HOUSTON (Reuters) - BP Plc, the U.S. Environmental Protection Agency and Indiana regulators have reached an agreement that will allow the use of Canadian tar sands crude oil at the company's 405,000 barrel per day (bpd) Whiting, Indiana, refinery, according to sources familiar with the deal.

As part of a settlement with EPA and local environmental groups, BP will install an estimated $400 million of pollution-control equipment at the refinery.

BP is within a year of finishing a $4 billion upgrade to enable the refinery to run crude from Canadian tar sands.

(Reporting by Erwin Seba; editing by John Wallace)