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.
[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:
This short video features Adam Springer, Assistant Director of Contra Costa County’s Hazardous Materials Program, and Contra Costa Supervisor John Gioa addressing the Chevron Refinery’s recent flaring incident. It is about two-and-a-half minutes long and worth a quick watch.
RICHMOND — Flaring activity at the Chevron Richmond refinery Monday afternoon due to a loss of power at part of the facility has sent a large cloud of black smoke over the region.
A Facebook post by the Chevron Richmond account shortly after 4 p.m. confirmed that the workers at the facility were attempting to “quickly to minimize and stop the flaring.” The post said a “Community Warning System (CWS) Level 1” was issued due to smoke and the visible flaring. This type of warning does not require action by the public, the post said.
A representative from Contra Costa Health (CCH) confirmed that Chevron Richmond notified them about the flaring due to “an unplanned unit shutdown” at about 3:30 p.m. CCH said it was sending a hazardous materials team to the refinery to investigate, but no shelter-in-place order has been issued in connection with the incident.
Flaring at the refinery in Richmond is sending up a LOT of dark smoke — plume is blowing to the west. Ground-level air quality not showing any dramatic decline according to the EPA and @ThePurpleAir monitors. pic.twitter.com/UKOeo1nH3p
KPIX chief meteorologist Paul Heggen said the smoke plume is blowing to the west. According to the EPA and Purple Air monitors, there has not been a dramatic decline of ground-level air quality.
The Bay Area Air Quality Management District has not issued an alert regarding the incident and was currently showing the air quality to be moderate in the area around the refinery. District officials confirmed that their inspectors were investigating at the refinery and that they were “documenting any violations of air quality regulations and assisting first responders.”
The district initially said four complaints were received as of around 4:30 p.m. As of an hour later, 51 complaints had been submitted.
Richmond Fire officials are also at the scene and monitoring air quality.
The company said in an update on its Facebook page shortly before 9 p.m. that employees had stopped the flaring, but intermittent flaring could still occur as the refinery is brought back up to full production.
Chevron Richmond encouraged residents who live in the area to visit www.richmondairmonitoring.org to view real-time air quality data.
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