2025 HF Sinclair Navajo Clean Air Act Settlement Agreement Summary

Overview The U.S. Environmental Protection Agency (EPA), Department of Justice (DOJ), and New Mexico Environment Department announced a settlement agreement with HF Sinclair Navajo Refining LLC for Clean Air Act and New Mexico Air Quality Control Act violations. Violations and Penalties The company was alleged to have violated the Clean Air Act's regulatory and permit requirements, resulting in excess emissions of pollutants including hazardous air pollutants like benzene. The settlement requires HF Sinclair Navajo to pay a civil penalty of $35 million and spend an estimated $137 million to implement compliance measures. Environmental Benefits The settlement is expected to result in estimated emission reductions of approximately 3,000 tons per year, including hazardous air pollutants (180 tpy), VOC emissions (2,716 tpy), nitrogen oxide emissions (51 tpy), and sulfur dioxide emissions (31 tpy). Key Compliance Considerations Companies must comply with the Clean Air Act's regulatory and permit requirements to avoid similar violations. Significant capital investments are required to address and correct Clean Air Act violations and reduce emissions at refineries. Industry Impact The settlement highlights the importance of monitoring fenceline concentrations, controlling benzene emissions, and implementing emission reduction projects to ensure compliance with environmental regulations.