PBF Energy 2013 Annual Report Download - page 23

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pipelines and related operations and these permits are subject to revocation, modification and renewal. Compliance
with applicable environmental laws, regulations and permits will continue to have an impact on our operations,
results of operations and capital requirements. We believe that our current operations are in substantial compliance
with existing environmental laws, regulations and permits.
Our operations and many of the products we manufacture are subject to certain specific requirements of the
CAA, and related state and local regulations. The CAA contains provisions that require capital expenditures for
the installation of certain air pollution control devices at our refineries. Subsequent rule making authorized by the
CAA or similar laws or new agency interpretations of existing rules, may necessitate additional expenditures in
future years.
Additionally, as of January 1, 2011 we are required to meet an EPA regulation limiting the average sulfur
content in gasoline to 30 PPM. The EPA has also announced that it plans to propose new “Tier 3” motor vehicle
emission and fuel standards. It has been reported that these new Tier 3 regulations may, among other things, lower
the maximum average sulfur content of gasoline from 30 PPM to 10 PPM. If the Tier 3 regulations are eventually
implemented and lower the maximum allowable content of sulfur or other constituents in fuels that we produce,
we may at some point in the future be required to make significant capital expenditures and/or incur materially
increased operating costs to comply with the new standards.
As of January 1, 2011, we are required to comply with the EPA’s Control of Hazardous Air Pollutants From
Mobile Sources, or MSAT2, regulations on gasoline that impose reductions in the benzene content of our produced
gasoline. We purchase benzene credits to meet these requirements. Our planned capital projects will reduce the
amount of benzene credits that we need to purchase. In addition, the renewable fuel standards mandate the blending
of prescribed percentages of renewable fuels (e.g., ethanol and biofuels) into our produced gasoline and diesel.
These new requirements, other requirements of the CAA and other presently existing or future environmental
regulations may cause us to make substantial capital expenditures as well as the purchase of credits at significant
cost, to enable our refineries to produce products that meet applicable requirements.
Our operations are also subject to the federal Clean Water Act, or the CWA, the federal Safe Drinking Water
Act, or the SDWA, and comparable state and local requirements. The CWA, the SDWA and analogous laws prohibit
any discharge into surface waters, ground waters, injection wells and publicly-owned treatment works except in
strict conformance with permits, such as pre-treatment permits and discharge permits, issued by federal, state and
local governmental agencies. Federal waste-water discharge permits and analogous state waste-water discharge
permits are issued for fixed terms and must be renewed.
We generate wastes that may be subject to the federal Resource Conservation and Recovery Act, or RCRA,
and comparable state and local requirements. The EPA and various state agencies have limited the approved methods
of disposal for certain hazardous and non-hazardous wastes.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, or
CERCLA, also known as “Superfund,” imposes liability, without regard to fault or the legality of the original
conduct, on certain classes of persons who are considered to be responsible for the release of a “hazardous substance”
into the environment. These persons include the current or former owner or operator of the disposal site or sites
where the release occurred and companies that disposed of or arranged for the disposal of the hazardous substances.
Under CERCLA, such persons may be subject to joint and several liability for investigation and the costs of cleaning
up the hazardous substances that have been released into the environment, for damages to natural resources and
for the costs of certain health studies. As discussed more fully below, certain of our sites are subject to these laws
and we may be held liable for investigation and remediation costs or claims for natural resource damages. It is not
uncommon for neighboring landowners and other third parties to file claims for personal injury and property
damage allegedly caused by hazardous substances or other pollutants released into the environment. Analogous
state laws impose similar responsibilities and liabilities on responsible parties. In our current normal operations,
we have generated waste, some of which falls within the statutory definition of a “hazardous substance” and some
of which may have been disposed of at sites that may require cleanup under Superfund.