Owners of one of the nation’s largest impoundments of the often-toxic byproducts of burning coal must do more to protect residents from groundwater contamination and stop accepting waste by 2016, under an agreement with Pennsylvania regulators.

The pact focuses on FirstEnergy Corp.’s impoundment, known as Little Blue Run, in southwestern Pennsylvania on the West Virginia border.

Pennsylvania’s complaint and settlement, finalized Friday, came 59 days after environmental groups filed a 60-day notice of intent to sue, alleging that dangerous substances were seeping from the impoundment into the water supply.

The groups filing the notice — the Environmental Integrity Project and Public Justice — praised the state Department of Environmental Protection’s action. But they say the settlement came after the agency for years denied the existence of contamination. Indeed, state officials made such claims when the Center for Public Integrity highlighted problems at the site in 2010.

The agency declined an interview request, but said in a written statement, “We believe this will not only make major strides in environmental projects for that area, but also bring peace of mind to many residents who have expressed concerns about the Little Blue Run impoundment.”

An ad from the conservative Americans for Prosperity distorts the truth about stimulus money for “green jobs” going overseas. The ad, titled “Wasteful Spending,” introduces some new wrinkles to this well-used line of attack.

According to the ad, the stimulus included:

Environmental groups sued the Environmental Protection Agency in federal court Thursday over the EPA’s failure to regulate disposal of toxic coal ash.

“Politics and pressure from corporate lobbyists are delaying much needed health protections from coal ash,” Lisa Evans, a lawyer with Earthjustice, a nonprofit environmental law firm, said in a statement. “As we clean up the smokestacks of power plants, we can’t just shift the pollution from air to water and think the problem is solved. The EPA must set strong, federally enforceable safeguards against this toxic menace.”

Coal ash is the collective term for the solid remnants left over from the burning of coal at more than 500 power plants nationwide. It contains compounds such as arsenic, chromium, lead and mercury, which have been linked to cancer, birth defects, gastrointestinal illnesses and reproductive problems.

A 2009 investigation by the Center for Public Integrity revealed the havoc that coal ash has wreaked near ponds, landfills, and pits where it is dumped. Even the EPA has identified 63 “proven or potential damage cases” in 23 states where coal ash has tainted groundwater or otherwise harmed the environment. But critics say no meaningful federal regulations have been put in place.

The issue gained renewed attention after a dam holding billions of gallons of coal ash collapsed in eastern Tennessee in December 2008, destroying houses and water supplies and dirtying a river. Following the spill, EPA Administrator Lisa Jackson pledged to set federal standards.

A new audit of the Department of Energy’s $34 billion loan guarantee program said the agency doesn’t always follows its own rules in awarding the highly coveted funding, creating risk in an effort already hindered by breakdowns.

The audit by the Government Accountability Office carries fresh relevance amid the bankruptcies of two of the first three firms to land the government’s green energy funding: Solyndra Inc. and Beacon Power Corp.

“What we found was problems in how they followed their process and in some cases deviated from the process without a clear explanation why,” Frank Rusco, the GAO auditor who wrote the report, said in an interview. “This has gotten the program in trouble in the past and certainly raises questions that are hard for them to answer.”

The GAO report, the latest to spotlight vulnerabilities in the way DOE awards public money, details just how selective the loan pool is.

Of 460 applicants, the GAO found, the Energy Department awarded loan guarantees to 7 percent and committed to 2 percent more.  To date, the investigative arm of Congress said, the department has issued $15 billion in guarantees and committed to $15 billion more.

The GAO scrutinized 13 winning applications in detail. Of those, it found, the Energy Department did not follow its written procedures at least once in 11 of the 13 cases.

“DOE did not always follow its own process for reviewing applications and documenting its analysis and decisions, potentially increasing the taxpayer’s exposure to financial risk from an applicant’s default,” the GAO found. “It also has not completely documented its analysis and decisions made during reviews, which may undermine applicants’ and the public’s confidence in the legitimacy of its decisions.”

One year ago on Sunday, an earthquake off the coast of Japan and the resulting tsunami triggered a month-long partial meltdown of the Fukushima Daiichi Nuclear Power Station. In the days leading up to the anniversary of the crisis, advocates and opponents of nuclear power are squaring off in a fight over the lessons U.S. regulators should learn from the disaster.

But both sides are making policy recommendations without a full accounting of the facts. The most definitive, independent study of the disaster isn’t due to be released for months.

In one corner, and at one press conference this week, advocates at the industry-funded Nuclear Energy Institute were eager to highlight the “diverse and flexible” response operators of America’s 104 reactors are taking to improve their disaster preparedness. NEI is touting the $100 million the industry is investing in some 300 additional emergency pumps, generators, and batteries that it says could be used to keep the pools that spent fuel rods are kept in from overheating like they did in Japan.

An initiative approving the investments was unanimously approved by the U.S. industry’s chief nuclear officers last month. The FLEX strategy, as NEI calls it, commits American companies operating nuclear energy facilities to buy or enter into contract for additional plant-specific emergency equipment to be kept in and around the fuel containment structures by the end of March.

President Obama’s Department of Energy financed a fleet of green energy companies that later fell into bankruptcy — but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

Ener1 subsidiary EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the “100 Recovery Act Projects That Are Changing America.”

Two months after Biden’s visit, corporate parent Ener1 paid $725,000 in bonuses to three executives — including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.

At least two other firms that benefited from Energy Department funding — one a $500,000 grant, the other a $535 million loan guarantee — handed out hefty payouts to executives and later went bankrupt.

The Department of Energy, asked about the payments examined by the Center and ABC, said it is troubled by the practice and intends to convey that message to loan recipients.