EPA ALLEGES RULES VIOLATIONS BY CHEVRON UNITS

The Environmental Protection Agency has two units of Chevron Corp. squarely in its sights for alleged violation of regulations. Here's what's involved: EPA threatened to make Chevron U.S.A. Inc. stop construction on reformulated gasoline units at its 255,000 b/d El Segundo, Calif., refinery because it failed to obtain a state permit. Separately, EPA proposed a $17 million fine against Chevron Chemical Co. for alleged failure to report data about hazardous chemicals.

Oct. 11, 1993

4 min read

The Environmental Protection Agency has two units of Chevron Corp. squarely in its sights for alleged violation of regulations.

Here's what's involved:

EPA threatened to make Chevron U.S.A. Inc. stop construction on reformulated gasoline units at its 255,000 b/d El Segundo, Calif., refinery because it failed to obtain a state permit.
Separately, EPA proposed a $17 million fine against Chevron Chemical Co. for alleged failure to report data about hazardous chemicals.

EL SEGUNDO REFINERY

EPA notified Chevron Sept. 22 that construction at its El Segundo refinery near Los Angeles violated the Clean Air Act (CAA) because Chevron failed to get a construction permit from California's South Coast Air Quality Management District (Scaqmd).

Later, EPA delayed the stop work order until Oct. 8 to allow time for more negotiations.

EPA said the CAA requires significant modifications to major industrial sources of air pollutants to be reviewed for their effect on air quality before permits are issued and construction can begin.

"This process ensures that the project includes proper pollution controls and that the public has an opportunity to comment on the changes," the agency said.

"EPA believes Chevron's action gives it an unfair advantage over other companies which are following rules to protect human health in an area with the nation's worst air quality. Unlike Chevron, other area refiners appear to be complying with federal laws before beginning construction on their reformulated gasoline production projects."

Chevron said the refinery's reformulated gasoline project involves nine new or reconfigured units costing more than $700 million. During the next 3 years, the project will equip the refinery to produce gasolines designed to reduce tailpipe emissions 30-40%.

Mike Holmes, the refinery's general manager, said, "We're stunned by this sudden order by the regional EPA office. We want to meet the deadlines for delivering cleaner fuels to the public. Until today, we thought the EPA wanted that too.

"We've been working cooperatively since March 1992 with the local Scaqmd which enforces the federal and state clean air laws. But now the EPA regional office is suddenly shutting down the project. We're extremely disappointed by this confusing action. "

Holmes also said, "We've done some preliminary field work on the clean fuels project, and as we understand it, EPA takes exception to this.

"Yet the work is in full compliance with the local air district's requirements, and without it we won't be able to meet the deadline for producing the cleaner fuels. There have been no environmental impacts whatsoever from these activities, so the EPA's order makes no sense to us.

"Further, the local district strictly prohibits connecting and operating any equipment until a permit is issued.

CHEVRON CHEMICAL

Chevron Chemical, San Ramon, Calif., is protesting a $17,026,725 million fine EPA levied for alleged violations of the Toxic Substances Control Act (TSCA). Chevron said it was the largest such fine in U.S. history.

EPA charged that Chevron failed to file premanufacture notifications, filed late premanufacture notifications, failed to submit export notifications, and filed inaccurate import certifications.

Carol Browner, EPA administrator, said, "Self-reporting requirements are integral to the control of toxic substances and to the success of all environmental laws." She noted TSCA requires all manufacturers and importers of new chemical substances to submit reports before starting commercial manufacture or imports.

EPA said the process allows it to evaluate potential risks of new chemicals and decide whether to restrict manufacture or imports before the chemicals are produced commercially, thus reducing the need for future "end of pipe" controls on water effluents, air releases, and solid wastes.

Chevron said, "EPA's announcement illustrates a federal regulatory process run amok because it has nothing to do with protecting people or the environment and because it calls for a huge unprecedented fine over an alleged paperwork violation.

"The substances involved in this complaint are common detergents like those found in the lubricants of every car, truck, train, and boat in the country. The paperwork situation presented absolutely no health and safety risk. There was no spill, leak, or any other release of any substances to air or water. There was never any hazard of any kind to any part of the environment or any human being or animal.

"Once Chevron Chemical became aware of a potential problem under EPA's new interpretation of its regulations under TSCA, we immediately reported the matter to the EPA and corrected any possible deficiencies.

"We took every imaginable action to be in compliance with EPA's regulations, and we've been in constant communications to resolve this issue with the EPA ever since it arose.

"We're outraged that they would take this kind of approach when we've worked with them in good faith and when there is substantial doubt that any violation ever occurred."