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The utility will pay $300,000 to La Crosse County, plus $167,579 in fines to the state of Wisconsin. In addition, Xcel will seek an additional $300,000 in outside funding for the household waste program.
In late July 2001, the Wisconsin attorney general's office sued Xcel on behalf of the Department of Natural Resources for violating dioxin emission limits on a number of occasions between 1995 and 2001. At the time, local DNR officials suggested Xcel might settle the lawsuit by making a donation.
Before the state filed suit, Xcel was already preparing to install new pollution control equipment at French Island, which the company says will bring the waste-to-energy plant into compliance with the federal Clean Air Act. La Crosse County is paying $10.9 million for the pollution controls, and Xcel is investing $3.9 million in other projects to modernize the plant.
"This agreement allows Xcel Energy and the state of Wisconsin to resolve the outstanding emissions issues at our French Island Plant," said Pam Graika, Xcel's general manager of peaking and renewable plants. "We believe settling this case now is in the best interest of our customers and the community. This settlement is important because it will help La Crosse County and local municipalities build a permanent facility and implement a program to reduce the amount of household hazardous waste in the area."
Last year, a special study panel recommended that La Crosse County establish as household hazardous waste program to accept toxic items like pesticides, paints and even mercury that people accumulate in their basements and garages.
But the county wanted local cities, villages and towns to help pay for the program based on population. That idea proved unpopular, especially given estimates of $750,000 to start the program and $200,000 a year to operate it. Last spring, county officials conceded that funding idea wasn't viable.
But La Crosse County Board Chairman Steve Doyle said Tuesday that he believes the settlement will help put the program back on track.
"This is the shot in the arm we need," said Doyle. "It definitely jump starts the process."
Doyle said he's been meeting with the board or council of every local municipality in the county, and there's still strong interest in a household hazardous waste program. "The town boards are saying we need to resolve this," Doyle said, noting that the county board still needs to approve the framework for the program.
Xcel will pay the county $300,000 over three years, and will seek an additional $300,000 in funding for the household hazardous waste program from one or more outside sources, according to the Attorney General Jim Doyle's office.
If Xcel can't secure the additional funding by the end of this year, the additional $300,000 "will instead be converted to additional penalty payments," said the attorney general's office.
Attorney Melissa Scanlan of Midwest Environmental Advocates, who represents local environmentalists concerned about pollution from the French Island plant, called the settlement "a very good development for the county. But we still need to get testing to prove the new pollution controls work, as well as a health study to make sure the people of La Crosse and French Island have their health protected."
Xcel is still awaiting approval of new permits for French Island from the DNR and the U.S. Environmental Protection Agency. As a part of the permit process, the Wisconsin Department of Health and Family Services asked for a study of dioxin levels in the food supply and soil in the area.
Studies show that municipal solid waste incinerators, which burn plastics, are among the largest producers of dioxin, a family of toxic chlorinated chemicals that can cause a variety of health problems. Other sources are medical waste incinerators, cement kilns, iron foundries and backyard garbage burners.
The agreement, approved Monday by La Crosse County Circuit Judge Michael Mulroy, does not address a separate legal action by the U.S. EPA. Last year, EPA issued a finding of violation because French Island did not meet Clean Air Act rules for large municipal solid waste combustors that went into effect in December 2000.
Shortly before the new rules took effect, EPA reclassified French Island from a small combustor to a large combustor based on a complaint from Scanlan, which did not leave Xcel enough time to comply. Had French Island remained classified as a small combustor, the company would have had until 2005 to comply with similar new pollution rules for small combustors.
EPA's violation notice against Xcel is still pending, but the agency has not taken further enforcement action.
Reid Magney can be reached at rmagney@lacrossetribune.com or (608) 791-8211.
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