Document zQKqp51vqb2XZwNx9jbXOxGw3

0 A EPA"'"'od St11es ~;:',.~nmontol Protect-.on Region 6 Compliance Assurance and Enforcement Division INSPECTION REPORT Inspection Date(s): Media: Regulatory Program(s) 08/06-10/2018 Air Risk Management Program, CAA 112(r) Accident Prevention Provisions 40 CFR 68 Company Name: Valero Refining Facility Name: Valero Refining Facility Physical Location: 1201loop 197 South (city, state, zip code) Texas City, Texas 77590 Mailing address: 1 Valero Way (city, state, zip code) San Antonio, TX 78249 County/Parish : Galveston Facility Contact: Patrick Passantino Patrick.Qassantino(a>valero.com 409-948-7238 FRS Number: 110032911669 Media Number: RMP: 1000 0010 7886 NAICS: 32411 P Pr..nnnol n:~rtirin:~tino in inrn...,.,.+;,..,... - - I Environmenta l Manager Michael Navar ra Patrick Passantino Chris Walsch Grant Gutierrez Leslie Rucker Marie Stucky EPA Inspector: EPA lead Inspector Signature/Date Supervisor Supervfsor Signature/Date Valero- TC Valero -TC Valero- TC Valero - TC Valero- TC EPA Region 6 - 6EN-AS Marie Stucky ~~(+R ....... -L.. L r \ Samuel Tates -_./ L J:,AAA 1a~A Process Safety Manager Environmental M anager Process Safety Supt. Environmental Engineer Director- HSE Inspector (0/3/18 Date lo/ 1/2.o tB Date' 6ENFORM-019-R7 (2/15/2017) 1 Section 1- INTRODUCTION Valero Refining- Texas 8/6-10/2018 PURPOSE OF THE INSPECTION I, EPA Region 6 inspector Marie Stucky, arrived at Valero- Texas City Refinery (Valero) at 2:00PM on August 6, 2018, for an announced inspection. I met with Patrick Passantino and others listed on Page 1 of this report. I presented my credentials and informed them that this was an EPA inspection to determine compliance with the Clean Air Act (CAA) Section 112(r) and the Chemical Accident Prevention Provisions in 40 C.F.R. Part 68. The scope of the inspection is a partial compliance evaluation (PCE} and included an evaluation of the compliance of the facility with CAA Section 112(r) and the Chemical Accident Prevention Provisions 40 C.F.R. Part 68. On July 30, 2018, Valero received an inspection notice announcement email from me, which outlined the directions of conducting an inspection on August 610, 2018. The email also contained a list of documents for Valero to gather for review during the inspection. Valero is not a union facility. FACILITY DESCRIPTION Valero is in Texas City, Texas. According to https://www.valero.com/en-us/Pages{TexasCitv.aspx: "The Valero Texas City Refinery is located on the Texas City Ship Channel, approximately 40 miles southeast of Houston. With several recent upgrading projects, the refinery provides significant feedstock flexibility and product diversity to Valero's Gulf Coast operations. The plant dates to 1908, originally built to process 1,500 barrels per day of Oklahoma crude oil. The refinery has gone through continuous upgrades and expansions since then, including major upgrades from 1955 to 1970 when the total throughput of the refinery was increased from 40,000 to 130,000 barrels per day. In 1996, gas oil hydrotreater and residual oil solvent extraction units were commissioned along with significant revamps to the fluid catalytic cracking unit and the No. 3 crude unit. Since acquiring the refinery in 1997, Valero has invested more than $750 million in expansions and upgrades at Texas City. Most recently, the plant completed a major expansion consisting of a new delayed coker and a gasoline desulfurization unit. These expansions and upgrades give the facility a great deal of feedstock flexibility, resulting in a higher gross margin than a conventional refinery. The new units allow the crude units to run lower-value, heavier-gravity crude feedstocks to produce a large slate of low-sulfur, clean fuels." Section II- OBSERVATIONS 40 C.F.R. Part 68- CHEMICAL ACCIDENT PREVENTION PROVISIONS Subpart A- General 40 C.F.R. 68.10 Applicability -I observed that Valero is a stationary source that has an Air Operating Permit and more than a threshold quantity of a regulated substances in a process; therefore, these regulations are applicable. Valero submitted a Risk Management Plan (RMP) that describes the process containing flammable and toxic chemicals held at more than a threshold quantity. Some processes are 2