The U.S. District Court for the Eastern District of Michigan has directed DTE Energy Co. and three of its subsidiaries to abide by the Clean Air Act and to pay a $100 million penalty for violations at the EES Coke Battery facility situated on Zug Island between River Rouge and Detroit.
The facility, which produces metallurgical coke used in the steel-making process, is located in a region that does not meet the federal sulfur dioxide (SO2) air quality standards.
The court determined that modifications to the state air permit of the facility in 2014 had resulted in a substantial rise in SO2 emissions. For instance, the plant released more than 3,200 tons of SO2 in 2018, which is higher than the allowable annual baseline levels of less than 2,100 tons per year.
The court decided that DTE Energy Company, DTE Energy Resources LLC, and DTE Energy Services Inc. are liable as operators of the facility, stating their high degree of control over environmental decision-making and operations. EES Coke Battery LLC had been held liable as the owner and operator in the past.
The court fined the defendants a civil penalty of $100 million, observing that the defendants would save about $70 million that they would not pay the civil penalty of the Clean Air Act and use it in other places.
However, the defendants were also determined to have a great capacity to pay the penalty and financing relief measures.
DTE Energy said in a statement, “We are extremely disappointed in the court’s ruling and its negative implications on the domestic supply of coke to the U.S. steel industry. We have been anticipating this order and are eager to make our appeal to the 6th Circuit Court. We remain committed to compliance and have been operating within the limits of the valid original state permit – both today and during the time period in question.”
Therefore, the Zug Island is a private industrial site where the River Rouge and Detroit River meet. The island has belonged to the city of River Rouge since 1922.
Principal Deputy Assistant Attorney General Adam Gustafson of ENRD added, “This decision demonstrates that the Department of Justice will seek relief against companies that fail to comply with the nation’s environmental laws. This ensures a level playing field for all businesses and advances the Administration’s initiative to Make America Healthy Again.”
The court further determined that the emissions of the facility had led to health effects such as asthma attacks, heart attacks, strokes, increased blood pressure, cancer, Alzheimer’s disease, and premature death in the immediate communities.
Other terms of the relief include the defendants establishing a Community Quality Action Committee through which they will spend $20 million to monitor community air quality improvements, such as the awarding of HEPA air purifiers and installation of air filtration systems in schools.
Thus, the government, Sierra Club, and the City of River Rouge are to submit a joint proposed judgment by February 20, 2026.
