News Releases from Region 09
EPA and DOJ announce settlement with Tesoro for Clean Air Act violations at Martinez Refinery
Part of $425 million settlement covering six refineries
SAN FRANCISCO – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice today announced a settlement with Tesoro Refining and Marketing Co. (Tesoro) for alleged Clean Air Act violations at its Martinez Refinery, in Martinez, California, as part of a larger $425 million settlement covering six refineries.
Tesoro will spend an estimated $24 million to install and operate pollution control equipment at the Martinez Refinery and $1 million to fund the replacement of old diesel school buses in Contra Costa County with at least four new compressed natural gas school buses. Replacing the school buses will help decrease emissions of nitrogen oxides, sulfur dioxides, particulate matter, greenhouse gases, and other air pollutants in an area designated nonattainment for the federal ozone air quality standard.
“EPA remains committed to ensuring companies take responsibility for protecting public health and the environment,” said Alexis Strauss, EPA’s Acting Regional Administrator for the Pacific Southwest. “With this agreement, Tesoro will not only reduce harmful emissions from its coker and flares, but will also reduce sulfur dioxide emissions by nearly 190 tons per year from the Martinez refinery acid plant.”
Under the settlement, Tesoro and related companies, and Par Hawaii Refining will spend about $403 million to install and operate pollution control equipment at refineries in Alaska, California, Hawaii, North Dakota, Utah, and Washington State. Tesoro will also pay a civil penalty of $10.45 million, of which the United States will receive $8.05 million. Co-plaintiffs Alaska, Hawaii, and Washington State’s Northwest Clean Air Agency, will split the remainder, receiving $1.3 million, $850,000, and $250,000, respectively. Tesoro will also spend about $12.2 million to fund projects that will improve public health in local communities previously impacted by pollution.
Once implemented, the pollution controls required by the settlement will reduce annual emissions at the six refineries by an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide.
Tesoro Corp., is headquartered in San Antonio, Texas and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P., and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei, Hawaii refinery from Tesoro in 2013.
The penalty is due 30 days after the consent decree is entered by the court. There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree is available on the Department of Justice’s website.
For more information on the settlement or to read the consent decree, go to https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
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