Utah is home to five small oil refineries that produce less than 75,000 barrels of oil per day. For these refineries, the requirement to produce Tier 3 fuels was delayed until 2020 to avoid potential of economic hardships and even longer delays in Tier 3 fuel production.
Under the leadership of Gov. Herbert, the Utah Legislature worked with OED and key petroleum stakeholders to create a path forward for these smaller refineries. The result was the High Cost Infrastructure Tax Credit (HCITC), a non-refundable, post-performance tax incentive provided to refineries that committed to making the necessary upgrades to produce Tier 3 fuels.
The incentive has helped accelerate the production of Tier 3 fuels in Utah.
Chevron and Marathon are now producing Tier 3 fuels and Silver Eagle and Holly Frontier have committed to producing Tier 3 fuels by the end of the year.
