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June 22, 2001: Wall Street Journal: Justice Department Has Frozen Lawsuits Against Power Companies

The Wall Street Journal reports that the Justice Department has put all of its New Source Review (NSR) investigations on hold, pending the outcome of a review of NSR by the Environmental Protection Agency. Taken as a whole, the Justice Department probes constitute one of the largest environmental investigations in US history. It has been looking at dozens of firms accused by the EPA, under Clinton, of expanding power plants or refineries without installing state-of-the-art pollution control systems, as required by the NSR section of the Clean Air Act. Together these plants are alleged to have spewed hundreds of millions of tons of illegal emissions into the atmosphere. According to EPA spokeswoman Tina Kreisher, the agency—under order from the White House (see May 16, 2001)—is now trying to determine whether companies can be given “more operational and design flexibility” to meet NSR requirements. Likewise, the Justice Department is also conducting a review. Cristine Romano, a spokeswoman for the department, says the Justice Deparmtment intends to look at the “legal soundness” of the NSR investigations. The Journal also reports that the Justice Department is actually advising companies not to sign settlements, but instead to wait until the EPA review has been completed. For example, Dominion Resources almost agreed to spend $1.2 billion on pollution-control upgrades at its plants as part of a settlement. But according to the Journal, it decided not to on advice offered by the Justice Department. [Wall Street Journal, 6/22/2001]

Entity Tags: Tina Kreisher, Cristine Romano

Timeline Tags: US Environmental Record

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