JAMES H. DOUGLAS
GOVERNOR
State of Vermont
OFFICE OF THE GOVERNOR
Tuesday, April 8, 2008
Agency of Natural Resources
802-241-1562
Vermont to Receive $1.8 million in
Landmark Settlement Against
American Electric Power Corp
Climate change, Lake Champlain to get funding
Vermont will receive $1.8 million over the next five years as its share of a landmark settlement against American Electric Power Corp., the coal-fired energy producer first sued by eight states and 13 citizen groups in 1999.
The state will receive its first installment – $360,000 – this year, which will fund Governor Jim Douglas’ grant program to support projects that will increase energy efficiency and help reduce greenhouse gas emissions. Governor Douglas announced the program in November as part of his effort to jumpstart the recommendations of the Governor’s Commission on Climate Change.
“This will help communities with their initiatives and stimulate the creation of green economy jobs,” said Douglas. “In future years, we will look to fund other programs that strengthen Vermont’s economy and environment.”
Grants will be awarded on a matching basis to municipalities by the Agency of Natural Resources.
Secretary George Crombie said the Agency will be announcing the grant criteria soon. “We see this as an integral piece of moving forward the recommendations from the Governor’s Commission on Climate Change,” Crombie said. “Vermonters’ ingenuity is legendary and I expect the grants will be an important catalyst in reducing our carbon footprint.”
Under a joint project between the Vermont Agency of Natural Resources and New York Department of Environmental Conservation, New York has agreed to dedicate $500,000 of its share of the settlement to be spent on a fish and habitat restoration project for Lake Champlain.
“We’ve been working closely with New York’s Department of Environmental Conservation and Commissioner Pete Grannis and want to thank New York in reaching this agreement.” Crombie said.
Staff from the two environmental agencies will look to their respective watershed and fishing partners to develop the rollout efforts and hit the ground running when the money arrives in 2009.
“It’s imperative we keep our fishing in Vermont viable and this will certainly go a long way to help us meet that goal,” Crombie said.
Angler advocates welcomed the news, applauding the use of the first settlement payout to continue restoration of Lake Champlain.
“Restoring the Champlain fisheries to their once former glory is the goal of tens of thousands of anglers, not just in Vermont, New York and Quebec, but around the world. This funding will be crucial to that recovery initiative,” said James Ehlers, publisher emeritus of Outdoors Magazine, former professional guide, a licensed captain and organizer of Lake Champlain International, Inc.’s LCI Father’s Day Fishing Derby.
Vermont, New York and Quebec officials plan to celebrate the lake on its quadricentennial in 2009.
“This is an excellent birthday gift for Lake Champlain,” said Governor Douglas. “Vermont, New York and Quebec plan to use this anniversary to celebrate this most important water resource and highlight the importance of our Clean and Clear Action Plan. It is fitting that part of the settlement payout goes to protect the lake and its fisheries.”
Vermont, along with Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island, sued AEP, the nation’s largest operator of coal-burning power plants, under the federal Clean Air Act. The settlement – in which the company admitted no wrongdoing – ends eight years of litigation.
The settlement will apply to AEP’s entire system east of the Mississippi River, which consists of 16 plants with 46 electric generating units, located in Indiana, Kentucky, Ohio, Virginia, and West Virginia. The release of nitrogen oxides (NOx) and sulfur dioxides (SO2) from these plants contributes to the formation of ozone and acid rain in Vermont.
Ozone contributes to many respiratory health problems, and acid rain adversely impacts lakes and aquatic life in Vermont. Under the settlement agreement, AEP will ultimately have to reduce its combined emissions of NOx and SO2 from these 16 power plants by more than 813,000 tons per year. The NOx and SO2 emission reductions required by the settlement agreement are greater than those required by the federal Clean Air Interstate Rule (CAIR), and the reductions will be achieved years before they would be required under CAIR.
In addition, AEP will have to pay a $15 million civil penalty to the United States, which is the highest penalty paid by any electric utility in a settlement of this type of case, and AEP must pay $60 million dollars for projects designed to mitigate the effects of many years of excess pollution from the AEP plants.