DETROIT – The U.S. District Court for the Eastern District of Michigan has ordered DTE Energy Co. and three of its subsidiaries to comply with the Clean Air Act and pay a $100 million penalty for violations at the EES Coke Battery facility located on Zug Island between River Rouge and Detroit.
The facility, which produces metallurgical coke used in steelmaking, is situated in an area that fails to meet federal sulfur dioxide (SO2) air quality standards. The court found that changes made to the facility’s state air permit in 2014 led to a significant increase in SO2 pollution. For instance, the facility emitted over 3,200 tons of SO2 in 2018, exceeding permitted baseline levels of under 2,100 tons annually.
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The court ruled that DTE Energy Company, DTE Energy Resources LLC, and DTE Energy Services Inc. are liable as operators of the facility, citing their high degree of control over environmental decision-making and operations. EES Coke Battery LLC was previously found liable as owner and operator.
The court imposed a $100 million civil penalty, noting that the defendants saved approximately $70 million by failing to comply with the Clean Air Act and used those funds elsewhere. The defendants were also found to have substantial ability to pay the penalty and fund relief measures.
“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," DTE Energy said in a statement.
Zug Island is a private industrial site where the River Rouge and Detroit River meet. The island has been part of the city of River Rouge since 1922.
Principal Deputy Assistant Attorney General Adam Gustafson of ENRD said, “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 also found that emissions from the facility caused health impacts including asthma attacks, heart attacks, strokes, increased blood pressure, and increased risks of cancer, asthma, Alzheimer’s disease, and premature deaths in nearby communities.
As part of the relief, the defendants must form a Community Quality Action Committee funded with $20 million to oversee community air quality improvement projects, including distributing HEPA air purifiers and installing air filtration systems in schools.
The government, Sierra Club, and the City of River Rouge are to submit a joint proposed judgment by February 20, 2026.