Alon USA Energy and Alon USA Partners LP plan to spend less than $30 million upgrading refineries in Krotz Springs and Big Springs, Texas, so they meet proposed federal pollution standards.
The Environmental Protection Agency’s recently proposed regulations, known as the Tier III fuel standards, include reducing sulfur content in gasoline to no more than 10 parts per million on an annual average basis.
Alon USA Energy said it expects the refineries will be required to meet those standards by 2020.
Alon USA Energy’s refineries in California already meet that standard.
Alon USA Energy, based in Dallas, owns refineries in California, Louisiana and Oregon. The refineries can process 180,000 barrels of oil per day.
Alon USA Energy owns the majority of Alon USA Partners, which owns and operates the Big Springs facility. The Texas refinery can refine 70,000 barrels of oil per day.