Overview:
- DTE Energy and its subsidiaries realized an economic benefit of $70 million to $94 million during the time a Zug Island facility was in violation of the Clean Air Act, expert witness testifies.
- A bench trial started Monday in the EPA's lawsuit against the utility company.
- U.S. attorney says potential remedies for the Clean Air Act violations will be argued in the week ahead.
DTE Energy-owned companies are “active operators” of EES Coke Battery on Zug Island that make environmental decisions, not “distant, hands-off investors,” a U.S. attorney said Monday during a federal trial over the facility’s sulfur dioxide emissions.
The first day of the bench trial in the Environmental Protection Agency’s lawsuit against EES Coke Battery and DTE featured expert testimony from Dan Leistra-Jones, principal of Industrial Economics, a private consulting firm, on the relationship between DTE and EES Coke Battery.
The defendants realized substantial economic benefit of at least $70 to $94 million during EES Coke Battery’s period of noncompliance with the Clean Air Act, Leistra-Jones said.
U.S. District Judge Gershwin Drain ruled last month that DTE is an operator of EES Coke Battery under the Clean Air Act, rejecting the utility’s argument that it cannot be held liable for Clean Air Act claims against EES Coke Battery.
DTE Energy was added as a defendant in the case last year.
DTE calls shots at Zug Island facility: Expert witness
DTE Energy Services has a high degree of control over EES Coke Battery, including environmental decision making and operations, Leistra-Jones testified Monday.
His argument is based on reviewing hundreds of documents, including deposition testimony, internal documents such as inter-company agreements, emails, public records such as DTE financial statements and credit agreements, and permit applications, he said.
Environmental decisions for EES Coke Battery were made by employees of DTE Resources and DTE Energy Services, the consultant said.
Resources provided by DTE Energy Services to EES Coke Battery were detailed in a slide presentation in the courtroom: day-to-day management at the battery; administration of project documents including permits, environmental health, and safety; and compliance monitoring and notification of EES Coke Battery in the event of a breach.
“It’s unprecedented, the extent of services provided,” Leistra-Jones said.
DTE Energy Services employees were behind EES Coke Battery’s 2014 permit revision that led to the EPA’s lawsuit, “the central event of noncompliance,” Leistra-Jones said.
The energy company shows a high degree of control over EES Coke Battery, as DTE Energy controls all of the subsidiary’s cash, he said.
“It’s highly unusual for a company to rely exclusively on its parent company,” Leistra-Jones said.
MORE PLANET DETROIT REPORTING
Chi Fan Le brings authentic Chinese cuisine to Detroit’s pop-up scene
Angela Chi’s Chi Fan Le pop-up, launched in 2022, brings homestyle Chinese dishes to Detroit, blends cultural heritage with sustainability and community-driven values.
EPA proposes axing of requirement for large polluters to report greenhouse gas emissions
The program requires refineries, power plants, oil wells and landfills to report their emissions without risk of penalty as officials seek to identify high-polluting facilities and develop policies to lower carbon dioxide emissions.
Zug Island pollution lawsuit goes to trial: What it means for DTE Energy
In August, a federal judge ruled that DTE Energy can be held liable for Clean Air Act claims against its Zug Island subsidiary. A bench trial in the EPA lawsuit starts Monday.
What’s ahead in Zug Island trial?
Potential remedies for EES Coke Battery’s Clean Air Act violations will be argued in the coming week, said U.S attorney Samantha Ricci.
Sierra Club attorney Mary Rock named pollution controls such as desulfurization, and mitigation projects including home air purifiers, EV infrastructure, and solar panels as possibilities in her opening statement.
“Pollution and public health mean something very specific to nearby communities,” Rock said.
The government is seeking injunctive relief and penalties of up to $109,024 per day, per violation from EES Coke Battery and DTE; and asserts that EES Coke Battery should cease operations until it is fully compliant with environmental regulations.
Epidemiologist Joel Schwartz, professor at Harvard T.H. Chan School of Public Health, is set to testify this week on his risk assessment of the Zug Island facility.