Insurers are increasingly facing claims by utility companies for the clean-up of coal ash, which for decades has been disposed of in unlined ponds and landfills.
Following a large coal ash spill at the Tennessee Valley Authority in 2008, the EPA began to assess coal ash impoundments and established regulations in 2015 for the disposal of coal combustion residuals (CCRs or coal ash). These regulations continue to be litigated. Certain states have also enacted their own regulations, which are generally stricter than the EPA’s.
On May 29, the Illinois legislature passed the Coal Ash Cleanup and Storage Act. The act is expected to be signed by the Governor. Illinois becomes the third state, after North Carolina and Virginia to address coal ash through state legislation.
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