Category Archives: Bay Area Air Quality Management District (BAAQMD)

Chevron fined record-breaking $20M for Richmond refinery violations, Air District promises ‘new chapter’ for agency

Air District secures decisive victory: Chevron & MRC refineries drop lawsuits, Chevron to pay highest violation penalties in agency history

Chevron Richmond flaring. | KPIX.

Record-breaking penalties & community funding mark a new chapter for the agency

BAAQMD Press Release, February 13, 2024

SAN FRANCISCO – The Bay Area Air Quality Management District announced today it has reached two separate agreements with Chevron and Martinez Refining Company resulting in an end to the litigation against the agency over its groundbreaking Regulation 6, Rule 5, major emissions reductions from both refineries, unprecedented penalties and other payments of up to $138 million, and a Richmond-area Community Air Quality Fund, among other benefits. The Air District estimates that the emission reductions achieved by the rule will result in tens of millions of dollars per year in health benefits by reducing early deaths and other health impacts of exposure to particulate matter.

Both agreements are related to the Air District’s enforcement of Rule 6-5, the most health protective rule of its kind in the nation. The rule reduces airborne particulate matter, or PM, emissions from petroleum refinery fluidized catalytic cracking units, or FCCUs. FCCUs are devices used in the manufacture of gasoline and are the largest sources of PM at these refineries. As a result of Chevron and MRC’s compliance with Rule 6-5, there will be an estimated 70 percent reduction of PM emissions from Chevron’s FCCU and an 80 percent reduction from MRC’s FCCU.

“The historic penalties and successful defense of our life-saving Rule 6-5 are a win for air quality in the Bay, especially those living in the Richmond and Martinez-area communities,” said Davina Hurt, chair of the Air District Board of Directors. “The establishment of the Community Air Quality Fund for Richmond further emphasizes our dedication to address the specific air quality concerns of the communities most affected, improve public health and to advance environmental justice.”

“The Air District’s agreements with Chevron and MRC mark a turning point in our commitment to enforcing air quality regulations and deterring future violations throughout the Bay Area, especially in communities already overburdened by air pollution,” said Dr. Philip Fine, executive officer of the Air District. “The record-breaking penalties and commitment by the refineries to comply with our health-protective Rule 6- 5 will help ensure a cleaner, healthier future for all Bay Area residents.”

“Defending our health-protective regulation to substantially reduce particulate matter from refineries and imposing significant penalties helps us improve air quality for all residents,” said Contra Costa County Supervisor John Gioia, who represents Richmond and is also a member of the Air District Board of Directors. “I believe everyone, no matter where they live, has the right to breathe clean air.”

“Protecting our communities from particulate matter 50 yards down the street from sources is as important as protecting these communities 50 years down the road from climate change,” said Mark Ross, Martinez Vice Mayor and member of the Air District Board of Directors. “Along with this settlement and the resumption of Rule 6-5, with its historic reduction in annual PM emissions, the Air District is also demonstrating that enforcement of episodic incidents and violations will be enforced vigorously. Bay Area residents deserve such protection for their health now and in the future.”

Chevron Agreement Highlights:

  • Chevron drops its lawsuit and agrees to reduce PM emissions as required in the rule.
  • Chevron pays unprecedented penalties for any delay in compliance past the regulation’s July
  • 2026 compliance deadline. Chevron has committed to compliance with Rule 6-5 pollution limits, with escalating, record-setting penalties for non-compliance:
      • $17M for year 1
      • $17M for year 2
      • $17M for year 3
      • $32M for year 4
  • Chevron implements interim PM emission reductions at the FCCU to obtain early reductions even before the regulation’s compliance deadline.
  • Chevron pays into the Community Air Quality Fund, initiated with $20 million and supplemented annually by $3.5 million during the period needed for Chevron to construct air pollution controls. The fund will finance projects aimed at reducing PM exposures in the communities impacted by the refinery.
  • Chevron pays a $20 million fine for 678 other violations at the refinery unrelated to Reg. 6-5 and commits to a series of measures designed to reduce persistent flaring.
  • Chevron pays half the Air District’s attorney fees, up to $500,000.

MRC Agreement Highlights:

  • MRC drops its lawsuit and agrees to fully comply with the regulation.
  • MRC will demonstrate compliance with the regulation using a continuous monitoring system instead of periodic quarterly stack testing.
  • MRC pays half the Air District’s attorney fees, up to $500,000.

The Air District’s landmark Rule 6-5 reduces particulate matter emissions from petroleum refinery operations and is the most stringent rule of its kind in the country. This groundbreaking rule outlines specific requirements for reducing, monitoring, and reporting emissions of various pollutants including sulfur compounds and particulate matter from refinery operations.

The Bay Area Air Quality Management District is the regional agency responsible for protecting air quality in the nine-county Bay Area. Connect with the Air District via X/Twitter, Facebook, Instagram and YouTube. 

When refineries break the rules, they pay fines – but these fines rarely reach impacted communities. Time to speak up!

[Note from BenIndy: Take the $1.2 million penalty Valero must pay for major flaring incidents at the Benicia Refinery in 2017 and 2019, for example. These incidents directly impacted the health and safety of Benicia residents, and yet it’s possible that Benicia may never see a dime of that penalty. Why? What can be done to ensure that communities directly, immediately, and tangibly impacted by negative health and safety situations created by refineries are directly, immediately, and tangibly compensated? Frequent BenIndy Contributor Kathy Kerridge got in touch with the following.]

Photo Illustration by Kelly Caminero / The Daily Beast / Getty.

ATTENTION to everyone who would like to see refinery penalties go to the community

We’ve all been waiting for the time when we can have input about how penalty fines from refineries can get back to the local community.

On Thursday, January 18, at 6:00 pm, the Community Advisory Council of the Bay Area Air Quality Management District (Air District) will hear from the Air District staff about possibilities.

This is your chance to weigh in on what should happen to the fines the refineries pay when they pollute our air, and how much of the fines will be returned to the local community.

Here is the link to information about the meeting:

Advisory Council Meeting Re.: Penalty Funds

 There will be community input.

The meeting will be both in person in SF and on Zoom.  I hope that people who are concerned about this can go into the meeting in person. If not, please plan to attend by Zoom.

This is particularly important for all refinery communities.  These fines have been substantial, and we want to make sure that the communities that have been harmed at least benefit from some these penalties.

Please spread the word.  Contact kathykerridge@gmail.com if you have questions or if you would like to try to carpool or go together on BART.

Kathy Kerridge
BCAMP Board Member
Good Neighbor Steering Committee
Progressive Democrats of Benicia Chair


SEE ALSO:

It Takes a Village…and a Scott…and a Birdseye

Valero’s Benicia Refinery. | Pat Toth-Smith.
Benicia resident and author Stephen Golub

By Stephen Golub, first published in the Benicia Herald on December 24, 2023

Benicia got an early gift from Vice Mayor Terry Scott, Councilwoman Kari Birdseye and the rest of the City Council Tuesday night, December 19, when the Council unanimously voted to move ahead on putting together an industrial safety ordinance (ISO) that will help protect our kids, our older citizens and all of us against the risks of toxic emissions and potential fires/explosions. The decision capped months of patient, arduous work by Scott and Birdseye, who sought to address the views of all concerned parties along the way, resulting in their proposal that triggered the vote.

To be clear, the vote was to start a process, rather than to approve an ISO itself. But after an ISO is drafted and then presumably adopted next year, it will help us stay informed about accidents, incidents, violations, maintenance issues and other developments at Valero (and potentially other major industrial facilities in Benicia) that could affect our safety and health. It could enable Benicia to take preventive and enforcement action when necessary.

This contrasts with our current situation under a voluntary cooperation agreement with Valero, which provides for very limited information for and no enforcement by Benicia. For example, the refinery poured toxic emissions hundreds of times the legal limits into our air for well over a decade, until at least 2019. Even after the Bay Area Air Quality Management District learned of those emissions, that regional regulatory body failed to inform us about them for nearly another three years. We only found out in 2022.

Rather than being left out of the mix, Benicia needs a true seat at the table in order to get such information and take action. An ISO provides such a seat. The cooperation agreement and other current arrangements clearly don’t.

In the spirit of the holidays, I won’t delve into the substance of the debate any further. But I will emphasize that nothing about the ISO, or the effort to adopt it, is directed against the many fine Benician friends and neighbors who work at Valero or who are retirees from its facilities. Quite the contrary: The goal is to bolster safety and health for all of them as well as for the community as a whole.

Smoke from the Valero Benicia refinery during a 2017 incident. | Bay Area Air Quality Management District.

In fact, the hope is also that Valero’s leadership sees this is an opportunity to work with the City to provide its legitimate input. It would be a shame if the corporation walked away from such cooperation. Especially in view of Benicia’s budget problems and their implications for public safety, we need to pull together at this point rather than pull apart. Prompting bad national publicity, spurring divisions locally and other counterproductive fallout will do no good. Far better to act as a good neighbor.

Scott spearheaded the Council deliberations on Tuesday by highlighting how Benicia could construct a model industrial safety ordinance, learning from the experience of the other Bay Area refinery communities, all of which already have ISOs – which, by the way, fees on affected facilities pay for, rather than residents doing so.

Birdseye stood stalwart in repeatedly and successfully pressing for a vote even when there apparently was some temporary hesitancy or lack of clarity about how to proceed.

Thanks to Mayor Steve Young and Councilmembers Tom Campbell and Trevor Macenski, the motion was approved unanimously. And a bit of history was made: Reflecting community sentiment expressed at the meeting and elsewhere, as well as relevant research and experience, the Council decided that it wanted an ISO. If the resulting ordinance is true to that sentiment, research and experience, the ISO will be a strong one.

Thus, the devil will be in the details of what the eventual ordinance entails – something to be decided in the coming months under the direction of a subcommittee led by Scott and Birdseye. But this was a crucial first step.

So big kudos to Scott and Birdseye in particular for making this happen and making history for Benicia. And to the Mayor and other Councilmembers for backing an ISO. Thanks, too, to Fire Chief Josh Chadwick and other hardworking Benicia City staff members for the work they have done and will put into making all this a reality.

Last but not least, let’s also acknowledge the contributions of many other members of this wonderful village we call Benicia. Namely, the many Benicians who spoke, wrote letters and otherwise advocated for an ISO – spurred in part by the Benicia Industrial Safety and Health Ordinance (BISHO) alliance. To join the more than 150 supporters of this effort, or simply to find out more about this matter, please check out the group’s website at www.BISHO.org.

And have safe, healthy and happy holidays!


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Join the BISHO movement

There is a group of concerned citizens of Benicia who also support the adoption of a Benicia Industrial Safety and Health Ordinance (BISHO). To learn more about the effort and add your support, visit www.bisho.org.

Benicia City Council Initiates Draft Industrial Safety Ordinance Process

Benicia Industrial Health and Safety Ordinance (BISHO) spokesperson Terry Mollica spoke passionately in favor of adopting an ISO in Benicia, calling existing agreements with Valero “toothless.” | Image still from City of Benicia Dec. 19, 2023 City Council meeting.

 

FOR IMMEDIATE RELEASE

December 21, 2023 – Benicia, CA – On Tuesday, the Benicia City Council unanimously approved a proposal by Vice Mayor Terry Scott and Councilwoman Kari Birdseye to instruct staff, under the direction of a Council subcommittee led by the two, to conduct research, solicit substantial expert and public input and produce a resulting draft Industrial Safety Ordinance (ISO) for the city. If the Council then adopts the ISO, it will cover Valero Benicia Refinery as well as other industrial sites in Benicia that meet the determined criteria. 

“City Council’s primary responsibility is to safeguard the health, safety and well-being of our residents, businesses and visitors,” said Vice Mayor Scott. “That includes policing, fire protection, clean water, and now we have the opportunity to create an Industrial Safety Ordinance that provides common-sense legislation to transparently monitor and protect the air we breathe.”

“Benicia deserves a ‘state of the art’ industrial safety and health ordinance that will best protect our community,” said Councilwoman Birdseye. “We will take the lessons learned in other refinery towns, from county experts, and local community members who have been impacted by refinery pollution for decades.”

Benicia is the only Bay Area refinery city without an ISO, as other communities have realized the importance and value of strengthening their relationships with and oversight of their resident refineries. In lieu of an ISO, Benicia currently has a Cooperation Agreement (CA) with Valero, initiated in 2019 and due to expire in 2025. Many citizens and city leaders believe the CA has not been strong enough, given Valero’s continued lack of transparency in reporting numerous violations of federal and state law.

Well over a dozen Benicians testified about the issue at the Council meeting, almost all in favor of a strong ISO, providing both scientific data and personal experiences. One resident of Benicia’s East Side, the area most affected by Valero emissions and fumes, spoke movingly about his family’s and neighbors’ experiences in which his son’s elementary school was evacuated because of an air spill of toxic oil pollution from the Valero Asphalt plant. “The county gave us an emergency order to lock down. A teacher went to the hospital. Valero denied all responsibility. The City and state appeared powerless to do anything substantial to protect against another incident,” he said. 

Benicia Vice Mayor Terry Scott

“We can’t protect public health without knowing what is in the air we breathe,” Scott said. “Moving forward with an ISO gives the city an effective tool for providing our community with an additional level of enforcement and trust.” 

Earlier this year, a call for the passage of an ISO was launched by a group of concerned citizens who believe that Benicia needs ways of monitoring, obtaining information about and taking enforcement actions regarding Valero emissions. Called the Benicia Industrial Safey and Health Ordinance (BISHO) working group, the initiative has more than 150 supporters in the community. 

Benicia City Council Member Kari Birdseye.

“We are grateful to Vice Mayor Scott and Councilwoman Birdseye for bringing this critical concern to City Council and for the entire Council for their support,” said Terry Mollica, a leader of BISHO.  “We need to make sure our community is notified immediately of refinery and other industrial emergencies or failures to meet state and federal regulations. We also need strong, enforceable penalties for the failure to do so.”

“It is our hope that everyone involved, the City, Valero, and the community, will have a seat at the table,” continued Mollica. “It is in all our best interest that we work together to make Benicia a safer, healthier place for all of us.” 

To find out more about the issue, BISHO, and how to get involved, go to the organization’s website, www.bisho.org.

“We want as many people as possible to read the materials, recognize how important this issue is to our community and become supporters of a strong Industrial Safety and Health Ordinance,” Mollica said. 

BISHO Working Group Contact:
Terry Mollica, beniciaisho@gmail.com, (707) 385-9972