U.S. Settles with Gasoline Refiner to Reduce Emissions at Utah Facility

WASHINGTON -- The E.P.A. (EPA) and the Department of Justice today announced a settlement with HollyFrontier Corporation subsidiaries (HollyFrontier Refining & Marketing LLC, Frontier El Dorado Refining, LLC, Holly Refining & Marketing Company-Woods Cross, LLC, and Navajo Refining Company, LLC) that resolves alleged Clean Air Act violations regarding fuel quality emissions requirements and testing requirements at 3 HollyFrontier facilities. Under a consent decree lodged today in the U.S. District Court for the District of Columbia HollyFrontier will implement a mitigation plan at its refinery in Salt Lake City to offset past emissions, and pay a $1.2 million civil penalty to the United States.

"Fuel emissions requirements help safeguard our nation's air quality and public health," said Cynthia Giles, E.P.A. assistant administrator for EPA's Office of Enforcement and Compliance Assurance. "This settlement not only means cleaner air for communities around Salt Lake City, it helps ensure a level playing field for fuel refiners that follow the law."

"This arrangement will benefit public health by requiring retrofits of storage tanks at HollyFrontier facilities that will reduce volatile organic compound emissions and use next generation technology to verify these reductions," said Assistant Attorney General John C. Cruden for the Justice Department's Environment and natural Resources Division. "This settlement shows that fuel refiners can and must meet the nation's requirements for controlling the emissions that cause ground level ozone and serious health problems for Americans."

The Clean Air Act requires fuel refiners to ensure the conventional gasoline they produce meets volatility standards, referred to as Reid Vapor Pressure (RVP) standards. As gasoline evaporates, volatile organic compounds (VOCs) are released, 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. VOCs also include a wide variety of hydrocarbons, some of which are hazardous air pollutants such as benzene, toluene, xylene and ethyl benzene.

HollyFrontier disclosed to the E.P.A. that 3 of its refineries--the Navajo Refinery in Artesia, New Mexico, the Woods Cross Refinery in Woods Cross, Utah, and the El Dorado Refinery in El Dorado, Kansas--produced approximately 42 million gallons of gasoline that was introduced into business in the Utah, Texas, Arizona, New Mexico, and Idaho markets that exceeded the applicable RVP standards. HollyFrontier reported to the E.P.A. that these violations are estimated to have resulted in about ten excess tons of VOC emissions.

Under the settlement, HollyFrontier will install new equipment on 2 tanks at its Salt Lake refinery to reduce potentially-toxic VOC emissions by about 96 tons over the lifetime of the consent decree. The company will be required to use advanced pollutant detection technology during the implementation of the mitigation projects, and to hire a 3rd party to verify its compliance status for the projects. Due to the enduring nature of the projects, environmental benefits accruing as a result of these plans are anticipated to continue for many years.

The use of advanced technology and 3rd party verification are part of EPA's Next Generation Compliance strategy, which promotes advanced emissions and pollutant detection technology and approaches so that regulated entities, the government, and the public can more easily see pollutant discharges, environmental conditions, and noncompliance.

More information about EPA's Next Generation Compliance strategy is accessible at: http://www2.epa.gov/compliance/next-generation-compliance.

For more information on the settlement or to read the consent decree, visit
http://www2.epa.gov/enforcement/hollyfrontier-refining-marketing-company-llc-et-al-clean-air-act-settlement

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