Arbor Hills Energy LLC Agrees to a Settlement Addressing Clean Air Act Violations

Michigan landfill gas company, Arbor Hills Energy LLC (AHE), has agreed to operate its adjacent landfill in accordance with the Clean Air Act, and significantly reduce – if not virtually eliminate – the AHE Facility’s sulfur dioxide (SO₂). The LFG-to-energy plant received a civil complaint filed at the United States Environmental Protection Agency (EPA) request and the Michigan Department of Environmental, Great Lakes, and Energy (EGLE) on September 9, 2021.  The civil action brought against Arbor Hills Energy LLC addresses its violations of several Clean Air Act and State law statutory and regulatory provisions. Under the settlement, the AHE Facility will be expected to perform restoration measures, as well as pay a civil fine of $750,000 to be split equally between the United States and the State of Michigan. Arbor Hills Energy LLC shall also act in compliance with the AHE Facility’s Renewable Operating Permit and continue its operation in accordance with the Clean Air Act and the Natural Resources and Environmental Protection Act.

Arbor Hills Energy LLC (AHE) – A Michigan Landfill Gas Company, has reached a settlement with the Justice Department, the United States Environmental Protection Agency (EPA), and the State of Michigan. According to a press release from the Department of Justice, Arbor Hills Energy LLC has agreed to abide by the Clean Air Act by means of significantly reducing, if not virtually eliminating, the company’s sulfur dioxide (SO₂) emissions. In order to resolve AHE’S alleged Clean Air Act and State law violations, Arbor Hills Energy LLC shall reduce the SO_{2 ­}emissions in its landfill gas-to-energy facility (AHE Facility) located at 10611 West Five Mile Road in Northville, Michigan.

Allegations in the Civil Action         

On September 9, 2021, a complaint against Arbor Hills Energy LLC was filed simultaneously with a consent decree. The United States, along with the State of Michigan, allege that the AHE has made several Clean Air Act and State law violations, including surpassing the permitted SO­­₂ emission that the AHE Facility is allowed to produce. The complaint further specifies that the AHE Facility exceeds limits in the Renewable Operating Permit (ROP) at all four AHE Facility’s turbines and all three of its duct burners. Apart from the aforementioned, the complaint also alleges that the AHE Facility failed to operate its air pollution control equipment in a manner that is efficient for minimizing emissions; used diesel fuel as an unpermitted alternative to landfill gas (LFG) for the startup of the AHE Facility’s three stationary gas turbines and failed to monitor its sulfur content; allowed compressors to vent untreated LFG when the compressors are turned off; and failed to perform stack testing under representative conditions, among other discrepancies in liabilities.

Additional Information on the Lawsuit and the Stated Claims for Relief

As specified in the complaint against Arbor Hills Energy LLC, the defendant is said to be responsible for operating and maintaining the AHE Facility’s turbines as the primary LFG control system for the adjacent landfill, which is an LFG-to-energy plantation. Due to the nature of the operation, the AHE Facility has the potential to emit an excess of 100 tons of the criteria pollutants SO­₂, nitrogen oxide, and/or carbon monoxide per year. Moreover, the plant is reported to emit in excess of 10 tons per year of HAP hydrogen chloride. In line with this, a review of the AHE Facility’s operations has shown that the defendant failed to comply with the requirements of applicable Clean Air Act provisions, along with related regulations promulgated by the EPA and the State of Michigan, and the emissions limits and other requirements set forth in the AHE Facility’s ROP. The United States, therefore, allege in the complaint five Claims for Relief, including having the Arbor Hills Energy LLC permanently enjoin from operating the AHE Facility except under circumstances that are in accordance with the Clean Air Act, the Michigan Natural Resources and Environmental Protection Act (NREPA), and all of the applicable federal and state regulatory requirements. In addition, the Abhor Hills energy LLC is expected to remedy its violations by initially coming into compliance with the AHE Facility’s Renewable Operating Permit and eventually implementing other appropriate countermeasures that should remedy, alleviate, and compensate for the harm and threat it has posed to public health and environment safety under the Clean Air Act and NREPA.

Included in the Claims for Relief noted in the complaint is the assessment of a civil penalty against the defendant of up to $37,500 per day, accounting for each Clean Air Act violation occurring on or after January 13, 2009, and up to November 2, 2015. For each day following November 2, 2015, the defendant shall pay a civil penalty of up to $102,638 for each violation. Another civil fine under part 55 of the NREPA has also been filed against Abhor Hills Energy LLC. A $10,000 fine has been imposed for each violation and another $10,000 fine for each day of continued violation. The settlement also includes an ultimatum, in which by March 2023, the Arbor Hills Energy LLC should be able to either construct a renewable natural gas facility that converts LFG into pipeline quality natural gas and would virtually eliminate the emission of SO₂ or install a sulfur treatment system that should be able to achieve a 64-percent reduction in emissions of SO₂ from the AHE Facility. On top of all these, an evaluation of the defendant’s ability to pay resulted in a clause in the complaint. A civil penalty of $750,000 is expected out of the Arbor Hills Energy LLC to be split equally between the United States and Michigan.

Arbor Hills Energy LLC and the Effects of Its Pollutants

Arbor Hills Energy LLC converts LFG generated by decomposition of waste from an adjacent landfill into electricity through the process of using landfill gas as a fuel in three European Gas Turbines (EGTs), wherein each has an associated duct burner and one Solar Taurus turbine. This operation of converting LFG into electricity releases tons of sulfur dioxide and other pollutants into the air. As a result of the continued operation of the Arbor Hills Energy landfill facility, excessive amounts of SO₂ and other air pollutants have been released into the atmosphere.The release of sulfur dioxide is being regulated as it has been revealed to significantly cause harm to human health and the environment once it is emitted into the air. It may impact human lives in several ways, including causing heart attacks, premature death, and respiratory problems. On top of the adverse environmental effects, the emission of SO₂ gives rise to.

Statement of Assistant U.S. Attorney General Todd Kim – Justice Department’s Environment and Natural Resources Division

Assistant U.S. Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division asserted that the Department of Justice would consistently and vigorously enforce the Clean Air Act in collaboration with their state partners. He further stated that the settlement against the Arbor Hills Energy LLC benefits the public health and environmental state by delivering deep cuts in SO₂ emissions from the AHE Facility.

“This settlement benefits public health and the environment by delivering deep cuts in SO2 emissions from the AHE Facility. The Department of Justice will continue to enforce the Clean Air Act vigorously in cooperation with our state partners,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division.

Statement of Acting U.S. Attorney Saima S. Mohsin – U.S. Attorney’s Office for the Eastern District of Michigan

Acting U.S. Attorney Saima S. Mohsin contended that the Office of the United States Attorney for the Eastern District of Michigan puts the health of the citizens of the State of Michigan on the top of their list. With urgency and much dedication, Acting U.S. Attorney Mohsin proudly stated that the Office has been successful in its efforts to protect and preserve the environment, not only for the current generation but for all the generations to come.

“The health of the citizens of the State of Michigan is a top priority of this office. Successful efforts such as this protect and preserve the environment for current and future generations and demonstrate our ongoing dedication to that goal,” said Acting U.S. Attorney Saima S. Mohsin for the Eastern District of Michigan.

Statement of Acting Assistant Administrator Larry Starfield – U.S. Environmental Protection Agency, Office of Enforcement and Compliance

The U.S. Environmental Protection Agency also released a statement through its Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance, who said that the settlement against the Arbor Hills Energy LLC is a demonstration of the EPA’s commitment to protecting the communities. He particularly noted that the EPA is ensuring that the AHE Facility is being operated in compliance with the Clean Air Act requirements. Acting Administrator Starfield also noted how illegal air pollution from landfill gas power plants might harm people’s health and the environment.

“Illegal air pollution from landfill gas power plants can harm people’s health and the environment,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This settlement is an example of how EPA is working to protect our communities by ensuring that landfill gas is handled in compliance with Clean Air Act requirements.”

Statement of Michigan Attorney General Dana Nessel – Michigan Department of Attorney General

Michigan Attorney General Dana Nessel commended the settlement against the Arbor Hills Energy LLC for being one that pushes progress towards improving air quality, especially in the areas near the AHE Facility. She further announced that the Office of the Attorney General of Michigan is being critical about addressing the air pollution from the adjacent landfill, with particular reference to the cased filed against the landfill owner on behalf of the Michigan Department of Environment, Great Lakes, and Energy (EGLE) in 2020. Attorney General Nessel asserted that the combination of the success of the two settlements would dramatically alleviate the impact of either facility on its surrounding communities.

“This settlement makes important progress in improving air quality near the AHE Facility,” said Michigan Attorney General Dana Nessel. “My office is also addressing air pollution from the adjacent landfill in the case I filed on behalf of Michigan Department of Environment, Great Lakes, and Energy (EGLE) in 2020 against the landfill owner. Combined, when completed, this work will dramatically improve the impact both facilities have had on the surrounding communities.”

Statement of Director Liesl Clark – Michigan Department of Environmental, Great Lakes, and Energy (EGLE)

Director Liesl Clark of EGLE showed his appreciation for the agreement, which he noted to be an advantage as it would better protect the residents of the nearby community, as well as improve the region’s air quality. Moreover, he emphasized that EGLE diligently works with its partners to ensure environmental compliance and emission reduction.

“This agreement better protects nearby residents and the region’s air quality and is a good example of working with our partners to ensure environmental compliance and emissions reductions,” said Director Liesl Clark of EGLE.

Additional Information

The settlement against Arbor Hills Energy LLC includes a proposed decree that is lodged in the U.S. District Court for the Eastern District of Michigan. This case shall resolve all claims against AHE LLC made by the U.S. Environmental Protection Agency, under Michigan’s Clean Air Act, and all State law claims. The settlement is subject to a 30-day public comment period and final court approval and shall be available for viewing at www.justice.gov/enrd/consent-decrees.

Information about the EPA Region 5’s air enforcement program may be accessed at http://www.epa.gov/region5/air/enforce/index.html. Any potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.