A U.S. attorney argued Monday that DTE Energy subsidiaries are “active operators” directly involved in environmental decisions at the EES Coke Battery on Zug Island, not “distant, hands-off investors.” The statement came during the first day of a federal trial concerning the facility’s sulfur dioxide emissions.
The trial, part of an Environmental Protection Agency lawsuit against EES Coke Battery and DTE, featured expert testimony from Dan Leistra-Jones, a principal at the consulting firm Industrial Economics. He testified that DTE has an “unprecedented” degree of control over its subsidiary’s operations and environmental decision-making.
Leistra-Jones stated that the defendants gained a substantial economic benefit of at least $70 to $94 million during the facility’s period of noncompliance with the Clean Air Act. His analysis was based on hundreds of documents, including inter-company agreements, emails, and financial statements. He noted that DTE manages the subsidiary’s daily operations, environmental permits, safety compliance, and all its finances—a highly unusual arrangement. According to his testimony, DTE employees were directly responsible for a 2014 permit revision that is central to the EPA’s lawsuit.
This testimony follows a ruling last month by U.S. District Judge Gershwin Drain, who determined that DTE legally qualifies as an operator of the EES Coke Battery under the Clean Air Act, rejecting the utility’s attempt to dismiss its liability.
With DTE’s operational role established, the trial will now focus on potential remedies. In an opening statement, Sierra Club attorney Mary Rock suggested options including pollution controls like desulfurization and community mitigation projects such as home air purifiers, EV infrastructure, and solar panels.
The government is seeking injunctive relief and penalties of up to $109,024 per day for each violation. It also asserts that EES Coke Battery should cease operations until it is in full compliance with environmental regulations. Later this week, Harvard epidemiologist Joel Schwartz is scheduled to testify on his public health risk assessment of the Zug Island facility.
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