EPA Announces Settlement with Puerto Rican Fuel Supplier, Best Petroleum Corp.

Best Petroleum Corp. is the largest independently owned fuel importer and distributor in Puerto Rico.

On Monday, the U.S. Environmental Protection Agency (EPA) announced a settlement between the federal agency and Best Petroleum Corp. The EPA, emerging from a losing streak in federal courts, has eked out a few wins in the Caribbean under the Biden administration.

EPA Settlement with Best Petroleum Corp. 

Best Petroleum Corp. is the largest independently owned fuel importer and distributor in Puerto Rico. The company operates a gasoline and loading facility in Guaynabo, Puerto Rico, and agreed to pay a civil penalty totaling $316,721 to resolve alleged Clean Air Act (CAA) violations. 

“This settlement exemplifies EPA’s commitment to hold companies accountable when they violate the Clean Air Act, and potentially put a community’s health at risk,” said EPA Regional Administrator Lisa F. Garcia. “EPA’s enforcement led to the company installing and upgrading equipment and proper emission controls to lower exposure to hazardous air pollutants, which protects the public’s health, workers, and the environment.”

The facility is classified as a smaller “area source” under Section 112 of the Clean Air Act because of its potential to emit hazardous air pollutants (HAPs). Best Petroleum’s station has several above-ground gasoline storage tanks and a truck loading rack. The EPA said the company incurred “multiple violations at its bulk petroleum storage and distribution terminal.” 

EPA Region 2’s investigation revealed that pollution control equipment at the facility was not operated and maintained in accordance with CAA requirements, leading to excess emissions of HAPs and volatile organic compounds (VOCs). These emissions may contribute to public health and environmental problems, including cancer and ground-level ozone formation. 

In response to the EPA’s findings, Best Petroleum undertook extensive upgrades to its gasoline vapor recovery unit (VRU), installed new emission monitoring equipment for the VRU, repaired damaged pollution control equipment at its internal floating roof (IFR) and external floating roof (EFR) gasoline storage tanks. These upgrades will reduce air pollution through better controls and increased monitoring methods.

In addition, to settle the CAA violations, the Consent Agreement requires Best Petroleum to complete a Storage Tank Inspection and Maintenance Plan for its gasoline tanks. The Consent Agreement will ensure compliance with CAA requirements and the effectiveness of the recent repair work. The company must complete two additional monitoring events at each gasoline storage tank and take corrective action if it discovers leaks or damaged equipment.

The settlement marks a small yet significant win for the EPA, as the agency tries to find new footing after a series of legal losses in federal courts.

It also saves the agency and Best Petroleum from a costly legal battle and the prospect of producing damaging discovery material before trial. 

EPA’s Shrinking Regulatory Power

After winning the White House in 2016, President Donald Trump and his administration issued several executive orders targeting agencies like the EPA, National Oceanic and Atmospheric Administration, the Federal Emergency Management Agency, and the U.S. Department of Agriculture for sharing updates about climate science.

As Trump and his allies in Congress worked to undermine decades of climate progress, new rules issued by his administration offered a path for the oil refinery on Saint Croix to be reopened. However, in May 2021, near the start of the Biden-Harris administration, the EPA ordered the refinery to stop operations after it rained oil on Saint Croix residents. 

Trump also rolled back rules for the Clean Water Act of 1972 that protected communities from harmful chemicals and hazardous waste that could contaminate drinking water. Then, in 2022, the Supreme Court ruled that the EPA cannot set state-level carbon emissions caps under the 1970 Clean Air Act. 

If you need a refresher or an introduction, here’s a great piece by Vox detailing Trump’s climate agenda. 

During the same year, the EPA informed West Indies Petroleum that it “will need to engage with EPA regarding environmental compliance and permitting issues prior to the start-up of any operations at the refinery,” according to EPA spokesman Elias Rodriguez.

EPA enforcement drove dramatic environmental improvements, including cleaner air (33-50% reduction), cleaner water, and better waste management across the U.S. from 1970-1990.