EPA v. HollyFrontier

Case summary

This case addresses allegations that The HollyFrontier Corporation (HollyFrontier) failed to comply with the Clean Air Act (CAA) Reid vapor pressure fuel standards at several of their refineries and failed to comply with various fuel testing requirements. HollyFrontier is headquartered in Dallas, Texas, and operates five refineries throughout the mid-continent, southwestern, and Rocky Mountain regions with a cumulative total processing capacity of 443,000 barrels per day. HollyFrontier Refining & Marketing LLC, Frontier El Dorado Refining LLC, Holly Refining & Marketing Company ? Woods Cross LLC, and Navajo Refining Company, L.L.C operate HollyFrontier Corporation?s marketing, crude and product supply, planning, human resources, and accounting functions related to HollyFrontier Corporation?s refineries. The EPA discovered the alleged violations from information self-disclosed by the defendants. The fuel quality violations involve the defendants? failure to meet RVP standards for gasoline produced at the Woods Cross (Utah), El Dorado (Kansas), and Navajo (New Mexico) refineries at various times from 2006 to 2011. The defendants estimate that their standard violations resulted in about 10 excess tons of emissions of volatile organic compounds (VOCs), including air toxics. Air toxics ? also known as ?hazardous air pollutants,? or HAPs ? are those pollutants known or suspected to cause cancer or other serious health or environmental effects. VOCs are one of the primary constituents of smog, which react in sunlight to form low-level ozone. Breathing ozone can trigger a variety of health problems including chest pain, coughing, throat irritation, and congestion, and can worsen bronchitis, emphysema, and asthma. The consent decree requires the defendants to take action to mitigate harm to human health and the environment as a result of the excess emissions caused by the violations at issue in this case. Specifically, the defendants will install slotted guide poles on two above ground fuel storage tanks at its Woods Cross Refinery in Woods Cross, Utah. The company will be required to use next generation pollutant detection technology during the implementation of the mitigation projects, and to hire a third-party to verify its compliance status for the mitigation projects. The refinery is located near an area that may present environmental justice concerns. The defendants have also represented to the EPA that they will hire a third-party auditor to evaluate compliance with the fuels regulations at five of their refineries to ensure future compliance. When inappropriate fuels are used in internal combustion engines, the emissions of pollutants can increase significantly and emission control equipment can be damaged. Notwithstanding improvements in vehicle emission controls, emissions from motor vehicles are a significant portion of all air pollution. The excess emissions that can be linked to the violations at issue in this case are primarily VOCs, including air toxics. The environmental mitigation projects required by the consent decree are estimated to reduce VOC emissions, including air toxics, by about 96 tons of VOCs over the lifetime of the consent decree. Since the projects likely will remain operational after the consent decree is terminated, environmental HollyFrontier will pay a civil penalty of $1.2 million.

Defendants (3)

• HOLLY REFINING AND MARKETING COMPANYNamed in complaintNamed in settlement
• HOLLYFRONTIER REFINING AND MARKETING, LLCNamed in complaintNamed in settlement
• NAVAJO REFINERY COMPANY, L.L.C.Named in complaintNamed in settlement

Facilities (8)

• HOLLY REFINING AND MARKETING - WOODS CROSS CREATED BY HQ

  393 SOUTH 800 WEST, WOODS CROSS, UT, 84087

  Registry ID: 110000469136

• HOLLY REFINING AND MARKETING - WOODS CROSS CREATED BY HQ

  393 SOUTH 800 WEST, WOODS CROSS, UT, 84087

  Registry ID: 110000469136

• HOLLYFRONTIER CORPORATION

  1401 DOUGLAS ROAD, EL DORADO, KS, 67042

  Registry ID: 110000446134

• NAVAJO REFINING COMPANY

  501 E. MAIN ST., ARTESIA, NM, 88210

  Registry ID: 110000472630

• HOLLYFRONTIER CORPORATION

  1401 DOUGLAS ROAD, EL DORADO, KS, 67042

  Registry ID: 110000446134

• HOLLY REFINING AND MARKETING - WOODS CROSS CREATED BY HQ

  393 SOUTH 800 WEST, WOODS CROSS, UT, 84087

  Registry ID: 110000469136

• HOLLY REFINING AND MARKETING - WOODS CROSS CREATED BY HQ

  393 SOUTH 800 WEST, WOODS CROSS, UT, 84087

  Registry ID: 110000469136

• NAVAJO REFINING COMPANY

  501 E. MAIN ST., ARTESIA, NM, 88210

  Registry ID: 110000472630

Statutes cited

• CAA 211 — Regulation of Fuels - Motor Vehicle and Engine Fuels

Enforcement conclusions (1)

• HollyFrontierentered 2016-01-11

  Primary law: CAA

  Federal penalty: $1,200,000

Timeline (6 milestones)

• 2014-08-07Referred To Dept Of Justice
• 2014-09-30Enforcement Action Data Entered
• 2015-11-19Complaint Filed With Court
• 2015-11-19Final Order Lodged
• 2016-01-11Final Order Entered
• 2022-10-21Enforcement Action Closed