$PBF Energy(PBF)$ The aging Torrance refinery in California, which continues to suffer frequent breakdowns, is severely testing PBF Energy's (NYSE:PBF) reputation as a turnaround whiz, Reuters reports.

PBF is spending $100M this year to improve operations at Torrance, and is budgeting another $50M for upgrading its electric power to prevent outages; a phaseout of a chemical used in gasoline production at the plant may prove an unexpectedly high expense that was not planned when PBF bought the refinery from Exxon Mobil for $537M last July.

California's South Coast Air Quality Management District may push to adopt a rule to phase out use of the chemical by December; a study commissioned by the air regulator estimated switching to sulfuric acid would cost ~$100M for each refinery that uses it.

The problems are weighing on earnings; PBF this week reduced its estimate of Q1 crude throughput at Torrance by 16%, and last year the company missed its earnings goals due at least partly to outages at Torrance and the Delaware City, Del., refinery.