Nov 26 - McClatchy-Tribune Regional News - Karen Dillon The Kansas City Star, Mo.

The troubled Kansas City, Kan., Board of Public Utilities is facing millions of dollars in fines for violating federal clean air laws, a federal spokesman said Wednesday.

The Environmental Protection Agency is alleging that BPU failed to install pollution controls on one of its coal-fired power plants since at least 1994 and on a second plant since 2001.

That has resulted in "significant quantities" of pollutants being released into the environment, according to a notice of violation issued by the EPA Region 7 this week.

Until BPU makes changes at the two aging plants, Quindaro Power Station and Nearman Creek Power Station, they will continue to release illegal quantities of pollutants, according to the document.

In the past, both BPU and EPA have said it would cost the utility hundreds of millions of dollars to install state-of-the-art pollution controls on the plants.

BPU officials disagree with the government's findings, said Joe Dick, a BPU acting information officer.

"We believe we have operated in compliance with the law," Dick said, adding that BPU is evaluating the violations and would have no further comment.

BPU has 10 days to schedule a conference with EPA to discuss the allegations. Fines will be determined during negotiations in coming months, EPA officials said.

Bruce Nilles, director of the Sierra Club's National Coal Campaign in Washington D.C., said this is an opportunity for BPU to invest more in green energy.

"That is a great day for clean air and Kansas City," Nilles said. "This now presents an opportunity for retiring these very old coal plants and investing in clean air energy that doesn't threaten public health like coal does."

Concerns that BPU had violated the Clean Air Act first surfaced last year when The Kansas City Star and another media outlet obtained an internal document showing the utility suspected it had problems dating back at least two decades but chose not to report them to the EPA.

After stories were published about the BPU legal analysis, a judge ruled that EPA investigators could not use the document as evidence in their investigation because of BPU's attorney-client privilege.

The allegations this week are administrative charges, Bryan said. He would neither confirm nor deny whether a criminal investigation was continuing.

But he said that the EPA still has the option to pursue further charges under administrative, civil or criminal enforcement actions.

In a letter this week to BPU board president Loretta Colombel, an EPA official wrote, "EPA will consider its enforcement options under (federal law) in further addressing these matters."

The letter also stated that state and local government can pursue enforcement actions based on the federal government's allegations.

To reach Karen Dillon, call 816-234-4403 or send email to kdillon@kcstar.com.

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