New Safety Rules for California Refiners Will Cost Operators Millions

The Bureau of National Affairs, Inc., August 11, 2017

California's new safety rules for refiners, which were published by the state’s Office of Administrative Law August 4 and take effect October 1, require operators to make changes to better anticipate and prevent major accidents. However, these rules will inevitably cost millions of dollars to comply. In fact, California oil refinery operators including Chevron Corp., Andeavor Inc., and Valero, could spend about $58 million during the next year to comply with the state’s new refinery safety rules, the state says.

The state found in a regulatory impact assessment completed in 2016 that the regulation would create 158 jobs and cost companies $58 million during its first year. The regulations would pay for themselves if they reduced the risk of a “costly major incident” at a refinery by 7.3 percent, according to the assessment. The state defined a major incident as one causing at least $800 million in damage to California’s economy.

Click here to read the full article from The Bureau of National Affairs, Inc..

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