Federal regulators are raising new concerns about the environmental impacts of a proposed natural gas plant in Superior they say could cause billions of dollars in damages.
The Environmental Protection Agency says a preliminary review of the Nemadji Trail Energy Center fails to account for the project’s full climate impact and that the utilities seeking to build the plant should be required to reduce greenhouse gas emissions as a condition for receiving federal funding.
Doing so would show “leadership in line with the federal policy priority to reduce climate risks and could also reduce regulatory risks for ratepayers,” the agency said.
La Crosse-based Dairyland Power Cooperative and two Minnesota utilities are seeking a loan from the U.S. Department of Agriculture’s Rural Utilities Service to finance the $700 million plant, which they say will help them transition away from coal-fired power.
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A draft environmental review released earlier this year estimates the 625-megawatt plant would produce the equivalent of more than 2.7 million tons of carbon dioxide each year but would actually reduce net carbon emissions by displacing electricity from coal-fired power plants.
The EPA says the review fails to quantify all the plant’s greenhouse gas emissions or quantify the potential costs to society, which the agency estimates could be more than $2 billion, nor does it consider the plant’s disproportionate impact on Native American tribes.
The review doesn’t account for methane — a far more potent greenhouse gas than carbon dioxide — leaked during the production, processing and transportation of gas before it reaches the plant, which the EPA says makes it unclear whether the project would actually result in lower emissions.
The agency also says net emissions projections should account for the increasing reliance on wind, solar and other carbon-free energy sources — not just the “business as usual” model.
Echoing the concerns of environmental advocates, the EPA cautions that failure to fully consider alternatives — such as wind and solar — or the cost of future carbon mitigation measures could expose ratepayers to unnecessary financial risk.
“Investing in long-lived combustion turbines due to inaccurate expectations about the costs of alternatives may lead to higher overall costs,” the agency wrote. “Moreover, long-lived fossil assets may become uneconomic faster than expected if alternatives and mitigation are not fully considered.”
Dairyland spokesperson Katie Thomson said the utility “has fully complied with state and federal approval and permitting requirements and extensive environmental reviews.”
Thomson said Dairyland is evaluating technologies that could allow “fuel flexibility” but contended the plant will provide flexible on-demand generation to complement intermittent sources like wind and solar.
A second look
Initially proposed in 2017, the plant has been the subject of court challenges in both Minnesota and Wisconsin.
Earlier this year Dane County Circuit Judge Jacob Frost rejected arguments that the Public Service Commission failed to consider the full environmental impact when it issued a permit for the plant. That ruling is now under appeal.
Last year the Minnesota Supreme Court ruled that state utility regulators do not have the authority to consider the environmental impact of a plant built in another state, though the plant faces ongoing regulatory scrutiny as part of Minnesota Power’s long-term resource plan.
The Biden administration has the power ⚡️ to reject a federal loan to build a new fossil fuel power plant.
— @MCEA1974 (@MCEA1974) July 28, 2022
Retweet to tell @SecVilsack: reject NTEC.
@POTUS @ginamccarthy46
💰 Bad for ratepayers
⚕️Public health
🌎 and the climate. pic.twitter.com/C3cJJSxejm
After initially concluding the plant would have no substantial environmental impact, the USDA agreed to conduct an additional review in response to comments from environmental groups including the Minnesota Center for Environmental Advocacy, the Sierra Club and Clean Wisconsin, who say it’s incompatible with accepted climate science and the Biden administration’s stated positions on fossil fuels.
The Intergovernmental Panel on Climate Change has said investments in fossil fuel infrastructure are incompatible with pathways to head off the most disastrous impacts of climate change.
The environmental groups say momentum against the plant is “strong and growing” and have launched a social media campaign calling on USDA Secretary Tom Vilsack to deny federal funding.
“In a climate crisis, the last thing we should do is add more pollution by building new fossil fuel power plants,” said Evan Mulholland, director of the Minnesota Center for Environmental Advocacy’s healthy communities program. “The EPA’s comments show that the current plan for the Nemadji Trail Energy Center is reckless.”
Art of the Everyday: A recap of July in photos from Wisconsin State Journal photographers

Marlene Miller, a ceramic sculpture artist from Washington, Illinois, left, works on her clay sculpture design of “Jonah and the Whale” with the help of Mark Skudlarek, with Cambridge Wood-Fired Pottery, at right, in preparation for the Midwest Fire Fest at Westside Park in Cambridge, Wis., Friday, July 8, 2022. The sculpture, which will be a permanent art piece in Cambridge, will be fired in a temporary kiln at the park and revealed during the fest at 9 p.m. on July 23. AMBER ARNOLD, STATE JOURNAL

Samantha Gadzinski holds her 4-month-old Arlo, as she picks raspberries with her children Rosie, front, and Ezra, back, at the family's home in Madison, Wis., Wednesday, July 13, 2022. KAYLA WOLF, STATE JOURNAL

Angela Burgette, of Madison, with her son, Thor, 12, at right, learns Bollywood-style dancing from Manisha Bhargava with BollyBeat during a Lakeside Kids event on the rooftop of Monona Terrace in Madison, Wis., Tuesday, July 19, 2022. AMBER ARNOLD, STATE JOURNAL

Tom Jones, Professor of Photography at UW-Madison and a member of the Ho-Chunk Nation, displays a photograph of his cousin from his series called “Strong Unrelenting Spirits,” at his home, a former church, in Prairie du Sac, Wis., Tuesday, July 5, 2022. Another photo from that series by Jones is hanging in the National Portrait Gallery in Washington, DC. AMBER ARNOLD, STATE JOURNAL

(From left top) Nikki Sotka, a middle and high school science teacher in Marinette, Dean Petersen, a plumbing apprentice instructor at Madison Area Technical College and Wendy Stelzer, with KEEP, Wisconsin K-12 Energy Education Program in Stevens Point, look on as instructor Cris Folk, front, solar consultant and retired MATC teacher, holds up a plan to install pole mounted solar panels during MATC’s STEM Educator Solar Institute at the Commercial Avenue campus in Madison, Wis., Wednesday, July 13, 2022. AMBER ARNOLD, STATE JOURNAL

Carter Aguilera, of Cottage Grove, participates in the Keg Toss Throwdown during the Monona Community Festival at Winnequah Park in Monona, Wis., Monday, July 4, 2022. Aguilera won the competition last year during the festival. AMBER ARNOLD, STATE JOURNAL

Alejandro Escalante, left, and his younger brother Leonardo test the water temperature of the fountain on Library Mall under the close watch of their parents, not pictured, on the UW-Madison campus in Madison, Wis., Friday, July 22, 2022. KAYLA WOLF, STATE JOURNAL

Amelia Holland, 7, right, and her brother, Elliott, 5, of Cottage Grove, compete in a water challenge with help from the Monona Fire Department during the Monona Community Festival at Winnequah Park in Monona, Wis., Monday, July 4, 2022. AMBER ARNOLD, STATE JOURNAL

(From left) Carter and Mason Sampson, 5-year-old twins, ride their matching trikes to the store with their mom, Ana, on the North Side in Madison, Wis., Thursday, July 21, 2022. AMBER ARNOLD, STATE JOURNAL

Nyelle Williams paints flowers onto the outside of the "Old Woman in a Shoe" slide at Vilas Park in Madison, Wis., Tuesday, July 12, 2022. The annual painting of the shoe is a Madison School and Community Recreation tradition. KAYLA WOLF, STATE JOURNAL

Rachel Castillon, right, sprays water through a window under guidance from Madison Fire Department firefighter/EMT Cameron Gasaway during a fire attack rotation at CampHERO held at Madison Area Technical College in Madison, Wis., Tuesday, July 26, 2022. KAYLA WOLF, STATE JOURNAL

Capitol tour guide Daina Zemliauskas shuts the Assembly Chamber doors after leading a tour group through the Wisconsin State Capitol in Madison, Wis., Tuesday, July 19, 2022. KAYLA WOLF, STATE JOURNAL

Goodman Waves’ Yaretzy Cuamani competes in the All-City Dive Meet 11-12 girls at Goodman Pool in Madison, Wis., Monday, July 25, 2022. AMBER ARNOLD, STATE JOURNAL

(From left) Monona’s Ashlynn Campbell, Kennadie Rossing, Talia Riemen and Mikayla McQueenie huddle up before competing in the All-City Dive Meet 11-12 girls at Goodman Pool in Madison, Wis., Monday, July 25, 2022. AMBER ARNOLD, STATE JOURNAL

Members of the Tosa Crew soccer team, of Wauwatosa, from left, Owen Schmidt, Owen Plier, London DeCarlo and Wes Adams do the "Lambeau Leap" prior to the friendly featuring FC Bayern Munich and Manchester City at Lambeau Field in Green Bay, Wis., Saturday, July 23, 2022. KAYLA WOLF, STATE JOURNAL

FC Bayern Munich's Serge Gnabry, left, and Manchester City's Joshua Wilson-Esbrand go after the ball during a friendly at Lambeau Field in Green Bay, Wis., Saturday, July 23, 2022. KAYLA WOLF, STATE JOURNAL

Otis Van de Camp cheers while sitting on the shoulders of his dad Tim Van de Camp during the second half of a friendly featuring FC Bayern Munich and Manchester City at Lambeau Field in Green Bay, Wis., Saturday, July 23, 2022. KAYLA WOLF, STATE JOURNAL

Parkcrest coaches Maddie Gerhardt, left, and Sophie Bell cheer on swimmer Eddy Reaser, not pictured, in the 100-meter freestyle during the first day of swimming at the All-City Swim Meet at Ridgewood Pool in Madison, Wis., Thursday, July 28, 2022. This year marks the 60th anniversary of the All-City Swim Meet, which has grown from a half-day event with fewer than 150 swimmers, to a three-day meet with more than 2,000 competitors. KAYLA WOLF, STATE JOURNAL

Kayakers float down Badfish Creek near Leedle Mill Road in Stoughton, Wis., Wednesday, July 20, 2022. Clark Conway, not pictured, the owner of Drift Away Paddle Company, helped launch the kayakers at Badfish Creek State Wildlife Area where they started their three-hour trip. This is Conway's seventh season offering rentals and shuttle services for trips down the lower Yahara River and Badfish Creek. "Business really got crazy after the pandemic," Conway said. KAYLA WOLF, STATE JOURNAL

Two-time World Youth chess champion Awonder Liang, 19, in Madison, Wis. Saturday, July 2, 2022. JOHN HART, STATE JOURNAL

Members of the Forward Marching Band, including Junko Yamaguchi, right, perform for visitors to the 2022 Festival Foods Lights the Isthmus event at Breese Stevens Field in Madison, Wis. Saturday, July 2, 2022. JOHN HART, STATE JOURNAL

Visitors to the 2022 Festival Foods Lights the Isthmus event at watch a fireworks display to cap the event at Breese Stevens Field n Madison, Wis. Saturday, July 2, 2022. JOHN HART, STATE JOURNAL

High school and middle school students enrolled in a rowing class offered through the Mendota Rowing Club carry a four person craft toward Lake Mendota during a first day of the week-long training program in Madison, Wis. Monday, July 11, 2022. The classes, which continue through the summer, offer participants the opportunity to learn the basics of rowing, teamwork and physical fitness via dry land exercises and on-the-water training. JOHN HART, STATE JOURNAL

Enjoying sunny skies and warm temperatures, a family of cousins from three different states share a group paddle board outing on the waters of Monona Bay near Brittingham Park in Madison, Wis. Monday, July 18, 2022. Pictured from left are Caroline Klessig of Madison, Gabe Zinser of Littleton, Colo., Ryan Cray of Madison, Grace Zinser of Littleton, Colo., Virginia Pendleton of St. Paul, Minn. and Scott Labot of St. Paul, Minn. JOHN HART, STATE JOURNAL

Mark Henneger, left, and Casey Healy compete in a friendly game of horseshoes during a gathering with a close group of classmates from the 1975 Madison East graduating class at Yahara Place Park in Madison, Wis. Wednesday, July 20, 2022. The group of men typically meet several times a week for a variety of activities, including bocce ball, pickleball, golf, and card playing. JOHN HART, STATE JOURNAL

Members of IBEW Local 159, including John Zwettler, foreground, and Mikek Stassi, behind, work to inspect, repair and prepare light displays for this year’s Holiday Fantasy in Lights event at the union headquarters in McFarland, Wis. Thursday, July 28, 2022. From April to November each year, a group of mostly-retired union members volunteer their time once or twice a week to check lights, weld broken components and create new features for the popular drive-through seasonal display at Olin Park. JOHN HART, STATE JOURNAL

Lena Nyhus, 10, prepares to show her shorthorn beef steer as the 2022 Dane County Fair opens at the Alliant Energy Center in Madison, Wis. Thursday, July 21, 2022. JOHN HART, STATE JOURNAL

Madisyn Tritz-Reefe of the Stoughton Trailblazers 4H club tends her poultry entries during the opening day of the 2022 Dane County Fair in Madison, Wis. Thursday, July 21, 2022. JOHN HART, STATE JOURNAL

Janiyah Denton, 9, dances during the Think Like A DJ: Varsity Program at the Theresa Terrace Neighborhood Center in Madison, Wis., Wednesday, July 27, 2022. Denton won a t-shirt in the dance competition portion of the event. KAYLA WOLF, STATE JOURNAL