Californians have been particularly squeamish about hydrofluoric acid ever since 2015 when an explosion at an ExxonMobil refinery in Torrance sent a piece of machinery flying toward a tank filled with the chemical. The U.S. Chemical Safety Board called the incident — which injured four workers — a “near miss” amid fears that a release of the chemical could trigger a toxic vapor cloud that could travel long distances and endanger millions of residents.
In 2016, the refinery was taken over by PBF Energy Inc., but it has continued to grapple with several safety and regulatory lapses including a fire and heavy flaring.
Now, state regulators are gearing up to ban hydrofluoric acid at both the Torrance refinery and another refinery owned by Valero Energy Corp. eight miles away. While the ban might put residents at ease it could trigger another problem: inflated gas prices.
According to a report in Bloomberg, analysts predict that the price surge could be much worse than the fallout from the 2015 explosion which halted fuel production and sent the price at the pump soaring by more than a dollar in three months. Gas prices in California are already 60 cents above the national average.
Currently about 35 percent of all refineries use hydrofluoric acid to increase octane and make cleaner-burning gasoline. Only 19 refineries in California, along with several overseas, have the capability to make gasoline that meets the state’s strict environmental standards. The Torrance facility, which churns out 150,000 barrels a day of gasoline, is the state’s second biggest refinery.
Analysts predict that phasing out the chemical could squeeze local supply, which could then force Southern California to import up to 25 percent of its fuel, raising prices.
A ban on the chemical could also cost every refinery about $500 million, according to analysts at the California Energy Commission.
But one analysist with Gasbuddy said that fears of a gas price surge are overblown and that refineries would be given enough advance notice to adequately prepare for a switch.
If the ban goes through, a boost in prices could also test the resolve of local residents who may want to feel safer, but not pay as much for gas.