On April 8 the Air District invited us to help decide how those millions of dollars will be spent!
Smoke from the Valero Benicia refinery during a 2017 incident. | Bay Area Air Quality Management District.
For years, Benicians have been calling for the Bay Area Air District to direct some of the millions in violation money collected from refineries to the communities where the refineries are located – the communities that suffer from the harm caused by the violations.
Finally, this year, the Air District is getting serious about sharing those funds. And here in Benicia, the dollars are huge!
Last October, the Air District (and CARB) fined Valero Refining Co. $82 million for Benicia air quality violations! In an email yesterday, Benicia Mayor Steve Young sent out an alert with the subject line, “Help decide how to spend $64 million from the Valero settlement in Benicia.”
Young was referring to an invitation issued by the Air District to fill out a survey and attend an ONLINE WORKSHOP TODAY AT 5PM. Here is the content of the invitation as it appears in the Benicia City Manager’s latest newsletter:
Help Shape How Millions in Community Funds Are Spent – Take the Survey or Join the Workshop!
The Bay Area Air District has established a new Community Investments Office to help direct funding from enforcement actions into projects that benefit communities most impacted by air pollution across the Bay Area. Your voice is critical in shaping how these funds will be distributed.
We’re reaching out to ask for your input in two ways:
Take a brief survey to share your thoughts on community priorities, funding needs, and more: Take the Survey
Join us for a virtual community workshop on Tuesday, April 8, 2025, from 5:00– 6:00 PM to learn more and walk through the survey together.
A four-alarm fire broke out at the Port of Benicia Saturday, April 9, 2022. San Francisco Baykeeper, an organization that took legal action against the port and the Valero refinery over Clean Water Act violations and won, was on site, documenting the incident with video captured by drone. | SF Baykeeper.
By Betty Lucas, February 3, 2025
When it’s cold and raining outside, we keep warm and dry in a variety of ways: umbrellas, jackets, mitts and muffs. Multiple layers are not duplicative; they are often necessary. We protect ourselves, our homes and cars through insurance that covers theft, fire, landslides and floods. The same thing goes for protections against things we might not be able to see or feel, like pollution in our air and environment – as well as all too visible threats like potential fires and explosions.
These types of city protections may be codified into something called called an industrial safety ordinances (ISO). Such ordinances protect residents against industries that pollute, such as refineries, cement factories, etc.
No one ever regrets having strong insurance protection when they need it. Ask anyone in LA or Santa Rosa who lost their homes to fires.
All California cities with refineries have protection through ISOs, except Benicia,
On the Tuesday, February 4 City Council meeting, starting at 6 pm, Benicians have a chance to encourage every City Council member to unanimously pass a strong ISO.
Why would any Council member vote against keeping us safe? Adopting an ISO with a strong oversight commission to monitor the law’s implementation is similar to each of us having strong insurance protections for when we need it.
Valero has opposed such a protective ISO because it knows it could be fined for various ISO violations. It claims that we don’t need an ISO with oversight because it’s duplicating services that already exist. This is not true. There are other agencies concerned with such matters, yet Valero’s history shows that there were not enough current protections in place to keep us safe from its polluting our air and not reporting this for many, many years. An ISO with a seat at the table will keep us informed of risks, hazards, accidents and violations, to provide the protection we need moving forward.
The City’s current Memorandum of Understanding with Valero has proven totally inadequate for protecting us. Having multiple checks and balances are necessary, not duplicative.
Your comments are encouraged. On February 4, please attend the Benicia City Council meeting in person, via Zoom, or email your thoughts to Mayor Steve Young:SYoung@ci.benicia.ca.us. The meeting is at Benicia City Hall, 250 East L Street.
Benicia citizens are ready to clear the air regarding an Industrial Safety Ordinance.
Tuesday’s Benicia City Council meeting is set to include a segment on the possible adoption of the ordinance. The Benicia Industrial Safety and Health Ordinance — a citizens group formed in 2023 with 250 supporters — is looking for a stronger ordinance to deal with venues like Valero Refinery, the site of numerous air pollution incidents.
“This is a critical meeting that will affect the future of our air quality for years to come,” said Terry Mollica, a member of the group Benicia Industrial Safety and Health Ordinance. “We need everyone in Benicia who cares about the air we breathe to show up at the city council to show support for stronger protections.”
Benicia is the only Bay Area refinery town to not yet have an Industrial Safety Ordinance. Community activists — including health and environmental advocates — have spent years calling for tighter regulations to protect citizens from dangerous industrial emissions impacting air quality and the health of residents.
The Valero Refinery has been the site of a series of air pollution incidents, including the recent revelation that a hydrogen vent at the refinery had been leaking 2.7 tons of toxics into the air for 15 years. That discovery resulted in an historic $84 million fine imposed by the Bay Area Air Quality Management District in 2024.
Inspectors reported that Valero management had known about the leaks for years, but failed to report them or take steps to mitigate the leak. The fine reportedly was the largest penalty ever assessed by the district.
“[The Benicia Industrial Health and Safety Ordinance group] was formed by a group of concerned citizens to promote the adoption of an ISO to help the city regulate such emissions and reduce the risk of incidents,” Mollica said. “This most recent discovery and the secrecy surrounding the years-long leaks point out how important it is for Benicia to have a strong Industrial Safety Ordinance.”
Valero was one of four other refineries that in 2023 didn’t meet requirements as defined by BAAQMD and Rule 12-15.
Rule 12-15 — passed in 2016 — requires refineries to monitor and report fugitive gasses from their operating equipment, such as valves, compressors, and storage tanks. These emissions impact the health of the surrounding communities — the toxic gases released include noxious chemicals like the cancer-causing benzene.
After a trip to the refinery in 2023, Benicia Community Air Monitoring Program Board Member Kathy Kerridge said she was not surprised at the result. After all, it wasn’t the first time it had to pay up for emitting smoke or chemicals into the air. In April 2017, the Bay Area Air Quality Management District fined Valero $340,000 for 28 violations committed in 2014. A month later, they were hit with four additional violations — one for causing a public nuisance and three for releasing excessive smoke.
“Fines are trivial to them,” Kerridge said. “It’s like they are having a direct slap to the face with the community. The main problem is that the air monitoring gives us the sense of false security.”
Newly-elected council members Terry Scott and Kari Birdseye sponsored the adoption of an ordinance late in 2023. The council then voted unanimously to have staff study the issue and make a recommendation. Mayor Steve Young appointed Scott, Birdseye, Fire Chief Josh Chadwick and city staff to a subcommittee to draft an ordinance and to bring it before the city council.
Benicians took to the streets near City Park on Wednesday to protest the influence of the Valero Oil Refinery in the 2022 local election. (Chris Riley/Times-Herald)
Since then, the subcommittee held public meetings to gain feedback from citizens and industrial groups including Valero, analyzed the data and drafted an ordinance.
Mollica also said that during those months, there have been ongoing negotiations between the city and Valero with the refinery displaying strong resistance.
In June 2019, execution of the Benicia–Valero Cooperation Agreement addressed concerns raised by the council and the community regarding industrial safety with the Valero facility. While an agreement with the parties largely achieved its intended goals, several areas for improvement have been identified over the past five years with three significant concerns. Those concerns are:
Term: The agreement includes an expiration date, requiring the City to renegotiate an extension or a new agreement each time it expires.
Termination: The agreement contains a termination clause, allowing a party to potentially terminate the agreement at any time.
Enforcement: The agreement lacks clear enforcement provisions and does not specify consequences for non-compliance.
Since then more outreach was requested, including engaging with key stakeholders and subject matter experts. To achieve this, a subcommittee implemented a comprehensive public engagement strategy and created the website www.EngageBenicia.com for the public to share their thoughts, questions, and feedback. The site went live in March.
That same month, a public feedback survey was introduced on the website to gather quantitative data on public opinion regarding industrial safety in Benicia. Between March 25 and May 19, feedback was collected from 178 participants, according to a Benicia City Staff report.
The ordinance is now on its third draft, which was constructed last month. This newest draft incorporated significant revisions from the prior versions, with the most notable being a detailed legal analysis determining that various aspects of the previous versions included requirements that state law makes the responsibility of the the Solano County Certified Unified Program Agency.
The Valero Refinery in Benicia was one of four refineries in the SF Bay Area that did not meet air quality requirements for compliance with the Bay Area Quality Management District in 2023. (Chris Riley/Times-Herald file)
The staff report also outlines industrial facilities subject to regulation under the ordinance. It specifies that the ordinance applies to any High Hazard Facility operating within the City of Benicia, as defined in Section 8.55.070. A “High-Hazard Facility” is classified as a “Group H” occupancy under the California Fire Code and encompasses buildings, structures, or portions thereof used for manufacturing, processing, generating, or storing materials that pose physical or health hazards in quantities exceeding the limits permitted in the California Fire Code.
While the current agreement is only between Benicia and Valero, the draft ordinance will regulate numerous other industrial facilities. Although the list of Group H high-hazard facilities in Benicia is not static, in 2023 it did list 13 businesses that were defined as Group H occupancies. Those are:
Valero Refinery (3400 E 2nd St)
Kaneka (6162 Egret Ct)
Ralph Pugh (3931 Oregon St)
Interstate Batteries (535 Getty Ct)
Amports (2050 Park Rd)
Cork Supply (531 Stone Rd)
Red Line Synthetic Oil (6100 Egret Ct)
Auto Chlor (515 Stone Rd)
Benicia Water Treatment Plant (100 Water Way)
Kwik Bond Polymers (923 Teal Dr)
Flavor Insights (4795 E Industrial Way)
Delta Tech Services (397 W Channel Rd)
Linde Inc (331 E Channel Rd)
The 2023 report also listed two other sites that are no longer operating in the city — Red Line Synthetic Oil and Auto Chlor.
The Tuesday meeting will begin at 6 p.m. at 250 East L Street in Benicia. It can be viewed via Zoom at us02web.zoom.us/j/88508047557?pwd=cHRsZlBrYlphU3pkODcycytmcFR2UT09. The phone number is 1 (669) 900-9128, while the Meeting ID is 885 0804 7557and the password is 449303.
SAN FRANCISCO – The Bay Area Air Quality Management District and California Air Resources Board are announcing today a nearly $82 million penalty in a joint case to address significant air pollution violations by Valero Refining Co. at its Benicia refinery. This penalty is the largest ever assessed in the Air District’s history.
Over $64 million of these funds will be returned to the local community to finance projects aimed at reducing air pollution exposure, mitigating air pollution impacts and improving public health in areas surrounding the refinery. These projects will be selected through a public process with input from residents, community organizations, elected officials and advocates representing the impacted area. The remainder of the penalty will be used to fund beneficial clean air projects in overburdened communities throughout the Bay Area, as well as to offset the costs of investigating and prosecuting the case. In total, nearly $80 million of this historic penalty will be returned to Bay Area communities.
“Today’s historic penalty against Valero Refining Co. for its egregious emissions violations underscores the Air District’s unwavering commitment to holding polluters accountable and safeguarding the health of those living in refinery communities,” said Dr. Philip Fine, executive officer of the Air District. “Investing these funds back into the community will empower local residents to drive air quality projects that benefit the surrounding neighborhoods, advancing our mission of cleaner air for all.”
“CARB is pleased to have supported the Air District in investigating and settling this important case that helps remediate the harms Valero’s operations caused to surrounding communities,” said CARB Executive Officer Dr. Steven Cliff. “The Air District’s new community fund provides critical funding for projects that improve air quality and public health for impacted local communities. CARB is proud to direct the majority of its share of the penalties from this settlement to the community fund to expand the reach of its projects.”
“This penalty sends a strong message; adherence to air quality standards is both necessary and expected, and failure to do so can lead to significant fines,” said Steve Young, Benicia Mayor and a member of the Air District Board of Directors. “Benicia residents need to know that air quality violations are taken seriously. The use of these funds will help us address local air quality issues going forward. I am grateful for the work of the Air District, CARB and the California Department of Justice in helping bring this long-standing issue to conclusion.”
The penalty stems from a 2019 inspection that found unreported emissions from the facility’s hydrogen system containing harmful organic compounds in violation of Air District regulations. These organic compounds contributed to the Bay Area’s regional smog and particulate pollution problems, and they contained benzene, toluene, ethylbenzene and xylene, or BTEX, compounds, which cause cancer, reproductive harm and other toxic health effects. Air District inspectors discovered that refinery management had known since at least 2003 that emissions from the hydrogen systemcontained these harmful and toxic air contaminants but did not report them or take any steps to prevent them. The refinery emitted an estimated 8,400 tons of these organic compounds in total over this period in violation of Air District regulations – an average of more than 2.7 tons for each day on which a violation occurred, over 360 times the legal limit.
Subsequent investigations uncovered a host of other problems involving the hydrogen system, including emissions in violation of applicable limits, failure to install required emissions abatement equipment, failure to inspect equipment for leaks and failure to report required information, among other violations.
The Air District sought abatement orders from its independent Hearing Board to require Valero to abate ongoing violations. In conjunction with CARB, the Air District has now assessed this monetary penalty to resolve all the violations. In addition to the penalty, Valero will be required to undertake several measures to prevent future violations. Valero will be required to reconfigure the facility’s main hydrogen vent and vents in its hydrogen production plants to prevent emissions from being released directly into the atmosphere. Valero will also be required to implement a training program to ensure that its staff are fully aware of all relevant Air District regulations.
In May 2024, the Bay Area Air Quality Management District Board of Directors adopted a groundbreaking policy that directs a significant portion of penalty funds to the communities most impacted by air quality violations. Under this policy, most of these penalty funds will be reinvested in local projects specifically designed to reduce pollution and enhance public health. To help improve regional air quality and advance the Air District’s environmental justice and equity goals, penalty funds will be allocated in accordance with this new policy. The policy will ensure that significant amounts of large penalties benefit the community where the violation occurred while also setting aside funds to address the needs of communities overburdened with air pollution that may not have industrial sources that could be subject to large penalties.
This penalty is the third major fine the Air District has assessed against Bay Area refineries this year. In February, the Air District announced a $20 million penalty against the Chevron refinery in Richmond, and earlier this month the Air District announced a $5 million penalty against the Marathon refinery in Martinez. “These significant penalties should put the refineries and other industrial operations on notice,” said Alexander Crockett, the Air District’s general counsel. “If you violate our regulations and pollute our air, we will hold you accountable to the maximum extent provided for by law.”
The joint prosecution with CARB is also indicative of a new level of cooperation among enforcement agencies for air quality violations. The Air District will look to partner with other agencies where appropriate to ensure that maximum enforcement resources are brought to bear for significant violations.
CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change. From requirements for clean cars and fuels to adopting innovative solutions to reduce greenhouse gas emissions, California has pioneered a range of effective approaches that have set the standard for effective air and climate programs for the nation, and the world.
The Bay Area Air District has established a new Community Investments Office to help direct funding from enforcement actions into projects that benefit communities most impacted by air pollution across the Bay Area. Your voice is critical in shaping how these funds will be distributed.
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