Settlement Opens the Door for Clean Energy in Southeastern Colorado

Agreement Resolves Clean Air Violations, Shuts Down Coal-fired Power Plant

Denver—An agreement reached between WildEarth Guardians and the Arkansas River Power Authority resolves a litany of clean air violations, paves the way for shutting down the utility’s coal-fired power plant in the eastern plains town of Lamar, and directs $125,000 to clean energy projects in southeastern Colorado to specifically benefit low income homes, schools, or daycares. 

“This is an incredible opportunity for southeastern Colorado to forge a new energy future that safeguards clean air, the climate, and its communities,” said Jeremy Nichols, Climate and Energy Program Director for WildEarth Guardians.  “We are pleased that we were able to work together with the Arkansas River Power Authority to turn serious clean air violations into a commitment to power past coal.”

The settlement resolves two enforcement lawsuits filed in federal court by WildEarth Guardians against the Arkansas River Power Authority for violating the Clean Air Act at their coal-fired power plant in Lamar.  The 43-megawatt plant was constructed in 2009 after the Authority converted its natural gas-fired power plant to coal.

After the coal plant was fired up, residents of Lamar alerted WildEarth Guardians of numerous air quality violations.  Since 2009, the coal-fired power plant violated one or more pollution limits on virtually every day it has operated. 

In 2009, the University of Denver Sturm College of Law Environmental Law Clinic filed suit on behalf of Guardians over the failure of the plant to limit its toxic air pollution.  And in 2011, staff attorneys with Guardians followed up to file suit over thousands of violations of the plant’s air pollution limits.

The plant is now offline due to the failure of the Arkansas River Power Authority to meet its air quality permit and because it costs more to operate than to purchase power from outside sources. 

Filed today in federal court in Denver, the consent decree commits the Arkansas River Power Authority to keeping its power plant offline until 2022, but also clears the way for the power plant to remain shutdown indefinitely.  As part of the agreement, the Authority, which serves the southeastern Colorado communities of Lamar, Holly, Springfield, La Junta, Las Animas, and Trinidad, committed to securing an additional long-term power supply contract by 2018 or else pay additional penalties.

In addition to keeping its coal-fired power plant shutdown, the agreement secures a $125,000 penalty that will be directed toward clean energy projects in southeastern Colorado that directly benefit low income families or housing facilities, schools, or child-care facilities.  It also recovers nominal fees and costs incurred by the University of Denver Environmental Law Clinic and WildEarth Guardians, as allowed by the Clean Air Act.  In total, the Authority will pay $450,000 as part of the settlement.

“The energy future of southeastern Colorado is a lot brighter with this agreement,” said Nichols.  “Not only does it free the Arkansas River Power Authority to move beyond coal and find more affordable, less polluting means of providing power, it directs funds to projects that will directly benefit communities by making them more efficient and less dependent on fossil fuels.”

In exchange for the Arkansas River Power Authority’s commitments, WildEarth Guardians’ lawsuits will be dismissed.

The consent decree was filed today in federal court, but will not be signed by a judge until mid-August.  Under the Clean Air Act, settlements of citizen enforcement suits must be subject to U.S. Department of Justice review for 45 days.  Once signed, the agreement will become enforceable and binding.