Tesoro fined $1.36M for LCFS violations

In California, the California Air Resources Board announced a $1.36 million settlement with Tesoro Refining & Marketing, LLC for violating the Low Carbon Fuel Standard. In this case, the company misreported 1.9 billion gallons of gasoline, diesel, biodiesel and ethanol, including underreporting 403 million gallons of LCFS deficit-generating fuels.

“California’s programs to address climate change require accurate reporting. This settlement is a reminder to fuel producers that accuracy matters,” said CARB Executive Officer Richard W. Corey. “The LCFS is an important part of our work as Californians expect more clean fuel choices that offer alternatives to petroleum and reduce emissions of pollutants that adversely impact public health and reduce greenhouse gases.”

In March 2017, Tesoro notified CARB that the company had misreported fuel data from 2011 to 2016. The inaccurate information spanned 24 quarterly reports. Tesoro formally acknowledged the mistake in a letter outlining the problems, and worked with CARB to account for all the fuel provided and correct their reports. Because of the company’s cooperation, the settlement is for far less than the maximum possible penalties.

The money from the fine will be deposited in the state Air Pollution Control Fund where it can be appropriated by the legislature for air quality and greenhouse gas (GHG) reduction efforts.