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Office of the Vermont Attorney General

State of Vermont To Receive $400,000 For Energy Efficiency and Pollution Reduction Projects

July 30, 2019

Contact: Rob McDougall, Chief, Environmental Division, (802) 828-3171

Attorney General T.J. Donovan announced today that Vermont stands to receive $400,000 for energy efficiency and pollution reduction projects from a settlement revision in the landmark Clean Air Act litigation filed in 1999 by the State of Vermont, seven other states, the United States Environmental Protection Agency (EPA) and thirteen citizen groups against American Electric Power Service Corporation (AEP). AEP also agreed to shut down one of two electric generating units located at the Rockport plant in southern Indiana by 2028. Emissions from AEP’s coal-fired Midwest plants are carried by prevailing winds into Vermont and other Northeast and Mid-Atlantic states.

The original settlement, filed in the United States District Court for the Southern District of Ohio in 2007, required AEP to reduce air pollutant emissions at 16 coal-fired power plants (46 electric generating units) in Indiana, Kentucky, Ohio, Virginia, and West Virginia, pay a $15 million civil penalty to the federal government, and pay a total of $24 million for energy efficiency and pollution reduction projects to the eight states who pursued the litigation.  Vermont received $1.8 million for energy-efficiency and pollution reduction projects from the original settlement, and an additional $714,285.71 toward such projects from a settlement revision in 2013.

The latest settlement revision, entered by the court on July 17, 2019, in addition to requiring that AEP shut down one of the Rockport electric generating units by 2028, also modifies certain other pollution reduction requirements and provides additional mitigation funding of $4.0 million to the participating states and $2.5 million to the participating citizen groups.  The State of Vermont may use its $400,000 share of the funds for projects that pertain to energy efficiency and/or pollution reduction during the period 2019 through 2021.

Other states receiving funds from the consent order modification are New York, New Jersey, Massachusetts, Connecticut, New Hampshire, Maryland, and Rhode Island.

Last modified: July 30, 2019