Refineries Lose Appeal of AQMD Rule

A state appeals court has ordered Southern California’s largest oil refineries to install technology that will reduce unhealthful smog emissions.

The Western States Petroleum Assn. sued to overturn the new regulation by the South Coast Air Quality Management District, arguing that the rule would cost hundreds of millions of dollars, was not feasible at some plants and would provide little to no public benefit.

In an opinion issued last month, Judge Earl Johnson Jr. of the 2nd District Court of Appeal in Los Angeles rejected those arguments and ordered the refineries to comply.

“This court ruling is good news for the region and especially communities surrounding oil refineries,” said AQMD Executive Officer Barry Wallerstein in a statement Wednesday. “Oil refineries are the largest regulated source of particulate matter emissions, emitting more than 400,000 newer, diesel-powered school buses.”

But Cathy Reheis-Boyd, chief operating officer of the refineries organization, said, “We are very disappointed. We continue to believe our case is meritorious.

“If you’re going to require expensive controls which could ultimately impact the price of the product, and therefore the price at the pump, you should be suggesting those improvements that will result in substantial air quality benefits,” she said.

She could not specify what price increases might occur for consumers but said compliance would make it harder to control such increases.

AQMD spokesman Sam Atwood said the agency’s studies had found that the upgrade would add less than a 10th of a cent to gas prices.

He added, “I would vigorously disagree with the assessment that half a ton a day of particulate reduction, plus an additional 2 tons reduction from ammonia emissions, is little to no benefit to public health.”

About 300 tons a day of particulate matter is emitted by all sources in the region. Numerous studies have shown that breathing the soot reduces lung capacity and causes or aggravates asthma, heart disease and other health problems.

Reheis-Boyd said the refineries group would decide soon whether to appeal to the state Supreme Court.

“Any time you have a decision of this magnitude, you worry about its implications, not only for California but for the rest of the nation,” she said.

The six refineries affected by the rule are those run by ExxonMobil in Torrance, BP in Carson, Chevron-Texaco in El Segundo and Shell, ConocoPhillips and Valero in Wilmington. Chevron has already added the new equipment, Reheis-Boyd said, but each refinery is designed differently.

“It’s not one size fits all,” she said.

Under the rule, refineries must reduce emissions from their fluid catalytic cracking units by year’s end, although they can request two-year extensions.

The units “crack” heavy crude oil into lighter products, including gasoline, butane and propane.

Refineries that do not comply face fines or possible shutdown. AQMD spokesman Atwood said such penalties are rarely applied, because when legal challenges are settled, polluters usually comply.