EPA v. Koch Supply and Trading

Case summary

This case involves the production by Koch Supply and Trading L.P. (Koch) of approximately 15 million gallons of gasoline which did not meet the 80 parts per million (ppm) sulfur required by Clean Air Act fuels regulations. Koch is a limited partnership that trades energy products, including crude oil, refined products and derivatives, ethanol, metals, natural gas, and other commodities. In March 2012, Koch produced and distributed three batches of gasoline with sulfur levels of 81, 81, and 82 ppm, respectively. Increased sulfur levels in gasoline impact the ability of engine catalysts to reduce emissions of nitrogen oxides and volatile organic compounds. Sulfur attaches to the precious metal catalysts that are required to convert these emissions. Sulfur also blocks sites on the catalyst designed to store oxygen that are necessary to optimize nitrogen oxide emission conversions. When nitrogen oxides and volatile organic compounds react in the presence of sunlight, they form ground-level ozone, a key component of smog. Ground-level ozone causes health problems such as difficulty breathing, lung damage, and reduced cardiovascular functioning. Nitrogen oxides and volatile organic compounds also contribute to the formation of particulate matter through chemical reactions in the atmosphere. Particulate matter can cause asthma, difficult or painful breathing, and chronic bronchitis, especially in children and the elderly. As part of the settlement, Koch agreed to pay a $650,000 civil penalty to the United States Treasury.

Defendants (1)

• Koch Supply and Trading, LP.Named in complaintNamed in settlement

Facilities (1)

• KINDER MORGAN PASADENA

  1420 N WITTER, PASADENA, TX, 77506

  Registry ID: 110040617703

Statutes cited

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

Enforcement conclusions (1)

• Koch Supply and Tradingentered 2017-09-27

  Primary law: CAA

  Federal penalty: $650,000

Timeline (3 milestones)

• 2017-08-30Complaint Filed/Proposed Order
• 2017-09-27Final Order Issued
• 2017-10-03Enforcement Action Data Entered