Record Clean Air Act Settlement with BP North America

The US Environmental Protection Agency and the Department of Justice today announced a Clean Air Act Settlement with BP Products North America, a subsidiary of BP p.l.c. infamous for the Deepwater Horizon environmental disaster. (BP Deepwater Horizon Liabilities – GULP – $61.6 Billion) The settlement requires control technology that is projected to reduce benzene* by an estimated seven tons per year, other hazardous air pollutants by 28 tons per year, and other volatile organic compound emissions (VOCs)** by 372 tons per year at BP’s Whiting Refinery in Indiana. The settlement results in the largest civil penalty ever secured for a Clean Air Act stationary source violation.

The Department of Justice’s complaint complaint, filed simultaneously with the settlement, alleges that BPP broke federal regulations limiting benzene in refinery wastewater streams, and hazardous air pollutants and volatile organic compound emissions at its Whiting Refinery, as well as the general requirement to use good air pollution control practices. As part of the settlement, BPP will install one or more permanent benzene strippers to reduce benzene in wastewater streams leading to its lakefront wastewater treatment plant.

In addition to securing injunctive relief, including capital investments, estimated to exceed $197 million, the settlement obligates BPP to pay a total financial penalty of $40 million, comprised of civil penalties and stipulated penalties for violations of an earlier settlement. BPP separately agreed to undertake a $5 million supplemental environmental project to reduce diesel emissions in the communities surrounding the Whiting Refinery. BPP will also install 10 air pollutant monitoring stations to monitor air quality outside of the refinery fence line. The settlement terms are included in a proposed consent decree filed with the US District Court for the Northern District of Indiana.

*Benzene is known to cause cancer in humans. Inhalation exposure to benzene also may cause drowsiness, dizziness, headaches, as well as eye, skin, and respiratory tract irritation, and, at high levels, unconsciousness. Long-term inhalation exposure can cause various disorders in the blood, including reduced numbers of red blood cells and anemia in occupational settings. Reproductive effects have been reported for women exposed by inhalation to high levels, and adverse effects on the developing fetus have been observed in animal tests, according to EPA.

**VOCs along with NOX, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. People with lung disease, children, older adults, and people who are active can be affected when ozone levels are unhealthy. Ground-level ozone exposure is linked to a variety of short-term health problems, including lung irritation and difficulty breathing, as well as long-term problems, such as permanent lung damage from repeated exposure, aggravated asthma, reduced lung capacity, and increased susceptibility to respiratory illnesses such as pneumonia and bronchitis.

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