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Hovenasa $700M Pollution Scandal
HOVENSA LLC, owner of the second largest petroleum refinery in the United States, has agreed to pay a $5.375 million civil penalty and spend more than $700 million in new pollution controls to resolve Clean Air Act violations at its St. Croix, U.S. Virgin Islands, refinery.
According to U.S. Attorney Ronald W. Sharpe, ‘Residents of the Virgin Islands expect and deserve to live in an environment free from harmful emissions and other pollutants.’ The consent decree, lodged in the U.S. District Court of the Virgin Islands, is subject to a 30-day public comment period and court approval.
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 tons per year and sulfur dioxide (SO2) by nearly 3,500 tons per year.
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 tons per year.
The government of the U.S. Virgin Islands has joined in the settlement and will receive a portion of the civil penalty. In addition, the company will set aside an additional $4.875 million for projects to benefit the environment of the U.S. Virgin Islands.
Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, stated, ‘This important settlement with the second largest refinery in the United States will result in significant improvements to human health and the environment of the U.S. Virgin Islands.’
Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance, added, ‘The commitments made by HOVENSA to install state-of-the-art pollution controls will mean cleaner air for years to come.’
Key Facts
- State: Federal
- Category: Environmental Crimes
- Source: DOJ Press Release ↗
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