EGLE, USEPA, and DOJ Announce $750,000 Fine and Settlement with Arbor Hills Energy

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Over the last two days the Michigan Department of Environment, Great Lakes and Energy (EGLE), the US Department of Justice (DOJ), the US Environmental Protection Agency (EPA) and the Michigan Attorney General (AG) announced a $750,000 penalty and a settlement with Arbor Hills Energy (AHE) to finally settle the environmental violations alleged by the USEPA in 2016 and subsequent violations issued to AHE by EGLE from 2016 – 2020.  Although there were several violations alleged, the core violation was that AHE has continuously exceeded allowable sulfur dioxide (SO2) emission limits since at least 2015, without taking any actions to reduce the emissions. Sulfur dioxide can cause harm to human health and the environment once emitted into the air, including premature death, heart attacks, respiratory problems, and adverse environmental effects.

The settlement agreement is in the form a consent order [Civil No. 5:21-cv-12098-SDD-EAS] and is very complicated. We will attempt to provide a simplified explanation of the settlement with additional updates as more details become known.

This settlement resolves the USEPA violations which were issued in 2016 in response to the many community complaints. This settlement is separate from the lawsuit which was announced by the Michigan AG for continuing environmental compliance violations by the Advanced Disposal Services.

Environmental Compliance Can be Very Slow but works Best with Community Involvement

The Environmental Compliance Process can be very slow when dealing with recalcitrant, uncooperative companies. The process works much better with an involved community. The many odor complaints, phone calls to community leaders, letters written, town halls attended, etc. kept a spotlight on the unacceptable environmental compliance record of Arbor Hills Landfill. The spotlight helped our community leaders to pressure regulators and legislators to act. Because the accomplishments we have achieved have taken place over several years it is easy to forget how much we have accomplished. Here is a summary:

  • Over $1,200,000 in fines paid ($406,000 by BFI[1], $750,000 by Arbor Hills Energy, and $50,000[2] by ADS)

  • ADS was compelled to invest over $5,000,000[3] in the gas collection system at Arbor Hills. Arbor Hills collects significantly more landfill gas today than it collected in 2016 because of the improvements made to the GCCS. Arbor hills regularly sends a portion of the collected landfill gas to one of the three flares on site as they collect more gas than the energy plant can process.

  • AHE will be making a commitment to construct a Renewable Natural Gas Plant to replace the Landfill Gas to Energy Plant or install equipment to remove sulfur from the existing process. Note – AHE must commit to one option or the other by September 30, 2021. There is a strong believe AHE will commit to the RNG process option.

    • The Renewable Natural Gas process removes impurities and concentrates the natural gas producing a consumer quality natural gas which can be sold to the local utility or used for vehicle fuel.

    • The RNG process will eliminate combustion products and eliminate most emissions.

    • The existing turbine plant power plant will be converted to a peaking facility, with limited operating hours and operated only with clean natural gas (not landfill gas).

  • An Air Monitoring station has been installed at Ridge Wood Elementary School.

  • The landfill was compelled to update its flaring system.

  • Odor Complaints are still too high (30 – 40 per month) but they are significantly lower than they were (150 – 300+ per month)

The RNG plant will remove contaminates and concentrate the methane contained in the landfill gas to produce a consumer quality natural gas which can be sold to the local utility or used as vehicle fuel. The existing Landfill Gas to Energy Plant will be converted to a “peaking power plant” using only natural gas (not landfill gas) and will only be permitted with limited operating hours (probably 500 hours per year).

The RNG plant is a very positive development for the downwind community, but it is long overdue. This solution or other solutions to remove sulfur contaminates should have been implemented 5+ years ago.

The proposed settlement is now entering a 30-day public comment period. Comments can be submitted by following the instructions in the public notice. The Conservancy Initiative will be reviewing the settlement and will make any comments we submit public.

There is More to Come

This settlement is not related to the on-going lawsuit brought by the Michigan AG against Advanced Disposal Services. We are aware the AG lawsuit is being mediated in Michigan’s 30th Circuit Court and a settlement is expected later this year. The settlement will certainly include a plan to improve the operation of the landfill as well as a penalty.

What’s Next – PFAS – Community Townhall Planned

Last year the Conservancy Initiative began digging into how the landfill impacts water resources in our area and how the landfill complies with Clean Water Act regulations and guess what – we found a mess!

  • Arbor Hills has been named an in Significant Noncompliance with the National Pretreatment Standards (sanitary sewer permit) for at least the last three years.    

  • Arbor Hills has been identified as a PFAS contamination site by the Michigan PFAS Action Response Team (MPART).

  • A violation was issued on June 14, 2021, when The Conservancy Initiative discovered Arbor Hills had not properly reported PFAS found in the storm water detention pond which discharges to Johnson Creek. GFL is currently negotiating a Consent Order to investigate and remedy the PFAS impacts to Johnson Creek.  

  • A townhall will be held this fall to discuss PFAS contamination at Arbor Hills. We will need the public to show up, ask questions, and continue to help hold the landfill accountable. The Conservancy Initiative will be announcing the time and location of this location as soon as the details are set.

The Conservancy Initiative will be providing updates on the PFAS contamination to prepare the community for an expected Townhall with EGLE.

[1] Docket No. CAA-05-2018-0029, Consent Agreement and Final Order, BFI Systems of North America, LLC, September 28, 2018, https://www.michigan.gov/documents/deq/deq-aqd-arborhills-bfi_cafo_2018-09-28_635462_7.pdf

[2] Docket No. CAA-05-2019-0038, Consent Agreement and Final Order, Advanced Disposal Service, Inc., September 30, 2019, https://www.michigan.gov/documents/egle/egle-aqd-arborhills-consent_agree_final_order_2019-09-30_669301_7.pdf

[3] Docket No. CAA-05-2019-0038, Consent Agreement and Final Order, Advanced Disposal Service, Inc., September 30, 2019, https://www.michigan.gov/documents/egle/egle-aqd-arborhills-consent_agree_final_order_2019-09-30_669301_7.pdf