Utility giant Duke Energy reaches $93 million settlement over air pollution violations

Duke Energy Corp. will spend $93 million to resolve Clean Air Act violations under a settlement reached with EPA and the Justice Department.

The settlement announced Tuesday, lodged in an Indiana federal court, stems from a decade-old federal lawsuit over emissions from the company’s coal-fired power plant in New Albany, Ind.

Duke will spend $85 million to cut pollution at the plant, which will reduce sulfur dioxide emissions by an estimated 86 percent and curb other pollutants as well, according to EPA.

Sulfur dioxide and nitrogen oxides cause respiratory ailments, acid rain, smog and other problems.

In addition, the company will pay a $1.75 million civil penalty and spend $6.25 million on environmental projects, which may include land restoration and conversion of diesel engines to hybrids in Duke’s fleet vehicles.

“Coal-fired power plants are big contributors to air pollution, which is why we need to make sure they comply with the law,” said Cynthia Giles, EPA’s top enforcement official, in a prepared statement.

An Indianapolis jury had found that Duke failed to install pollution controls when making modifications to two units at the plant that caused large increases in sulfur dioxide output, according to EPA.

A trial to determine the remedy had been slated to begin in January, according to EPA. Under the settlement, the company must either switch the energy source at the two units from coal to natural gas – which has fewer emissions – or shut them down.

The company must also install new pollution controls at the plant’s other two units.