Valero Not Appealing Refund Refusal from State

SAN ANTONIO (AP) _ Valero Energy Corp. will not appeal the Texas environmental agency’s rejection of its request for a large tax break and potential $92 million refund at six refineries.

The San Antonio-based energy giant had hoped for a tax exemption for equipment installed at the refineries to remove sulfur dioxide from crude oil. However, Valero spokesman Bill Day said the company had decided not to appeal the rejection of its request by the Texas Commission on Environmental Quality.

Day said Valero had no comment on its decision.

Valero’s requests were first made in 2007. It argued that the hydrotreater equipment should be exempt because they help reduce pollution. Texas grants tax breaks to companies that install pollution-reducing equipment.

Valero had until Tuesday to appeal the TCEQ rejection.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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