Holly's promise to make $17 million in improvements and to pay a $120,000 fine for Clean Air Act violations are part of a national effort by the U.S. Environmental Protection Agency to cut air pollution industrywide.

"This settlement demonstrates our continuing commitment to reduce air pollution throughout the refining industry, and to provide cleaner air for the citizens of the Salt Lake City area," said Ronald J. Tenpas, assistant attorney general for the Justice Department's Environment and Natural Resources Division.

"We think it's going to benefit the community," added Michael Astin, environmental manager for the Woods Cross petroleum refinery.

The Utah operations are a part of Dallas-based Holly Corp., which had signed a similar agreement with the Justice Department for its other refineries before buying the Woods Cross plant in 2004.

The latest agreement is one of 22 under EPA's initiative to reduce air pollution from refineries nationwide. Now, 96 refineries in 28 states are required to install new controls to cut emissions.

The Holly refinery can refine nearly 24,700 barrels of oil daily, producing gasoline, diesel and jet fuel. Under the Monday agreement, its pollution will drop by 420 tons each year.

The company also will spend $130,000 to help buy new emergency equipment for the South Davis Metro Fire Agency.

Astin said many of the improvements are already under way. It may take as long as five years to complete them.

The state of Utah joined the consent decree and will share a portion of the civil penalty with EPA. The settlement, filed in the U.S. District Court for the District of Utah, is available for public comment for 30 days before final approval by the federal court.

fahys@sltrib.com