Tesoro Agrees To Spend Millions In Air Pollution Settlement With U.S. EPA

SEATTLE (AP) -- The Justice Department and U.S. Environmental Protection Agency have reached a $425 million settlement with two companies that would reduce air pollution at six petroleum refineries.

The settlement with Tesoro and Par Hawaii Refining resolves alleged violations of the federal Clean Air Act including five refineries that Tesoro operates in Martinez here in the Bay Area as well as Kenai, Alaska; Anacortes, Washington; Salt Lake City, Utah; and Mandan, North Dakota.It also covers Par Hawaii's refinery in Kapolei, Hawaii.

Under the consent decree filed in federal court in Texas Monday, the companies will spend about $403 million to install equipment to control emissions at the refineries, which process crude oil into gasoline, diesel fuel and other products.

Tesoro, based in San Antonio, Texas, will also spend about $12 million for environmental projects in communities affected by the pollution. The company will also pay a $10.45 million civil penalty.