Here in Benicia we LOVE Kamala Harris!! …and oh, yeah, Joe Biden!
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Phillips 66 has become the latest in a string of U.S. refiners to announce plans to convert an oil refinery into a biofuel plant.
The company said Wednesday that its 120,000 barrel-a-day Rodeo refinery near San Francisco will become the world’s biggest plant that makes so-called renewable diesel, as well as gasoline and jet fuel, out of used cooking oil, fats, greases and soybean oils.
The announcement came about a week after Marathon Petroleum Corp. said that it may convert two refineries into renewable diesel plants. In June, HollyFrontier Corp. said it would turn its Cheyenne, Wyo., refinery into a renewable diesel plant by 2022.
As refiners across the U.S. struggle with depressed fuel demand amid the pandemic, California’s low-carbon fuel trading scheme may represent a pathway for survival. Demand for so-called renewable diesel is surging in the Golden State as refiners buy increasing numbers of credits under the low-carbon fuel standard program, which aims to cut vehicle emissions 20% by 2030.
“There is overcapacity on the refining market,” Marijn van der Wal, biofuel advisor at Stratas Advisors in Singapore, said in an interview Wednesday. “Are we going to shut down our refineries or are we going to repurpose them?”
Renewable diesel is chemically identical to diesel derived from fossil fuels, according to Neste Oyj, the word’s biggest producer of the fuel.
The LCFS credits as well as federal RIN D5 credits and recently reintroduced Blenders Tax Credits generate about $3.32 a gallon in subsidies for renewable diesel producers, enough to cover production costs, Van der Wal said in a June report.
“It’s a mind-boggling amount of money,” he said by phone. “You will make a lot of money as long as all these subsidies come in.”
Find out why the smallest details can be the most important.
The Rodeo plant could start operating as early as 2024, producing 680 million gallons a year of renewable diesel, gasoline and jet fuel, the company said. Combined with production from an existing project in development, the plant would produce more than 800 million gallons a year. In addition to repurposing the Rodeo refinery, the company also announced it would be closing its 45,000-barrel-a-day plant in Santa Maria in 2023.
Last week, Marathon said it will convert its 166,000-barrel-a-day Martinez, Calif., refinery into a terminal facility and that may include a 48,000-barrel-a-day renewable diesel plant as soon as 2022. The company is turning its 19,000-barrel-a-day North Dakota plant into a renewable diesel plant by the end of this year.
The surge of new entrants into the California biofuel market is creating its own problems, Van der Wal said. Existing renewable diesel suppliers to California, including Neste and Valero Energy Corp., have locked up much of the feedstock, leaving less tallow and cooking oil for the newcomers. Additionally, so many projects are being proposed that there may not be enough diesel demand in California to absorb the additional fuel.
Solano County reported today’s 7-day percent positive test rate rose from 4.1% yesterday to 4.4 today. Solano had never registered below 5% since the County began publicly reporting test rates on July 13. (Note that the positive test rate graphic chart may be misleading – see NOTE at top of this page.) The County posted a high of 9.3% on July 22. CONTEXT: Health officials and news reports focus on percent positive test rates as one of the best metrics for measuring the spread of the virus. The California 7-day rate has been falling, but is reported up today from 6.2% to 6.9%.
The County report on race / ethnicity includes case numbers, hospitalizations, deaths and Solano population statistics. There are also tabs showing a calculated rate per 100,000 by race/ethnicity for each of these boxes. This information is discouragingly similar to national reports that indicate worse outcomes among black and brown Americans. As of today:
The County’s new and improved Coronavirus Dashboard is full of much more information, too extensive to cover here on a daily basis. The Benicia Independent will continue to summarize daily and highlight a report or two. Check out the Dashboard at https://doitgis.maps.arcgis.com/apps/MapSeries/index.html?appid=055f81e9fe154da5860257e3f2489d67.
Joe Biden’s nominee for Vice President, California Senator Kamala Harris, has a remarkable connection for many of us here in Benicia. Her support for a safe and healthy world was incredibly important in the 2016 defeat of Valero Benicia’s dirty and dangerous oil train proposal. The story should be told now, to honor Harris’ candidacy and to encourage support for a Biden/Harris ticket among all who care about clean air, land and water.
During our 3½ year battle to defeat Valero Benicia’s Crude By Rail proposal, then California Attorney General Kamala Harris wrote two letters challenging Valero’s project and the City of Benicia’s environmental review. Her support was critical in support of local organizing efforts by Benicians for a Safe and Healthy Community and others far and wide.
OCTOBER 8, 2014, Summary, from p. 2: Unfortunately, the DEIR for this Project fails to properly account for many of the Project’s potentially significant impacts pursuant to the California Environmental Quality Act(CEQA). Specifically, the DEIR: 1. … Continue reading California Attorney General letter critical of Valero DEIR→
OCTOBER 22, 2014, Repost from Bloomberg News By Victoria Slind-Flor – California Attorney General Kamala Harris expressed reservations about the trade-secret provisions in a proposal for a crude-by-rail project in Benicia, California. In a letter to the city’s Community Development Department, she said the draft environmental impact report for … Continue reading Bloomberg: California AG Rejects Trade-Secret Claims for Crude-by-Rail→
OCTOBER 9, 2014, Repost from The Sacramento Bee – By Tony Bizjak and Curtis Tate – The battle over crude oil trains in California intensified this week, reaching into the legal sphere with potential national repercussions. The state’s … Continue reading Railroads file suit against state of California→
APRIL 15, 2016, By Roger Straw – California Attorney General Kamala Harris: letter disagrees with City of Benicia staff, consultants and Valero Today the City of Benicia received a letter from California Attorney General Kamala Harris disagreeing with City staff, consultants and Valero Refinery. The letter asserts that Benicia’s Planning Commission and City Council have every right to deny a … Continue reading CALIFORNIA ATTORNEY GENERAL: “For Benicia to turn a blind eye…”→
APRIL 15, 2016, By Jean Tepperman – In a strongly-worded letter sent Thursday to City of Benicia officials, California Deputy Attorney General Scott J. Lichtig wrote that Valero, the City of Benicia’s planning staff, and an outside attorney advising the … Continue reading EAST BAY EXPRESS: Attorney General Harris: Benicia Has Power to Reject Oil Facility→
APRIL 14, 2016, By Tony Bizjak – HIGHLIGHTS: • Harris said Benicia has the right to say no, is not pre-empted by federal law • Two 50-car oil trains would travel daily through downtown Sacramento • Valero spokesman: ‘We remain confident … Continue reading SACRAMENTO BEE: California Attorney General Kamala Harris challenges Benicia oil plan→
JANUARY 18, 2014, Repost from Diane Bailey’s blog, Switchboard, Natural Resources Defense Council California Attorney General Tells Major Oil Terminal Developer, WesPac, to Hold Up in Pittsburg Posted January 17, 2014 by Diane Bailey in Environmental Justice, Health and the Environment, Moving Beyond Oil The California Attorney General, Kamala D. Harris, sent a stark letter to the City of Pittsburg this week warning of … Continue reading Diane Bailey: California Attorney General Letter, Protests in Pittsburg 1/21/14→
Roger Straw
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