Delaware City Refinery Faces Multiple Environmental Violations and Public Scrutiny

The recent incidents at the Delaware City Refinery highlight significant environmental concerns and offer valuable lessons for businesses regarding operational integrity, regulatory compliance, and risk management.

Delaware City Refinery Faces Multiple Environmental Violations and Public Scrutiny

The Delaware City Refinery has faced a series of environmental violations in 2025, drawing considerable public and regulatory attention. The refinery received an environmental violation in March for an air pollution incident involving the release of 38,145 pounds of sulfur dioxide and 262,185 pounds of carbon monoxide without required pollution controls. This incident, which occurred on March 13 and lasted 10 hours, was due to a pollution control device that "went offline during a route fan swap".

This same pollution control device failed again between May 26 and June 12, leading to an additional 19-day air pollution incident with unpermitted levels of sulfur dioxide and other chemicals released. The refinery, owned by PBF Energy, reported daily emissions of sulfur dioxide as high as 1,450 pounds per hour during this period. DNREC is still investigating this most recent incident. In total, the refinery has received three notices of violation in 2025, with the other two related to excess carbon monoxide releases on January 25 and June 10, 2024.

These repeated incidents have sparked public outcry for more accountability from both the state and the refinery, as well as calls for better communication when excess emissions occur. A town hall meeting was held on June 5, with DNREC Secretary Greg Patterson and refinery executives in attendance, where promises were made about improving communication. Residents are demanding tougher environmental laws and a thorough review by state regulators to determine what actions could have prevented the incidents.

Concerns have also been raised about the potential public health impacts, especially for vulnerable populations, and the adequacy of air quality monitoring. Although DNREC officials stated there was no public health threat and air quality monitoring indicated pollution did not impact air quality at levels below EPA standards, environmental experts have questioned the reliability of monitoring stations, noting they can be compromised by wind direction and weather.

Lessons for Business Owners

The Delaware City Refinery incidents underscore several critical lessons for businesses, particularly those with environmental exposure:

Strict Regulatory Compliance is Paramount: The refinery received violations for failing to operate pollution control devices in accordance with its air permit and for unpermitted discharges. Businesses must ensure continuous compliance with all environmental permits and regulations to avoid legal and financial penalties.
Mechanical Integrity and Reliability are Essential: The repeated failure of the same pollution control device highlights the need for robust mechanical integrity and reliability programs to prevent equipment breakdowns and accidental releases.
Financial Consequences Can Be Severe: Beyond the costs of repairs, DNREC will assess monetary penalties, the limits of which are defined by state law. The history of substantial fines, such as the $950,000 paid to resolve a backlog of unpaid fines, demonstrates the significant financial liabilities that can arise from environmental violations. Proposed legislation aims to further increase these fines.
Public and Reputational Impact is Significant: The incidents led to public outcry, town hall meetings, and demands for accountability, which can severely damage a company's reputation and lead to increased scrutiny from community groups and regulators.
Evolving Regulatory Landscape: Community pressure is driving calls for tougher environmental laws and increased fines. Businesses should anticipate that environmental regulations may tighten in response to such incidents, requiring ongoing adaptation and investment in pollution prevention measures.

How a Pollution Insurance Policy Can Protect Your Business

These incidents underscore the critical importance of pollution liability insurance for businesses, especially those operating in industries with environmental exposure. A pollution policy can provide vital protection by helping to cover:

Costly Claims: This can include claims from third parties affected by accidental environmental releases, such as property damage or bodily injury.
Regulatory Fines and Penalties: Pollution insurance can help mitigate the financial impact of monetary penalties assessed by environmental agencies, as seen with DNREC's actions against the refinery.
Cleanup Expenses: In the event of an environmental release, cleanup operations can be extremely costly. A pollution policy can cover these expenses, reducing the financial burden on the business.
Reputational Damage Mitigation: While insurance cannot prevent reputational damage directly, it can absorb the financial costs associated with responding to incidents (e.g., legal fees, fines, crisis management expenses), which might otherwise exacerbate reputational harm.

As environmental regulations tighten and public scrutiny intensifies, evaluating existing liability coverage and strengthening risk management strategies becomes increasingly crucial for businesses to protect themselves from potentially devastating financial and reputational consequences.