EPA v. CITGO PETROLEUM CORPORATION

Case summary

In a settlement with the United States, CITGO Petroleum Corporation and PDV Midwest Refining, LLC (collectively, CITGO) has agreed to significant injunctive relief to reduce harmful air pollution from the company?s refinery located in Lemont, Illinois, the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that the company violated the Clean Air Act by: Over-steaming their flares, in violations of the Illinois State Implementation Plan (SIP), the New Source Performance Standards (NSPS) for Equipment Leaks of VOC in Petroleum Refineries (40 C.F.R. Part 60, Subpart GGG), and CITGO's Title V permit Using PM and NOx emission reductions resulting from the 2005 Consent Decree, in violation of the 2005 Consent Decree and New Source Review (NSR) permitting requirements Shutting down its wet electrostatic precipitator (WESP ? used to control PM emissions at the FCCU), in violation of the 2005 Consent Decree?s PM emission limit at the FCCU, 40 C.F.R. Part 60, Subparts A (General Provisions) and J (Standards of Performance for Petroleum Refineries), and NSR requirements Making physical and operational changes that led to a significant net emissions increase in CO at its sulfur recovery plant (SRP), in violation of NSR requirements, and failing to route to route or re-route all sulfur pit emissions to eliminate, control, or include and monitor them as part of the SRP's emissions, in violation of the 2005 Consent Decree's requirement Failing to continuously operate four continuous emissions monitoring systems (CEMS) used on six units (excessive CEMS downtime), in violation of the 2005 Consent Decree and 40 C.F.R. Part 60, Subparts A and J; and Failing to control emissions from benzene samples and purged process fluids from vacuum truck pump exhaust where vacuum trucks are used to collect such liquids and transport for disposal, in violation of the HON Rule (40 C.F.R. Part 63, Subpart H). EPA estimates that the settlement?s injunctive relief will result in the following annual emission reductions: 90 tons nitrogen oxides (NOx), 170 tons sulfur dioxide (SO2), 40 tons particulate matter (PM), 170 tons volatile organic compounds (VOCs), 3340 pounds of which are HAPs, and 10,850 tons Carbon Dioxide Equivalents (CO2e). Additionally, CITGO will spend approximately $1.14 million in mitigation to control air emissions (benzene and VOCs) from a currently-uncontrolled, benzene-containing waste stream at the Lemont Refinery. CITGO will also spend $1 million to perform supplemental environmental projects (SEPs). For the first, CITGO will spend $350,000 on a green lighting project in the local school district. The second requires CITGO to spend $650,000 on a fence line monitoring system at the Lemont Refinery, that goes beyond the requirements for fence line monitoring in Part 63, Subpart CC. Specifically, CITGO will monitor hexane and H2S concentrations in addition to the benzene monitoring, and, if the fence line monitoring system detects concentrations above certain levels, CITGO will be required to investigate the source of the emissions and take corrective actions. CITGO estimates that the total cost of the injunctive relief package (excluding mitigation and SEP dollars) is approximately $42 million. CITGO will pay a civil penalty of $1,955,000 under the Decree. The proposed Decree includes all Lemont Refinery requirements from the 2005 Consent Decree that have yet to be completed or appropriately included in a permit to survive termination. Citgo will also pay $323,500 for stipulated penalties assessed under the 2005 Consent Decree. The stipulated penalty payment will be split equally between the United States and the State of Illinois, who was a party to the 2005 Consent Decree.

Defendants (1)

• CITGO PETROLEUM CORPORATIONNamed in complaintNamed in settlement

Facilities (1)

• CITGO PETROLEUM CORP

  135TH ST & NEW AVE, LEMONT, IL, 60439

  Registry ID: 110000595348

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards
• CAA 502 — Operating Permits (Title V)
• CAA 112D — MACT Standards
• CAA 173 — New Source Review Permit Requirements
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• CITGO PETROLEUM CORPORATIONentered 2017-01-11

  Primary law: CAA

  Federal penalty: $1,955,000 · SEP: $1,000,000

Timeline (8 milestones)

• 2011-09-30Referred To Dept Of Justice
• 2011-10-06Enforcement Action Data Entered
• 2012-03-30Supplemental Referral-Other
• 2016-11-10Final Order Lodged
• 2016-11-10Complaint Filed With Court
• 2017-01-11Final Order Entered
• 2019-02-22Supplemental Referral-Other
• 2021-11-16Demand for Stipulated Penalties