BP to pay record-setting $40M to settle air, water pollution charges at Indiana refinery
An Indiana manufacturing facility has set a new record, but not in a good way. The subsidiary of BP is paying an unprecedented penalty — $40 million — to settle charges its Indiana refinery violated federal law by releasing harmful pollutants into the air and wastewater.
The settlement, between BP Products North America Inc., the U.S. Environmental Protection Agency and the Department of Justice, was announced in May. The refinery located near Lake Michigan is one of the oldest and largest in the U.S., with the capacity to process more than 400,000 barrels of crude oil every day.
Environmental advocates celebrated the crack down at the refinery with a history of emissions issues.
What were the violations?
The settlement stems from an October 2019 site visit where inspectors observed multiple violations, according to the Indiana Department of Environmental Management.
The federal government's complaint alleged the refinery violated federal regulations limiting benzene in wastewater streams and hazardous air pollutants. Benzene is a known cancer-causing chemical and air emissions are linked to health problems including difficulty breathing, aggravated asthma and reduced lung capacity.
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What is the penalty?
The settlement obligates BP to pay a penalty of $40 million — the largest civil penalty ever secured for a Clean Air Act settlement for a fixed location. Larger penalties assessed for vehicle manufacturers for combined emissions violations.
Roughly $9 million will go to the state, with the remainder going to the U.S. Treasury.
Other parts of the settlement?
The settlement also requires BP to invest approximately $197 million in new technology and other improvements to reduce pollution from the site. These improvements are expected to reduce annual releases of benzene by about seven tons, other hazardous air pollutants by roughly 28 tons and volatile organic compounds by as much as 372 tons.
The company also agreed to complete a $5 million supplemental project to reduce diesel emissions in the surrounding communities.
Setting a precedent?
Both the EPA and environmental advocates say they hope this settlement will set a precedent. The agency said it "expects compliance and when violations are repeated, violators should expect that the EPA will assess large penalties."
Eric Schaeffer, executive director of the Environmental Integrity Protect, said this settlement is one of the best he's seen and is "definitely worth celebrating." Schaeffer is the former director of civil enforcement at EPA.
History of issues at the site?
The BP site has a history of violations and pollution issues. Last year, BP had to pay nearly $3 million for repeated air pollution violations.
Schaeffer's organization — a nonprofit dedicated to enforcing environmental laws and strengthening policy to protect public health and the environment — released a report year showing the Whiting Refinery is one of the worst water polluters in the nation.
Call IndyStar reporter Sarah Bowman at 317-444-6129 or email at sarah.bowman@indystar.com. Follow her on Twitter and Facebook: @IndyStarSarah. Connect with IndyStar’s environmental reporters: Join The Scrub on Facebook.
IndyStar's environmental reporting project is made possible through the generous support of the nonprofit Nina Mason Pulliam Charitable Trust.
This article originally appeared on Indianapolis Star: Indiana BP refinery to pay record $40M penalty for pollution charges
