (Feb. 24, 1997)), or 

37 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 41 of 107 

monitoring requirements of 40 C.F.R. Part 70, concerning the use of data for any purpose under 

the Act. 

VIII. PROHIBITION ON NETTING CREDITS OR OFFSETS 

132. Except as provided in Paragraph 133, emission reductions that result from actions 

to be taken by Unit Owners 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. 

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

the previous Paragraph do not apply to emission reductions achieved by a particular System Unit 

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

For purposes of this Paragraph, emission reductions from a System Unit are greater than those 

required under this Consent Decree if they result from such Unit’s compliance with federallyenforceable 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 Wisconsin SIP. 

134. 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 § 110 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. 

38 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 42 of 107 

IX. ENVIRONMENTAL MITIGATION PROJECTS 

135. Each Defendant shall implement one or more of the Environmental Mitigation 

Projects (“Projects”) described in Appendix A to this Consent Decree, or any other 

Environmental Mitigation Project approved by the EPA pursuant to Section XIII (Review and 

Approval of Submittals), in compliance with the approved plans and schedules for such Projects 

and other terms of this Consent Decree. In implementing the Projects, each Defendant shall 

spend no less than the amount described in Appendix A. The obligation of each Defendant to 

implement and finance the Projects shall be limited to each individual Defendant’s obligation as 

set forth in Appendix A. Defendants shall not include their own personnel costs in overseeing 

the implementation of the Projects as Project Dollars. 

136. The Projects described in Appendix A to be performed by each Defendant shall 

be for the purpose of beneficially restoring and/or mitigating the environments that EPA and/or 

the Sierra Club allege were damaged by the operation of the Defendants’ Units, including 

environments allegedly damaged within the Defendants’ service territories. 

137. Each Defendant shall maintain, and present to EPA and/or Sierra Club upon 

request, documents to substantiate the Project Dollars expended to implement the Defendant’s 

Projects described in Appendix A, and shall provide these documents to EPA and/or Sierra Club 

within 60 Days of a request for the documents. 

138. All plans and reports prepared by Defendants for their respective Projects 

pursuant to the requirements of this Section IX of the Consent Decree and required to be 

submitted to EPA shall be publicly available from Defendants without charge in paper or 

electronic format. 

39 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 43 of 107 

139. For each Project undertaken, each Defendant shall certify, as part of each plan 

submitted to EPA for the Project, that Defendant is not otherwise required by law to perform the 

Project described in the plan, that Defendant is unaware of any other person who is required by 

law to perform the Project, and that Defendant will not use any Project, or portion thereof, to 

satisfy any obligations that it may have under other applicable requirements of law, including but 

not limited to any applicable renewable or energy efficiency portfolio standards. 

140. Each Defendant shall use good faith efforts to secure as much environmental 

benefit as possible for the Project Dollars it expends, consistent with the applicable requirements 

and limits of this Consent Decree. 

141. If a Defendant 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 one or 

more Defendant(s), but not including a Defendant’s 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 one or more Defendant 

contributes the funds. Regardless of whether one or more Defendant(s) elects (where such 

election is allowed) to undertake a Project by itself or to do so by contributing funds to another 

person or instrumentality that will carry out the Project, Defendant(s) acknowledge that a 

Defendant will receive credit for the expenditure of such funds as Project Dollars only if the 

Defendant(s) demonstrates that the funds have been actually spent by either one or more of the 

Defendants or by the person or instrumentality receiving them, and that such expenditures met 

all requirements of this Consent Decree. 

40 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 44 of 107 

142. Each Defendant shall comply with the reporting requirements described in 

Appendix A. 

143. Within 90 Days following the completion of each Project required under this 

Consent Decree (including any applicable periods of demonstration or testing), the Defendant 

performing the Project shall submit to the United States and Sierra Club a report that documents 

the date that the Project was completed, Defendant’s results of implementing the Project, 

including the emission reductions or other environmental benefits achieved, and the Project 

Dollars expended by the Defendant in implementing the Project. 

X. CIVIL PENALTY 

144. Within 30 Days after the Date of Entry of this Consent Decree, Defendants shall 

pay to the United States a civil penalty in the amount of $2,450,000. 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 2010-CV-00328 and 

DOJ Case Number 90-5-2-1-09878 and the civil action case name and case number assigned to 

the United States’ enforcement action in this case. The costs of such EFT shall be Defendants’ 

responsibility. Payment shall be made in accordance with instructions provided to Defendants 

by the Financial Litigation Unit of the U.S. Attorney’s Office for the Western District of 

Wisconsin. Any funds received after 2:00 p.m. EDT shall be credited on the next Working Day. 

At the time of payment, Defendants 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. 

41 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 45 of 107 

145. Failure to timely pay the civil penalty shall subject Defendants 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 Defendants 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. 

146. 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(f), and are not tax-deductible 

expenditures for purposes of federal law. 

147. The obligations of Defendants to pay the civil penalty amount owed the United 

States under this Consent Decree are joint and several. In the event of the failure of Defendants 

to make the civil penalty payment amount required under this Consent Decree, the remaining 

Defendants shall be responsible for such payment. 

XI. RESOLUTION OF CLAIMS 

A. Resolution of Civil Claims 

148. 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 the Defendants that arose from any modifications commenced at any 

System Unit prior to the Date of Lodging of this Consent Decree, including but not limited to 

those modifications alleged in the NOV/FOV issued by EPA to Defendants on December 14, 

2009, and the Complaint filed in this civil action, under any or all of: (a) Part C or D of 

Subchapter I of the CAA, 42 U.S.C. §§ 7470-7492, 7501-7515, and the implementing PSD and 

Nonattainment NSR provisions of the Wisconsin SIP; (b) Section 111 of the CAA, 42 U.S.C. § 

7411, and 40 C.F.R. § 60.14; and (c) Title V of the CAA, 42 U.S.C. §§ 7661-7661f, but only to 

42 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 46 of 107 

the extent that such Title V claims are based on Defendants’ failure to obtain an operating permit 

that reflects applicable requirements imposed under Part C or D of Subchapter I of the CAA. 

149. 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, 2018, for 

pollutants regulated under Part C or D of Subchapter I of the CAA and under regulations, which 

are promulgated thereunder as of the Date of Lodging, where: 

a. such modification is commenced at any System Unit after the Date of Lodging of 

this Consent Decree, or 

b. such modification is one this Consent Decree expressly directs Defendants to 

undertake. 

The term “modification” as used in this Paragraph shall have the meaning that term is given 

under the CAA, the Wisconsin SIP, and under the regulations in effect as of the Date of Lodging 

of this Consent Decree. The claims resolved by this Paragraph shall not include claims based on 

modifications for Greenhouse Gases and sulfuric acid mist. 

150. Reopener. The resolution of the United States’ civil claims against the Unit 

Owners, as provided by this Subsection A, is subject to the provisions of Subsection B of this 

Section. The resolution of claims against We Energies for claims based on modifications prior to 

the lodging of the Consent Decree is not subject to Subsection B of this Section. 

151.	 Claims of the Sierra Club. 

a.	 Entry of this Consent Decree shall resolve all civil claims of the Sierra Club, and 

the Sierra Club hereby releases all claims it made or could have made against the 

43 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 47 of 107 

Defendants that arose, directly or indirectly, from any modifications commenced 

at any System Unit prior to the Date of Lodging of this Consent Decree, including 

but not limited to those set forth in the NOV/FOV issued by EPA to Defendants 

on December 14, 2009; the Complaint filed in this civil action, in Sierra Club v. 

Wisconsin Power and Light Company, United States District Court, Western 

District of Wisconsin, Case No. 3:10-cv-511-wmc; Sierra Club v. Wisconsin 

Power and Light Company, United States District Court, Eastern District of 

Wisconsin, Case No. 2:10-cv-00835-aeg; and the Notice of Intent to Sue Letters 

issued by Sierra Club to Defendants on October 10, 2009, December 14, 2009, 

and December 21, 2009, and related to the System Units, under any or all of: (a) 

Part C or D of Subchapter I of the CAA, 42 U.S.C. §§ 7470-7492, 7501-7515, and 

the implementing PSD and Nonattainment NSR provisions of the Wisconsin SIP; 

(b) Section 111 of the CAA, 42 U.S.C. § 7411, and 40 C.F.R. Section 60.14; (c) 

Title V of the CAA, 42 U.S.C. §§ 7661-7661f, arising prior to the Date of 

Lodging of the Consent Decree at any of the System Units. 

b.	 Entry of this Consent Decree shall also resolve all civil claims of the Sierra Club 

against the Defendants, known or unknown, as to the System Units that arose, 

directly or indirectly, from violations of opacity standards, carbon monoxide, 

under 42 U.S.C. § 7412, under the Wisconsin SIP, or any federally-enforceable 

air pollution control permit through the Date of Lodging of this Consent Decree. 

c.	 Sierra Club further agrees that it will not pursue Best Available Control 

Technology or Lowest Achievable Emission Rate limits or New Source Review 

44 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 48 of 107 

applicability determinations related to the System Units in any administrative 

action now pending or contemplated (including in response to EPA Clean Air Act 

Title V orders related to Columbia and Edgewater) for modifications made prior 

to the Date of Lodging of this Consent Decree through any filing with a court, any 

administrative adjudication, or any formal comments submitted to any 

governmental entity. 

d.	 Sierra Club agrees not to file a legal challenge, including any lawsuit or any 

petition for a contested case hearing, or take a litigation position or submit 

comments to any governmental agency in any public forum challenging or 

criticizing a Unit Owner’s or, if applicable, We Energies’ request(s) for rate 

recovery for the costs incurred in achieving compliance with the Consent Decree 

and/or the issuance of any permits or other regulatory approvals necessary for the 

construction of any environmental control equipment or Environmental 

Mitigation Project(s) required by the Consent Decree, except as provided in the 

section of the Consent Decree concerning dispute resolution. Sierra Club further 

agrees not to provide legal assistance by any Sierra Club staff, contract with any 

outside counsel to provide legal assistance, or fund any third parties in any legal 

challenge, including any lawsuit or any petition for a contested case hearing, or in 

any public or private initiative challenging or criticizing the Unit Owners’ 

request(s) for rate recovery for the costs incurred in achieving compliance with 

the Consent Decree and/or the issuance of any permits or other regulatory 

approvals necessary for the construction of any environmental control equipment 

45 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 49 of 107 

or Environmental Mitigation Project(s) required by the Consent Decree. 

e.	 Sierra Club further releases all claims it made or could have made and will 

withdraw and cause to be dismissed with prejudice, where appropriate, its petition 

and related administrative and federal court litigation arising from In the Matter of 

Wisconsin Power and Light Columbia Generating Station, U.S. EPA, Petition No. 

V-2008-1 (October 8, 2009); In the Matter of Alliant Energy – WPL Edgewater 

Generating Station (August 17, 2010) Petition No. V-2009-2; Petition to Reopen 

and Correct the Title V Operating Permits Issued By the Wisconsin Department 

of Natural Resources to the Nelson Dewey Generating Station in Cassville, Grant 

County, Wisconsin, Permit No. 12201450-P11; and Sierra Club v. Lisa Jackson, 

United States Court, Western District of Wisconsin, Case No. 3:11-cv-00116. 

f.	 Entry of this Consent Decree also shall resolve all civil claims of the Sierra Club 

related to the System Units that arise from a modification commenced before 

December 31, 2018, pursuant to Part C or D of the Act or 42 U.S.C. § 7411, that 

arise prior to December 31, 2018, from the Title V program, 42 U.S.C. §§ 7661-

7661d, that arise prior to December 31, 2018, from emissions standards or 

limitations in the existing Wisconsin SIP, or that arise prior to December 31, 

2018, from a hazardous air pollutant standard in effect or proposed as of the date 

of the entry of this Consent Decree and that is promulgated pursuant to 42 U.S.C. 

§ 7412. The future claims resolved by this Paragraph shall not include claims 

based on modifications that increase Greenhouse Gases or sulfuric acid mist 

emissions. 

46 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 50 of 107 

g.	 Any dispute as to Paragraph 151 is subject to the Dispute Resolution provisions of 

this Consent Decree, including the written notice and right to cure provisions. 

Any remedy arising from commitments of Sierra Club pursuant to this Consent 

Decree is limited to equitable relief (i.e., specific performance) and shall not 

include monetary damages. 

B.	 Pursuit of Civil Claims Otherwise Resolved by Subsection A 

152. Bases for Pursuing Resolved Claims for the System. If: i) a Unit Owner or 

Owners violate a Plant-Wide Annual Tonnage Limitation for SO2 or NOx applicable to a Plant in 

which it or they have an Ownership Interest; or ii) if a Unit Owner or Owners fail by more than 

90 Days to Retire, Refuel, or Repower a Unit as required by this Consent Decree; or iii) if a Unit 

Owner or Owners fail by more than 90 Days to install, upgrade, or commence Continuous 

Operation of any emission control device required pursuant to this Consent Decree; or iv) if a 

Unit Owner or Owners fail by more than 90 Days to achieve any Emission Rate or other 

obligation or limitation required pursuant to this Consent Decree for a Unit or Plant in which it 

or they have an Ownership Interest; then the United States may pursue any claim against that 

Unit Owner or Owners with respect to the Unit or Plant at issue that is otherwise resolved under 

Subsection XI.A. (Resolution of Civil Claims) against the Unit Owner or Owners of that affected 

Unit or Plant, 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 System that is not an Improved Unit for the pollutant in question), claims 

may be pursued only regarding the pollutant that causes the Unit’s designation as 

an Other Unit where the modification(s) on which such claim is based was 

47 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 51 of 107 

commenced within the 5 years preceding the violation or failure specified in this 

Paragraph. 

b.	 For any claims based on modifications undertaken at an Improved Unit, claims 

may be pursued only regarding the pollutant that causes the Unit’s designation as 

an Improved Unit where the modification(s) on which such claim is based was 

commenced: (1) after the Date of Lodging of this Consent Decree, and (2) within 

the 5 years preceding the violation or failure specified in this Paragraph. 

153. Additional Bases for Pursuing Resolved Claims for Modifications at an Improved 

Unit. Solely with respect to the pollutant that causes the Unit’s designation as an Improved Unit, 

the United States may also pursue claims against a Unit Owner of an Improved Unit arising from 

the Unit Owner’s modification (or collection of modifications) at the Improved Unit that have 

otherwise been resolved under Subsection XI.A. (Resolution of Civil Claims), if the 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 the pollutant that caused the Unit’s designation 

as an Improved Unit (as measured by 40 C.F.R. §§ 60.14(b) and (h)) by more than 10%. 

154. Additional Bases for Pursuing Resolved Claims for Modification at an Other Unit. 

Solely with respect to the pollutant that causes the Unit’s designation as an Other Unit, the 

United States may also pursue claims against a Unit Owner of an Other Unit arising from the 

Unit Owner’s modification (or collection of modifications) at the Other Unit that have otherwise 

been resolved under Subsection XI.A. (Resolution of Civil Claims), if the modification (or 

48 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 52 of 107 

collection of modifications) at the Other Unit which such claims are based was commenced 

within 5 years preceding any of the following events: 

a.	 A modification (or collection of modifications) at such Other Unit commenced 

after the Date of Lodging of this Consent Decree that increases the maximum 

hourly Emission Rate for such pollutant that caused the Unit’s designation as an 

Other Unit (NOx or SO2), as measured by 40 C.F.R. §§ 60.14(b) and (h); 

b.	 The aggregate of all Capital Expenditures made at such Other Unit exceeds 

$150/kW on the Other 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, 2018 (Capital Expenditures shall be 

measured in calendar year 2012 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 that results in an emissions 

increase for such pollutant that caused the Unit’s designation as an Other Unit 

(NOx and/or SO2) at such Other Unit, and such increase of such pollutant: (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; (ii) causes or contributes to violation of a NAAQS in 

any Air Quality Control Area that is in attainment with that NAAQS; (iii) causes 

or contributes to violation of a PSD increment; or (iv) causes or contributes to any 

adverse impact on any formally-recognized air quality and related values in any 

49 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 53 of 107 

Class I area. The introduction of any new or changed NAAQS shall not, standing 

alone, provide the showing needed under this Subparagraph (c) to pursue any 

claim for modification at an Other Unit resolved under Subsection A of this 

Section. 

XII. PERIODIC REPORTING 

155. After entry of this Consent Decree, the Unit Owners shall, with respect to Units in 

which they have an Ownership Interest, ensure that there shall be submitted to Plaintiffs a single 

periodic report, within 60 Days after the end of each half of the calendar year (January through 

June and July through December). We Energies will join in this report for the purpose of 

reporting progress on completing its Environmental Mitigation Projects as set forth in Appendix 

A until the completion of the Project(s). The report shall include the following information: 

a. all information necessary to determine compliance during the reporting period 

with: all applicable 30-Day Rolling Average Emission Rates for NOx, 30-Day 

Rolling Average Emission Rates for SO2, and 24-Hour Rolling Average Emission 

Rates for PM; all applicable 12-Month Rolling Average Emission Rates for NOx 

and all 12-Month Rolling Average Emission Rates for SO2; all applicable 3-hour 

average PM Emission Rates; all applicable Unit-Specific Annual Tonnage Caps; 

all applicable Plant-Wide Annual Tonnage Caps; the obligation to monitor NOx, 

SO2, and PM emissions; the obligation to optimize PM emission controls; and the 

obligation to Surrender NOx Allowances and SO2 Allowances; 

b. all periods of monitor Malfunction, maintenance, and/or repair as provided in 

Paragraph 125; 

50 
 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 54 of 107 

c. emission reporting and Allowance accounting information necessary to determine 

Super-Compliant NOx and SO2 Allowances that a Unit Owner claims to have 

generated in accordance with Paragraphs 98 and 113 through control of emissions 

beyond the requirements of this Consent Decree; 

d. schedule for the installation or upgrade and commencement of operation of new 

or upgraded pollution control devices required by this Consent Decree, including 

the nature and cause of any actual or anticipated delays, and any steps taken by 

the Unit Owners to mitigate such delay; 

e. all affirmative defenses asserted pursuant to Paragraphs 172 to 180 during the 

period covered by the progress report; 

f. 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 each applicable Defendant’s 

compliance or non-compliance with the Continuous Operation requirements of 

this Consent Decree; and 

g. a summary of each Defendant’s actions implemented and expenditures 

(cumulative and in the current reporting period) made pursuant to implementation 

of the Environmental Mitigation Projects required pursuant to Section IX. 

156. In any periodic report submitted pursuant to this Section XII, Unit Owners may 

incorporate by reference information previously submitted under its Title V permitting 

requirements, provided that the Unit Owners attach the Title V Permit report (or the pertinent 

51 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 55 of 107 

portions of such report) and provide a specific reference to the provisions of the Title V Permit 

report that are responsive to the information required in the periodic report. 

157. In addition to the reports required pursuant to this Section, any Defendant that 

violates or deviates from any provision of this Consent Decree shall submit to Plaintiffs a report 

on the violation or deviation within 15 Working Days after such Defendant knew or should have 

known of the event. In the report, the Defendant shall explain the cause or causes of the 

violation or deviation and all measures taken or to be taken by the applicable Defendant to cure 

the reported violation or deviation or to prevent such violations or deviations 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 deviation reports required 

under applicable Title V regulations shall be deemed to satisfy all the requirements of this 

Paragraph. 

158. Each report required by this Consent Decree shall be signed by the Responsible 

Official as defined in Title V of the Clean Air Act for Columbia, Edgewater, or Nelson Dewey, 

as appropriate, or other authorized representative for the Unit Owner or We Energies (with 

respect to other Consent Decree requirements, e.g., Environmental Mitigation Project status), 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 the 

direction and my inquiry of the person(s) who manage 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, and complete. I understand that there are significant penalties 

for submitting false, inaccurate, or incomplete information to the United States. 

52 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 56 of 107 

XIII. REVIEW AND APPROVAL OF SUBMITTALS 

159. The Unit Owners shall, with respect to the Units in which they have an 

Ownership Interest, ensure the submission of each plan, report, or other submission required by 

this Consent Decree to Plaintiffs whenever and in the manner 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, the applicable Unit Owner or Owners 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. 

160. Upon receipt of EPA’s final approval of the submittal, or upon completion of the 

submittal pursuant to dispute resolution, the applicable Unit Owner or Owners shall ensure 

implementation of the approved submittal in accordance with the schedule specified therein or 

another EPA-approved schedule. 

161. We Energies shall comply with this Section regarding reporting related to the 

Environmental Mitigation Projects undertaken by We Energies as set forth in Appendix A and 

the payment of the civil penalty. 

XIV. STIPULATED PENALTIES 

162. For any failure by one or more Defendants to comply with the terms of this 

Consent Decree, and subject to the provisions of Sections XV (Force Majeure) and XVI (Dispute 

Resolution) and the other paragraphs in this Section of the Consent Decree, such Defendant or 

53 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 57 of 107 

Defendants shall pay, within 30 Days after receipt of written demand to such Defendant or 

Defendants by the United States, the following stipulated penalties to the United States, as 

specified in this Consent Decree. 

Consent Decree Violation Stipulated Penalty 

a. Failure to pay the civil penalty as specified in Section X 

(Civil Penalty) of this Consent Decree 

$10,000 per Day 

b. Failure to comply with any applicable 30-Day Rolling 

Average Emission Rate for NOx or SO2 

$2,500 per Day per violation 

where the violation is less than 

5% in excess of the lb/mmBTU 

limits 

$5,000 per Day per violation 

where the violation is equal to 

or greater than 5% but less than 

10% in excess of the 

lb/mmBTU limits 

$10,000 per Day per violation 

where the violation is equal to 

or greater than 10% in excess of 

the lb/mmBTU limits 

c. Failure to comply with any applicable 12-Month Rolling 

Average SO2 Emission Rate, where the violation is less than 

5% in excess of the limits set forth in this Consent Decree 

$200 per Day per violation 

d. Failure to comply with any applicable 12-Month Rolling 

Average SO2 Emission Rate, where the violation is equal to 

or greater than 5% but less than 10% in excess of the limits 

set forth in this Consent Decree 

$400 per Day per violation 

e. Failure to comply with any applicable 12-Month Rolling 

Average SO2 Emission Rate, where the violation is equal to 

or greater than 10% in excess of the limits set forth in this 

Consent Decree 

$800 per Day per violation 

54 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 58 of 107 

f. Failure to comply with the applicable Plant-Wide Annual (1) $5,000 per ton for first 100 

Tonnage Limitations for NOx established by this Consent tons, $10,000 per ton for each 

Decree additional ton above 100 tons, 

plus (2) at the option of the 

Owner(s) of the Unit at issue 

either the Surrender of NOx 

Allowances in an amount equal 

to two times the number of tons 

of NOx emitted that exceeded 

the Plant-Wide Annual Tonnage 

Limitation for NOx, or the 

payment of $2,500 per ton for 

an amount of tons equal to two 

times the number of tons of 

NOx emitted that exceeded the 

Plant-Wide Annual Tonnage 

Limitation for NOx 

g. Failure to comply with Unit-Specific Annual NOx (1) $5,000 per ton for first 100 

Tonnage Cap for Edgewater Unit 3 tons, $10,000 per ton for each 

additional ton above 100 tons, 

plus (2) at the option of the 

Owner(s) of the Unit at issue 

either the Surrender of NOx 

Allowances in an amount equal 

to two times the number of tons 

of NOx emitted that exceeded 

the Unit-Specific Annual 

Tonnage Cap, or the payment of 

$2,500 per ton for an amount of 

tons equal to two times the 

number of tons of NOx emitted 

that exceeded the Unit-Specific 

Annual Tonnage Cap 

55 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 59 of 107 

h. Failure to comply with any applicable Plant-Wide Annual 

SO2 Tonnage Limitation required by this Consent Decree. 

i. Failure to comply with any applicable Unit-Specific 

Annual SO2 Tonnage Cap for Edgewater Unit 3 

(1) $5,000 per ton for the first 

100 tons over the limit, and 

$10,000 per ton for each 

additional ton over the limit, 

plus (2) at the option of the 

Owner(s) of the Unit at issue 

either the Surrender of SO2 

Allowances in an amount equal 

to two times the number of tons 

of SO2 emitted that exceeded 

Plant-Wide Annual Tonnage 

Limitation, or the payment of 

$2,500 per ton for an amount of 

tons equal to two times the 

number of tons of SO2 emitted 

that exceeded the Plant-Wide 

Annual Tonnage Limitation 

(1) $5,000 per ton for the first 

100 tons over the limit, and 

$10,000 per ton for each 

additional ton over the limit, 

plus (2) at the option of the 

Owner(s) of the Unit at issue 

either the Surrender of SO2 

Allowances in an amount equal 

to two times the number of tons 

of SO2 emitted that exceeded 

Unit-Specific Annual Tonnage 

Cap, or the payment of $2,500 

per ton for an amount of tons 

equal to two times the number 

of tons of SO2 emitted that 

exceeded the Unit-Specific 

Annual Tonnage Cap 

56 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 60 of 107 

j. Failure to comply with any applicable PM Emission Rate, 

where the violation is less than 5% in excess of the 

lb/mmBTU limit 

$2,500 per Unit Operating Day 

per violation, starting on the 

Unit Operating Day that a stack 

test result demonstrates a 

violation and continuing each 

Unit Operating Day thereafter 

until and excluding such Unit 

Operating Day on which a 

subsequent stack test 

demonstrates compliance with 

the applicable PM Emission 

Rate 

k. Failure to comply with any applicable PM Emission Rate, 

where the violation is equal to or greater than 5% but less 

than 10% in excess of the lb/mmBTU limit 

$5,000 per Unit Operating Day 

per violation, starting on the 

Unit Operating Day a stack test 

result demonstrates a violation 

and continuing each Unit 

Operating Day thereafter until 

and excluding such Unit 

Operating Day on which a 

subsequent stack test 

demonstrates compliance with 

the applicable PM Emission 

Rate 

l. Failure to comply with any applicable PM Emission Rate, 

where the violation is equal to or greater than 10% in excess 

of the lb/mmBTU limit 

$10,000 per Unit Operating Day 

per violation, starting on the 

Unit Operating Day a stack test 

result demonstrates a violation 

and continuing each Unit 

Operating Day thereafter until 

and excluding such Unit 

Operating Day on which a 

subsequent stack test 

demonstrates compliance with 

the applicable PM Emission 

Rate 

m. Failure to install, commence Continuous Operation, or $10,000 per Day per violation 

Continuously Operate a NOx, SO2, or PM control device as during the first 30 Days; 

required under this Consent Decree $37,500 per Day per violation 

thereafter 

57 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 61 of 107 

n. Failure to Retire, Refuel, or Repower a Unit as required 

under this Consent Decree 

$10,000 per Day per violation 

during the first 30 Days; 

$37,500 per Day per violation 

thereafter 

o. Failure to cease burning petcoke in a Unit and instead 

burn 100% PRB coal or equivalent fuel 

$10,000 per Day per violation 

during the first 30 Days; 

$37,500 per Day per violation 

thereafter 

o. Failure to conduct a stack test for PM as required by 

Paragraphs 121 to 123 of this Consent Decree 

$5,000 per Day per violation 

p. Failure to install or operate NOx, SO2, and/or PM CEMS 

as required in this Consent Decree 

$1,000 per Day per violation 

q. Failure to apply for any permit required by Section XVII 

(Permits) 

$1,000 per Day per violation 

r. Failure to timely submit or implement, as approved, the 

reports, plans, studies, analyses, protocols, or other 

submittals required by this Consent Decree 

$750 per Day per violation 

during the first 10 Days; $1,000 

per Day per violation thereafter 

s. Failure to Surrender SO2 Allowances as required under 

this Consent Decree $37,500 per Day. In addition, 

$1,000 per SO2 Allowance not 

Surrendered 

t. Failure to Surrender NOx Allowances as required under 

this Consent Decree $37,500 per Day. In addition, 

$1,000 per NOx Allowance not 

Surrendered 

u. Using, selling, banking, trading, or transferring NOx 

Allowances or SO2 Allowances except as permitted under 

this Consent Decree 

At the option of the Owner(s) of 

the Unit at issue either the 

Surrender of Allowances in an 

amount equal to four times the 

number of Allowances used, 

sold, banked, traded, or 

transferred in violation of this 

Consent Decree, or the payment 

of $2,500 per ton for an amount 

of tons equal to four times the 

number of Allowances used, 

sold, banked, traded, or 

transferred in violation of this 

Consent Decree 

v. Failure to optimize ESPs as required by Paragraph 116. $1,000 per Day per violation 

58 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 62 of 107 

w. Failure to undertake and complete as described in 

Appendix A any of the Environmental Mitigation Projects 

in compliance with Section IX (Environmental Mitigation 

Projects) of this Consent Decree 

$1,000 per Day per violation 

during the first 30 Days; $5,000 

per Day per violation thereafter 

x. Any other violation of this Consent Decree $1,000 per Day per violation 

163. Violations of any limit based on a 30-Day Rolling Average Emission Rate 

constitutes 30 Days of violation, provided, however, that where such a violation (for the same 

pollutant and from the same Unit) recurs within periods less than 30 Days, Unit Owners 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. 

164. Violations of any limit based on a 12-Month Rolling Average Emission Rate 

constitutes 365 Days of violation, provided, however, that where such a violation (for the same 

pollutant and from the same Unit) recurs within periods less than 12 months, Unit Owners 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. 

165. 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. 

For example, emissions for one Day may be included in only one 30-Day Rolling Average 

calculation. Nothing in this Consent Decree shall prevent the simultaneous accrual of separate 

stipulated penalties for separate violations of this Consent Decree. The stipulated penalties 

provided for in this section are cumulative and shall not be increased due to a Unit having more 

than one Owner. 

59 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 63 of 107 

166. For purposes of the stipulated penalty for failure to make any Allowance 

Surrender required pursuant to Subparagraphs 162.s to 162.u, a Unit Owner shall make the 

Surrender of any Allowances required by such Subparagraph by June 30 of the immediately 

following calendar year. 

167. All stipulated penalties shall be paid to the United States within 30 Days of 

receipt of written demand to the applicable Defendant(s) from the United States, and the 

applicable Defendant(s) shall continue to make such payments every 30 Days thereafter until the 

violation(s) no longer continues, unless such Defendant(s) elect within 20 Days of receipt of 

written demand to such Defendant(s) from the United States to dispute the imposition or accrual 

of stipulated penalties in accordance with the provisions in Section XVI (Dispute Resolution) of 

this Consent Decree. 

168. Stipulated penalties shall continue to accrue as provided in accordance with 

Paragraph 165 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, the applicable Defendant(s) shall, within 30 Days of receipt of the Court’s 

60 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 64 of 107 

decision or order, pay all accrued stipulated penalties determined by the Court to 

be owing, together with 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, the applicable Defendant(s) 

shall, within 15 Days of receipt of the final appellate court decision, pay all 

accrued stipulated penalties determined to be owed, together with interest accrued 

on such stipulated penalties determined to be owed by the appellate court. 

Notwithstanding any other provision of this Consent Decree, the accrued stipulated penalties 

agreed to by the United States and the applicable Defendants, or determined by the United States 

through Dispute Resolution to be owed, may be less than the stipulated penalty amounts set forth 

in Paragraph 162. 

169. All monetary stipulated penalties shall be paid in the manner set forth in Section 

X (Civil Penalty) of this Consent Decree and all Allowance Surrender stipulated penalties shall 

comply with the Allowance Surrender procedures of Paragraphs 96 to 97 and 111 to 112. The 

obligations of Defendants to pay stipulated penalties under subparagraph 162.a are joint and 

several. The remaining obligations to pay stipulated penalties, including with respect to 

subparagraph 162.p, are joint and several as to the Unit Owners with an Ownership Interest in 

the Unit at issue, and individual as to the Defendant responsible for each Environmental 

Mitigation Project at issue. 

170. Should one or more Defendants 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 from such Defendant(s), as provided for in 28 U.S.C. § 1961. 

61 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 65 of 107 

171. 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 and/or Sierra Club by 

reason of Defendants’ failure to comply with any requirement of this Consent Decree or 

applicable law, except that for any violation of the Act for which this Consent Decree provides 

for payment of a stipulated penalty, Defendants shall be allowed a credit for stipulated penalties 

paid against any statutory penalties also imposed for such violation. 

172. Affirmative Defense as to Stipulated Penalties for Excess Emissions Occurring 

During Malfunctions. If any of the Units in the System exceed an applicable 30-Day Rolling 

Average Emission Rate set forth in this Consent Decree, due to Malfunction, the Unit Owner(s) 

operating or owning such Units, bearing the burden of proof by a preponderance of the evidence, 

have an affirmative defense to a claim for stipulated penalties under this Consent Decree, if such 

Unit Owners have complied with the reporting requirements of Paragraphs 177 and 178 and 

demonstrate all of the following: 

a. the excess emissions were caused by a sudden, unavoidable breakdown of 

technology, beyond the control of the Unit Operator; 

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 in accordance with manufacturers’ 

specifications and good engineering 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 

62 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 66 of 107 

practice for minimizing emissions in accordance with manufacturers’ 

specifications and good engineering and maintenance practices; 

d.	 repairs were made in an expeditious fashion when Unit Owners knew or should 

have known that an applicable 30-Day Rolling Average Emission Rate was being 

or would be 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 in 

accordance with manufacturers’ specifications and good engineering and 

maintenance practices; 

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 in 

accordance with manufacturers’ specifications and good engineering and 

maintenance practices; 

h.	 Unit Operator’s actions in response to the excess emissions were documented by 

properly signed or otherwise 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 

63 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 67 of 107 

j. Unit Owners properly and promptly notified EPA and Sierra Club as required by 

this Consent Decree. 

173. To assert an affirmative defense for Malfunction under Paragraph 172, the 

applicable Unit Owners shall submit all data demonstrating the actual emissions for the Day the 

Malfunction occurs and the 29-Unit Operating Day period following the Day the Malfunction 

occurs. Unit Owners may, if they elect, submit emissions data for the same 30-Unit Operating 

Day period but that excludes the excess emissions. 

174. Affirmative Defense as to Stipulated Penalties for Excess Emissions Occurring 

During Startup and Shutdown. If any of the Units in the System exceed an applicable 30-Day 

Rolling Average Emission Rate set forth in this Consent Decree, due to startup or shutdown, the 

Unit Owners with an Ownership Interest in such Units, bearing the burden of proof by a 

preponderance of the evidence, have an affirmative defense to a claim for stipulated penalties 

under this Consent Decree, if the Unit Owners have complied with the reporting requirements of 

Paragraphs 177 and 178 and demonstrate all of the following: 

a.	 the periods of excess emissions that occurred during startup and shutdown were 

short and infrequent and could not have been prevented through careful planning 

and design in accordance with manufacturers’ specifications and good 

engineering and maintenance practices; 

b.	 the excess emissions were not part of a recurring pattern indicative of inadequate 

design, operation, or maintenance or which could have been prevented by 

following manufacturers’ specifications and recommendations and good 

engineering and maintenance practices; 

64 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 68 of 107 

c. if the excess emissions were caused by a bypass (an intentional diversion of 

control equipment), then the bypass was unavoidable to prevent loss of life, 

personal injury, or severe property damage; 

d. at all times, the facility was operated in a manner consistent with good 

engineering and maintenance practices and manufacturers’ specifications and 

recommendations for minimizing emissions; 

e. the frequency and duration of operation in startup or shutdown mode was 

minimized to the maximum extent practicable in accordance with manufacturers’ 

specifications and good engineering and maintenance practices; 

f. all possible steps were taken to minimize the impact of the excess emissions on 

ambient air quality in accordance with manufacturers’ specifications and good 

engineering and maintenance practices; 

g. All emissions monitoring systems were kept in operation if at all possible in 

accordance with manufacturers’ specifications and good engineering and 

maintenance practices; 

h. The Unit Operator’s actions during the period of excess emissions were 

documented by properly signed or otherwise validated, contemporaneous 

operating logs or other relevant evidence; and 

i. The applicable Unit Owners properly and promptly notified EPA as required by 

this Consent Decree. 

175. To assert an affirmative defense for startup or shutdown under Paragraph 174, the 

applicable Unit Owners shall submit all data demonstrating the actual emissions for the Day the 

65 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 69 of 107 

excess emissions from startup or shutdown occurs and the 29-Unit Operating Day period 

following the Day the excess emissions from startup or shutdown occurs. Unit Owners may, if 

they elect, submit emissions data for the same 30-Unit Operating Day period but that excludes 

the excess emissions. 

176. If excess emissions occur due to a Malfunction during routine startup and 

shutdown, then those instances shall be treated as other Malfunctions subject to Paragraphs 172 

and 173. 

177. For an affirmative defense under Paragraphs 172 and 174, applicable Unit 

Owners, bearing the burden of proof by a preponderance of the evidence, shall demonstrate, 

through submission of the data and information under the reporting provisions of this Section, 

that all reasonable and practicable measures in accordance with good engineering and 

maintenance practices and within the Unit Operator’s control were implemented to prevent the 

occurrence of the excess emissions. 

178. Defendant(s) shall provide notice to Plaintiffs in writing of Defendant’s intent to 

assert an affirmative defense for Malfunction, startup, or shutdown under Paragraphs 172 and 

174 in Defendants semi-annual progress reports as required by Paragraph 155(e). This notice 

shall be submitted pursuant to the provisions of Section XIX (Notices). The notice shall contain: 

a. The identity of each stack or other emission point where the excess emissions 

occurred; 

b. The magnitude of the 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; 

66 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 70 of 107 

d. The identity of the equipment causing the excess emissions; 

e. The nature and suspected cause of the excess emissions; 

f. The steps taken, if the excess emissions were the result of a Malfunction, 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 startup, shutdown, and/or Malfunction. 

179. A Malfunction, startup, or shutdown shall not constitute a Force Majeure Event 

unless the Malfunction, startup, or shutdown also meets the definition of a Force Majeure Event, 

as provided in Section XV (Force Majeure). 

180. 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 

181. For purposes of this Consent Decree, a “Force Majeure Event” shall mean an 

event that has been or will be caused by circumstances beyond the control of one or more the 

Unit Owners, their contractors, or any entity controlled by a Unit Owner that delays or prevents 

the performance of any obligation under this Consent Decree or otherwise causes a violation of 

any provision of this Consent Decree despite the Unit Owners’ best efforts to fulfill the 

obligation. “Best efforts to fulfill the obligation” include using best efforts to anticipate any 

potential Force Majeure Event and to address the effects of any such event (a) as it is occurring 

67 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 71 of 107 

and (b) after it has occurred, such that the delay and/or violation are minimized to the greatest 

extent possible and the emissions during such event are minimized to the greatest extent 

possible. Specific references to Force Majeure in other parts of this Consent Decree do not 

restrict the ability of the Unit Owners to assert Force Majeure pursuant to the process described 

in this Section. Without limiting the applicability of this Section to an activity of any other 

Defendant, the Force Majeure provisions apply to We Energies to the extent that a claim relates 

to an Environmental Mitigation Project undertaken by We Energies. 

182. Notice of Force Majeure Events. If any event occurs or has occurred that may 

delay or prevent compliance with or otherwise cause a violation of any obligation under this 

Consent Decree, as to which one or more Unit Owners intend to assert a claim of Force Majeure, 

then the applicable Unit Operator or Unit Owners shall notify Plaintiffs in writing as soon as 

practicable, but in no event later than 14 Working Days following the date the Unit Operator or 

the Unit Owners 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, the Unit Operator or the 

applicable Unit Owners shall reference this Paragraph of this Consent Decree and describe the 

anticipated length of time that the delay or violation may persist, the cause or causes of the Force 

Majeure Event, all measures taken or to be taken by the Unit Operator or the Unit Owners to 

prevent or minimize the delay or violation, the schedule by which the Unit Operator or Unit 

Owners propose to implement those measures, and the applicable Unit Operator’s or Unit 

Owners’ rationale for attributing the failure, delay, or violation to a Force Majeure Event. A 

copy of this Notice shall be sent electronically, as soon as practicable, to Plaintiffs. The 

applicable Unit Operator and Unit Owners shall adopt all reasonable measures to avoid or 

68 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 72 of 107 

minimize such failures, delays, or violations. The Unit Operator and Unit Owners shall be 

deemed to know of any circumstance which they, their contractors, or any entity controlled by 

them, knew or should have known. 

183. Failure to Give Notice. If the applicable Unit Operator or one or more of the 

applicable Unit Owners fail to comply with the notice requirements of this Section, the United 

States (after consultation with the Sierra Club) may void such Unit Owner’s claim for Force 

Majeure as to the specific event for which the Unit Operator or Unit Owners have failed to 

comply with such notice requirement. 

184. Plaintiffs’ Response. The United States shall notify the applicable Unit Owners 

in writing regarding Unit Owners’ claim of Force Majeure as soon as reasonably practicable. If 

the United States (after consultation with Sierra Club) agrees that a delay in performance has 

been or will be caused by a Force Majeure Event, the Plaintiffs and the Unit Owners shall 

stipulate to an extension of deadline(s) for performance of the affected compliance 

requirement(s) by a period equal to the delay actually caused by the event, in which case the 

delay at issue shall be deemed not to be a violation of the affected requirement(s) of this Consent 

Decree. In such circumstances, an appropriate modification shall be made pursuant to Section 

XXIII (Modification) of this Consent Decree. 

185. Disagreement. If the United States (after consultation with Sierra Club) does not 

agree with the Unit Owners’ claim of Force Majeure, or if the United States and the Unit Owners 

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) of this Consent Decree. 

69 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 73 of 107 

186. Burden of Proof. In any dispute regarding Force Majeure, the applicable Unit 

Owner(s) of the Unit at issue 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. The applicable Unit Owners shall also bear the burden of proving 

that the Unit Owners gave the notice required by this Section and the anticipated duration and 

extent of any failure, delay, or violation(s) attributable to a Force Majeure Event. An extension 

of one compliance date may, but will not necessarily, result in an extension of a subsequent 

compliance date. 

187. Events Excluded. Unanticipated or increased costs or expenses associated with 

the performance of the Unit Owners’ obligations under this Consent Decree shall not constitute a 

Force Majeure Event. 

188. Potential Force Majeure Events. The Parties agree that, depending upon the 

circumstances related to an event and the applicable Unit Owners’ 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 

(e.g., the Midwest Independent System Operator), acting under and authorized by applicable law 

or tariff as accepted by the Federal Energy Regulatory Commission, that directs the Unit Owners 

to supply electricity so long as such order is a response to a state-wide or regional emergency or 

is necessary to preserve the reliability of the bulk power system. Depending upon the 

70 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 74 of 107 

circumstances and the Unit Owners’ response to such circumstances, failure of a permitting 

authority or the Public Service Commission of Wisconsin to issue a necessary permit or order 

with sufficient time for the Unit Owners to achieve compliance with this Consent Decree may 

constitute a Force Majeure Event where the failure of the authority to act is beyond the control of 

the Unit Owners and the Unit Owners have taken all steps available to them to obtain the 

necessary permit or order, including, but not limited to: submitting a complete permit application 

or request; responding to requests for additional information by the 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 authority. 

189. Extended Schedule. As part of the resolution of any matter submitted to this 

Court under Section XVI (Dispute Resolution) of this Consent Decree regarding a claim of Force 

Majeure, the United States and one or more Unit Owners by agreement, or this Court by order, 

may in appropriate circumstances extend or modify the schedule for completion of work and/or 

obligations under this Consent Decree to account for the delay in the work and/or obligations 

that occurred as a result of any delay agreed to by the United States or approved by the Court. 

The applicable Unit Owners shall be liable for stipulated penalties pursuant to Section XIV 

(Stipulated Penalties) for their failure thereafter to complete the work and/or obligations in 

accordance with the extended or modified schedule (provided that the applicable Unit Owners 

shall not be precluded from asserting that a further Force Majeure Event has caused or may cause 

a delay in complying with the extended or modified schedule). 

71 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 75 of 107 

XVI. DISPUTE RESOLUTION
 

190. The dispute resolution procedure provided by this Section 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. The 

provisions of this Section XVI shall be the sole and exclusive mechanism to resolve disputes 

arising under or with respect to this Consent Decree. 

191. The dispute resolution procedure required herein shall be invoked by one Party 

giving written notice to the other Party, as well as all other Defendants, 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. 

192. 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. 

193. If the Parties are unable to reach agreement during the informal negotiation 

period, the Plaintiff or Plaintiffs shall provide those Defendants seeking dispute resolution with a 

written summary of their position(s) regarding the dispute. The written position provided by the 

Plaintiff or Plaintiffs, or by the United States if Plaintiffs have different positions, shall be 

considered binding unless, within 45 Days thereafter, the applicable Defendants, or Sierra Club if 

Plaintiffs have different positions, seeks judicial resolution of the dispute by filing a petition with 

72 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 76 of 107 

this Court. Any Party opposing such petition may submit a response to the petition within 45 

Days of filing. 

194. The time periods set out in this Section 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. 

195. This Court shall not draw any inferences nor establish any presumptions adverse 

to either Party as a result of invocation of this Section or the Parties’ inability to reach 

agreement. 

196. As part of the resolution of any dispute under this Section, 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. The applicable Defendants shall be 

liable for stipulated penalties pursuant to Section XIV (Stipulated Penalties) for their failure 

thereafter to complete the work in accordance with the extended or modified schedule, provided 

that such Defendants 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. 

197. The Court shall decide all disputes pursuant to applicable principles of law for 

resolving such disputes. In their filings with the Court under Paragraph 193, the Parties shall 

state their respective positions as to the applicable standard of law for resolving the particular 

dispute. 

73 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 77 of 107 

XVII. PERMITS
 

198. Unless expressly stated otherwise in this Consent Decree, in any instance where 

otherwise applicable law or this Consent Decree requires one or more of the Unit Owners or the 

Unit Operator to secure a permit to authorize construction or operation of any device, including 

all preconstruction, construction, and operating permits required under State law, the Unit 

Operator or, where appropriate, the Unit Owners shall ensure that such application is made in a 

timely manner. Recognizing that the Wisconsin Department of Natural Resources is the SIPapproved permitting authority, EPA will use best efforts to review expeditiously, to the extent 

applicable, all permit applications submitted by Unit Owners to meet the requirements of this 

Consent Decree. Sierra Club agrees not to submit any agency comments in a public forum, file a 

legal challenge, take a litigation position, file a request for a contested case hearing, a request for 

state circuit court review, or a petition pursuant to 42 U.S.C. § 7661d(b), regarding, criticizing 

and/or challenging the issuance of any permits or other regulatory approvals necessary for the 

construction or operation of any environmental control equipment or Environmental Mitigation 

Project(s) required by this Consent Decree, except as provided in the Dispute Resolution 

provisions in Section XVI of this Consent Decree. Any disputes regarding Sierra Club’s 

compliance with this provision is subject to the Dispute Resolution provisions in Section XVI, 

including written notice and period to cure, and Unit Owners’ remedies for alleged breaches by 

Sierra Club shall be limited to specific performance and shall exclude any monetary damages. 

199. Notwithstanding the previous Paragraphs, nothing in this Consent Decree shall be 

construed to require one or more Unit Owners or the Unit Operator to apply for, amend, or 

obtain a PSD or Nonattainment NSR permit or permit modification for any physical change in, 

74 
Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 78 of 107 

or any change in the method of operation of, any System Unit that would give rise to claims 

resolved by Section XI (Resolution of Claims) of this Consent Decree. 

200. When permits are required, the applicable Unit Owners shall complete and submit 

applications for such permits to the applicable State agency to allow sufficient time for all legally 

required processing and review of the permit request, including requests for additional 

information by the applicable State agency. Any failure by Unit Owners to submit a timely 

permit application for a System Unit in which they have an Ownership Interest, as required by 

permitting requirements under state and/or federal regulations, shall bar any use of Section XV 

(Force Majeure) of this Consent Decree where a Force Majeure claim is based on permitting 

delays. 

201. Notwithstanding the reference to the Title V Permits for the System Units in this 

Consent Decree, the enforcement of such permits shall be in accordance with their own terms 

and the CAA and its implementing regulations. Such 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 (Conditional 

Termination of Enforcement Under Decree) of this Consent Decree. 

202. Within 180 Days after the Date of Entry of this Consent Decree, the Unit 

Operator shall amend any applicable Title V Permit application(s), or apply for amendments 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) 12-Month Rolling Average Emission Rate, 

75 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 79 of 107 

(b) 30-Day Rolling Average Emission Rate for NOx, (c) 30-Day Rolling Average Emission Rate 

for SO2, (d) Plant-Wide Annual Tonnage Limitation, (e) Unit-Specific Annual Tonnage Cap, (f) 

requirements pertaining to the Surrender of SO2 and NOx Allowances, (g) requirements to cease 

burning petcoke and commence burning 100% PRB coal or equivalent, (h) PM Emission Rate 

and annual stack test requirements, (i) PM CEMS monitoring equipment, and (j) the Retirement, 

Refueling, or Repowering of any Unit as required under this Consent Decree. 

203. Within one year from the Date of Entry of this Consent Decree, with respect to 

any Unit in which they have an Ownership Interest, Unit Owners shall either apply to 

permanently include the requirements and limitations enumerated in this Consent Decree into a 

federally enforceable permit or request a site-specific amendment to the Wisconsin SIP, such that 

the requirements and limitations enumerated in this Consent Decree become and remain 

‘applicable requirements’ as that term is defined in 40 C.F.R. Part 70.2. The permit or 

Wisconsin SIP amendment shall require compliance with the following: any applicable (a) 12-

Month Rolling Average Emission Rate, (b) 30-Day Rolling Average Emission Rate for NOx, (c) 

30-Day Rolling Average Emission Rate for SO2, (d) Plant-Wide Annual Tonnage Limitation, (e) 

Unit-Specific Annual Tonnage Cap, (f) requirements pertaining to the Surrender of SO2 and NOx 

Allowances, (g) requirements to cease burning petcoke and commence burning 100% PRB coal 

or equivalent, (h) PM Emission Rate and annual stack test requirements, (i) PM CEMS 

monitoring equipment, and (j) Retirement requirements. 

204. Unit Owners shall ensure that the Plaintiffs are provided with a copy of each 

application for a federally enforceable permit or Wisconsin SIP amendment filed by them in 

relation to any Unit in which they have an Ownership Interest, as well as a copy of any permit 

76 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 80 of 107 

proposed as a result of such application, to allow for timely participation in any public comment 

opportunity. 

205. Prior to conditional termination of enforcement through this Consent Decree, 

Unit Owners shall ensure that enforceable provisions are obtained in their respective Title V 

Permits that incorporate all applicable 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 applicable (a) 12-Month Rolling Average 

Emission Rate, (b) 30-Day Rolling Average Emission Rate for NOx, (c) 30-Day Rolling Average 

Emission Rate for SO2, (d) Plant-Wide Annual Tonnage Limitation, (e) Unit-Specific Annual 

Tonnage Cap, (f) the requirements pertaining to the Surrender of SO2 and NOx Allowances, (g) 

requirement to cease burning petcoke and commence burning 100% PRB coal or equivalent, (h) 

PM Emission Rate and annual stack test requirements, (i) PM CEMS monitoring equipment, and 

(j) the Retirement, Refueling, or Repowering of any Unit as required or elected under this 

Decree. 

XVIII. INFORMATION COLLECTION AND RETENTION 

206. Any authorized representative of the United States, including its attorneys, 

contractors, and consultants, upon presentation of credentials, shall have a right of entry upon the 

premises of a 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; 

77 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 81 of 107 

c. obtaining samples and, upon request, splits of any samples taken by Unit Owners 

or their representatives, contractors, or consultants; and 

d. assessing Unit Owners’ compliance with this Consent Decree. 

207. Where applicable, Defendants shall retain, and instruct their contractors and 

agents to preserve, all non-identical copies of all records and documents (including records and 

documents in electronic form) now in their or their contractors’ or agents’ possession or control, 

and that directly relate to Defendants’ performance of their respective 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 V (NOx Emission 

Reductions and Controls), Section VI (SO2 Emission Reductions and Controls), and Section VII 

(PM Emission Reductions and Controls); and (b) until December 31, 2021, for all other records. 

This record retention requirement shall apply regardless of any corporate document retention 

policy to the contrary. 

208. All information and documents submitted by Defendants 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) Defendants claim and substantiate in accordance with 40 C.F.R. Part 2 that the information 

and documents contain confidential business information. 

209. Nothing in this Consent Decree shall limit the authority of EPA to conduct tests 

and inspections at Unit Owners’ facilities under Section 114 of the Act, 42 U.S.C. § 7414, or any 

other applicable federal laws, regulations, or permits. 

78 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 82 of 107 

XIX. NOTICES 

210. 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: 

(if by 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 

DJ# 90-5-2-1-09878 

(if by commercial delivery service) 

Chief, Environmental Enforcement Section 

Environment and Natural Resources Division 

U.S. Department of Justice 

ENRD Mailroom, Room 2121 

601 D Street, NW 

Washington, DC 20004 

DJ# 90-5-2-1-09878 

(if by mail or commercial delivery service) 

Chief, Civil Division 

United States Attorney’s Office 

Western District of Wisconsin 

660 W. Washington Ave., Suite 303 

Madison, WI 53703 

and 

(if by mail service) 

Director, Air Enforcement Division 

Office of Enforcement and Compliance Assurance 

U.S. Environmental Protection Agency 

Mail Code 2242A 

1200 Pennsylvania Avenue, NW 

Washington, DC 20460 

79 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 83 of 107 

(if by 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 Avenue, NW 

Washington, DC 20004 

and 

Director, Air Division 

U.S. EPA Region 5 

77 W. Jackson Blvd. (AE-17J) 

Chicago, IL 60604 

As to the Sierra Club: 

Director, Environmental Law Program 

Sierra Club 

85 Second Street, 2nd Fl. 

San Francisco, CA 94105 

and 

David C. Bender 

Pamela McGillivray 

McGillivray Westerberg & Bender LLC 

211 S. Paterson St., Ste 320 

Madison, WI 53703 

As to Defendants: 

As to Wisconsin Power and Light Company: 

President, Wisconsin Power and Light Company 

4902 N. Biltmore Lane 

Madison, WI 53718 

and 

General Counsel, Wisconsin Power and Light Company 

4902 N. Biltmore Lane 

Madison, WI 53718 

80 
 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 84 of 107 

and
 

Vice President, Environmental Affairs, Wisconsin Power and Light Company
 

4902 N. Biltmore Lane
 

Madison , WI 53718
 

As to We Energies:
 

Vice President, Environmental
 

Wisconsin Electric Power Company
 

231 W. Michigan St.
 

Milwaukee, WI 53203
 

and
 

General Counsel
 

Wisconsin Electric Power Company
 

231 W. Michigan St.
 

Milwaukee, WI 53203
 

As to Madison Gas and Electric Company:
 

President
 

Madison Gas and Electric Co.
 

P.O. Box 1231 

Madison, WI 53701-1231 

and 

Vice President and General Counsel 

Madison Gas and Electric Co. 

P.O. Box 1231 

Madison, WI 53701-1231 

and 

Director of Safety and Environmental Affairs 

Madison Gas and Electric Co. 

P.O. Box 1231 

Madison, WI 53701-1231 

81 
 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 85 of 107 

As to Wisconsin Public Service Corporation: 

President
 

Wisconsin Public Service Corporation
 

700 N. Adams
 

Green Bay, WI 54301
 

and 

General Counsel
 

Wisconsin Public Service Corporation
 

700 N. Adams
 

Green Bay, WI 54301
 

211. 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 transmissions (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. 

212. Any Party may change either the notice recipient or the address for providing 

notices to it by serving the other Parties with a notice setting forth such new notice recipient or 

address. 

XX. SALES OR TRANSFERS OF OPERATIONAL OR OWNERSHIP INTERESTS 

213. If a Unit Owner proposes to sell or transfer an Operational Interest or Ownership 

Interest to any entity other than another Unit Owner or to a Unit Owner’s successors or assigns 

(“Third Party Purchaser”), such Unit Owner shall advise the Third Party Purchaser in writing of 

the existence of this Consent Decree prior to such sale or transfer, and shall send a copy of such 

written notification and a copy of any written agreement proposing the transfer of an Operation 

82 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 86 of 107 

or Ownership Interest to the EPA pursuant to Section XIX (Notices) of this Consent Decree at 

least 60 Days before such proposed sale or transfer. Recipients of this notice shall treat it as 

confidential for the 60 days if requested by the notifying Unit Owner. 

214. No earlier than 30 days after providing the notice in Paragraph 213, the Unit 

Owner may file a motion with the Court to modify this Consent Decree to make the terms and 

conditions of this Consent Decree applicable to the Third Party Purchaser. No sale or transfer to 

a Third Party Purchaser of an Operational Interest or Ownership Interest shall take place before 

the Third Party Purchaser has executed, and the Court has approved, a modification pursuant to 

Section XXIII (Modification) of this Consent Decree making the Third Party Purchaser a party to 

this Consent Decree and liable for the selling Defendant’s applicable requirements of this 

Consent Decree. 

215. This Consent Decree shall not be construed to impede the transfer of any 

Operational Interests or Ownership Interests between a Unit Operator or Unit Owner 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 a Unit Operator or 

Unit Owner and any Third Party Purchaser of Operational Interests or Ownership Interests – of 

the burdens of compliance with this Consent Decree. 

216. No sale or transfer of an Operational or Ownership Interest, whether in 

compliance with the procedures of this Section or otherwise, shall relieve a Unit Owner of its 

obligation to ensure that the terms of this Consent Decree are implemented, unless (1) the 

transferee agrees to undertake all of the obligations required by this Consent Decree that may be 

applicable to the transferred or purchased Operational or Ownership Interests, and to be 

83 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 87 of 107 

substituted for the Unit Owner as a Party under the Decree pursuant to Section XXIII 

(Modification) and thus be bound by the terms thereof, and (2) the United States consents to 

relieve the Unit Owner of its obligations. The United States may refuse to approve the 

substitution of the transferee for the Unit Owner if it determines that the proposed transferee 

does not possess the requisite technical abilities or financial means to comply with the Consent 

Decree. Notwithstanding the foregoing, however, Defendants 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 Interest or Ownership Interests, including the obligations set forth in 

Sections IX (Environmental Mitigation Projects) and X (Civil Penalty). 

217. Plaintiffs expressly acknowledge that a Unit Owner may sell or transfer an 

Operational Interest or Ownership Interest to another existing Unit Owner, or a Unit Owner’s 

successors or assigns, at any time and without Plaintiffs’ pre-approval and without any obligation 

to comply with the requirements of this Section. The selling or transferring Unit Owner shall 

promptly (but not later than 30 Days after such sale or transfer) notify in writing the Plaintiffs 

and other Unit Owners. Upon the consummation of the sale or transfer, all applicable 

requirements of this Consent Decree related to the applicable Unit or Units that are being sold or 

transferred shall apply to the new Unit Owner and all such applicable requirements shall 

terminate and no longer be applicable to the selling or transferring Unit Owner, with the 

exception of the obligations set forth in Sections IX (Environmental Mitigation Projects) and X 

(Civil Penalty). 

218. Paragraphs 213 to 214 of this Consent Decree do not apply if an Ownership 

Interest is sold or transferred solely as collateral security in order to consummate a financing 

84 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 88 of 107 

arrangement (not including a sale-leaseback), so long as the transferring Unit Owner: (a) remains 

the Owner or Operator (as those terms are used and interpreted under the Clean Air Act) of the 

subject Unit(s); (b) remains subject to and liable for all obligations and liabilities of this Consent 

Decree; and (c) supplies Plaintiffs with the following certification within 30 Days of the sale or 

transfer: 

“Certification of Change in Ownership Interest Solely for Purpose of Consummating 

Financing. We, the Chief Executive Officer and General Counsel of [insert name of Unit 

Owner], hereby jointly certify under Title 18 U.S.C. Section 1001, on our own behalf and 

on behalf of [insert name of Unit Owner], that any change in [insert name of Unit 

Owner]’s Ownership Interest in any Unit that is caused by the sale or transfer as 

collateral security of such Ownership Interest in such Unit(s) pursuant to the financing 

agreement consummated on [insert applicable date] between [insert name of Unit Owner] 

and [insert applicable entity]: a) is made solely for the purpose of providing collateral 

security in order to consummate a financing arrangement; b) does not impair [insert name 

of Unit Owner]’s ability, legally or otherwise, to comply timely with all terms and 

provisions of the Consent Decree entered in United States v. Wisconsin Power and Light 

Company, et al., Civil Action 13-cv-266; c) does not affect [insert name of Unit Owner]’s 

ownership or operational control of any Unit covered by that Consent Decree in a manner 

that is inconsistent with [insert name of Unit Owner]’s performance of its obligations 

under the Consent Decree; and d) in no way affects the status of [insert name of Unit 

Owner]’s obligations or liabilities under that Consent Decree.” 

XXI. EFFECTIVE DATE 

219. The effective date of this Consent Decree shall be the Date of Entry. 

XXII. RETENTION OF JURISDICTION 

220. The Court shall retain jurisdiction of this case after entry of this Consent Decree 

to enforce compliance with the terms and conditions of this Consent Decree and to take any 

action necessary or appropriate for the interpretation, construction, execution, or modification of 

the Consent Decree, or for adjudication of disputes. During the term of this Consent Decree, any 

Party to this Consent Decree may apply to the Court for any relief necessary to construe or 

effectuate this Consent Decree. 

85 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 89 of 107 

XXIII. MODIFICATION
 

221. The terms of this Consent Decree may be modified only by a subsequent written 

agreement signed by Plaintiffs and the applicable Defendants. Where the modification 

constitutes a material change to any term of this Consent Decree, it shall be effective only upon 

approval by the Court. This section shall not apply to any Defendant for which this Consent 

Decree has been terminated. 

XXIV. GENERAL PROVISIONS 

222. When this Consent Decree specifies that a Unit Owner or Unit Owners 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 that date and the 29 prior Unit Operating Days. 

223. When this Consent Decree specifies that a Unit Owner or Unit Owners shall 

achieve and maintain a 12-Month Rolling Average Emission Rate, then the Month containing 

that Day if that Day is the first Day of the Month, or if that Day is not the first Day of the Month 

then the next complete Month, shall be the first Month used in the calculation of the specified 

12-Month limitation. For example, if the specified 12-Month Rolling Average Emission Rate is 

to be achieved starting January 1, 2013, then January 2013 is the first Month used in the 

calculation of the first applicable 12-Month Rolling Average Emission Rate, such that the first 

complete 12-Month Rolling Average Emission Rate period would, provided that the Unit fires 

Fossil Fuel in each month, include January 2013 through December 2013. 

86 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 90 of 107 

224. 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 set forth herein do not relieve Unit Owners from any obligation 

to comply with other state and federal requirements under the CAA, including Unit Owners’ 

obligation to satisfy any State modeling requirements set forth in the Wisconsin SIP. 

225. This Consent Decree does not apply to any claim(s) of alleged criminal liability. 

226. In any subsequent administrative or judicial action initiated by the United States 

or Sierra Club for injunctive relief or civil penalties relating to the Columbia Station, Edgewater 

Station, or Nelson Dewey Station, as covered by this Consent Decree, Unit Owners 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 or Sierra Club in the subsequent 

proceeding were brought, or should have been brought, in the instant case; provided, however, 

that nothing in this Paragraph is intended to affect the validity of Section XI (Resolution of 

Claims) or in any way compromise or diminish the waivers, releases, and covenants provided by 

Plaintiffs in Section XI (Resolution of Claims). 

227. Nothing in this Consent Decree shall relieve Unit Owners from their obligations 

to comply with all applicable federal, state, and local laws and regulations, including laws, 

regulations, and compliance deadlines that become applicable after the Date of Entry of the 

Consent Decree. Such laws and regulations include, but are not limited to, the Utility MACT, 

the Utility NSPS requirements, and the obligation to apply for a Clean Water Act NPDES 

permit(s) for the discharge of wastewater, and in connection with any such application or 

87 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 91 of 107 

application for permit renewal, to provide the NPDES permitting authority with all information 

necessary to appropriately characterize effluent from their operations and develop appropriate 

effluent limitations, including but not limited to all information necessary for the NPDES 

permitting authority to appropriately evaluate discharges of total dissolved solids (“TDS”) for 

their operations. 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 

Decree be construed as a pre-determination of eligibility for the one year extension that may be 

provided under 42 U.S.C. § 7412(i)(3)(B). 

228. Subject to the provisions in Section XI (Resolution of Claims), Section XVI 

(Dispute Resolution), and XIV (Stipulated Penalties) nothing contained in this Consent Decree 

shall be construed to prevent or limit the rights of the Plaintiffs to obtain penalties or injunctive 

relief under the Act or other federal, state, or local statutes, regulations, or permits. However, in 

addition to the provisions of Paragraph 151(d), Sierra Club agrees not to file a legal challenge, 

take a litigation position, file a request for a contested case hearing, a request for state circuit 

court review, or a petition pursuant to 42 U.S.C. § 7661d(b), challenging the issuance of any 

permits or other regulatory approvals that are necessary for the construction or operation of 

environmental control equipment, or for any Environmental Mitigation Project identified in 

Appendix A, which is required by this Consent Decree. Nothing in this Paragraph prevents 

Sierra Club from making use of the Dispute Resolution provisions in section XVI of this Consent 

Decree. Any disputes regarding Sierra Club's compliance with this provision is subject to the 

Dispute Resolution provisions in Section XVI, including written notice and period to cure, and 

88 
Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 92 of 107 

Unit Owners' remedies for alleged breaches by Sierra Club shall be limited to specific 

performance and shall exclude any monetary damages. 

229. Each limit and/or other requirement established by or under this Consent Decree 

is a separate, independent requirement. 

230. 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 of 0.100 is not met if the actual 

Emission Rate is 0.101. Unit Owners 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 0.100, and shall be in compliance with an 

Emission Rate of 0.100, 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 0.100. Unit Owners shall report data to 

the number of significant digits in which the standard or limit is expressed. 

231. This Consent Decree does not limit, enlarge, or affect the rights of any Party to 

this Consent Decree as against any third parties. 

232. 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. 

89 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 93 of 107 

233. Except as provided below, each Party to this action shall bear its own costs and 

attorneys’ fees. Defendants shall pay Sierra Club’s reasonable attorneys’ fees and costs, 

pursuant to 42 U.S.C. § 7604(d), for the time and expenses incurred in this case, in Sierra Club v. 

Wisconsin Power and Light Company, United States District Court, Western District of 

Wisconsin, Case No. 3:10-cv-511-wmc, and in Sierra Club v. Wisconsin Power and Light 

Company, United States District Court, Eastern District of Wisconsin, Case No. 2:10-cv-00835-

aeg. The deadline for Sierra Club to file a motion for costs of litigation (including attorneys’ 

fees) for activities prior to entry of this Consent Decree by the Court is hereby extended until 30 

Days after this Consent Decree is entered by the Court. Prior to and/or during this 30-Day 

period, Sierra Club and Defendants shall seek to resolve informally any claim for costs of 

litigation (including attorneys’ fees), and, if they cannot, will submit that issue to the Court for 

resolution. An award of fees for activities prior to entry of this Consent Decree by the Court 

under this Paragraph does not waive Sierra Club’s ability to seek recovery for costs of litigation 

(including attorneys' fees) incurred to monitor and/or enforce the provisions of this Consent 

Decree. 

234. As a former owner of Edgewater Unit 5, We Energies is subject to the 

requirements of Section IX (Environmental Mitigation Projects) and Section X (Civil Penalty). 

The requirements of Sections XII (Periodic Reporting), XIII (Review and Approval of 

Submittals), XIV (Stipulated Penalties), XV (Force Majeure), XVI (Dispute Resolution) and 

XVIII (Information Collection and Retention) only apply to We Energies to the extent that they 

relate to We Energies’ obligations as set forth in Sections IX and X. 

90 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 94 of 107 

XXV. SIGNATORIES AND SERVICE 

235. Each undersigned representative of Defendants and Sierra Club, and the Assistant 

Attorney General for the Environment and Natural Resources Division of the Department of 

Justice, certifies that 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. 

236. This Consent Decree may be signed in counterparts, and such counterpart 

signature pages shall be given full force and effect. 

237. 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. 

238. Unless otherwise ordered by the Court, the United States agrees that none of the 

Defendants will be required to file any answer or other pleading responsive to the United States’ 

concurrently filed Complaint in this matter until and unless the Court expressly declines to enter 

this Consent Decree, in which case each Defendant 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/AGENCY REVIEW 

239. The Parties agree and acknowledge that final approval by the United States and 

entry of this Consent Decree is subject to the procedures of 28 C.F.R. § 50.7, which provides 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 

91 
 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 95 of 107 

disclose facts or considerations which indicate that this Consent Decree is inappropriate, 

improper, or inadequate. Neither the Sierra Club nor Defendants shall oppose entry of this 

Consent Decree by this Court or challenge any provision of this Consent Decree unless the 

United States has notified the Sierra Club and Defendants, in writing, that the United States no 

longer supports entry of this Consent Decree. Additionally, the Parties agree and acknowledge 

that final approval of this Consent Decree by the Court is subject to 42 U.S.C. § 7604(c)(3), 

which provides that a consent judgment in a citizen suit action must provide for review and 

comment by the Attorney General and the U.S. EPA Administrator for 45 Days. 

XXVII. CONDITIONAL TERMINATION OF ENFORCEMENT
 

UNDER CONSENT DECREE
 

240. Termination as to Completed Tasks. As soon as any individual Defendant 

completes a construction project, retirement or any other requirement of this Consent Decree that 

is not ongoing or recurring, Defendants may, by motion to this Court, seek termination of the 

provision or provisions of this Consent Decree that imposed the requirement. 

241. Termination as to We Energies. Following the successful completion of its 

obligations under Sections IX (Environmental Mitigation Projects) and X (Civil Penalty), 

including all associated reporting obligations, We Energies may so certify these facts to the 

Plaintiffs, all other Defendants and this Court, and We Energies may move the Court for 

termination of the provisions of this Consent Decree as to We Energies. If the Plaintiffs do not 

object in writing with specific reasons within 45 Days of receipt of We Energies’ certification, 

then We Energies shall be terminated from the requirements of this Consent Decree. 

242. Conditional Termination of Enforcement Through this Consent Decree. Subject 

to the provisions of Paragraph 243, after all projects, tasks, or requirements of this Consent 

92 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 96 of 107 

Decree have been completed as to a Unit Owner(s), a Unit Owner(s) may, by motion to this 

Court, seek termination of this Consent Decree if the Unit Owner(s): 

a. have successfully completed construction, and have maintained operation, of all 

pollution controls on Units owned or operated by them as required by this 

Consent Decree for a period of two years and have successfully completed all 

actions necessary to Retire, Refuel, or Repower any Unit as required by this 

Consent Decree; and 

b. have obtained all the final permits and/or site-specific SIP amendments (i) as 

required by Section XVII (Permits) of this Consent Decree for the applicable Unit 

and (ii) that include as federally enforceable permit terms, all Unit-specific, and 

Plant-specific, operational, maintenance, and control technology requirements 

established by this Consent Decree for the applicable Unit. 

Unit Owner(s) may so certify these facts to the Plaintiffs and this Court. If the Plaintiffs do not 

object in writing with specific reasons within 45 Days of receipt of Unit Owner’(s) certification, 

then, for any violations of this Consent Decree that occur after the filing of notice, the Plaintiffs 

shall pursue enforcement of the requirements through the applicable permits and/or other 

enforcement authorities and not through this Consent Decree. If Plaintiffs object, the dispute 

will be resolved pursuant to the procedures in Section XVI (Dispute Resolution). 

243. Enforcement under this Consent Decree. Notwithstanding Paragraph 242, if 

enforcement of a provision in this Consent Decree cannot be pursued by the United States under 

the applicable permit(s) issued pursuant to the CAA or its implementing regulations (“CAA 

Permit”), or if a Consent Decree requirement was intended to be part of a CAA Permit and did 

93 
 

 

 

Case: 3:13-cv-00266 Document #: 3-1 Filed: 04/22/13 Page 97 of 107 

not become or remain part of such permit, then such requirement may be enforced under the 

terms of this Consent Decree at any time. 

XXVIII. FINAL JUDGMENT 

244. Upon approval and entry of this Consent Decree by the Court, this Consent 

Decree shall constitute a final judgment between the Plaintiffs and each and all of the 

Defendants. 

94 










 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 1 of 32 

APPENDIX A 

ENVIRONMENTAL MITIGATION PROJECTS 

To fulfill each Defendant’s individual obligations to comply with the 

requirements in Section IX (Environmental Mitigation Projects) of the Consent Decree, 

Defendants shall spend no less than $8,500,000 in total Project Dollars, consistent with 

the requirements of this Appendix. Defendants shall spend no less than, and nothing in 

the Consent Decree or this Appendix shall require a Defendant to spend any more than, 

each Defendant’s respective amounts listed below on Environmental Mitigation Projects: 

• Wisconsin Power and Light Company: $6,583,500 

• Wisconsin Public Service Corporation: $1,272,167 

• Madison Gas and Electric Company: $623,333 

• Wisconsin Electric Power Company: $21,000 

I.	 Schedule and Budget for Environmental Mitigation Projects Other Than 

Payments to the National Park Service and United States Park Service (Each 

Defendant) 

A. Within 120 Days from the Date of Entry of this Consent Decree, as further 

described below, each Defendant shall submit proposed project plan(s) to 

EPA for review and approval pursuant to Section XIII of the Consent Decree 

(Review and Approval of Submittals) for completing each Defendant’s 

Environmental Mitigation Project expenditure commitments over a period of 

not more than 5 years from the date of plan approval. The Project Dollars 

shall be spent on Projects outlined in Sections II through V of this Appendix. 

Each Defendant also may elect to spend Project Dollars on Projects pursuant 

to Section VI of this Appendix. EPA reserves the right to disapprove any of 

the proposed plans should the Agency determine, based on an analysis of the 

plans submitted by a Defendant and all the potential environmental impacts, 

that the project is not consistent with the requirements of this Consent Decree. 

If a Defendant opts not to or is unable to perform one of the Projects detailed 

in Sections II through IV of this Appendix, Defendant shall not have any 

obligation for such Project pursuant to this Consent Decree, including 

performance, reporting, or closure requirements for that Project, provided that 

the Defendant is otherwise in compliance with the Environmental Mitigation 

Project requirements of this Consent Decree, which may include performing 

one or more Projects approved by EPA pursuant to Section VI of this 

Appendix or Paragraph 135 of the Consent Decree. If a Defendant 

subsequently 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 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 2 of 32 

Project in its next periodic report pursuant to Paragraph 155 of the Consent 

Decree. Defendants that commit to make specific payments to the National 

Park Service or United States Forest Service in this Appendix A are not 

required to submit a project plan for those payments. 

B. Each Defendant may, at its election, consolidate the Project plans for which it 

is responsible under this Consent Decree into a single plan. Where expressly 

authorized in the Project descriptions in Sections II – V, upon approval of 

EPA of its project plan, each Defendant may complete, in whole or in part, the 

Project through a third-party non-profit organization or through a foundation 

to which that Defendant would provide the funds required for the 

implementation or funding of the Project(s). 

C. The Parties agree that each Defendant is entitled to spread its payments for 

Environmental Mitigation Projects over the 5-year period commencing upon 

the date of plan approval. Each Defendant is not, however, precluded from 

accelerating payments to better effectuate a proposed mitigation plan, 

provided that the Defendant shall not be entitled to any reduction in the 

nominal amount of the required payments by virtue of the early expenditures. 

D. All proposed project plans shall include the following: 

1.	 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 emission 

mitigation (e.g., SO2, NOx, PM, CO2) expected to be realized, and the 

methodology and any calculations used in the derivation of such 

expected benefits, reductions, or mitigation; and 

5.	 For each Project undertaken, a certification, as part of each plan 

submitted to EPA for the Project, that prior to the Date of Lodging of 

this Consent Decree, Defendant had not otherwise committed to 

perform the Project generally described in the plan, that Defendant is 

unaware of any other person who is committed to perform the same 

Project, and that Defendant will not use any portion of the Project to 

satisfy any obligations that it may have under other applicable 

requirements of law, including but not limited to any applicable 

renewable or energy efficiency portfolio standards. 

E. As qualified by Section I.A. of this Appendix, upon EPA approval of the 

Project plan(s) required by this Appendix, each Defendant shall complete the 

2
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 3 of 32 

approved Projects according to the approved plan(s). Nothing in this Consent 

Decree shall be interpreted to prohibit any Defendant from completing the 

Projects ahead of schedule. 

F.	 Commencing with the first periodic report due pursuant to Section XII 

(Periodic Reporting) of the Consent Decree, and continuing biannually 

thereafter until completion of the Project(s), each Defendant shall include in 

the periodic report information describing the progress of the Project and the 

Project Dollars expended on the Project. 

G. In accordance with the requirements of Paragraph 143 of the Consent Decree, 

within 90 Days following the completion of each Project, the Defendant 

responsible for that Project shall submit to EPA for approval of Project 

closure, a Project completion report that documents: 

1.	 The date the Project was completed; 

2.	 The results and documentation of implementation of the Project, 

including an estimate of any emission reductions or emission 

mitigation (e.g., SO2, NOx, PM, CO2) expected to be realized, and the 

methodology and any calculations used in the derivation of such 

expected benefits, reductions, or mitigation; 

3.	 The Project Dollars incurred by the Defendant in implementing the 

Project; and 

4.	 Certification by an authorized representative in accordance with 

Paragraph 158 of the Consent Decree that the Project has been 

completed in full satisfaction of the requirements of the Consent 

Decree and this Appendix. 

H. If EPA (after consultation with the Sierra Club) concludes based on the 

Project completion report or subsequent information provided by a Defendant 

that a Project has been performed and completed in accordance with the 

Consent Decree, then EPA will approve completion of the Project for 

purposes of the Consent Decree. 

II. WPL’s Potential Environmental Mitigation Projects 

A. National Park Service and United States Forest Service Land and Ecological 

Restoration ($500,000 total) 

1.	 National Park Service Mitigation: Within 45 Days from the Date of 

Entry of this Consent Decree or 10 Working Days from the receipt of 

payment instructions from the National Park Service, whichever is 

later, WPL shall pay $250,000 to the National Park Service in 

3
 
 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 4 of 32 

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. The Project(s) shall focus on one or more areas alleged by 

Plaintiffs to have been injured by emissions from a Plant covered by 

the Consent Decree, including but not limited to, Indiana Dunes 

National Lakeshore, Sleeping Bear Dunes National Lakeshore, 

Mississippi National River and Recreation Area, Saint Croix National 

Scenic Waterway, Herbert Hoover National Historic Park, and Effigy 

Mounds National Monument. 

2.	 Payment of the amount required by Section II.A.1 of this Appendix 

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 WPL by the National Park 

Service. Upon payment of the required funds into the Natural 

Resource Damage and Assessment Fund, WPL shall have no further 

responsibilities regarding the implementation of any Project selected 

by the National Park Service in connection with this provision. 

3.	 United States Forest Service Mitigation: Within 45 Days from the Date 

of Entry of this Consent Decree or 10 Working Days from the receipt 

of payment instructions from the United States Forest Service, 

whichever is later, WPL shall pay $250,000 to the United States Forest 

Service in accordance with 16 U.S.C. § 579c, for the improvement, 

protection, or rehabilitation of lands under the administration of the 

United States Forest Service. The Project(s) shall focus on one or 

more areas alleged by Plaintiffs to have been injured by emissions 

from a Plant in the System, including but not limited to, the 

Chequamegon-Nicolet National Forest and the Manistee National 

Forest. 

4.	 Payment of the amount required by Section II.A.3 of this Appendix 

shall be made to the Forest Service pursuant to payment instructions 

provided to WPL. Upon payment of the required funds, WPL shall 

have no further responsibilities regarding the implementation of any 

Project selected by the Forest Service in connection with this 

provision. 

B. Land Acquisition and Restoration Projects (Up to $1,000,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may submit a plan to EPA for review and approval for the use of up to 

$1,000,000 in Project Dollars for acquisition and restoration of 

ecologically significant lands, watersheds, vegetation, and/or forests 

that are part of, adjacent to, or near WPL’s service territories (“Land 

4
 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 5 of 32 

Acquisition and Restoration Project”). The Project Dollars for this 

Project are in addition to the funding described in Section II.A. of this 

Appendix (Forest Service/Park Service Mitigation). 

2.	 The goal of the Land Acquisition and Restoration Project is the 

protection through acquisition and/or restoration of ecologically 

significant lands, watersheds, vegetation, and/or forests using adaptive 

management techniques designed to improve ecosystem health and 

mitigate harmful effects from air pollution. In addition, the funding 

shall be used to provide for public use of acquired areas in a manner 

consistent with the ecology of the area. 

3.	 For purposes of this Appendix and Section IX of this Consent Decree 

(Environmental Mitigation Projects), land acquisition means purchase 

(on behalf of the Defendant or a third-party) of interests in land, 

including fee ownership, easements, or other restrictions that run with 

the land that provide for the perpetual protection of the acquired land. 

Restoration may include, but is not limited to, reforestation or 

revegetation (using plants native to the area) and/or removal of nonnative, invasive plant species. Any restoration action must 

incorporate the acquisition of an interest in the restored lands sufficient 

to ensure perpetual protection of the restored land. 

4.	 In addition to the requirements of Section I of this Appendix, the 

proposed Land Acquisition and Restoration Project plan shall also 

satisfy the following criteria: 

a.	 Describe generally the areas proposed to be acquired or 

restored, including a map clearly identifying the location of the 

land relative to the Units addressed in this Consent Decree and 

all city, state, or federal publicly protected lands/parks in the 

area surrounding the proposed land to be acquired/restored. 

b.	 Provide a justification of why the area should be considered 

ecologically and/or environmentally significant and warrants 

preservation and/or restoration. 

c.	 Provide the projected cost of the project and a schedule for 

completing and funding each portion of the project. 

d.	 Identify any person or entity(s) other than WPL that will be 

involved in the project, including all owners with interests in 

the land. WPL shall describe all third-party roles in the action 

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 action and to 

5
 
 

 

 

 

 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 6 of 32 

receive Project Dollars. 

5.	 Upon EPA’s approval of the Land Acquisition and Restoration Project 

plan, WPL may transfer up to $1,000,000 of Project Dollars to one or 

more land acquisition funds, provided that the use of such funds by the 

recipient is conditioned to use for partial or full implementation of the 

land acquisition and restoration described in the Land Acquisition and 

Restoration Project plan. If WPL elects to transfer funds as described 

in this Paragraph, all Project Dollars shall be transferred within 2 years 

of the Date of Entry of the Consent Decree. 

6.	 In addition to the information required to be included in the report 

pursuant to Section I.G of this Appendix, WPL shall include in that 

report any reports related to this Land Acquisition and Restoration 

Project that any applicable third-party fund or organization provided to 

WPL. 

7.	 All Land Acquisition and Restoration Project lands shall be acquired 

within 5 years of plan approval. If all Land Acquisition and 

Restoration Project lands are acquired earlier than 5 years after plan 

approval, WPL shall have no further responsibilities regarding the 

implementation of the Land Acquisition and Restoration Project upon 

EPA approval of the report described in Section I.G of this Appendix. 

C. Major Solar Photovoltaic Development Project (Up to $5,000,000 total across 

solar Projects covered by this Section II of Appendix A, less any expenditures 

on hydro boost or wind boost Projects under Sections II.F. and G. of this 

Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan to execute a long-term power purchase agreement 

(“PPA”) with one or more third-party project developers (the “Project 

Developers”) with respect to the development of a new or an 

expansion of an existing major solar photovoltaic (“PV”) installation 

or installations located in WPL’s service territory. 

2.	 WPL shall execute the PPA as quickly as practicable, but in any event, 

no later than 2 years after plan approval. WPL 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, Defendant shall 

only count the increment between the wholesale price of solar 

generated electricity (including the cost of Renewable Resource 

6
 
 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 7 of 32 

Credits (“RECs”)1

) that Defendant is charged under the PPA(s) with 

respect to any period, minus Defendant’s average market clearing 

price at the Midwest Independent Transmission System Operator 

(“MISO”) system level for such period. 

3.	 The PPA will include a term of at least 10 years for which WPL 

commits to purchase the power generated and, if generated, acquire 

associated RECs from the solar PV installations. The PPA shall allow 

the developer to recoup all of its investment costs within the first 5 

years of performance. 

4.	 WPL shall not use and will retire all RECs generated during the first 

10 years of performance (as measured from the day that 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 

Midwest Renewable Energy Tracking System (“M-RETS”) or any 

other tracking system designated as acceptable by the program 

recognizing the RECs. WPL 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 compliance purpose during 

or after the Initial 10 Years. 

5.	 The Project shall be considered completed for purposes of this Consent 

Decree after the Initial 10 Years. WPL 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 on the use of RECs. RECs generated following the Initial 

10 Years may be used for any purpose authorized by law, 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 requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

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 the emission reductions 

projected to be reduced pursuant to this Section. 

RECs refer to a program in which credits are generated from the creation of renewable 

power sources, such as solar or wind developments. RECs are known as Renewable 

Resource Credits in Wisconsin and Renewable Energy Credits in Minnesota, and may 

have another name in different states. 

7
 

1 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 8 of 32 

b.	 Provide that WPL will enter into a long term PPA with one or 

more major solar PV developers by no later than 2 years after 

the date of plan approval. 

c.	 Include an anticipated schedule for issuing Requests for 

Proposals (“RFP”) for major solar PV developments and an 

overall schedule for implementing this project. 

d.	 Describe the process that WPL will use to solicit bids and 

select appropriate PV development(s) to participate in the 

project. 

e.	 Identify the Project Developer that WPL 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.	 Provide that each major solar PV development will have at 

least 500 kW of capacity (direct 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 major PV 

development(s); and 

g.	 Provide that WPL shall report the actual kW hours generated 

each year for the Initial 10 Years in each report required by 

Paragraph 155 of the Consent Decree. 

7.	 In addition to the information required to be included in the report 

pursuant to Section I.G of this Appendix, WPL shall include in that 

report details of the major PV developments including the total 

capacity (kW) of each system, components installed, total cost, 

expected energy output and environmental benefits, and the actual kW 

hours generated for the Initial 10 Years. 

D. Solar Photovoltaic Panel Installation Projects to be Owned by Third-Parties 

(Up to $2,000,000, but no more than $5,000,000 total across solar Projects 

covered in this Section II of Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan to spend up to $2,000,000 Project Dollars to install 

conventional flat panel or thin film solar photovoltaics (“PV 

Project(s)”) at state, local, or Tribal government-owned buildings, 

schools, and/or buildings owned by nonprofit organizations at any 

location within WPL’s service territory. WPL shall implement the PV 

8
 
 

 

 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 9 of 32 

Project(s) as described below. 

2.	 A PV Project shall, at a minimum, consist of: (1) the installation of 

solar panels at a single location with unrestricted solar access, 

producing at least 10 kW direct current, or, provided WPL can 

demonstrate in its Project plan that it has the same cost-effectiveness 

of a 10 kW direct current project (e.g., kW capacity per Project Dollar 

expenditure), producing at least 5 kW direct current, but not to exceed 

the total annual electricity baseload of the building the project serves; 

(2) a grid-tied inverter, appropriately sized for the capacity of the 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 switchgear and metering equipment 

required for interconnecting the solar generator to the utility grid; and 

(5) appropriate monitoring equipment supported by kiosk-delivered 

educational software (or comparable educational method) to enable the 

school students and/or staff to monitor the total and hourly energy 

output of the system (kW hours), environmental benefits delivered 

(e.g., approximate pounds of NOx, SO2, CO2 avoided), hourly ambient 

temperature and cell temperature (C°), irradiance (W/M2), as well as 

time sensitive voltage, power, and current metrics. 

3.	 The 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 PV Project(s), including associated RECs, 

shall be conveyed to the building owner at the site (the “Project 

Beneficiary”). 

4.	 Defendant shall use North American Board of Certified Energy 

Practitioners (“NACEP”) to perform the design and installation of the 

PV Project(s) to ensure the highest quality installation and 

performance of the system. 

5.	 Defendant shall ensure that there is a manufacturer parts warranty 

(“Parts Warranty”) in place for the major subcomponents of the PV 

Project(s), which, at a minimum, covers the solar panels for 25 years 

and the invertors for 10 years. 

6.	 Defendant 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 PV Project(s) for 25 

years from the date of its installation. The Project Service Contract(s) 

shall, at a minimum, provide for annual system checkups and solar 

module cleaning, and for normal component replacements, including 

installation of new system components as needed to ensure the 

ongoing maintenance and performance of the PV Project(s) for no less 

9
 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 10 of 32 

than 25 years. 

7.	 Defendant shall fund the Project Service Contract(s) 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 system for the life of the PV Project. 

8.	 Services under the Parts Warranty and the Project Service Contract 

shall be performed by third-party provider(s) but be administered by 

the Project Beneficiary by way of payment from the Project Escrow. 

Other than with respect to its funding of the escrow, WPL is not 

responsible for any repair and maintenance costs for the PV Project(s). 

9.	 In addition to the requirements of Section I of this Appendix, the 

proposed PV Project(s) plan shall also satisfy the following criteria: 

a.	 Describe how the proposed project(s) in the plan are consistent 

with the requirements of this Section and the Consent Decree, 

and how the project(s) will result in the emission reductions 

projected to be reduced pursuant to this Section. 

b.	 Include a schedule and budget for completing each portion of 

the project(s). 

c.	 Describe the process that Defendant will use to notify potential 

Project Beneficiaries that they are eligible to participate in the 

project(s) and solicit their participation. 

d.	 Describe the process and criteria Defendant will use to select 

potential Project Beneficiaries, including such factors as base 

electricity usage, solar access availability, and other relevant 

criteria. 

e.	 Provide detailed accounting supporting the 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 

over the life of the system and a demonstration that the Project 

Escrow includes appropriate restrictions on the Service 

Contract Beneficiary’s use of escrow funds, in accordance with 

the requirements of this Section. 

f.	 Identify any person or entity other than WPL that will be 

involved in the project and describe the third-party’s role in the 

project, the basis for asserting that such entity is able and suited 

to perform the intended role, and the competitive bidding 

10
 
 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 11 of 32 

process used to solicit third-party interest, if applicable. Any 

proposed third-party must be legally authorized to perform the 

proposed role and to receive Project Dollars. 

10. In addition to the information required by Section II.D.9 of this Appendix, 

WPL’s final report for the Project(s) shall also identify the 

government/nonprofit owned buildings where the PV Project(s) were 

installed, the size of the system(s), the components installed, the total 

cost(s), and expected energy output and environmental benefits. 

E. Fleet Replacement Program (Up to $1,250,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose to spend up to $1,250,000 to replace its or publicly 

owned gasoline and diesel powered fleet vehicles (passenger cars, light 

trucks, and heavy duty service vehicles) with newly manufactured 

Alternative Fuels Vehicles (as defined below) and/or compressed 

natural gas (“CNG”) vehicles. The replacement of gasoline and diesel 

vehicles with such vehicles will reduce emissions of NOx, PM, VOCs, 

and other air pollutants. Such vehicles shall be owned by WPL or 

shall be publicly-owned motor vehicles. 

2.	 Definitions: 

a.	 “Alternative Fuels Vehicle” means a Hybrid Vehicle, Plug-in 

Hybrid Vehicle, Plug-in Battery Vehicle, or Electric Vehicle. 

b.	 “Hybrid Vehicle” means a vehicle that can generate, store, and 

utilize electric power to reduce the vehicle’s consumption of 

fossil fuel. 

c.	 “Plug-in Hybrid Vehicle” 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 include a larger battery pack to 

allow an extended range of operation without the use of the 

gasoline or diesel engine. 

d.	 “Plug-in Battery Vehicle” means a vehicle that does not utilize 

an internal combustion engine and instead relies entirely on 

battery power for propulsion. 

3.	 With respect to costs associated with vehicles, Defendant shall only 

receive credit toward Project Dollars for the incremental cost of 

Alternative Fuels Vehicles or CNG Vehicles, as compared to the cost 

of a newly manufactured, similar motor vehicle powered by 

11
 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 12 of 32 

conventional diesel or gasoline engines. 

4.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

a.	 Describe how the plan is 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.	 Prioritize the replacement or retrofit of diesel powered vehicles 

to the greatest extent practical and available. 

c.	 Identify the portions of WPL’s fleet and/or publicly-owned 

fleets in WPL’s service territory for participation in this 

project. 

d.	 Provide that all vehicles proposed for inclusion in this program 

will be regular production models that meet all applicable 

engine standards, certifications, or verifications. 

e.	 Describe the process and criteria WPL will use to select any 

fleet operators and owners to participate in the program, 

consistent with the requirements of this Section. 

f.	 Describe the rationale and basis (including a discussion of cost) 

for selecting the make and model of the Alternative Fuel 

Vehicle(s), CNG Vehicle(s) chosen for this project, including 

information about other available vehicles and why such 

vehicles were not selected. 

g.	 Describe the final disposition of the vehicles that are being 

replaced. 

h.	 Propose a method to account for the amount of Project Dollars 

that will be credited for each replaced vehicle, in accordance 

with the requirements of this Section. 

i.	 Certify that the replacement program vehicles will be retained 

and operated for their useful life. 

j.	 Identify any person or entity, other than WPL, that will be 

involved in the project, including any proposed third-party who 

would have a coordination or project management role, but not 

including vehicle manufacturers or dealers who would provide 

12
 
 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 13 of 32 

vehicles. 

F.	 Wind Boost Projects (Up to $2,000,000, but no more $2,000,000 total across 

wind and hydro Projects covered in this Section II of Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan to spend up to $2,000,000 in Project Dollars on 

Projects designed to increase the renewable power production potential 

of existing wind farms in Wisconsin that are owned by WPL. 

Producing additional MW generation from renewable wind power is 

expected to offset coal generation. As required by Paragraph 139 of 

the Consent Decree, such projects shall be in addition to any other 

legal obligations, including WPL’s obligations under any state 

Renewable Portfolio Standard (“RPS”). 

2.	 Prior to implementation of the project, WPL shall complete a study of 

equipment, historic production, and wind conditions to customize 

optimizations and maximize production from individual turbines and 

the wind site as a whole. The potential improvements may include a 

control system upgrade, blade tip extensions, winter icing prevention, 

turbine pitch optimization, and turbine control software. 

3.	 Project Dollar credit shall reflect the difference between WPL’s cost in 

implementing the Project and any economic benefit resulting from the 

Project. Project Dollar credit shall include those improvements 

necessary to increase the actual energy output of the resource and shall 

exclude any regular maintenance costs, Project studies or feasibility 

analysis. Any additional RECs generated from such Projects (due to 

such Projects) shall not be available for sale or use toward any State 

RPS obligation. 

G. Hydro Boost Projects (Up to $2,000,000, but no more $2,000,000 total across 

wind and hydro Projects covered in this Section II of Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan to spend up to $2,000,000 in Project Dollars on 

activities designed to increase the existing hydroelectric facility water 

utilization and energy output. Producing additional MW generation 

from renewable hydro power is expected to offset coal generation. As 

required by Paragraph 139 of the Consent Decree, such Projects shall 

be in addition to any other legal obligations, including WPL’s 

obligations under any state RPS. 

2.	 The potential improvements may include improving the water wheel 

design for increased energy output while maintaining the current river 

water flow and making control system enhancements to maintain 

13
 
 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 14 of 32 

water levels at lower flow rates while continuing electrical generation. 

The intent of the Projects would be to gain electrical energy 

production from the renewable resource without changing the river 

flow characteristics. Such Projects shall comply with the eligibility 

requirements of EPA’s Green Power Partnership 

(http://www.epa.gov/greenpower/documents/gpp_partnership_reqs.pdf 

). 

3.	 Project Dollar credit shall reflect the difference between WPL’s cost in 

implementing the Project and any economic benefit resulting from the 

Project. Project Dollar credit shall include those improvements 

necessary to increase the actual energy output of the resource and shall 

exclude any regular maintenance costs, Project studies, or feasibility 

analysis. Any additional RECs generated from such Projects (due to 

such Projects) shall not be available for sale or use toward any State 

RPS obligation. 

H. Manure Digester Projects (Up to $750,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan for the reduction of pollutants through conversion 

of food and/or animal waste to biogas or electricity within one or more 

of WPL’s service territories. In its plan, WPL shall propose the 

purchase and installation of a manure digester for electric production. 

The manure digester will be owned by a public or nonprofit entity. 

Installation at a farm, at a school (e.g. a university-owned farm), 

government-owned facilities, or farms or facilities owned by nonprofit 

groups will be prioritized, but the manure digester may be installed at 

any farm within WPL’s service territory. WPL may spend up to 

$750,000 in Project Dollars on the manure digester to be expended 

within 5 years of the date of plan approval. Such a Project will 

promote solutions to the water quality issues posed by phosphorus and 

nutrient-containing runoff and generate a biogas that would be used to 

generate renewable electricity for offsite or facility use. 

2.	 In undertaking this Project, WPL may partner with third-party 

organizations to handle funding and selection of locations in WPL’s 

service territory. Locations sought shall maximize the “brown power” 

generation displaced and the phosphorus loading reduced in the host 

watershed. 

3.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

a. Describe how the proposed project is consistent with the 

14
 
 

 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 15 of 32 

requirements of this Section and the Consent Decree, and how 

the project will result in the emission reductions projected to be 

reduced pursuant to this Section. 

b.	 Include a budget and schedule for completing the project on a 

phased schedule, and the supporting methodologies and 

calculations for the budget. 

I.	 Energy Efficiency Projects (Up to $200,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPL 

may propose a plan to spend Project Dollars in an amount up to 

$200,000 for the purchase and installation of environmentally 

beneficial energy efficiency technologies designed to have long-lasting 

benefits and to minimize the use of electricity and/or natural gas at 

state, local, or Tribal government-owned buildings, schools, buildings 

owned by nonprofit organizations, commercial, and/or industrial 

buildings within WPL’s service territory. 

2.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section II of this Appendix A 

shall 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 the project on a 

phased schedule, and the supporting methodologies and 

calculations for the budget. 

c.	 Describe how WPL shall achieve and maintain the emission 

reductions associated with the energy efficiency projects. 

III. WPSC Potential Environmental Mitigation Projects 

A. Grandfather Falls Penstock Upgrade Project (Up to $1,100,000) 

1.	 WPSC may submit a plan to replace two 1310-foot-long, 13.5-foot and 

11-foot-diameter wood stave penstocks at the Grandfather Falls 

hydroelectric facility in accordance with the requirements of this 

Section (“Grandfather Falls Penstock Upgrade Project”). The 

Grandfather Falls facility has a total installed capacity of 17.240 MW 

and is located on the Wisconsin River, Section 31, Rock Falls 

Township, Lincoln County, Wisconsin. The Grandfather Falls facility 

15
 
 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 16 of 32 

was originally constructed in 1907 and reconstructed in 1938 by 

WPSC to its current configuration. The Grandfather Falls Penstock 

Upgrade Project is designed to significantly modernize the facility by 

replacing the wood stave, concrete cradle suspended construction of 

the current penstocks with that of steel construction founded on 

earthen ballast. The current penstocks, by the nature of their 

construction, have exhibited excessive waste of the water resource 

through leakage at the many seams formed by the wood staves. The 

leakage bypasses the two hydroelectric turbines and is returned to the 

river system, unused. The leakage is measured by monitoring 

instruments and has ranged between 2,000 to 4,000 gallons per minute, 

which equates to 0.6% of penstock flow or approximately 0.1 MW. 

The Grandfather Falls Penstock Upgrade Project is expected to 

increase the gross generating capacity of the facility by over 400,000 

kW hours/year, without changing current river flow characteristics, 

and to offset fossil fuel generation, thereby reducing emission of SO2, 

NOx, PM and other air pollutants. 

2.	 Up to $1,100,000 in Project Dollars may be credited towards 

Grandfather Falls Penstock Upgrade Project. These Project Dollars 

shall act as seed funding for the entire Grandfather Falls Penstock 

Upgrade Project, which is expected to cost significantly more. The 

total expected cost of the Grandfather Falls Penstock Upgrade Project 

is expected to be over $17,000,000 dollars, on the order of 15 to 18 

times the Project Dollar amount. 

3.	 Project Dollar credit shall reflect the difference between WPSC’s cost 

in implementing the Project and any economic benefit resulting from 

the Project. Project Dollar credit shall include those improvements 

necessary to increase the actual energy output of the resource and shall 

exclude any regular maintenance costs, Project studies, or feasibility 

analysis. Any additional RECs generated from such Projects (due to 

such Projects) shall not be available for sale or use toward any State 

RPS obligation. Other such work may be performed by WPSC along 

with the work required by the Grandfather Falls Penstock Upgrade 

Project, in which case WPSC shall not count its expenditures for any 

other such work as Project Dollars. 

4.	 Notwithstanding Paragraph 139 of the Consent Decree, nothing in this 

Consent Decree or Appendix shall prevent WPSC from using the 

Grandfather Falls Penstock Upgrade Project to satisfy capacity reserve 

or other similar requirements that it may have, including but not 

limited to obligations imposed by a regional transmission operator 

such as the Midwest Independent Transmission System Operator. 

Furthermore, for purposes of the last clause of Paragraph 139 of the 

Consent Decree only (i.e., “Defendant will not use any Project, or 

16
 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 17 of 32 

portion thereof, to satisfy any obligations that it may have under other 

applicable requirements of law, including but not limited to any 

applicable renewable or energy efficiency portfolio standards”), the 

Project shall be construed as including the equipment and/or work 

funded by the expenditure of up to $1,100,000 in Project Dollars only. 

5.	 Under existing Wisconsin Law (Act 141), the Grandfather Falls 

facility is considered a “baseline” hydro facility, which means its 

ability to generate RECs for RPS compliance is assumed to be fixed at 

the average of its 2001, 2002, and 2003 annual generation. In 

accordance with Act 141, if a baseline hydroelectric facility is 

modified to increase its generation capability, that amount of 

additional capacity resulting from such modification can be certified to 

create RECs above the facility’s baseline. WPSC shall not seek to 

certify any additional capacity resulting from penstock replacement, 

thereby ensuring additional RECs are not available for sale or use 

towards any state RPS obligation. 

B. Land Acquisition and Restoration Projects (Up to $1,100,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPSC 

may submit a plan to EPA for review and approval for the use of up to 

$1,100,000 in Project Dollars for acquisition and restoration of 

ecologically significant lands, watersheds, vegetation, and/or forests 

that are part of, adjacent to, or near WPSC’s service territories (“Land 

Acquisition and Restoration Project”). 

2.	 The goal of the Land Acquisition and Restoration Project is the 

protection through acquisition and/or restoration of ecologically 

significant lands, watersheds, vegetation, and/or forests using adaptive 

management techniques designed to improve ecosystem health and 

mitigate harmful effects from air pollution. In addition, the funding 

shall be used to provide for public use of acquired areas in a manner 

consistent with the ecology of the area. 

3.	 For purposes of this Appendix and Section IX of this Consent Decree 

(Environmental Mitigation Projects), land acquisition means purchase 

(on behalf of the Defendant or a third-party) of interests in land, 

including fee ownership, easements, or other restrictions that run with 

the land that provide for the perpetual protection of the acquired land. 

Restoration may include, but is not limited to, reforestation or 

revegetation (using plants native to the area) and/or removal of nonnative, invasive plant species. Any restoration action must 

incorporate the acquisition of an interest in the restored lands sufficient 

to ensure perpetual protection of the restored land. 

17
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 18 of 32 

4.	 In addition to the requirements of Section I of this Appendix, the 

proposed Land Acquisition and Restoration Project plan shall also 

satisfy the following criteria: 

a.	 Describe generally the areas proposed to be acquired or 

restored, including a map clearly identifying the location of the 

land relative to the Units addressed in this Consent Decree and 

all city, state, or federal publicaly protected lands/parks in the 

area surrounding the proposed land to be acquired/restored. 

b.	 Provide a justification of why the area should be considered 

ecologically and/or environmentally significant and warrants 

preservation and/or restoration. 

c.	 Provide the projected cost of the project and a schedule for 

completing and funding each portion of the project. 

d.	 Identify any person or entity(s) other than WPSC that will be 

involved in the project, including all owners with interests in 

the land. WPSC shall describe all third-party roles in the 

action 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 action and 

to receive Project Dollars. 

5.	 Upon EPA’s approval of the Land Acquisition and Restoration Project 

plan, WPSC may transfer up to $1,100,000 of Project Dollars to one or 

more land acquisition funds, provided that the use of such funds by the 

recipient is conditioned to use for partial or full implementation of the 

land acquisition and restoration described in the Land Acquisition and 

Restoration Project plan. If WPSC elects to transfer funds as 

described in this Paragraph, all Project Dollars shall be transferred 

within 2 years of the Date of Entry of the Consent Decree. 

6.	 In addition to the information required to be included in the report 

pursuant to Section I.G of this Appendix, WPSC shall include in that 

report any reports related to this Land Acquisition and Restoration 

Project that any applicable third-party fund or organization provided to 

WPSC. 

7.	 All Land Acquisition and Restoration Project lands shall be acquired 

within 5 years of plan approval. If all Land Acquisition and 

Restoration Project lands are acquired earlier than 5 years after plan 

approval, WPSC shall have no further responsibilities regarding the 

implementation of the Land Acquisition and Restoration Project upon 

EPA approval of the report described in Section I.G of this Appendix. 

18
 
 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 19 of 32 

C. Fleet Replacement Program (Up to $1,100,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPSC 

may propose to spend up to $1,100,000 to replace its or publiclyowned gasoline and diesel powered fleet vehicles (passenger cars, light 

trucks, and heavy duty service vehicles) with newly manufactured 

Alternative Fuels Vehicles (as defined below) and/or compressed 

natural gas (“CNG”) vehicles. The replacement of gasoline and diesel 

vehicles with such vehicles will reduce emissions of NOx, PM, VOCs, 

and other air pollutants. Such vehicles shall be owned by WPSC or 

shall be publicly-owned motor vehicles. 

2.	 Definitions: 

a.	 “Alternative Fuels Vehicle” means a Hybrid Vehicle, Plug-in 

Hybrid Vehicle, Plug-in Battery Vehicle, or Electric Vehicle. 

b.	 “Hybrid Vehicle” means a vehicle that can generate, store, and 

utilize electric power to reduce the vehicle’s consumption of 

fossil fuel. 

c.	 “Plug-in Hybrid Vehicle” 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 include a larger battery pack to 

allow an extended range of operation without the use of the 

gasoline or diesel engine. 

d.	 “Plug-in Battery Vehicle” means a vehicle that does not utilize 

an internal combustion engine and instead relies entirely on 

battery power for propulsion. 

3.	 With respect to costs associated with vehicles, Defendant shall only 

receive credit toward Project Dollars for the incremental cost of 

Alternative Fuels Vehicles or CNG Vehicles, as compared to the cost 

of a newly manufactured, similar motor vehicle powered by 

conventional diesel or gasoline engines. 

4.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

a.	 Describe how the plan is 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 

19
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 20 of 32 

pursuant to this Section. 

b.	 Prioritize the replacement or retrofit of diesel powered vehicles 

to the greatest extent practical and available. 

c.	 Identify the portions of WPSC’s fleet and/or publicly owned 

fleets in WPSC’s service territory for participation in this 

project. 

d.	 Provide that all vehicles proposed for inclusion in this program 

will be regular production models that meet all applicable 

engine standards, certifications, or verifications. 

e.	 Describe the process and criteria WPSC will use to select any 

fleet operators and owners to participate in the program, 

consistent with the requirements of this Section. 

f.	 Describe the rationale and basis (including a discussion of cost) 

for selecting the make and model of the Alternative Fuel 

Vehicle(s), CNG Vehicle(s) chosen for this project, including 

information about other available vehicles and why such 

vehicles were not selected. 

g. Describe the final disposition of the vehicles that are being 

replaced. 

h. Propose a method to account for the amount of Project Dollars 

that will be credited for each replaced vehicle, in accordance 

with the requirements of this Section. 

i. Certify that the replacement program vehicles will be retained 

and operated for their useful life. 

j. Identify any person or entity, other than WPSC, that will be 

involved in the project, including any proposed third party who 

would have a coordination or project management role, but not 

including vehicle manufacturers or dealers who would provide 

vehicles. 

D. Energy Efficiency Projects (Up to $200,000) 

1.	 Consistent with the requirements of Section I of this Appendix, WPSC 

may propose a plan to spend Project Dollars in an amount up to 

$200,000 for the purchase and installation of environmentally 

beneficial energy efficiency technologies designed to have long-lasting 

benefits and to minimize the use of electricity and/or natural gas at 

20
 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 21 of 32 

state, local, or Tribal government-owned buildings, schools, buildings 

owned by nonprofit organizations, commercial and/or industrial 

buildings within WPSC’s service territory. 

2.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section III of this Appendix 

A shall 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 the project on a 

phased schedule, and the supporting methodologies and 

calculations for the budget. 

c.	 Describe how WPSC shall achieve and maintain the emission 

reductions associated with the energy efficiency projects. 

IV. MGE’s Potential Environmental Mitigation Projects 

A. Fleet Replacement Program (Up to $250,000) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may propose to spend up to $250,000 to replace its or publicly-owned 

gasoline and diesel powered fleet vehicles (passenger cars, light 

trucks, and heavy duty service vehicles) with newly manufactured 

Alternative Fuels Vehicles (as defined below) and/or compressed 

natural gas (“CNG”) vehicles. The replacement of gasoline and diesel 

vehicles with such vehicles will reduce emissions of NOx, PM, VOCs, 

and other air pollutants. Such vehicles shall be owned by MGE or 

shall be publicly-owned motor vehicles. 

2.	 Definitions: 

a.	 “Alternative Fuels Vehicle” means a Hybrid Vehicle, Plug-in 

Hybrid Vehicle, Plug-in Battery Vehicle, or Electric Vehicle. 

b.	 “Hybrid Vehicle” means a vehicle that can generate, store, and 

utilize electric power to reduce the vehicle’s consumption of 

fossil fuel. 

c.	 “Plug-in Hybrid Vehicle” 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 

21
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 22 of 32 

fuel. These vehicles typically include a larger battery pack to 

allow an extended range of operation without the use of the 

gasoline or diesel engine. 

d.	 “Plug-in Battery Vehicle” means a vehicle that does not utilize 

an internal combustion engine and instead relies entirely on 

battery power for propulsion. 

3.	 With respect to costs associated with vehicles, Defendant shall only 

receive credit toward Project Dollars for: (1) the incremental cost of 

Alternative Fuels Vehicles, CNG Vehicles, hybrid gasoline electric 

vehicles, and/or hybrid diesel electric vehicles, as compared to the cost 

of a newly manufactured, similar motor vehicle powered by 

conventional diesel or gasoline engines; and (2) costs associated with 

infrastructure needed to support such Project. 

4.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

a.	 Describe how the plan is 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.	 Prioritize the replacement or retrofit of diesel powered vehicles 

to the greatest extent practical and available. 

c.	 Identify the portions of MGE’s fleet and/or publicly owned 

fleets in MGE’s service territory for participation in this 

project. 

d.	 Provide that all vehicles proposed for inclusion in this program 

will be regular production models that meet all applicable 

engine standards, certifications, or verifications. 

e.	 Describe the process and criteria MGE will use to select any 

fleet operators and owners to participate in the program, 

consistent with the requirements of this Section. 

f.	 Describe the rationale and basis (including a discussion of cost) 

for selecting the make and model of the Alternative Fuel 

Vehicle(s), CNG Vehicle(s) chosen for this project, including 

information about other available vehicles and why such 

vehicles were not selected. 

22
 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 23 of 32 

g.	 Describe the final disposition of the vehicles that are being 

replaced. 

h.	 Propose a method to account for the amount of Project Dollars 

that will be credited for each replaced vehicle, in accordance 

with the requirements of this Section. 

i.	 Certify that the replacement program vehicles will be retained 

and operated for their useful life. 

j.	 Identify any person or entity, other than MGE, that will be 

involved in the project, including any proposed third party who 

would have a coordination or project management role, but not 

including vehicle manufacturers or dealers who would provide 

vehicles. 

B. Source Separated Organic Waste Project (Up to $100,000) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may spend up to $100,000 to help support a source separated organics 

Project within MGE’s service territory. The money shall be used to 

develop a program to separately collect organic refuse material (e.g., 

food waste, soiled paper products, diapers, and pet waste) and convert 

the separated organics to methane gas for electric generation or vehicle 

fuel. 

2.	 In addition to the information required by Section I of this Appendix, 

MGE’s final report for the Project shall also identify the total cost(s) 

and expected energy output and environmental benefits. 

C. Residential Woodstove/Fireplace Change-Out Program (Up to $250,000) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may propose a plan to spend no less than $75,000 and up to $250,000 

to sponsor a wood burning appliance (e.g., stoves, boilers and 

fireplaces) replacement and retrofit program that would be 

implemented by one or more third-party nonprofit organizations or a 

government entity (the “Woodstove/Fireplace Program”). 

2.	 Defendant shall sponsor the implementation of the 

Woodstove/Fireplace Program within MGE’s service territories in 

Dane County and within MGE’s extended service territories in 

Columbia, Crawford, Iowa, Juneau, Monroe and Vernon Counties, but 

with a prioritization to funding in Dane County. 

3.	 The air pollutant reductions shall be obtained by replacing, retrofitting, 

23
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 24 of 32 

or upgrading inefficient, higher polluting wood burning appliances, 

including fireplaces, with cleaner burning appliances and technologies, 

such as: (1) retrofitting older hydronic heaters (aka outdoor wood 

boilers) to meet EPA Phase II hydronic heater standards; (2) replacing 

older hydronic heaters with EPA Phase II hydronic heaters, EPAcertified woodstoves, 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 EPAcertified woodstoves with EPA-certified woodstoves or cleaner 

burning, more energy-efficient hearth appliances; (4) replacing spent 

catalysts in EPA-certified woodstoves; and (5) replacing/retrofitting 

wood burning fireplaces with EPA Phase 2 Qualified Retrofit devices 

or cleaner burning natural gas fireplaces. To qualify for replacement, 

retrofitting, or upgrading, the wood burning appliance/fireplace must 

be in regular use in a primary residence during the home-heating 

season, and preference shall be given to replacement, retrofitting, or 

upgrading wood burning appliances/fireplaces that are a primary or 

significant source of residential heat. 

4.	 MGE and the nonprofit organization(s) or government entity that will 

implement the Woodstove/Fireplace Program shall consult with EPA’s 

Residential Wood Smoke Reduction Team and shall implement the 

Woodstove/Fireplace Program consistent with the materials available 

on EPA’s Burn Wise website at http://www.epa.gov/burnwise. 

5.	 MGE shall limit the use of Woodstove/Fireplace Program Dollars for 

third-party administrative costs associated with implementation of the 

Woodstove/Fireplace Program to no greater than 10% of the Project 

Dollars that MGE provides to a third-party. 

6.	 The Woodstove/Fireplace Program shall provide incentives for the 

wood burning appliance and fireplace replacements, retrofits, and 

upgrades described above in this Section through rebates, vouchers, 

and/or discounts. 

7.	 The Woodstove/Fireplace Program shall provide educational 

information and outreach regarding the energy efficiency, health, and 

safety benefits of cleaner wood burning appliances and the proper 

operation of appliances. The costs associated with this element of the 

Woodstove/Fireplace Program shall count towards Project Dollars and 

will not be considered part of the 10% administrative costs described 

in Section IV.C.5; however, the costs associated with this element of 

the Woodstove/Fireplace Program shall be marginal as compared to 

the total Project Dollars attributed to the Woodstove/Fireplace 

Program. 

24
 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 25 of 32 

8.	 In addition to the requirements of Section I of this Appendix, the 

Woodstove/Fireplace Program plan proposed by MGE shall: 

a.	 Describe how the plan is consistent with the requirements of 

this Section and the Consent Decree, and how the project will 

result in the emission reductions projected to be reduced 

pursuant to this Section. 

b.	 Identify the governmental entity or nonprofit organization(s) 

that have agreed to implement the proposed 

Woodstove/Fireplace Program. 

c.	 Describe the schedule and the budgetary increments in which 

MGE shall provide the necessary funding to implement the 

proposed Woodstove/Fireplace Program. 

d.	 Describe all of the elements of the proposed 

Woodstove/Fireplace Program, including measures, to ensure 

that it is implemented in accordance with the requirements of 

this Appendix, and that the Program Dollars will be used to 

support the actual replacement, retrofitting, and/or upgrading 

of wood burning appliances and fireplaces currently in regular 

use in a primary residence during the home-heating season. 

e.	 If the plan proposes to provide rebates or vouchers for the full 

cost of replacing older hydronic heaters or non EPA-certified 

woodstoves for income-qualified residential homeowners, 

describe and estimate the number of energy efficient appliances 

it intends to make available, the cost per unit, and the criteria 

the government entity will use to determine which residential 

homeowners should be eligible for such full cost replacement. 

f.	 If applicable, identify any organizations or entities with which 

the governmental entity or nonprofit organization(s) will 

partner to implement the proposed Woodstove/Fireplace 

Program, including wood burning appliance trade associations, 

national or local health organizations, facilities that will 

dispose of old stoves so that they cannot be resold or reused, 

individual woodstove/fireplace retailers, propane dealers, 

housing assistance agencies, local fire departments, and local 

green energy organizations. 

g.	 Describe how the program will ensure the inefficient, higher 

polluting wood burning stoves and fireplaces that are replaced 

under the proposed Woodstove/Fireplace Program will be 

properly recycled or disposed. 

25
 
 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 26 of 32 

h.	 Describe how the government entity or nonprofit 

organization(s) will conduct outreach within the geographic 

area of the proposed Woodstove/Fireplace Program. 

9.	 Performance. Upon approval of the Woodstove/Fireplace Program 

plan by EPA, MGE shall complete the Program according to the 

approved plan and schedule. Should MGE, despite its best efforts to 

fund the Woodstove/Fireplace Program at the levels required by and in 

compliance with this Section, be unable to spend at least $75,000 on 

the Program, MGE may request EPA’s approval to allocate such 

Program Dollars towards another of the Projects specified in this 

Appendix pursuant to Section VI. 

D. Nitrogen Impact Mitigation in the Yahara River Watershed (Up to $100,000) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may propose a plan for the mitigation of adverse impacts of nitrogen 

on the Yahara River Watershed (“Yahara River Watershed Project”). 

MGE shall spend a total not to exceed $100,000 in Project Dollars on 

the Yahara River Watershed Project. 

2.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall satisfy the following criteria: 

a.	 Describe how the proposed plan is consistent with the 

requirements of this Section and the Consent Decree, and is 

projected to mitigate adverse impacts, pursuant to this Section. 

b.	 Provide that project(s) proposed under the plan shall reduce 

nitrogen loading in the Yahara River Watershed or otherwise 

mitigate the adverse effects of nitrogen in the Yahara River 

Watershed that maximize the expected 

ecological/environmental benefit(s) in relation to the cost and 

maximize the permanence of the expected benefit(s). Projects 

that may be approved include, by way of illustration, projects 

to address eutrophication of the Yahara River or lakes in the 

watershed from nitrogen loading. 

c.	 Describe generally the expected environmental benefit of the 

proposed Yahara River Watershed Project, including, to the 

extent practicable, any expected loading benefits and any cobenefits that would result from reducing nitrogen runoff such 

as reducing phosphorous runoff and preventing algal blooms. 

26
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 27 of 32 

d.	 Describe the expected cost of each element of the proposed 

Yahara River Watershed Project, including the fair market 

value of any interests in land to be acquired, as applicable. 

e.	 Identify any person or entity other than MGE that will be 

involved in any aspect of the proposed Yahara River 

Watershed Project. MGE shall describe the third-party’s role 

in the action and the basis for asserting that such entity is 

capable of and suited to perform the intended role. For 

purposes of this Section of the Appendix, third-parties shall 

only include nonprofits; federal, state, and local agencies; 

special purpose districts; or universities. Any proposed thirdparty must be legally authorized to perform the proposed action 

and to receive Project Dollars. 

f.	 Include a budget and schedule for completing the project on a 

phased schedule, and the supporting methodologies and 

calculations for the budget. 

3.	 Actions taken under this Section shall not be counted as a reduction for 

purposes of offsetting, reducing, or eliminating the pollution control 

required of any point source discharge National Pollution Discharge 

Elimination System/Wisconsin Pollution Discharge Elimination 

System permittee in the Yahara River Watershed. Without limitation 

because of listing here, the pollution reduction steps taken under this 

Section may not be counted as a method of phosphorus and nitrogen 

reduction in any point source’s alternative effluent limitation; may not 

be counted as a verifiable reduction in any adaptive management 

option; may not generate credits for use in any water quality trading 

program; and may not be used to comply with cropland or livestock 

performance standards. 

E. Solar Photovoltaic Panel Installation Projects to be Owned by Third-Parties 

(Up to $500,000 less any expenditures on energy efficiency Projects under 

Section IV.F of this Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may propose a plan to spend up to $500,000 Project Dollars to install 

conventional flat panel or thin film solar photovoltaics (“PV 

Project(s)”) at state, local, or Tribal government owned buildings, 

schools, and/or buildings owned by non-profit organizations at any 

location within MGE’s service territory. MGE shall implement the 

PV Project(s) as described below. 

2.	 A PV Project shall, at a minimum, consist of: (1) the installation of 

solar panels at a single location with unrestricted solar access, 

27
 
 

 

 

 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 28 of 32 

producing at least 10 kW direct current, or, provided MGE can 

demonstrate in its Project plan that it has the same cost-effectiveness 

of a 10 kW direct current project (e.g., kW capacity per Project Dollar 

expenditure), producing at least 5 kW direct current, but not to exceed 

the total annual electricity baseload of the building the project serves; 

(2) a grid-tied inverter, appropriately sized for the capacity of the 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 switchgear and metering equipment 

required for interconnecting the solar generator to the utility grid; and 

(5) appropriate monitoring equipment supported by kiosk-delivered 

educational software (or comparable educational method) to enable the 

school students and/or staff to monitor the total and hourly energy 

output of the system (kW hours), environmental benefits delivered 

(e.g., approximate pounds of NOx, SO2, CO2 avoided), hourly ambient 

temperature and cell temperature (C°), irradiance (W/M2), as well as 

time sensitive voltage, power, and current metrics. 

3.	 The 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 PV Project(s), including associated RECs, 

shall be conveyed to the building owner at the site (the “Project 

Beneficiary”). 

4.	 Defendant shall use North American Board of Certified Energy 

Practitioners (“NACEP”) to perform the design and installation of the 

PV Project(s) to ensure the highest quality installation and 

performance of the system. 

5.	 Defendant shall ensure that there is a manufacturer parts warranty 

(“Parts Warranty”) in place for the major subcomponents of the PV 

Project(s), which, at a minimum, covers the solar panels for 25 years 

and the invertors for 10 years. 

6.	 Defendant 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 PV Project(s) for 25 

years from the date of its installation. The Project Service Contract(s) 

shall, at a minimum, provide for annual system checkups and solar 

module cleaning, and for normal component replacements, including 

installation of new system components as needed to ensure the 

ongoing maintenance and performance of the PV Project(s) for no less 

than 25 years. 

7.	 Defendant shall fund the Project Service Contract(s) by depositing 

funds in an escrow account (“Project Escrow”) that limits the use of 

28
 
 

 

 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 29 of 32 

the Project Escrow funds by the Project Beneficiary to use for 

purposes of maintaining the system for the life of the PV Project. 

8.	 Services under the Parts Warranty and the Project Service Contract 

shall be performed by third-party provider(s) but be administered by 

the Project Beneficiary by way of payment from the Project Escrow. 

Other than with respect to its funding of the escrow, MGE is not 

responsible for any repair and maintenance costs for the PV Project(s). 

9.	 In addition to the requirements of Section I of this Appendix, the 

proposed PV Project(s) plan shall also satisfy the following criteria: 

a.	 Describe how the proposed project(s) in the plan are consistent 

with the requirements of this Section and the Consent Decree, 

and how the project(s) will result in the emission reductions 

projected to be reduced pursuant to this Section. 

b.	 Include a schedule and budget for completing each portion of 

the project(s). 

c.	 Describe the process that Defendant will use to notify potential 

Project Beneficiaries that they are eligible to participate in the 

project(s) and solicit their participation. 

d.	 Describe the process and criteria Defendant will use to select 

potential Project Beneficiaries, including such factors as base 

electricity usage, solar access availability, and other relevant 

criteria. 

e.	 Provide detailed accounting supporting the 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 

over the life of the system and a demonstration that the Project 

Escrow includes appropriate restrictions on the Service 

Contract Beneficiary’s use of escrow funds, in accordance with 

the requirements of this Section. 

f.	 Identify any person or entity other than MGE that will be 

involved in the project and describe the third-party’s role in the 

project, the basis for asserting that such entity is able and suited 

to perform the intended role, and the competitive bidding 

29
 
 

 

 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 30 of 32 

process used to solicit third-party interest, if applicable. Any 

proposed third-party must be legally authorized to perform the 

proposed role and to receive Project Dollars. 

10. In addition to the information required by Section IV.E.9 of this 

Appendix, MGE’s final report for the Project(s) shall also identify the 

government/nonprofit owned buildings where the PV Project(s) were 

installed, the size of the system(s), the components installed, the total 

cost(s), and expected energy output and environmental benefits. 

F.	 Energy Efficiency Projects (Up to $200,000, but no more $500,000 total 

across solar and energy efficiency Projects covered in this Section IV of 

Appendix A) 

1.	 Consistent with the requirements of Section I of this Appendix, MGE 

may propose a plan to spend Project Dollars in an amount up to 

$200,000 for the purchase and installation of environmentally 

beneficial energy efficiency technologies designed to have long-lasting 

benefits and to minimize the use of electricity and/or natural gas at 

state, local, or Tribal government owned buildings, schools, buildings 

owned by nonprofit organizations, commercial and/or industrial 

buildings within MGE’s service territory. 

2.	 In addition to the requirements of Section I of this Appendix, the plan 

required to be submitted pursuant to this Section of this Appendix 

shall 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 the project on a 

phased schedule, and the supporting methodologies and 

calculations for the budget. 

c.	 Describe how MGE shall achieve and maintain the emission 

reductions associated with the energy efficiency projects. 

V. We Energies’ Potential Environmental Mitigation Projects 

A. National Park Service or United States Forest Service Land and Ecological 

Restoration ($21,000) 

1.	 National Park Service Mitigation: Within 45 Days from the Date of 

Entry of this Consent Decree or 10 Working Days from the receipt of 

30
 
 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 31 of 32 

payment instructions from the National Park Service, whichever is 

later, We Energies shall pay $10,500 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. The project(s) shall focus on one or more areas alleged by 

Plaintiffs to have been injured by emissions from a Plant covered by 

the Consent Decree, including but not limited to, Indiana Dunes 

National Lakeshore, Sleeping Bear Dunes National Lakeshore, 

Mississippi National River and Recreation Area, Saint Croix National 

Scenic Waterway, Herbert Hoover National Historic Park, and Effigy 

Mounds National Monument. 

2.	 Payment of the amount required by Section V.A.1 of this Appendix 

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 We Energies by the National 

Park Service. Upon payment of the required funds into the Natural 

Resource Damage and Assessment Fund, We Energies shall have no 

further responsibilities regarding the implementation of any project 

selected by the National Park Service in connection with this 

provision. 

3.	 United States Forest Service Mitigation: Within 45 Days from the Date 

of Entry of this Consent Decree or 10 Working Days from the receipt 

of payment instructions from the United States Forest Service, 

whichever is later, We Energies shall pay $10,500 to the United States 

Forest Service in accordance with 16 U.S.C. § 579c, for the 

improvement, protection, or rehabilitation of lands under the 

administration of the United States Forest Service. The project(s) shall 

focus on one or more areas alleged by Plaintiffs to have been injured 

by emissions from a Plant covered by the Consent Decree, including 

but not limited to, the Chequamegon-Nicolet National Forest and the 

Manistee National Forest. 

4.	 Payment of the amount required by Section V.A.3 of this Appendix 

shall be made to the Forest Service pursuant to payment instructions 

provided to We Energies. Upon payment of the required funds, We 

Energies shall have no further responsibilities regarding the 

implementation of any project selected by the Forest Service in 

connection with this provision. 

VI. Unspent Project Dollars (Each Defendant) 

A. If, as of 5 years from Date of Entry of this Consent Decree, there are any 

funds allocated for a Defendant’s individual Project Dollar obligations to 

31
 
 

 

 

Case: 3:13-cv-00266 Document #: 3-2 Filed: 04/22/13 Page 32 of 32 

comply with the requirements in Section IX (Environmental Mitigation 

Projects) and this Appendix of the Consent Decree that have not been 

expended, and are not expected to be expended (“Unspent Project Dollars”), 

the Defendant may, upon approval of EPA (in consultation with Sierra Club), 

allocate those “Unspent Project Dollars” towards another of the Projects 

specified in this Appendix, whether or not such Defendant was originally 

designated to perform such Project. Defendant shall provide notice pursuant 

to Section XIX (Notices) and Section XIII (Review and Approval of 

Submittals) of the Consent Decree of the amount of such Unspent Project 

Dollars and provide a proposed plan and schedule for one or more new 

Environmental Mitigation Projects to satisfy the requirements of this Consent 

Decree. 

B. In addition to the requirements of Section I of this Appendix, the plan required 

to be submitted pursuant to this Section of this Appendix shall satisfy the 

following criteria: 

1.	 Provide for the expenditure of all remaining Unspent Project Dollars. 

2.	 Describe the reason all remaining Unspent Project Dollars have not 

been allocated and/or spent. 

3.	 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. 

4.	 Include a budget and schedule for completing the project on a phased 

schedule, and the supporting methodologies and calculations for the 

budget. 

32