EPA slaps $3.1M fine on AES Puerto Rico, requires more monitoring

AES produces about 25% of Puerto Rico’s power via its coal-fired power plant in Guayama.
The U.S. Environmental Protection Agency (EPA) has reached a settlement with Applied Energy Systems Puerto Rico LP (AES), requiring the company to pay a $3.1 million penalty and operate emissions monitors for violations of the Clean Air Act (CAA) at its Guayama facility.
The settlement addresses AES’ failure to properly monitor and report emissions of mercury, particulate matter and hydrochloric acid. As part of the settlement, AES will operate two newly installed mercury process monitors.
Additionally, the company will post its Mercury and Air Toxics Standards (MATS) compliance reports and site-specific monitoring plans on its public website to increase transparency and benefit local communities.
Fossil fuel-fired combustion units of more than 25 megawatts that produce electricity for sale must adhere to the MATS, which set specific emission and operational limits.
“This settlement underscores EPA’s commitment to hold companies accountable when they violate the Clean Air Act, and potentially put a community’s health at risk,” said EPA Regional Administrator Lisa F. García.
“Toxic air pollution from power plants can make people sick and EPA is taking action to hold coal-fired power plants accountable. This settlement is specific to the Clean Air Act, but EPA is continuing to assess this facility for compliance with other environmental laws,” she added.
AES produces about 25% of Puerto Rico’s power through its coal-fired power plant in Guayama. The plant’s contract with the Puerto Rican government mandates its closure by December 2027.
The EPA’s investigation revealed several alleged MATS violations by AES, including improper operation of a mercury monitoring system. The company also failed to meet the mercury emission limits during two periods: March 17-21, 2022, and April 5-12, 2022.
The EPA said AES did not comply with calibration, installation, maintenance and reporting requirements under the MATS and its air permits. In July 2022, the agency issued a notice of violation for breaches of Puerto Rico’s atmospheric pollution regulations and the MATS.
Power plants are significant sources of mercury and other toxic pollutants such as arsenic, chromium, cobalt, nickel, lead, hydrogen chloride, beryllium and cadmium, the EPA said.
“Exposure to these hazardous air pollutants, at certain levels and durations, is associated with a variety of adverse health effects, which may include irritation of the lungs and skin, detrimental effects on the central nervous system, damage to the kidneys, and cancer,” the EPA noted.