After winning exemptions from environmental law for decades, the settlement will force Lake Michigan Carferry Service to eliminate the SS Badger’s discharge within two years, granting it a reprieve from last year’s already settled deadline.

The terms of the proposed consent degree lodged by the EPA require LMC to reduce its discharge of coal ash in 2013-14 and pay a $25,000 civil penalty for violating mercury water quality standards last year. All discharge must stop by the end of next year’s sailing season.

The Badger was authorized to discharge under EPA's 2008 National Pollutant Discharge Elimination System Vessel General Permit issued in December 2008. This permit covers discharges from many vessels into waters of the United States and contains specific provisions for discharges from large ferries. One of these provisions authorized the discharge of coal-ash slurry from coal-fired propulsion systems until December 19 last year.

LMC applied for an individual permit last year to allow the Badger, which celebrates its 60th anniversary this year, to continue discharging coal ash into Lake Michigan.

In light of the settlement announced today, EPA said it did not plan to make a decision on that permit application.

"This consent decree offers the fastest and most certain path available to EPA to stop the discharge of coal ash from the Badger into Lake Michigan," said EPA Region 5 administrator Susan Hedman.

"The enforcement agreement reduces the discharge of coal ash more quickly and with greater oversight than would occur during the appeal of a decision to issue or deny a permit — a process that often takes several years."

President and CEO of Lake Michigan Carferry Bob Manglitz said he was pleased with the result of years of negotiations.

"The resolution of this issue has taken far longer than we had hoped, but the end result has been worth the effort. This agreement will save the jobs of our 200 plus employees as well as many other jobs in the states of Michigan and Wisconsin,” Manglitz said.

“We appreciate the support we have received from our elected representatives in Michigan and Wisconsin and the encouragement of the thousands of people who have supported our efforts to keep the Badger sailing.”

Supporters promote the car ferry as a nostalgic vacation shortcut and an important part of the tourist economy in its port cities of Manitowoc, Wisconsin and Ludington, Michigan.

The Consent Decree was to be lodged in federal court in Grand Rapids by the Department of Justice.

The process includes a 30-day written public comment period prior to final approval by the court.