NM reaches settlement over air quality violations
ALBUQUERQUE, N.M.—A subsidiary of
The settlement, the largest reached by the department this year, will result in Southwestern Public Service Co. investing $500,000 in a solar photovoltaic array at Eastern New Mexico University's Roswell campus. The money will also fund an adjunct professor position in the university's renewable energy degree and certification program.
Department officials said they plan to continue promoting supplemental environmental projects like the one at ENMU as a means of getting permit holders to pay for violations.
"This settlement demonstrates our philosophy that monetary penalties ought to go back into projects that protect the environment," Environment Secretary David Martin said in a statement issued Wednesday.
The settlement with SPS stems from an administrative order issued last year against the utility's Cunningham Power Plant in Hobbs. The order alleged thousands of instances of nitrogen oxide emissions in excess of the plant's permit between 2005 and 2009.
The utility disputed the allegations and settlement talks ensued.
In addition to the $500,000 environmental project, Southwestern Public Service will pay a $300,000 civil penalty for the alleged violations. The penalty is due within 30 days and the project at the university must be completed within 180 days.
The utility could face more fines if it misses the deadlines spelled out in the settlement.
Supplemental environmental projects have been part of the department's arsenal for years. One example that will soon pay off is a 2005 agreement that called for the operators of the coal-fired San Juan Generating Station in northwestern New Mexico to implement millions of dollars in equipment upgrades to address mercury pollution.
Sandra Ely with the Environment Department's legal team said the project at San Juan resulted in mercury controls much sooner than what will be required by law. Federal regulators are expected next week to announce new national mercury standards.
Other supplemental environmental projects have helped New Mexico junior colleges jumpstart renewable energy programs.
"For companies, it's good because it helps them turn a bad into a good," said Ryan Flynn, the department's general counsel. "For us, we want to make sure there's some environmental benefits and that there's a dollar-for-dollar correlation between the amount they're spending on the project and the amount we've agreed to as a penalty."
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