Chevron Case Settles for $205,000

This page last reviewed March 1, 2013

In January 2013, Chevron paid $205,000 in penalties for supplying gasoline in violation of California reformulated gasoline regulations.  From mid-June 2009 until the end of July 2009, Chevron supplied more than 385,000 gallons of gasoline without adequate amounts of ethanol from its San Jose and Sacramento terminals.  California’s motor vehicle fuel regulation allows gasoline supplied within the state to contain ethanol in accordance with producer/importer specifications.  The ethanol concentration of the E10 loads supplied were actually 1.7 vol% of ethanol and the E5.7 loads were actually 0.97 vol% of ethanol.  It appears that a software upgrade (which truncated the hundreds place) to the loading arms caused 2 specific mid-grade MUL meters to dispense inadequate amounts of ethanol.  The violations were self-disclosed for both terminals.  Audits by Enforcement staff verified the violation.  Chevron took steps to investigate and correct the software, source code and version control procedures have been implemented to prevent any chance of similar recurrence.