Cleveland-Cliffs Steel To Pay $100M for Dearborn Emissions

Cleveland-Cliffs Dearborn Works

The US Environmental Protection Agency and the US Department of Justice announced a modification this afternoon to a 2015 consent decree between the United States and state of Michigan with the Cleveland-Cliffs Steel Corporation (NYSE: CLF formerly AK Steel) to resolve Clean Air Act violations at the company’s Dearborn, Michigan, steel manufacturing plant. The company is the largest supplier of flat rolled steel in North America and the largest supplier of automotive-grade steel in the US. Cleveland Cliffs also announced a price increase today. Cliffs’ minimum base price for hot rolled steel is now $800 per net ton.

“Today’s announcement shows that EPA and the Department of Justice are committed to achieving cleaner air for communities across the country,” said Assistant Administrator David M. Uhlmann for EPA’s Office of Enforcement and Compliance Assurance. “The changes that Cleveland-Cliffs will make at its Dearborn facility will reduce harmful air pollution and improve air quality for local residents.”

The modification today requires replacement of the plant’s electrostatic precipitator (ESP) that removes particulate matter from exhaust gases that stem from the plant’s operations and thereby controls visible emissions. It also requires routine testing of the new ESP to assure compliance with applicable emission limits, certain operational parameters and regular monitoring for visible emissions.

The company will also pay a civil penalty of $81,380 to the State of Michigan for violating the state permit’s opacity, lead and manganese limits. Cleveland-Cliffs will also implement a “state-law supplemental environmental project” where nearby residents will receive home air purifiers, at an estimated cost of $244,000. The facility is located in an area with environmental justice concerns, according to data from EPA’s EJSCREEN tool.

“The agreement will ensure that Cleveland-Cliffs’ steel manufacturing plant in Dearborn operates in compliance with federal and state air pollution requirements,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This modification will result in better air quality for Dearborn residents around the plant, who have been disproportionately burdened by pollution.