This past Tuesday’s City Council meeting considered for the first time a nearly final draft of an industrial safety ordinance (ISO) that will help protect our city against toxic emissions, fires and explosions from hazardous facilities here, particularly but not only the Valero refinery.
I’ve never been so proud to be a Benician. I’d guess 80-90 people packed the Council Chambers at City Hall, with about 29 others Zooming in. The large majority comprised folks whom I’d never seen or heard speak up on this issue. The entire crowd seemed to support the unanimous pro-ISO consensus among the 30-plus speakers who ranged from expert engineers to laypersons with kids to protect.
One such engineer, a Valero retiree, didn’t doubt refinery employees’ personal commitments to safety, but pointed out that refinery management is under extraordinary pressure to reduce costs. He emphasized that the ISO could actually help the current refinery engineers maintain safety. (I’ll again state my respect and affection for our Valero-employed friends and neighbors in Benicia, and distinguish them from the huge Texas-based corporation that owns the refinery and calls the shots.)
A parent who attended the meeting with his (I assume) wife and toddler, chimed in to favor the ordinance. Several persons prefaced their remarks by saying “I didn’t intend to speak,” then went on to describe their concerns and support. At least one speaker pointed out that if Valero had an accident like last weekend’s huge Martinez fire and if the wind were blowing the wrong way, our entire town could have been endangered.
All in all, our community came together in numbers and passion spread across a spectrum of perspectives, but united in an unprecedented way in support for the ISO.
Valero representatives did not attend the meeting.
The big news emerging from the meeting is that Mayor Steve Young declared his backing for the ISO for the first time. Vice Mayor Trevor Macenski and Council Member Lionel Largaespada hinted at similar support; Largaespada, whose election campaigns Valero had indirectly backed through political action committees in the past, voiced a belief in strong industrial regulation and oversight.
Kudos to Young for his endorsement of the measure; this would seem to ensure a Council majority for passage, though not counting our chickens before they hatch comes to mind. Let’s hope Macenski and Largaespada join him.
Speaking of kudos: pro-ISO Council Members Kari Birdseye and Terry Scott, who along with Fire Chief Josh Chadwick and other City staff had worked tirelessly to on the ISO for over a year, played particularly powerful roles in the Council meeting’s deliberations.
Birdseye hit the bullseye in a number of illuminating exchanges with fellow Council members. For instance, when Largaespada suggested instructing City staff to review certain administrative and other details (which could in effect delay a final vote on the ISO indefinitely), she pointed out that tremendous work had already gone into thrashing out details in the document and that it was time to move ahead. (As a former New York City government management analyst and international development policy analyst, I couldn’t agree more; you can work forever on tweaking a document and never reach closure.)
Birdseye similarly pushed back successfully and forcefully when it was suggested that the Council approve formal ex officio (non-voting) membership on the ISO’s citizen Oversight Commission for Valero or other regulated businesses. As she asserted, we don’t want “the fox in the henhouse.”
Scott had his own “Great Scott!” moments. Young suggested that Valero be consulted yet again to ascertain whether the ISO could be altered to address its concerns. In response, Scott pointed out the many, many times that the City had sought constructive Valero input over the course of over a year of ISO preparation, only to be met repeatedly by dozens of pages of legalistic criticism and unhelpful feedback. He also noted that Valero had not even attended Tuesday’s Council meeting.
There are miles to ago and at least two additional Council meetings to hold before it finally votes on the ISO – which, it should be noted, is the kind of ordinance every other Bay Area refinery community has. Lots could go wrong, but so much could go right. I’ll save that for another day.
For today, I’ll just say that if Texas-based Valero seeks to block the ISO, it will be taking on not just a city but a very motivated community. Last Tuesday’s Council meeting proved that.
Benicia Police Department officers were 5.7 times more likely to stop Black people than white people based on stops per 10,000 residents. Officers stopped people 4,283 times in 2023.
Passed in 2015, the Racial and Identity Profiling Act (RIPA) required California police agencies to submit detailed data on every stop their officers made to the California Department of Justice. The law was intended to end identity-based profiling. It also created the RIPA board, which releases an annual report analyzing the data law enforcement agencies submit.
RIPA requires law enforcement officers to document information on every person they stop, including the individual’s race, gender and other identity attributes. Because the data is based on officers’ perceptions, this demographic data may not reflect how a person actually identifies. The data includes all stops officers make, such as traffic stops (the majority) and pedestrian stops.
The Benicia Police Department has reported this detailed data to the state since 2022. The data below reveals significant disparities in stop rates and, crucially, in whether the stops lead to an enforcement action like an arrest. These differences have fueled a growing debate over whether to end a police practice known as pretextual stops, in which officers use relatively minor infractions — often traffic violations — to probe for guns, drugs and other larger crimes.
Racial disparities in traffic stops are likely the result of many factors, including differences across groups in driving frequency and behavior, the level of police presence in that group’s community, and racial profiling. The degree to which racial profiling causes disparities in stops is disputed, though most research suggests bias plays some role. In a 2019 Pew Research Center survey, 44% of Black adults said they believed they had been unfairly stopped by police because of their race.
[Note from BenIndy: Today, we came across an article claiming that Valero commanded higher profits in California compared to other regions – in the third-quarter of 2023, at the very least. After looking for other articles from Q3 referencing Valero’s higher refining margins in California, we learned that Valero reported gross refining margins of 78 cents per gallon on the West Coast, vs. “41 cents for the Gulf Coast, 49 cents for the U.S. Mid-Continent, and 48 cents for the North Atlantic.” Consumer Watchdog, by the way, suggests that 50 cents is the ‘red line marker’ for price-gouging. Wow. While it’s a little old, the best analysis of the price-gouging allegations levied against Valero and other refining giants comes from this October 2023 Daily Kos post. The images in this post were added by BenIndy are are not original to the Daily Kos post.]
Valero Posts $2.6 Billion 3rd Quarter Profit On CA Gasoline Margins 70% Greater Than Other Regions
Image generated by DALL·E, OpenAI’s AI-driven image creation tool. Please note that this image’s text is gibberish and not connected to reality, a known flaw in AI image generators, but the big “78 cents” referencing Valero’s refining margins in Q3 2023 is certainly correct.
Los Angeles, CA—The third quarter report to shareholders by Valero Energy Corporation shows it made 70% more per gallon in California than in any other region of the U.S. or the globe that it operates in, according to a report from Consumer Watchdog today.
Headquartered in San Antonio, Texas, the corporation operates 15 refineries in the U.S., Canada and U.K.
Consumer Watchdog called for the California Energy Commission to expedite the process for setting a price gouging penalty under a new law passed this year, SBx1 2.
“It is time for the California Energy Commission to put its foot on the gas and set a price-gouging penalty on big refiners ripping us off at the pump,” said Consumer Advocate Liza Tucker. “It is time for the state to prevent refiners from using us as one big ATM.”
Valero, one of the five big California refiners that control nearly the entire gasoline market, reported net profits of $2.6 billion this quarter, down a tick from $2.8 billion the year before, according to Tucker. Its refining sector reported third quarter operating income of $3.4 billion, down from $3.8 billion the year before: investorvalero.com/…
“Our refineries operated well and achieved 95 percent through put capacity utilization, which is a testament to our team’s relentless focus on operational excellence,” gushed Lane Riggs, Valero’s Chief Executive Officer and President in a press release. “Product demand remained strong in our U.S. wholesale system, which matched the second quarter record of over 1 million barrels per day of sales volume.”
Tucker had a quite different assessment of the corporation’s “relentless focus on operational excellence” than Valero CEO Riggs, describing the company’s profit margins on the West Coast, obtained through apparent price gouging, as “eye popping.”
Image from the California Energy Commission’s November 28, 2023 “SBX1-2 Workshop on Maximum Gross Gasoline Refining Margin and Penalty” presentation. To learn more about this workshop, click this link. You will be redirected to the workshop page on the CEC’s website.
“3rd quarter gross refining margins of 78 cents per gallon were eye-popping on the West Coast, far higher than in any other of Valero’s operating regions,” she stated. “Valero reported margins on Gulf Coast at 41 cents; at 49 cents for the U.S. Mid-Continent; and 48 cents for the North Atlantic.”
“The West Coast gross refining margin also blew past Valero’s 60 cents per gallon reported in the third quarter of 2022. Valero only has West Coast refineries in California,” Tucker pointed out.
She also said the gross refining margins reported to investors understate the gasoline profits as jet fuel and diesel are included,
Senate Bill (SB) 1322 requires all refiners of gasoline products in the state to provide monthly data about various price and volume information. The California Energy Commission (CEC) must publish aggregated, volume weighted reports of this data, within 45 days of the end of each calendar month
“Last year, legislation empowered the California Energy Commission to form a special division to investigate gas prices in California and to set a price-gouging penalty, which Governor Newsom has called for. Last week, the Commission voted to begin such a proceeding that first involves the gathering of accurate data from refiners. SB 1322 requires refiners to report their margins to the regulator that then posts them on its website,” concluded Tucker.
WSPA and Big Oil pump Big Money into influencing California regulators
As Valero made 70% more per gallon in California than in any other region of the U.S. or the globe that it operates in, the oil and gas regulators in“green” California, the seventh largest oil producing state in the nation, continue to issue new and reworked oil drilling permits. The Newsom administration has approved a total of 15,722 new and reworked oil wells since January 2019.
This year CalGEM, the state’s oil and gas regulator, “has gone rogue, approving hundreds of oil permits in vulnerable communities breathing poisonous emissions from both active and idle wells,” reported Consumer Watch and FracTracker Alliance. For a complete permit update, see: https://newsomwellwatch.com
Why do California regulators continue to approve hundreds of new and reworked oil drilling permits each quarter as oil companies like Valero gouge Californians at the pumps?
It’s all due to deep regulatory capture by Big Oil and Big Gas in the “green” and “progressive” state of California. The Western States Petroleum Association (WSPA), Chevron and the oil companies exercise their influence and power through a very sophisticated public relations machine in California and the U.S.
WSPA describes itself as “non-profit trade association” that represents companies that account for the bulk of petroleum exploration, production, refining, transportation and marketing in Arizona, California, Nevada, Oregon, and Washington. WSPA’s headquarters is located right here on L Street in Sacramento.
Catherine Reheis-Boyd, the President and CEO of WSPA, is the former chair of the Marine Life Protection Act (MLPA) Initiative Blue Ribbon Task Force for the South Coast to create “marine protected areas” in the same region that she was lobbying for new offshore drilling.
Since 2009 I have documented how WSPA and the oil companies wield their power in 8 major ways: through (1) lobbying; (2) campaign spending; (3) serving on and putting shills on regulatory panels; (4) creating Astroturf groups; (5) working in collaboration with media; (6) sponsoring awards ceremonies and dinners, including those for legislators and journalists; (7) contributing to non profit organizations; and (8) creating alliances with labor unions, mainly construction trades.
The oil and gas industry spent over $34.2 million in the 2021-22 Legislative Session lobbying against SB 1137, legislation to mandate 3200 foot buffer zones around oil and gas wells, and other bills they were opposed to: cal-access.sos.ca.gov/…
For the oil companies, this was just pocket change when you consider that combined profits of California oil refiners, including PBF Energy, Chevron, Marathon Petroleum, Valero, and Phillips 66, were $75.4 billion in 2022.
The two biggest spenders were WSPA and Chevron. WSPA spent $11.7 million in the 2021-22 session, while Chevron spent a total of $8.6 million lobbying California officials.
Lobbying disclosures from Quarter 2 of 2023 reveal that oil companies and trade associations spent more than $3 million lobbying and a grand total of $4,085,639.57 in just three months to shape policymaking efforts in its favor in California. That brings the total spent by Big Oil and WSPA to over $13.4 million total in the first six months of 2023, putting them on track to exceed the 2022 expenditure of $18 million.
Chevron topped the lobbying expenses with $1,139,130, while WSPA placed second with $716,824.
The latest disclosures follow the $9.4 million that Big Oil spent to influence the California Legislature, Governor’s Office and agencies in the first quarter of 2023. Chevron came in first with over $4.9 million spent in the first quarter, while the WSPA finished second with over $2.3 million and Aera Energy finished third with nearly $628,000.
WSPA sponsors media dinners and awards for journalists
This year Big Oil has sponsored a chilling and highly successful campaign to sponsor dinners, awards ceremonies and conferences for journalists and the media. WPSA sponsored a “media dinner” on Tuesday, February 28 in Sacramento as part of #BizFedSactoDays.
The flyer for the event stated, “Journalists who play an outsize role in shaping narratives about state politics and holding lawmakers accountable will join business leaders to pull back the curtain on how they select and tell stories about California policies, policy and power.”
Speakers at the program included Coleen Nelson of the Sacramento Bee, Laurel Rosenhall of the Los Angeles Times, Kaitlyn Schallhorn of the Orange County Register and Dan Walters of Cal Matters.
Then on March 16, the Sacramento Press Club announced in a tweet that WSPA was the new “Lede Sponsor” of the Sacramento Press Club’s Journalism Awards Reception that was held on March 29: “Thank you to our new Lede Sponsor @officialWSPA! WSPA is dedicated to guaranteeing that every American has access to reliable energy options through socially, economically and environmentally responsible policies and regulations. Learn more more at http://wspa.org.
In response to this tweet, investigative journalist Aaron Cantu tweeted back on March 20, “As the recipient of @SacPressClub ’s environmental award last year, it’s concerning to see fossil fuel industry talking points passed off uncritically here. WSPA becoming lede sponsor happened in the context of a global PR turn as the climate crisis worsens.”
Unfortunately, Cantu and this writer are the only journalists with the courage to publicly criticize the sponsorship of a “journalism awards reception” by WSPA.
In addition to sponsoring journalism events in California, the Western States Petroleum Association has expanded its campaign to influence journalists nationally. WSPA and the controversial waste management firm Veolia North America sponsored events at this year’s Society of Environmental Journalists (SEJ) conference in Boise, Idaho, according to a report from DeSmog: https://www.desmog.com/2023/04/11/industry-sponsors-dinner-society-environmental-journalists-veolia-wspa.
The agenda for the conference, hosted in Boise, Idaho, revealed that WSPA and the waste management company Veolia North America sponsored two of the “beat dinners” hosted on April 21, the article by Sam Bright reported.
When #BigOil teams up with journalists, columnists and editors at events and only a couple of writers thinks there’s something wrong with this, you know we must be in deep trouble. Of course, no mainstream media reported on this huge scandal because it unveils the deep links between Big Oil and Big Media.
Background: California Oil Refinery Cost Disclosure Act Monthly Report
Senate Bill (SB) 1322 requires all refiners of gasoline products in the state to provide monthly data about various price and volume information. The California Energy Commission (CEC) must publish aggregated, volume weighted reports of this data, within 45 days of the end of each calendar month.
Specifically, SB 1322 requires the CEC to publish the following information from the refinery operators’ monthly reports:
A volume weighted gross gasoline refining margin for the state.
The gross gasoline refining margin for each refinery with two or more refining facilities in the state.
Volume and price of domestic and imported crude oil.
The breakdown of five types of sales required to be reported by refiners and associated volumes, prices per gallon, and actual or estimated costs associated with the Low Carbon Fuel Standard (LCFS) and Cap and Trade programs.
The data below complies with the CEC’s requirements to post the data as reported by the refiners. CEC continues to investigate the reported numbers. Additional findings, recalculations, further analysis, revised data, or other conclusions will be publicized here as we continue to verify the reported data.
Refiner Margin Data
Data last updated: October 18, 2023.
On October 3, 2023, the California Energy Commission published new petroleum market data showing the net gasoline refining information for California refiners. Volume-weighted average California gross refiner margin, net refiner margin, and numbers in the “Aggregated Data Reported” section are all calculated using information obtained from all six refinery companies. Gross and net margins reported by refinery company only reflect information from California refiners with two or more facilities which are Chevron, Valero, PBF, and Phillips 66.
The data show that in August, California refineries produced and sold 950,529,000 gallons of gasoline for a total estimated profit of $228,126,960.*
CEC staff will continue to collect and report refiner information on a monthly basis in order to analyze long-term trends as part of its assessment of setting a maximum gross refining margin and penalty for exceeding that maximum, as allowed by SB X1-2.
* Based on data reported by California refiners. The total profit estimate does not include spot pipeline transaction sales and may be considered a conservative estimate as a result.
[Note from BenIndy: Valero’s Benicia Refinery is the 5th largest stationary greenhouse gas (GHG) emitter in California. As Sunflower Alliance founding member Shoshana Wechsler notes below, “[t]he thing that continues to strike me is that the Bay Area has no clue how important we are as a major fossil fuel hub. […] We need to understand that refining both petroleum and biofuels has a very negative effect on our public health and obviously contributes mightily to the climate crisis.” Let’s enter 2024 with clear eyes…and hope for clearer lungs come 2025.]
Valero’s Benicia Refinery, a principal contributor of greenhouse gas emissions in California, looms over residential neighborhoods. | Samantha Laurey / The Chronicle 2022.
SF Chronicle, by Kurtis Alexander, December 31, 2023
California’s largest greenhouse gas polluters, from power plants to oil refineries to chemical manufacturers, produced slightly fewer emissions last year than the previous year, federal data shows. But it’s still too much planet-warming gas to cut significantly into the problem of climate change, environmentalists say.
Three of the five biggest carbon emitters in the state were in the Bay Area, according to the Environmental Protection Agency’s 2022 data on large polluting facilities. All three were refineries in the East Bay, where the process of turning crude oil into gasoline, jet fuel and other high-demand petroleum products creates substantial greenhouse gas discharges — even before the fuels themselves are used in vehicles or planes.
The refineries were among 367 large stationary sites in California that collectively reported 93 million metric tons of carbon pollution last year, a decline of about 1% over 2021, according to the data. The facilities produce about a quarter of the state’s total human-generated greenhouse gases, which does not include wildfires. Cars and trucks remain the biggest source of carbon emissions.
“The thing that continues to strike me is that the Bay Area has no clue how important we are as a major fossil fuel hub,” said Shoshana Wechsler, a founding member of the Sunflower Alliance, an East Bay group that advocates for reducing refinery pollution. “We need to understand that refining both petroleum and biofuels has a very negative effect on our public health and obviously contributes mightily to the climate crisis.”
Worldwide discharges of greenhouse gases, notably carbon dioxide, methane and nitrous oxide, have contributed to warming the atmosphere about 2 degrees Fahrenheit in the post-industrial age. The heat, scientists say, has led to a host of problems, from an increase in drought and wildfire to rising seas and more extreme weather. The Earth’s 10 warmest years on record all were logged since 2010. This year is on track to be the hottest yet.
California regulators have established some of the most ambitious policies to restrict the release of greenhouse gases from large polluting facilities, including a cap-and-trade program that forces emitters to buy permits to pollute and requirements that electric utilities generate increasing amounts of clean energy.
Over the past decade, carbon emissions from the state’s big polluters have declined nearly 20%, according to the EPA data.
Many, though, say industry is still given too much leeway and stricter regulation is necessary given the climate challenge at hand. The state has a broad goal of reaching zero carbon emissions, on net, by 2045.
“Major polluters continue to pollute somewhat unabated,” said Nihal Shrinath, an associate attorney for the Sierra Club based in Oakland. “We really need to see much more aggressive emission reductions over the next 25 years.”
Shrinath said much of the decline in pollution from large facilities was due, not to regulation, but to unrelated factors, like Californians being more efficient with their energy use and needing less fossil fuels.
California’s top five greenhouse gas emitters were all oil refineries, according to the EPA data. Two were in Southern California in addition to the three in the East Bay: Chevron Richmond Refinery, Valero Benicia Refinery and Martinez Refining Company.
Ross Allen, a spokesperson for Chevron, described the company’s Richmond refinery as “absolutely essential to modern life in the Bay Area,” saying the facility supplied 60% of the fuel for Bay Area airports and about 20% of the gasoline used in Northern California. It also provides more than 3,000 jobs.
This is a screenshot of SF Chron’s interactive data table that shows greenhouse gas emissions from large industrial facilities in California, 2022. Click the image to be redirected to the webpage with the article and the table. Readers can use the table to search for and filter GHG emitters in this state. There may be a paywall.
“We are working to reduce carbon intensity of our operations, while continuing to provide an essential product,” he said.
The state’s refineries cumulatively emitted 22 million metric tons of carbon pollution in 2022, according to the EPA data. Refineries were the second-most-polluting type of facility, following power plants, which are far more numerous and emitted 35 million metric tons last year. The chemical industry, manufacturing hydrogen, nitrogen and other products, reported 10 million metric tons of emissions.
Also among California’s 25 biggest greenhouse gas polluters were two gas-fired power plants in Pittsburg and an oil refinery in Rodeo.
The EPA data on large polluting sites generally includes facilities discharging at least 25,000 metric tons of carbon dioxide and equivalent greenhouse gases a year, about what’s emitted by burning coal from 136 rail cars, according to the agency.
Since you’re here, learn more about Contra Costa’s search for accountability and transparency from refineries by clicking on any of the following links:
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