(Refiles for correct headline to indicate company Chevron Phillips and joint venture, not Chevron unit

By Valerie Volcovici

WASHINGTON, (Reuters) – A joint venture of Chevron Corp and Phillips 66 has agreed to invest $118million to clean up and upgrade three of their petrochemical plants along the Gulf Coast. In addition to a civil penalty of $3.4 million for violations of federal air quality regulations, the U.S. Justice Department announced Wednesday.

Chevron Phillips Chemical Company LP has reached a settlement to the Justice Department regarding allegations that Chevron Phillips Chemical Company LP violated the Clean Air Act as well as state pollution laws at three of the company’s petrochemical facilities on the Texas Gulf Coast.

It was accused of not monitoring its industrial flares which led to them exceeding limits for emitted volatile organic compounds (VOCs), and harmful air pollutants (HAPs).

“We are committed to reducing harmful air pollution from unnecessary and improper flaring, especially near overburdened communities with environmental justice concerns,” said Justice Department Assistant Attorney General Todd Kim.

Chevron Phillips must install air monitoring and pollution control equipment at all three of its plants. These devices should help reduce greenhouse gas emission by “thousands per year,” according the Environmental Protection Agency.

Plants will be required to set up fence lines monitoring benzene emissions, and to take corrective action if readings exceed acceptable levels to safeguard local communities. Benzene is a known carcinogen that can cause leukemia, respiratory problems, and other serious health issues.

Chevron Phillips spokesperson stated that the company was happy with the settlement reached by the EPA. The statement also indicated that additional investments are being made to proactively lower our environmental footprint in line with our sustainability strategy.

Kim spoke Wednesday about how the settlement is a result of the Biden administration’s efforts to reduce the carbon footprints of those companies that fall under their jurisdiction.

“The settlement includes improved combustion efficiency requirements, flaregas recovery system and requirements to decrease flaring. It also reduces the overall carbon footprint for all three facilities,” said he.