Ameren Saga Draws to a Close
On November 6, 2024, Ameren Missouri and the U.S. Department of Justice (DOJ) entered a joint stipulated order to resolve the Eighth Circuit Court of Appeals remand of the remedy decision. The joint stipulation states that balances "what is necessary, what is fair, and what is workable" and would require Ameren Missouri to implement two "mitigation" projects to offset excess emissions from the Rush Island plant: (1) Undertake a "Residential HEPA Purifier Program" and (2) an "Electric School Bus Transition Program" for the St. Louis metropolitan and surrounding areas. If there is insufficient uptake of these two projects, then Ameren Missouri is required to offer funds for weatherization and energy efficiency upgrades. The proposed Stipulated Order will be noticed in the Federal Register for 30 days public notice. If the United States does not receive comment that causes a change, Ameren Missouri and Sierra Club both consent to its entry.
Residential HEPA Purifier Program
The residential HEPA purifier aspects of the proposed Stipulated Order would require Ameren Missouri to offer $200 vouchers to at least 125,000 residential account holders for the purchase of a stand-alone High Efficiency Particulate Air (HEPA) purifier devices sourced by a qualified vendor. Ameren Missouri is to prioritize low-income and/or disadvantaged customers and notify them by mail, email or bill insert with a QR code or link to a website where they can obtain the vouchers to obtain a "free" HEPA filter. An initial 25,000 offers will be made in median-level income areas "to identify and address any distribution or other implementation issues". The remaining offers will then be made within service territory zip codes in order of census tract, starting with the lowest median income and moving to the highest median income until at least 125,000 offers are tendered. Ameren Missouri is responsible for taxes and shipping. There are provisions for multiple notices, particularly for lower income areas, and the filters must have a "clean air delivery rate" of 195, which would cover a 300 square foot room. If all vouchers were taken up, this program would cost Ameren Missouri $25 million before taxes and shipping.
Electric Buses and Charging Infrastructure Program
The electric bus and charging infrastructure program requires Ameren Missouri to put $36 million into escrow with the goal of encouraging school districts to put 80 zero-emissions, all-electric buses in service to replace class 4-8 school buses with a gross vehicle rating greater than 14,001 pounds. In addition, Ameren Missouri is required to include at least one charging station (with no fewer than two charging points) per bus. The charging station must have a vendor warranty of at least 24 months. Replaced buses must be decommissioned, which requires 2010 and earlier buses to be scrapped, while newer buses may be scrapped, sold or donated. Program expenses are limited to 10% and Ameren must make its offer available by August 1, 2025, and must be completed by December 31, 2026.
Weatherization and Energy Efficiency Backstop
If there are fewer than 75,000 vouchers issued for the HEPA filters, then Ameren Missouri must place $5 million into the weatherization and energy efficiency backstop. In addition, if Ameren Missouri does not expend the full $36 million for the electric buses and charging, the balance is transferred to the backstop. This backstop will provide funding for flor, wall, and attic insulation, sealing of windows and doors, duct scaling, and passive solar retrofits. Prioritization is granted to school districts and service areas with low-income and disadvantaged communities. It is anticipated that this program would be completed with third party assistance. Program expenses are limited to 10% of the funds. This program continues until all funds are expended.
Other Provisions
The proposed Stipulated Order provides for reporting of progress. Unusually, it does not provide for any stipulated penalties should Ameren Missouri not meet the performance deadlines.
COMMENTARY
The proposed Stipulated Order obligates Ameren Missouri to undertake community mitigation efforts valued in the range of $41 million (bus project plus $5 million from HEPA project if no takers) to a high of $61 million if the HEPA project is fully subscribed. The cost is substantially less than the district court's initial proposed mitigation--addition of dry low NOx scrubbing at the Labadie power plant, estimated at $165 million. With the planned closure of the Rush Island plant in lieu of implementing the mitigation order and the avoidance of the additional $100 million at Labadie, it appears that Ameren Missouri has avoided much of the upfront costs initially imposed by the court.
If you are interested in learning more about the Ameren Missouri saga, please check out the earlier NSR Law Bog entries:
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