Overview:
- EES Coke Battery burns low-sulfur coal, spends about $60 more per ton on the product than regular coal, says company's vice president.
- If the Zug Island company installed a Claus reactor, a type of desulfurization technology, it would bring its net income to zero, the executive says.
- A federal bench trial is underway in the EPA's lawsuit over sulfur dioxide emissions from the DTE Energy-owned facility.
The vice president of Zug Island’s EES Coke Battery said it would not be economically rational to spend more than the company is worth on desulfurization technology in Thursday federal court testimony.
David Smith, vice president of EES Coke Battery, testified for the defense in the bench trial of the Environmental Protection Agency’s Clean Air Act lawsuit against EES Coke Battery and DTE Energy.
EES Coke Battery’s net worth is about $135 million to $155 million, Smith said. The facility, which produces coke, a raw material in the steelmaking process, is owned by DTE Energy.
Smith said he reviewed a type of technology called a Claus reactor for potential installation at EES Coke Battery, and said it could reduce sulfur dioxide content by 33%.
The coke battery burns low-sulfur coal, Smith said, and spends about $60 more per ton on the product than regular coal, he said.
If the facility made the “capital venture” of installing the technology, EES would have net zero income and 170 jobs would be lost, Smith said.
‘It’s been a challenging year at EES’
EES Coke Battery executive Smith said he has not considered applying for a permit to address the Clean Air Act violations identified by the court, explaining that his focus has been on preparing for trial.
“It’s been a challenging year at EES, and we’re not near max production,” Smith said.
During his testimony Thursday, Smith at times gave answers that conflicted with statements he made in an earlier deposition.
Under cross-examination, U.S. attorney Samantha Ricci asked whether EES Coke Battery employed New Source Review experts between 2012 and 2014.
New Source Review is a Clean Air Act permitting program that requires facilities to install modern pollution controls when they build new plants or make major modifications.
Smith replied that he did not have the knowledge or involvement to answer. Ricci then cited his deposition, in which Smith said the Zug Island facility had employed New Source Review experts during that period and even listed their names.
MORE ZUG ISLAND TRIAL COVERAGE
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48217 resident testifies about life near Zug Island: ‘Your eyes burn’
Theresa Landrum, who’s lived in Detroit’s 48217 zip code her entire life, says her environmental activism is a “personal necessity” in Zug Island pollution trial testimony.
DTE Energy lawyer asks judge to decide on utility’s liability for Zug Island air pollution
DTE’s motion comes during the bench trial of an EPA lawsuit over sulfur dioxide emissions from EES Coke Battery on Zug Island.
Michigan regulator stands behind 2014 permit for Zug Island facility
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) says EES Coke’s 2014 permit is valid and has chosen not to join the lawsuit, according to Annette Switzer, director of EGLE’s air quality division.
Switzer added that, to her knowledge, the company had not applied for a major modification permit before 2014.
Michigan’s State Implementation Plan (SIP) gives EGLE the authority to control air pollution and decide whether facilities meet federal air quality standards. Under the SIP, EGLE has the final say on permits.
Former EPA environmental engineer Constantine Blathras, who testified in a prerecorded deposition, explained that the federal agency does not routinely review or approve permits after the fact unless EGLE asks. According to his LinkedIn page, his role at the EPA ended in June.
Blathras said the EPA raised no concerns during the draft period for EES Coke’s 2014 permit and found no conflicts with the Clean Air Act.
🗳️ Civic next steps: How you can get involved
Why it matters
⚡ A bench trial in a federal lawsuit filed by the EPA could determine the future of a Zug Island facility owned by DTE Energy that is one of Michigan’s top industrial polluters.
Who’s making civic decisions
🏛️ U.S. District Judge Gershwin Drain.
Read more:
• 🗞️ Planet Detroit’s ongoing coverage of the trial.
• 📄 Drain’s August opinion and order that states there is evidence demonstrating that DTE Energy exercised control over EES Coke Battery’s emissions, supporting a finding that the utility is an operator of the facility under the Clean Air Act.
• 🏭 EPA overview of New Source Review permits.
Track air quality:
• 😷 Check local air quality.
• 🚨 Sign up for the Michigan Department of Environment, Great Lakes, and Energy’s air quality alerts.
Attend:
• 🧑⚖️ The bench trial continues on weekdays in courtroom 761 from 8:30 a.m. to 1:30 p.m., 231 W. Lafayette Blvd., Detroit, MI 48226.
What to watch for next
• ⚖️ A federal court ruling on the EPA’s lawsuit against EES Coke Battery.
⭐ Please let us know what action you took or if you have any additional questions. Please send a quick email to connect@planetdetroit.org.