A coal-fired power plant operated by UW-Madison has allowed pollution to run into storm sewers that drain into one of the city's prized lakes, state regulators say.

The Department of Natural Resources warned in a May 8 letter that the plant is violating the Clean Water Act by allowing coal dust into storm sewers that discharge in Monona Bay, a popular fishing and recreation spot.

Tests on the coal-tainted water revealed high levels of arsenic and other carcinogens, environmentalists say.

The DNR letter warns the university to stop the violations or face forfeitures of up to $10,000 per day.

The letter came just days after the Sierra Club sued the university for allegedly violating the Clean Air Act by failing to install modern pollution controls when making upgrades to the plant, which was built in 1954.

Environmentalists are trying to get the university to shut down the Charter Street plant, located in the heart of campus and one of the biggest local sources of pollution. They seized on the latest DNR warning.

"The real problem is that there is way too much coal being pumped through Charter Street," said Brent Denzin, an attorney with Midwest Environmental Advocates Inc., which helped uncover the problem. "They need to find another way to get energy."

The DNR's letter came after its employees saw coal dust escape from the plant's coal pile and into snow and ice in the nearby sidewalk and street in February. Despite a warning that the coal could end up in Monona Bay when the snow melted, the university took five days to begin the cleanup and coal was again witnessed on the sidewalk less than a week later.

The DNR also warned university officials and the Department of Administration about the problem last August.

"Because of the repetitive nature of these apparent violations, the DNR believes that the UW and the DOA have not taken appropriate action since the Aug. 14, 2006 letter to resolve ongoing problems with the management and containment of the coal pile at the plant," DNR official Tim Coughlin wrote.

His letter said the DNR believes the plant is violating three state laws that govern water discharges under the federal Clean Water Act.

The plant, located blocks from Camp Randall Stadium, creates steam that is used to heat and cool university buildings and is one of three that helps power the campus. Four of its five boilers are fueled by coal.

University spokesman Dennis Chaptman said he had not seen the letter and had no immediate comment.

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