Chevron fined $329,700 for violations of California’s gasoline regulation; over-oxygenated gasoline in 2010 and 2011

10 November 2014

The California Air Resources Board announced
that Chevron Corp. has paid $329,700 in penalties for self-disclosed violations
of California’s reformulated gasoline regulations.

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Chevron supplied gasoline in violation of state regulations at
its Montebello and Richmond terminals. In each case, the
self-disclosed violations were for a total of 4.4 million gallons
of over-oxygenated fuel that exceeded the standard, a 10%
cap by volume for oxygenate. In both cases oxygenate volume of
the gasoline was about 11%.

Oxygenates are added to
gasoline to help reduce the carbon monoxide and soot that’s
created when fuel is burned. The content of oxygen in gasoline
must be within a specified range since too much oxygen causes the
engine to produce excessive emissions of nitrogen oxide, a key
ingredient of smog.

An estimated 3.75 million gallons of fuel exceeding the standard
was supplied for 48 days in late 2010 at Chevron’s Montebello
terminal and another 660,000 gallons of non-compliant fuel was
supplied for four days in April 2011 at the Richmond terminal. In
both cases, Chevron blamed an equipment malfunction for causing
meters to inaccurately report the volume of premium grade CARBOB,
a blendstock that is mixed with oxygenate before being trucked to
retail gas stations.

Chevron fully cooperated with ARB in this matter and took steps
to correct the violations. Of the $329,700 in penalties, $247,275
will go to the California Air Pollution Control Fund and $82,425
will go to the Statewide School Bus and Diesel Emission Reduction
Supplemental Environmental Project (SEP) administered by the San
Joaquin Valley Air Pollution Control District. The project is
designed to retrofit or replace old, dirty diesel school buses
operating in California.