EPA v. Tesoro Refining & Marketing Company LLC, et al. (NC)

Case summary

On September 28, 2016, EPA and DOJ reached a $425-million settlement with subsidiaries of Tesoro Corporation, and Par Hawaii Refining that resolves alleged Clean Air Act violations at six petroleum refineries in Alaska, California, Hawaii, North Dakota, Utah, and Washington. The settlement addresses a range of leak detection and repair and flaring violations at all six refineries, as well as violations of the following programs and standards at specific refineries: (i) the Prevention of Significant Deterioration and Non-Attainment New Source Review permit programs; (ii) New Source Performance Standards; (iii) National Emission Standards for Hazardous Air Pollutants; and (iv) state clean air laws, programs, and permits. Under the settlement, the two companies will spend about $403 million to install and operate pollution controls, and Tesoro will spend about $12.2 million to fund three environmental projects in local communities previously impacted by pollution. Tesoro will also pay a civil penalty of $10.45 million, of which the United States will receive $8.05 million, Alaska will receive $1.3 million, Hawaii will receive $850,000, and the Northwest Clean Air Agency will receive $250,000. 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. The consent decree includes Next Generation requirements consisting of infrared cameras and third party auditing.

Defendants (4)

• Tesoro Refining & Marketing Company LLCNamed in complaintNamed in settlement
• Tesoro Alaska Company LLCNamed in complaintNamed in settlement
• Tesoro Logistics LPNamed in complaintNamed in settlement
• Par Hawaii Refining LLCNamed in complaintNamed in settlement

Facilities (3)

• TESORO REFINING AND MARKETING COMPANY

  10200 WEST MARCH POINT ROAD, ANACORTES, WA, 98221

  Registry ID: 110000537250

• TESORO ALASKA COMPANY, LLC / KENAI REFINERY

  54741 TESORO RD., KENAI, AK, 99611

  Registry ID: 110017413299

• TESORO ALASKA COMPANY, LLC / KENAI REFINERY

  54741 TESORO RD., KENAI, AK, 99611

  Registry ID: 110017413299

Statutes cited

• CAA 111 — New Source Performance Standards
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• Tesoro Refining & Marketing Company LLC, et al. - Consent Decree (NC)entered 2016-09-28

  Primary law: CAA

  Federal penalty: $2,683,333 · State/local: $1,550,000

Timeline (7 milestones)

• 2010-09-22Referred To Dept Of Justice
• 2010-09-24Enforcement Action Data Entered
• 2011-03-08Supplemental Referral-Adding parties, counts
• 2011-08-08Supplemental Referral-Adding parties, counts
• 2016-07-18Complaint Filed With Court
• 2016-07-18Final Order Lodged
• 2016-09-28Final Order Entered