Marathon, Feds Reach Clean Air Pact

Thursday, May 21, 2015 @ 05:05 PM gHale

Marathon Petroleum Corporation reached a settlement resolving Clean Air Act violations at 10 Marathon facilities and requires Marathon to take steps to reduce harmful air pollution emissions at facilities in three states, federal officials said.

The Environmental Protection Agency (EPA) and the Department of Justice (DoJ) brought suit against Marathon for what they said was the oil giant failing to comply with certain Clean Air Act fuel quality emissions standards and recordkeeping, sampling and testing requirements.

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These violations may have resulted in excess emissions of air pollutants from motor vehicles, which can pose threats to public health and the environment. Marathon self-reported many of these issues to EPA.

Under a consent decree lodged in United States District Court for the Northern District of Ohio, Marathon will spend over $2.8 million on pollution controls to reduce emissions of volatile organic compounds on 14 fuel storage tanks at its distribution terminals in Indiana, Kentucky and Ohio.

Marathon will also pay a $2.9 million civil penalty and retire 5.5 billion sulfur credits, which have a current market value of $200,000. Sulfur credits are when a refiner produces gasoline that contains less sulfur than the federal sulfur standard. These credits can end up sold to other refiners that may be unable to meet the standard.

“Fuel standards established under the Clean Air Act play a major role in controlling harmful air pollution from vehicles and engines,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “If unchecked, these pollutants can seriously impair the air we breathe, especially during summer months when they can reach higher levels. This settlement incorporates innovative pollution control solutions to reduce air pollution in overburdened communities.”

“The changes required by this settlement will positively impact air quality in communities across the Midwest,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “All Americans deserve to enjoy the benefits of clean air, land, and water. These benefits spring from our nation’s bedrock environmental laws and we will use them vigorously in the pursuit of environmental justice.”

“This agreement will help reduce air pollution emissions in Ohio and elsewhere,” said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. “We’re pleased this settlement will protect the air we breathe while promoting the use of next-generation technology.”

In their complaint, EPA and DoJ said Marathon:
• Produced about 356 million gallons of reformulated gasoline at its Texas City, Texas refinery during 2007 that did not meet Clean Air Act standards for reducing volatile organic compounds. Volatile organic compounds are one of the primary constituents of smog and react in sunlight to form ground-level ozone.
• Produced more than 40 million gallons of gasoline at the Texas City, Texas refinery in 2009 that exceeded standards for sulfur levels. The goal of the Clean Air Act program that regulates sulfur in gasoline is to minimize emissions from vehicles and to ensure emissions control systems function effectively.
• Sold about 12 million gallons of gasoline that contained elevated levels of ethanol. Excess ethanol in gasoline can harm emission control components on some vehicles and engines.
• Sold about 1 million gallons of gasoline at its Tampa, FL, terminal in 2013 that exceeded standards for volatility, known as the Reid Vapor Pressure, that help control ground level ozone during summer months. Gasoline with higher volatility results in increased emissions of volatile organic compounds, which contribute to the formation of ground level ozone.
• Failed to comply with numerous sampling, testing, recordkeeping, and reporting requirements for fuel production.

Marathon will also install geodesic domes, fixed roofs, or secondary rim seals and deck fittings on 14 fuel storage tanks at several of its fuel distribution terminals in order to reduce emissions of volatile organic compounds.

Marathon also must use innovative pollutant detection technology during the implementation of the environmental mitigation projects. Marathon will use an infrared gas-imaging camera to inspect the fuel storage tanks in order to identify potential defects that may cause excessive emissions. If defects end up found, Marathon will conduct up-close inspections and perform repairs where necessary.

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