HILO — Aloha Petroleum has agreed to pay $650,000 to settle Clean Air and Clean Water acts violations at its Hilo East bulk fuel storage terminal, one of the company’s two fuel storage facilities near Hilo Harbor, according to the U.S. Environmental Protection Agency.
HILO — Aloha Petroleum has agreed to pay $650,000 to settle Clean Air and Clean Water acts violations at its Hilo East bulk fuel storage terminal, one of the company’s two fuel storage facilities near Hilo Harbor, according to the U.S. Environmental Protection Agency.
In addition, the company has agreed to install spill containment at its fuel storage facilities statewide at an estimated cost of $3.25 million, the EPA said Wednesday.
The company failed to install vapor controls at its Hilo East Terminal that complied with emission limits on its gasoline loading rack and failed to have appropriate secondary spill containment for oil storage tanks. Aloha Petroleum recently shut down operations at the Hilo East facility, and the company can’t reopen it until vapor controls are installed and oil spill containment is improved, which the EPA estimates will cost at least $900,000.
“This enforcement action ensures that harmful gasoline vapors will be controlled at the Hilo East Terminal,” Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest, said in a statement. “And Aloha Petroleum will be upgrading its oil containment basins, which are made of coral rock and too porous to prevent spilled fuel from leaking into the environment.”
Dean Higuchi, EPA’s Hawaii spokesman, said Aloha Petroleum, a subsidiary of Sunoco that operates more than 100 Aloha, Shell and Mahalo gas stations and Aloha Island Mart convenience stores statewide, shut down the Hilo East facility voluntarily.
“We didn’t require them to shut it down; that was their decision,” Higuchi said.
According to a legal complaint prepared by the U.S. Attorney but never filed while settlement conferences took place, the Hilo terminal loading rack containing the bulk fuel storage tanks was built by Texaco in 1960. Problems with fuel vapor emissions occurred after a 2006 modification by Aloha to add a new ethanol line and replace components of two existing gasoline lines. The problems were exacerbated in 2008, according to the complaint, when Aloha replaced components of an existing diesel line and again replaced components of the two existing gasoline lines.
Aloha Petroleum will need to make oil-spill containment improvements to its bulk fuel facilities in Hawaii, including the construction of impermeable dikes, berms and basins to contain oil in case of a spill from its tanks, the EPA said.
Aloha agreed to make the improvements at five facilities: Hilo West Facility; Kahului Terminal on Maui; Nawaliwili Terminal in Lihue, Kauai; Barbers Point Terminal in Kapolei, Oahu; and Honolulu Terminal.
According to the unfiled federal complaint, on Nov. 1, 2011, about 14,000 gallons of diesel fuel were released into the secondary containment area within the primary tank farm at the Hilo terminal.
“Within hours and before the cleanup of the (diesel) could occur, all but approximately 65 gallons … permeated through the containment floor,” the complaint states.
To resolve the Clean Water Act violations, $117,000 of the $650,000 civil penalty will be deposited into the Oil Spill Liability Trust Fund, the EPA said.
In a written statement released Wednesday by Aloha, the company said it is making the improvements to the tank farm voluntarily.
“Four out of six terminals owned by Aloha Petroleum were acquired in late 2010 shortly after the EPA liner requirement went into effect,” the company said. “However, none of the acquired terminals had impervious liners installed and Aloha Petroleum has committed to installing such liners. Aloha Petroleum has already completed the installation of impervious liners at three terminals (Hilo West, Kahului and Nawiliwili). The remaining terminals are expected to have liners completed no later than December 2016.”
Email John Burnett at jburnett@hawaiitribune-herald.com.