Hovensa to pay $5.3 million penalty for Clean Air Act violations
The US Environmental Protection Agency (EPA) and the US Department of Justice announced today that Hovensa LLC, owner of the second largest petroleum refinery in the United States, has agreed to pay a civil penalty of more than $5.3 million and spend more than $700 million in new pollution controls that will help protect public health and resolve Clean Air Act violations at its refinery in St. Croix, US Virgin Islands. The settlement requires new and upgraded pollution controls, more stringent emission limits, aggressive monitoring, leak-detection and repair practices to reduce emissions from refinery equipment and process units.
“This settlement will produce significant benefits for the environment and for the people of the Virgin Islands,” said Cynthia Giles, assistant administrator of EPA’s Office of Enforcement and Compliance Assurance. “The commitments made by Hovensa to install state-of-the-art pollution controls will mean cleaner air for years to come.”
The government’s complaint, filed concurrently with today’s settlement, alleged that the company made modifications to its refinery that increased emissions without first obtaining pre-construction permits and installing required pollution control equipment. The Clean Air Act requires major sources of air pollution to obtain such permits before making changes that would result in a significant emissions increase of any pollutant.
Once fully implemented, the pollution controls required by the settlement are estimated to reduce emissions of nitrogen oxides (NOx) by more than 5,000 tpy and sulfur dioxide (SO2) by nearly 3,500 tpy. The settlement will also result in additional reductions of volatile organic compounds, particulate matter, carbon monoxide and other pollutants that affect air quality. Additional pollution-reducing projects at the refinery’s coking unit under the settlement will also reduce greenhouse gas emissions by over 6,100 tpy.
High concentrations of SO2 and NOx, two key pollutants emitted from refineries, can have adverse impacts on human health, and are significant contributors to acid rain, smog and haze.
The government of the US Virgin Islands has joined in the settlement and will receive a portion of the civil penalty. In addition, the company will set aside nearly $4.9 million for projects to benefit the environment of the US Virgin Islands. The projects will be identified jointly by the US Virgin Islands government and Hovensa, in consultation with EPA.
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