Category Archives: Biofuels

Biofuelwatch alleges Contra Costa officials obstructed public participation in Phillips 66 Biofuels Refinery Project hearing

The Martinez Marathon Refinery. | Marathon Petroleum Corp.
The Phillips 66 San Francisco Refinery in Rodeo. | Dreamyshade / Wikimedia CC BY-SA 4.0.

Biofuelwatch, sent to BenIndy January 17, 2024

The saga of the repurposing of two of the refineries in the San Francisco Bay Area to manufacturing liquid biofuels from high deforestation risk commodities like soy took another anti-democratic twist this week. Local authorities sped through a hearing on January 16, 2024 on the revised environmental review of the massive Phillips 66 biofuel refinery project in the unincorporated community of Rodeo on the northern shores of the Bay, rushing to keep the $1 billion investment moving forward while taking measures to curtail public participation in the process.

As background, in May 2022 the Contra Costa County Board of Supervisors had previously hosted back to back hearings on both the Phillips 66 biofuel refinery project in Rodeo and the Marathon-Neste joint venture biofuel refinery project in Martinez. That day-long session of hearings was held only because community, environmental and climate justice organizations had appealed the County Planning Commission approvals of the California Environmental Quality Act (CEQA) environmental reviews of the refinery conversion projects earlier that year.

On that day in early May 2022 the Contra Costa County Supervisors unanimously denied the appeals and wholeheartedly green lighted both of the biofuel refinery projects. Following those decisions by local elected officials, the Center for Biological Diversity, in partnership with Communities for a Better Environment, and with the legal and technical expertise of the Stanford Environmental Law Clinic, filed parallel lawsuits challenging the simultaneous approval of the environmental review of both unprecedented refinery conversion projects. The court case on the Marathon/Neste joint venture at the Martinez refinery resulted in a partial decision exposing flaws with the environmental review, focusing singularly on the flawed odor management plan, an unsatisfactory result for climate justice advocates. That lawsuit has already been sent on to the state appeals court, and will be heard in the coming year.

The Phillips 66 refinery in Rodeo has been getting lucrative incentives for making biofuels even though the environmental review of the project was found deficient by a judge.  | Uncredited image from Biofuelwatch post.

However, in the case of the Phillips 66 biofuel refinery project, the same judge ruled that the original environmental review of the biofuels project was illegal and had failed to address serious questions of cumulative impacts, while embarking on the illegal tactic of piecemealing — the illegal breaking up of the entirety of a project into discrete pieces, thus averting the legally required review of the project as a whole.

This court ruling prompted county authorities to rush forward with a Draft Revised Environmental Impact Report, which was released and opened to public comment in the autumn of 2023. Biofuelwatch reported extensively on the dynamics around this public comment period in our previous post Court Orders, Refinery Fires and Deforestation Drivers: California Push for Liquid Biofuels Ignores Red Flag Warnings.

Despite being presented with more evidence about the dangers of characterizing the conversion of the more than century old Phillips 66 Rodeo refinery to making biofuels as a climate solution, the county proceeded with great haste to finalize the revised environmental review during the holiday. Precisely four weeks after the close in early December 2023 of written public comment on the draft the county announced the January 16 public hearing to approve the final revised version.

The newest final version of the project review once again roundly dismissed all the evidence and information provided by community members and the organizations that engaged on the public comment. Despite the requirements under the California Environmental Quality Act to assess how new information can influence the veracity of the entirety of the environmental review, the county discarded new factual information provided in the public comment that in essence further substantiated the record of evidence that had resulted in the court of law ruling that the original environmental review was illegal in the first place.

Neither the Board of Supervisors nor County Staff expressed any sort of contrition nor leadership self reflection when faced with the fact that they had previously rubber stamped an environmental review that the court had later found deficient.

Kerry Guerin is an attorney with Communities for a Better Environment who attended the January 2024 hearing on the Phillips 66 project.. | Uncredited image from Biofuelwatch post.

Of the evidence presented to the county by community members regarding the safety concerns with the processing of feedstocks like soy was the existence of the most recent draft of what is known as a Flare Minimization Plan (FMP), presented by Phillips 66 on an annual basis for the Rodeo refinery to the local Bay Area Air Quality Management District (BAAQMD). The FMP is an annual requirement, the review of which is buried in the opaque processes of BAAQMD staff and not easily accessible to the public. The late 2023 version of the FMP for the Phillips 66 Rodeo refinery apparently still remains confidential. However, the 2022 ‘nonconfidential’ version of the FMP was shared with Biofuelwatch.

Remarkably, despite the fact that Phillips 66 has been making liquid biofuels at their Rodeo refinery since April 2021, more than a year before receiving final approval for their project from the County in May 2022, an anomaly that the court saw as being relevant to the illegal piecemealing of the environmental review of the project, their most recent ‘nonconfidential’ version of their Flare Minimization Plan from October 2022 does not even mention biofuels. As a matter of fact, scrutiny of the 2022 FMP document reveals absolutely no mention of the refinery conversion project at all.

In essence, Phillips 66 has received lucrative Low Carbon Fuel Standard credits from the California Air Resources Board for producing ‘renewable diesel’ from feedstocks like soy and canola with a hydrogen intensive ‘hydroprocessed esters and fatty acids’ hydro cracker technology at their Rodeo refinery, but the most recent publicly available version of the FMP for that same refinery regulated by the local air district BAAQMD does not even mention the words biofuels, renewable diesel, hydrotreated vegetable oils, HEFA, soy, canola, animal tallow or any of the terms that are directly associated with making these products. As far as the BAAQMD supervised Phillips 66 Rodeo Refinery Flare Minimization Plan goes the biofuel project apparently does not even exist.

Notably absent from the recent county supervisors hearing on the revised environmental review were any representatives from BAAQMD, neither to provide comment or to be available to answer questions from decision makers, once again raising questions about to what extent the local air district is fulfilling their responsibility to implement regulatory activities within the context of current and future operations.

This incongruence of biofuel production not even existing in a recent Phillips 66 FMP was brushed aside by county authorities, who also appeared completely unconcerned about the recent devastating fire at the Marathon-Neste biofuel refinery in Martinez. At the same time, the County was obligated in their documentation to recognize that there exist numerous ‘significant and unavoidable environmental impacts‘ from the project. Those impacts were dismissed because of the economic significance of the refinery project.

Tyson Bagley is the United Steelworkers Health and Safety Representative for the Phillips 66 Rodeo refinery who attended the January 2024 hearing and spoke in strong support of the Phillips 66 biofuels project. | Uncredited image from Biofuelwatch post.

Notably, and not surprisingly, labor organizations representing workers at the Phillips 66 refinery came out in strong force in support of approval of the project, celebrating the opportunity to keep the refinery operating into the foreseeable future to make ‘renewable’ fuels with ‘renewable’ feedstocks to provide the state with the ‘low carbon’ energy sources that are central to aspirations to achieve ‘decarbonization.’

Adding a particularly grotesque dynamic of inequity to the proceedings was the manner in which the local authorities conducted the review hearing.

After having spent two hours celebrating the legacy of Dr Martin Luther King, Jr in commemoration of the treasured annual federal holiday, the Board of Supervisors reconvened to hear the agenda item on the Phillips 66 biofuel refinery environmental review. Remarkably, after an abbreviated 15 minute staff presentation that reasserted the urgency of approving the project again, the chair of the Board stated that public comment would be restricted to 1 minute. Though the audience in attendance was predominantly labor and company representatives in Phillips 66 uniform, there were hoots of disbelief from advocates that instead of the traditional 3 minute time allowed for public comment at most public hearings, in this instance an individual speaker would get only one minute. That an individual public comment on an issue of such magnitude and technical complexity would be limited to 1 minute is unheard of with such a small audience.

That the Contra Costa County Board of Supervisors would come out of a ceremony dedicated to elevating the legacy of Dr Martin Luther King, Jr to immediately open an agenda item on the permitting of a controversial polluting industrial facility owned and operated by a company worth ~$60 billion dollars, and with a long legacy of conflict with affected communities, and tell concerned community members that their time to address the board would be abbreviated in this manner was roundly seen as outrageous — to put it in polite terms.

Even county staff knew, after all they had done to ram the project through, that limiting public comment at the hearing was simply a ‘very bad look.’ The clear obstruction of the public right to meaningful participation that was manifested by the limitation on public comment at the hearing on the Phillips 66 biofuels project clearly accentuates the corporate impunity facilitated by the irregular and industry friendly governance of not only the biofuel refinery issue specifically but of the energy sector in the state more broadly.

It made no difference to the acquiescent and beholden to industry Contra Costa County Board of Supervisors, who rapidly moved to approve the Phillips 66 project with a unanimous 5-0 vote.

Contact Gary Hughes (garyhughes.bfw@gmail.com), who is the Americas Program Coordinator with Biofuelwatch, with inquiries.

Judge halts major Bay Area refinery project for state environmental review

The Phillips 66 San Francisco Refinery in Rodeo. | Photo By Dreamyshade, Wikimedia Creative Commons.

Phillips 66 cannot begin operations at a new California biofuel refinery until Contra Costa County fixes flaws in an environmental analysis of the project.

MARTINEZ, Calif. (CN) — Phillips 66 must halt a plan to start operating a new biofuel refinery in Rodeo, California, after a San Francisco Bay Area judge said the county that approved it must fix legal issues with the project’s environmental report card.

Contra Costa County Superior Court Judge Edward Weil ordered Phillips 66 to put on hold what would be one of the world’s largest biofuel refineries, to produce some 800 million gallons of biofuel products per year. The county must show that the project fully complies with environmental review requirements which he found had been violated when authorities first approved it.

Petitioners Communities for a Better Environment and the Center for Biological Diversity asked Weil to vacate his prior judgment and prohibit operations while the county works on the known legal flaws in its environmental analysis of the project. They said Weil’s prior judgment allowed the project’s land use permit to remain in place and failed to enjoin operations while the county proved its compliance with the California Environmental Quality Act — the state’s bedrock environmental protection and community right-to-know law.

The judge said in a tentative order that his prior judgment’s purpose was to allow for construction, not operations, while environmental legal issues are considered. He said that he must consider whether there is any conflict between the statement of decision and the judgment.

“There is, however, a potential conflict between the statement of decision and the judgment because the court allowed the land use permit to remain in place but did not specifically enjoin project operations,” Weil said. “Therefore, the court grants petitioners’ motion to vacate the judgment and to issue a new judgment that specifically enjoins project operations until further order of the court.”

Weil ruled from the bench Thursday to execute the tentative order as his official judgment.

Attorney Kurtis Keller, representing Contra Costa County, declined to comment on the ruling Thursday.

Hollin Kretzmann, an attorney at the Center for Biological Diversity’s Climate Law Institute, lauded Weil’s decision. She noted that construction on the refinery can continue.

“Counties are required to evaluate, disclose and reduce the environmental harms of a project before approving it,” Kretzmann said. “Communities long suffering from refinery pollution have every right to demand maximum protections against toxic emissions and foul odors, and the county needs to secure them.”

The planned refinery is near the Marathon-Tesoro biofuel refinery in Martinez, which itself could eventually produce more than 700,000 gallons per year of biofuel products and become one of the largest biofuel refineries in California. The petitioners say that the two projects would require at least 82,000 truck trips, nearly 29,000 railcars and more than 760 ship and barge visits annually.

That increases pollution, traffic and the risk of spills and accidents from the projects, while generating and processing biofuels that would worsen existing impacts on communities nearby fossil fuel processing plants. The state considers people who live near the refineries to be “disadvantaged” because of their high exposure to pollution from existing industries. The proposed refineries would cement ongoing or increased air and odor pollution for these residents for decades, the petitioners say.

“This is a huge victory for nearby residents who’ve raised serious concerns about pollution that will come from this giant refinery,” said Shana Lazerow, legal director of Communities for a Better Environment. “Allowing this project to operate before the environmental review process is complete would’ve rigged the whole decision in favor of the refinery operator.”

Sara Evall, a student attorney at the Stanford Environmental Law Clinic, said Thursday: “The county is obligated to reassess the project based on community members’ input and an unbiased record. Rights of the public to informed democratic decision-making come before Phillips 66’s bottom line.”

The judge’s prior order, which found that the county had violated the California Environmental Quality Act by approving the biofuel refinery without properly assessing major components or adopting mitigation for odor impacts on local communities, came down this past July.

Benicia ALERT & VIDEO: Bay Area Refineries Proposing Biofuel & Hydrogen Production

Biofuels and hydrogen proposed at Bay Area refineries – may not be as green as they sound

The Richmond City Council held a study session in late October called “Refinery Transition Briefing.”  (Video below.)  Senior attorney Ann Alexander from Natural Resources Defense Council and staff researcher Dan Sakaguchi with Communities for a Better Environment examined Chevron’s recent announcement to convert at least a portion of their Richmond refinery to biofuel and hydrogen production.  They also discussed the biofuel conversion plans of neighboring refineries in Rodeo, Phillips 66, and Martinez, the already shuttered Marathon refinery.

The study session explained why biofuels and hydrogen may not be as green as they sound, especially when produced at large, aging refineries that are desperate to extend the life and profits of their facilities as the need for fossil fuels ramps down in California.

Why should Benicians care?  Three out of the five Bay Area refineries are in the process of converting to biofuel production and Valero’s corporate leadership out of San Antonio is on the record saying the company is “going all in on carbon capture projects and renewable diesel, a fuel produced from animal fats and waste products, such as used cooking oils.” (Houston Chronicle, May 26, 2021)

ALERT AND INVITATION…  There aren’t enough french fries and soybeans in the world to feed all of our large Bay Area refineries.  And in some cases, the production of hydrogen and biofuels can even increase greenhouse gas emissions.  Give this study session a listen to go beyond the greenwashing hype of the fossil fuel industry. 

VIDEO: Refinery Transition Briefing
Dan Sakaguchi, CBE, and Ann Alexander, NRDC
Richmond City Council, 26 Oct 2021

VIDEO GUIDE
(Thanks to Constance Beutel for snagging the Richmond video.)

  • 0:00      Dan Sakaguchi, Introduction
  • 1:10      Chevron’s Hydrogen Announcement, reading between the lines
  • 2:24      Hydrogen Basics – Grey, Blue and Green Hydrogen
  • 6:23      Back to Chevron’s Announcement – Grey Hydrogen
  • 9:27      Biofuel Basics
  • 10:27   Ann Alexander, Biofuels at Marathon Martinez & P66 Rodeo
  • 10:43   Driving forces
  • 12:20   Timeline
  • 14:16   Environmental benefit claims
  • 15:00   Environmental and community concerns
  • 18:35   Dan Sakaguchi – Chevron Corporation Biofuels Announcements
MORE…

Bay Area refineries taking a new path – going from processing crude oil to renewable energy

Refineries Renewed  – Phillips 66, Marathon move to renewable biofuels

East Bay Express, By Jean Tepperman, September 16, 2020
OIL CHANGE: Local residents stand tall in front of the Phillips 66 refinery, which will become the world’s biggest producer of renewable fuels by 2024. PHOTO BY GLENN HUMMEL

Residents of East Bay refinery communities, public officials and environmental organizations had mixed reactions to recent surprise announcements by two Bay Area oil refineries: Phillips 66 said its Rodeo refinery will stop processing petroleum and switch to producing biofuel—made from living plants. It will also close its Rodeo carbon-processing plant. Days later, Marathon announced it would close its Martinez refinery and consider using it to produce biofuel.

“It’s really historic to see 50 percent of the refineries in Contra Costa make a decision to go from processing crude oil to renewable energy,” said Supervisor John Gioia. “It moves us in the right direction, knowing it’s not where we want to end up.” He added that, since the converted refineries will probably employ fewer workers, the county’s big challenge will be “to assist workers to find replacement jobs with equal pay [and create] pre-apprenticeship programs to get local people into jobs.”

Rodeo resident Maureen Brennan said, “I’m 60 percent excited for the community about this new technology and 40 percent worried. I’m happy to have less pollution from the refinery. I’m just suspicious.” She noted that Phillips 66 hasn’t withdrawn permit applications for “two tar-sands-related projects.” Nancy Rieser, another refinery neighbor, was skeptical about the refinery’s mention of “used cooking oil” as a raw material. She said she feared that, instead, rainforests in Brazil and Paraguay would be cleared for “industrial soybean production” to supply the biofuel industry.

And Greg Karras, author of a recent report calling for gradual decommissioning of California refineries, said the move to biofuel is a “strategy to protect oil companies’ stranded assets.” State and federal support for this strategy diverts resources from the real solution: electrification of transportation.

Phillips 66 announced that, starting in 2024, the refinery will become the world’s biggest producer of “renewable diesel, renewable gasoline, and sustainable jet fuel,” reducing the use of fossil fuel. The company said the change will cut carbon dioxide emissions from the refinery by 50 percent, sulfur dioxide by 75 percent and reduce pollution in general. The plant will produce 50,000 barrels of biofuel a day, compared to its current output of 122,000 barrels a day of petroleum products.

In addition, the project’s website, Richmond Renewed, says it “will provide high-paying family-wage jobs with healthcare benefits. Crude oil refinery workers will have the opportunity to transition to produce renewable fuels. Construction jobs for refinery conversion will help the county recover from the COVID-induced recession.”

The Phillips 66 biofuel project—and the possible project at Marathon in Martinez—reflect an oil-industry trend that started before the current economic problems. Many California policies have been promoting a move from fossil-fuel transportation. And environmental activists have been winning battles against planned fossil-fuel expansion. “There’s a lot about this project that’s way less terrible” than previous proposals, said Karras. San Luis Obispo County recently nixed a Phillips 66 plan to bring crude oil by rail from Canada’s tar sands to its Santa Maria refinery. And for years community opponents have stalled two Rodeo refinery proposals they say are also about tar sands: construction of propane and butane storage tanks and expansion of tanker traffic.

For starters, refinery neighbors and environmental organizations are focusing on making sure the county won’t approve the new proposal without a thorough public study. “To understand the details—local pollution shifts, where the feedstock will come from, how many millions of acres could be needed for soy, palm trees, you name it—there must be a full-scale environmental review combined with a 180-degree shift away from their planned tar sands expansions,” said Wilder Zeiser of Stand.earth.

Just Transition

Many are also concerned about the loss of jobs. Mike Miller, president of United Steelworkers Local 326, which represents workers at Phillips 66, said the company told him they could probably handle the reduction in jobs through attrition—10 or 20 people typically retire every year, Miller said, and “there are a lot of older people at our facility.” He added that when the company tells the union something, “most of the time they tell us the truth.” He said the company also mentioned the possibility of transferring workers to other Phillips facilities.

Supervisor Gioia reported that in his conversations with Marathon about its possible conversion to biofuels, managers estimated that the new plant would employ fewer than half of the number soon to be laid off from its Martinez refinery.

The problem, Gioia said, is that “the new jobs in the green economy aren’t there yet.” Many communities whose economies depend on fossil fuel, he said, are looking to the example of the electric-bus manufacturing plant recently opened in L.A. County. “Contra Costa is ground zero” for figuring out how to make a just transition from fossil fuels, Gioia said.

U.S. Representative Mark DeSaulnier said in a statement, “Workers must be taken into consideration and supported through [this] process—including with proper training, advanced warning, and jobs worthy of their skills. I have already begun and will continue to bring together local stakeholders to ensure that a transition away from fossil fuels does not leave anybody behind.”

In his report, Karras calls on governments to require fossil-fuel producers to pay up-front into a fund to help communities recover from their economic and environmental impacts and to provide income support and retraining for laid-off workers. Noting the support for biofuels from state and federal government, he said, “The project being proposed is so heavily subsidized that there’s every justification for holding the company responsible for making the workers and the community whole.”

In addition to jobs, neighbors are concerned about leftover toxic pollutants. Crockett resident Rieser said Phillips has “tanks of toxins and old oil sludge on both sides of Route 80. How will these be dealt with? Abandoned?” In addition to converting the refinery, Phillips 66 says it will close the nearby carbon-treatment plant, leaving another toxic site. A requirement to clean up the pollution, she said, should be a condition of any permit the county may grant.

Clean Fuel?

Biofuel helps reduce the amount of climate-disrupting carbon dioxide produced each year because it’s made from living plants. The carbon dioxide they absorb when they grow balances that emitted when they’re burned. “It’s probably true that biofuel will be some of what we need” to transition from a fossil fuel transportation system, Karras said. That’s because biofuel can be substituted for petroleum in existing vehicles and distribution systems, although for use in airplane engines, it must be blended with at least the same amount of petroleum fuel.

But according to the nonprofit Biofuel Watch, biofuel is “misleading as a climate solution,” for several reasons. One is that producing biofuel still releases carbon dioxide and toxic pollutants. Phillips 66 says the new facility will be 15 percent solar-powered, implying that the other 85 percent of the power will come from burning some kind of fuel.

Hydrocracking, the process Phillips 66 says it will use to produce biofuel, requires large amounts of hydrogen. And the refinery’s process for producing the hydrogen also produces large amounts of carbon dioxide, Karras said—along with health-harming pollutants.

In addition, burning biofuel in vehicles produces some of the same kinds of pollution as burning petroleum products, especially the “particulate matter” that causes the most harm to human health. A report from the National Institutes of Health evaluated research comparing the pollution from burning biofuel and petroleum. Results varied depending on the exact composition of the fuels, but in general the biofuels produced substantial amounts of particulate and other pollution, although less than petroleum. Low-income people of color are mostly likely to live near the refineries and freeways where those pollutants are concentrated.

A 2019 study compared two “pathways” for California to get off fossil fuel, one focusing on renewable fuels, the other on electrification of transportation. It estimated that the electrification pathway would reduce particulate pollution enough to avoid about 12,000 premature deaths a year. The renewable-fuels pathway would also avoid some premature deaths from particulate matter—but only about a quarter as many, 2,800 a year.

Land and Climate

The other big concern about biofuel is where the raw material comes from. Phillips 66 says it will be processing “used cooking oil, fats, greases and soybean oils.” But according to Biofuel Watch, the supply of used cooking oil is very limited. Phillips 66 has said that it will use soy oil from the Plains states, but these supplies are also limited. Many fear that the demand for soy and other biofuel crops is adding to the large-scale destruction of forests.

“Where biofuel production has been successful – using vegetable oils, corn, and sugarcane for example – the environmental and social consequences of vast new demand for these commodities has had severe and rippling effects on markets, food production, biodiversity, and human rights,” wrote Gary Hughes of Biofuel Watch. Destroying forests and soil to produce biofuel sometimes releases several times as much carbon as burning the fossil fuels they replace, according to a report from that organization.

State and federal policies heavily subsidize biofuels, according to Marijn van der Wal of Stratas Advisors, quoted in the Los Angeles Times story on the Phillips 66 announcement. Under the California Low Carbon Fuel Standard and the federal Renewable Identification Number program, producers of biofuel earn “credits” they can sell. They also get $1 per gallon through the federal Blenders Tax Credit program. Altogether, van der Wal estimated, this adds up to “about $3.32 a gallon . . . enough to cover production costs.”

Most American biofuel is produced in California “due to economic benefits under the Low Carbon Fuel Standard,” according to the US Department of Energy. But in a recent letter to the California Department of Energy, Biofuel Watch said this policy “locks in fossil fuel reliance” and “provides cover” for continuing the use of fossil fuel. That’s because it perpetuates the “liquid-fuel supply chain” and liquid-fuel vehicles. This “distracts from the imperative of deep transformation of our energy economy.”