The Department of Justice and the Environmental Protection Agency (EPA) today announced that Tesoro Refining and Marketing Company will pay a $27.5 million penalty for violating a 2016 consent decree ordering the company to reduce air pollution at its petroleum refinery in Martinez, California.
In particular, according to today’s settlement, Tesoro failed to limit air emissions of nitrogen oxides (NOX), a pollutant that contributes to smog.
The settlement requires Tesoro to adhere to strict pollution controls at the facility. The facility is currently undergoing conversion into a renewable fuels plant, which will use renewable sources such as vegetable oils to produce fuels instead of crude oil.
The settlement also sets up a framework for additional pollutant reductions, including significant climate co-benefits. Specifically, the settlement requires Tesoro to forego hundreds of annual emission credits that it could otherwise sell to area sources who could then increase their emissions.
“Today, we are holding Tesoro accountable for its failure to implement court-ordered pollution controls,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“This settlement requires Tesoro to forfeit substantially more air emission credits than the excess emissions associated with its violations, resulting in cleaner air for those who live and work in the San Francisco area.”
“Tesoro did not meet the consent decree pollution limit because it did not install adequate pollution controls,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance.
“As this settlement shows, EPA will seek substantial penalties when companies delay installing appropriate pollution controls to meet environmental obligations.”
In May 2020, Tesoro suspended operations at the Martinez refinery and then announced its plan to convert the refinery to a renewable fuels plant. Today’s agreement includes requirements to limit air pollution from the future renewable fuels plant.
The agreement does not prohibit Tesoro from resuming petroleum refining, but if it does so, Tesoro must install specific air pollution control technology, at an expected cost of $125 million, to ensure stringent NOX emission limits are met.
“Tesoro failed to meet its requirement to reduce air pollution at the Martinez refinery, and EPA is now taking firm action to hold Tesoro accountable,” said Regional Administrator Martha Guzman of the EPA Pacific Southwest. “This settlement ensures that Tesoro complies with stringent air pollution limits, to protect neighboring communities regardless of fuel type.”
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