Public Notice: Proposed Settlement of Clean Water Act Class II Administrative Penalty; IES Downstream LLC, Honolulu Terminal Marine, Honolulu, HI

Summary

EPA is providing notice of a proposed administrative penalty settlement with IES Downstream LLC, (Respondent) for violations of the Clean Water Act (CWA) at Respondent’s Honolulu Terminal Marine, located in Honolulu, Hawaii. EPA alleges that Respondent violated the Oil Pollution Prevention Regulations, including the Spill Prevention, Control and Countermeasure (SPCC) requirements, promulgated pursuant to sections 311(j)(1)(C) and (5) of the CWA, 33 U.S.C. §§ 1321(j)(1)(C) and (5). Specifically, the EPA alleges that at the time of the December 20, 2024 inspection, Respondent failed to provide secondary containment that would be sufficiently impervious to contain spilled oil until cleanup could occur.

Pursuant to Section 311(b)(6) of the CWA, 33 U.S.C. § 1321(b)(6), and in accordance with 40 C.F.R. Part 22 (rules of practice for assessing administrative civil penalties), EPA proposes entering into a Consent Agreement and Final Order (CA/FO) with Respondent to simultaneously commence and conclude this CWA Class II civil administrative penalty proceeding. Under the proposed CA/FO, Respondent will pay the United States a civil penalty of $142,010 to resolve this matter.

In the Matter of IES Downstream, LLC, EPA Docket Number CWA-09-2026-0065

Complainant: Amy Miller-Bowen, Director, Enforcement and Compliance Assurance Division, U.S. EPA, Region 9, 75 Hawthorne Street, San Francisco, CA 94105.

Respondent: IES Downstream LLC

Description of Business or Activity Conducted by the Respondent: EPA alleges Respondent is the “owner or operator” of the Honolulu Marine Terminal, an onshore oil storage facility engaged in receiving, storing, and transporting refined petroleum products to end users throughout Hawaii.

Summary of Alleged Violations: Respondent failed to provide adequate secondary containment that is sufficiently impervious to contain a discharge, failed to correct visible discharges of oil outside of primary containers, and failed to properly mark out-of-service piping.

Proposed Penalty: $142,010.00

Applicants or Respondents

Docket Numbers

• CWA-09-2026-0065

Related Documents

• Consent Agreement and Final Order: Island Energy Services (IES Downstream LLC) (pdf) (362.08 KB, April 13, 2026)
  Agreement and (Proposed) Final Order in the matter of Island Energy Services (IES Downstream LLC), Kapolei, Hawai‘i. EPA Docket Number CWA-09-2026-0065.