Newport Biodiesel Settles with EPA, Will Pay Fine

NEWPORT, RI—Newport Biodiesel has been heralded for innovation, entrepreneurship and creating green economy jobs here in the Ocean State ever since their 2008 inception.

But since 2012, the company, which turns used cooking oil collected from restaurants and other places into fuel, has been embroiled in an environmental action case in which the Environmental Protection Agency and U.S. Department of Justice alleged it violated various Clear Air Act requirements.

Now, after extensive upgrades to install a new emissions control system at their facility and agreeing to pay a $396,000 fine, company officials said they are ready to move on and continue expanding the successful business. Newport Biodiesel and the EPA settled the enforcement action on Wednesday and the consent decree is expected to become effective after a brief comment period.

"While Newport Biodiesel has been working with the EPA to ensure compliance, the company’s production of biodiesel has continued to grow and during this period, our fuel reduced greenhouse gas emissions by 13,400 tons per year," the company said in a statement in response to a Patch request for comment. "As a small producer, Newport Biodiesel provides more than 30 'green' jobs in Rhode Island and going forward, Newport Biodiesel remains committed to manufacturing environmentally sustainable biodiesel in a safe and compliant facility."

The EPA and DOJ alleged that the company had no control system for its methanol emissions in 2013. Methanol is used in the production of biodiesel and is considered a fire risk and a hazardous pollutant.

The company initially "vigorously disputed the allegations and that we were even subject to certain regulations," the company said in the statement. "In fact, the company had estimated emissions to be under certain regulatory limits based upon EPA’s own methodology and industry knowledge that emissions limits would not be triggered at the then current production levels."

When later testing showed that the emissions were above required limits, the company agreed to work with the EPA and signed a 2014 administrative consent order agreeing to comply with Clean Air Act standards and make changes to their facility on Connell Highway.

"As a result, all issues have been addressed to the governments satisfaction," the company said.

The company's settlement with the EPA is not an admission of wrongdoing.

The new control systems began operating in December of 2015 and will reduce methanol emissions by about 15 tons per year, according to the EPA. The company will test the system on a regular basis to ensure it keeps operating properly.

The company also worked with the Newport Fire Department to install a new fire suppression system. It also began operating last December. Previously, there was no automatic fire suppression system at the company's main manufacturing building and methanol is worrisome because "it burns with little visible flame and stays flammable even when mixed with large quantities of water," the EPA said.

The EPA also alleged that Newport Biodiesel failed to timely file some regulatory forms, but those issues were quickly resolved in the early stages of the enforcement action.

The settlement marks the end of the first civil judicial action against a biodiesel manufacturer for Clean Air Act violations, the EPA said, noting that " EPA and DOJ’s enforcement action and Newport Biodiesel’s cooperation throughout the case has resulted in improved safety at the company’s facility and cleaner air for the surrounding Newport community."

The company's efforts in reducing greenhouse gases in general has earned the company a "Breathe Easy Award" from the EPA and Northeast Clean Diesel Collaborative.