CenterPoint Energy 2015 Annual Report Download - page 19

Air Emissions
Our operations are subject to the federal Clean Air Act and comparable state laws and regulations. These laws and regulations regulate emissions of air
pollutantsfromvariousindustrialsources,includingprocessingplantsandcompressorstations,andalsoimposevariousmonitoringandreportingrequirements.
Suchlawsandregulationsmayrequirepre-approvalfortheconstructionormodificationofcertainprojectsorfacilitiesexpectedtoproduceairemissionsorresult
in the increase of existing air emissions. We may be required to obtain and strictly comply with air permits containing various emissions and operational
limitations, or utilize specific emission control technologies to limit emissions. Failure to comply with these requirements could result in monetary penalties,
injunctions,conditionsorrestrictionsonoperations,andpotentiallycriminalenforcementactions.Wemayberequiredtoincurcertaincapitalexpendituresinthe
futureforairpollutioncontrolequipmentinconnectionwithobtainingandmaintainingoperatingpermitsandapprovalsforairemissions.
TheEPAhas establishednewairemission controlrequirements fornaturalgasandnaturalgasliquidsproduction, processingand transportationactivities.
UndertheNESHAPS,theEPAestablishedmaximumachievablecontroltechnologyforstationaryinternalcombustionengines(sometimesreferredtoastheRICE
MACTrule).CompressorsandbackupelectricalgeneratorsusedbyourNaturalGasDistributionsegment,andbackupelectricalgeneratorsusedbyourElectric
Transmission&Distributionsegment,aresubstantiallycompliantwiththeselawsandregulations.
Water Discharges
OuroperationsaresubjecttotheFederalWaterPollutionControlActof1972,asamended,alsoknownastheCleanWaterAct,andanalogousstatelawsand
regulations.TheselawsandregulationsimposedetailedrequirementsandstrictcontrolsregardingthedischargeofpollutantsintowatersoftheUnitedStates.The
unpermitteddischargeofpollutants,includingdischargesresultingfromaspillorleakincident,isprohibited.TheCleanWaterActandregulationsimplemented
thereunderalsoprohibitdischargesofdredged and fill material in wetlands and other watersoftheUnited States unless authorized by an appropriately issued
permit.Anyunpermittedreleaseofpetroleumorotherpollutantsfromourpipelinesorfacilitiescouldresultinfinesorpenaltiesaswellassignificantremedial
obligations.
Hazardous Waste
Our operations generate wastes, including some hazardous wastes, that are subject to the federal Resource Conservation and Recovery Act (RCRA), and
comparable state laws, which impose detailed requirements for the handling, storage, treatment, transport and disposal of hazardous and solid waste. RCRA
currentlyexemptsmanynaturalgasgatheringandfieldprocessingwastesfromclassificationashazardouswaste.Specifically,RCRAexcludesfromthedefinition
ofhazardouswastewatersproducedandotherwastesassociatedwiththeexploration,developmentorproductionofcrudeoilandnaturalgas.However,theseoil
and gas exploration and production wastes are still regulated under state law and the less stringent non-hazardous waste requirements of RCRA. Moreover,
ordinary industrial wastes such as paint wastes, waste solvents, laboratory wastes and waste compressor oils may be regulated as hazardous waste. The
transportationofnaturalgasinpipelinesmayalsogeneratesomehazardouswastesthatwouldbesubjecttoRCRAorcomparablestatelawrequirements.
Liability for Remediation
TheComprehensiveEnvironmentalResponse,CompensationandLiabilityActof1980,asamended(CERCLA),alsoknownas“Superfund,”andcomparable
statelaws imposeliability,without regard tofault orthelegality oftheoriginal conduct,oncertain classes ofpersons responsible forthe release ofhazardous
substancesintotheenvironment.Suchclassesofpersonsincludethecurrentandpastownersoroperatorsofsiteswhereahazardoussubstancewasreleasedand
companiesthatdisposedorarrangedforthedisposalofhazardoussubstancesatoffsitelocationssuchaslandfills.Althoughpetroleum,aswellasnaturalgas,is
excludedfromCERCLA’sdefinitionofa“hazardoussubstance,”inthecourseofourordinaryoperationswegeneratewastesthatmayfallwithinthedefinitionof
a“hazardoussubstance.”CERCLAauthorizestheEPAand,insomecases,thirdpartiestotakeactioninresponsetothreatstothepublichealthortheenvironment
andtoseektorecoverfromtheresponsibleclassesofpersonsthecoststheyincur.UnderCERCLA,wecouldbesubjecttojointandseveralliabilityforthecosts
ofcleaningupandrestoringsiteswherehazardoussubstanceshavebeenreleased,fordamagestonaturalresources,andforthecostsofcertainhealthstudies.
Liability for Preexisting Conditions
Manufactured Gas Plant Sites. CERCanditspredecessorsoperatedmanufacturedgasplants(MGPs)inthepast.WithrespecttocertainMinnesotaMGPsites,
CERChascompleted state-orderedremediationand continuesstate-ordered monitoringandwatertreatment.AsofDecember31,2015, CERChada recorded
liabilityof$7millionforcontinuedmonitoringandanyfutureremediationrequiredbyregulatorsinMinnesota.Theestimatedrangeofpossibleremediationcosts
forthesitesforwhichCERC
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