03.12.15. The US Environmental Protection Agency (EPA) has reached an agreement with Aloha Petroleum Ltd that resolves federal Clean Air Act and Clean Water Act violations at its Hilo East bulk fuel storage terminal in Hilo, Hawaii Island.


In addition to installing spill containment at its fuel storage facilities state-wide at an estimated cost of US$3.25 million, the company has agreed to pay a civil penalty of $650,000.


An EPA statement said the company failed to install vapour 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 Hilo East and the company cannot reopen it until volatile organic compound (VOC) vapour controls are installed and oil spill containment is improved, which EPA estimates would cost at least $900,000.


“This enforcement action ensures that harmful gasoline vapours will be controlled at the Hilo East Terminal,” said Jared Blumenfeld, EPA’s regional administrator for the Pacific Southwest. “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.”


Aloha Petroleum will need to make oil spill secondary 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. These improvements, which EPA estimates will cost up to $3.25 million, will happen at five facilities: Hilo West Facility, Hawaii; Kahalui Terminal, Maui; Nawiliwili Terminal, Kauai; Barbers Point Terminal, Oahu; and Honolulu Terminal, Oahu.


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.


3rd December 2015