Category Archives: Chevron Refinery

Chevron fined record-breaking $20M for Richmond refinery violations, Air District promises ‘new chapter’ for agency

Air District secures decisive victory: Chevron & MRC refineries drop lawsuits, Chevron to pay highest violation penalties in agency history

Chevron Richmond flaring. | KPIX.

Record-breaking penalties & community funding mark a new chapter for the agency

BAAQMD Press Release, February 13, 2024

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. 

Three of California’s biggest climate polluters are in the Bay Area (and yes, one of those three is Valero’s Benicia Refinery)

[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:

Will a year of industrial accidents change the landscape of East Bay’s ‘refinery row’?

[Note from BenIndy: This tidbit from the article below says a lot  – “According to the regional air quality district, the number of flaring events nearly doubled last year, the most since 2019. The trend has been increasing in the last five years. That rise has led some observers to question whether these century-old refineries have reached the end of their lifecycle.” And: “’If I’ve learned one thing, it’s that nothing is going to happen overnight,’ [Healthy Martinez member Heidi] Taylor said. ‘But I believe the cumulative pressure is going to bring about a new era, and I am here for it.’” Thanks, Heidi. We’re here for it too.]

At 12:42 a.m. what appears to be a flare up is occurring at the Martinez Refinery in Martinez, Calif., on Saturday, Sept. 23, 2023. | Jose Carlos Fajardo / Bay Area News Group.

An aging industry is angering locals and sparking multiple investigations

East Bay Express, by Will McCarthy, December 16, 2023

On Friday morning, Contra Costa County Public Health warned residents about a new flaring incident at the Martinez Refinery. The agency said that unidentified chemical odors in the air could be related to the event and that “eye, skin, nose or throat irritation may be possible for some people in the affected area.”

The public health advisory in Martinez came exactly one week after the air surrounding the Chevron oil refinery in Richmond took on the distinct smell of burning tires. Over a hundred local residents, disturbed by the noxious odor, reported it to the local air quality agency.

Both incidents, although by no means the most dramatic, were more mishaps in a long year of refinery accidents and violations in the East Bay industrial cluster that forms a sort of refinery row.

Refineries have long been part of the Bay Area’s economic and energy ecosystem. Many of them have existed for over a hundred years and still serve as a significant tax base for cities and a source of reliable union jobs. This is not the first year that refineries have flared, nor is it the first year there have been facility accidents.

In November, an employee received third-degree burns covering most of his body after a fire erupted at Marathon Petroleum’s refinery in Martinez, the second fire that month. A power outage at the Chevron refinery, also in November, caused an enormous plume of black smoke to billow out of the facility for hours. Over the course of 13 months, the Martinez Refining Co., owned by petroleum giant PBF Energy, scattered coke dust and spent catalyst containing heavy metals over the surrounding town, including a high-profile incident the day after Thanksgiving last year that brought a new level of attention to the refinery’s mishaps and another that came just hours before the local high school’s spring homecoming parade.

After an investigation of the odor on Dec. 8, the Bay Area Air Quality Management District determined Chevron’s bioreactor was to blame. The agency issued a public nuisance notice of violation to Chevron — its 35th violation of the year and second in two weeks.

As the region and the nation plot a clean-energy transition, some advocates are asking whether these high-profile incidents are the last gasps of a dying industry that will try to reap as many profits as possible before they are gone.

“Companies are willing to put not just the local communities but their own workers at risk for profit,” said Jacob Klein, organizing manager for the San Francisco Bay Area chapter of the Sierra Club. “Community safety and worker safety does not seem to be their priority.”

As a result of the most recent accidents, numerous agencies have started investigations into the refineries’ safety practices. The U.S. Chemical Safety Board, the Contra Costa District Attorney’s office, the EPA and even the FBI all have ongoing investigations. Residents of Martinez have filed a class-action lawsuit against the Martinez Refining Company for its chemical releases.

As the calendar moves toward January, Bay Area community advocates are determined not to repeat more of the same next year. Instead they aim to build on the activism that grew after the Thanksgiving incident to permanently transform the relationship between refineries and the community.

“With all of these mishaps affecting more and more people, more and more people are being educated and are educating themselves about these issues,” said Heidi Taylor, a member of Healthy Martinez, a local watchdog group that emerged in the aftermath of the spent catalyst release. “We haven’t seen solutions come to fruition, necessarily, but I do believe there is hope on the horizon.”

According to the regional air quality district, the number of flaring events nearly doubled last year, the most since 2019. The trend has been increasing in the last five years. That rise has led some observers to question whether these century-old refineries have reached the end of their lifecycle.

“The Bay Area’s dangerous, aging refineries are all roughly 125 years old,” said Shosana Welscher, an organizer with Sunflower Alliance and the Refinery Transitions Group. “It’s well over time to decommission them and remediate the contaminated land they occupy for safer, cleaner uses.”

In a statement, the Martinez refinery said that it continues to be committed to earning the right to operate in Martinez.

When asked to comment for this story, the Martinez Refinery Company issued a statement saying, “We have apologized to our neighbors for falling short of meeting that commitment. We have implemented corrective actions, continue to cooperate with all government agencies, and have enhanced our communications with our neighbors and public officials.”

A spokesperson for Chevron, meanwhile, said the air district often provides notices of violations in batches and are sometimes issued years after the actual occurrence. They noted that because of their modernization efforts and investments in new technologies, particulate matter emissions have fallen by 36% since 2018, and flaring events have fallen in the last two years.

Chevron places the highest priority on the protection of employees, communities, and the environment, and continually works to enhance the safety of our operations,” said Caitlin Powell, an external communications advisor for Chevron Richmond.

In a presentation to the Martinez City Council in October, refinery manager Daniel Ingram positioned the company as a crucial player in the California energy economy, one that manufactures 20% of the Bay Area’s gasoline supply and 40% of the region’s jet fuel. Although refineries are a significant contributor to air pollution in the Bay Area, they are not the highest — motor vehicles and wildfires both are larger contributors to overall pollution in the region, according to the air district.

But to some, the refineries across the region are emblematic of the country’s slow shift away from fossil fuels. That creates some cognitive dissonance, where California may chart a clean-energy future as refineries around the bay continue to refine oil for overseas markets.

“We could all end up driving Teslas and the refineries polluting more and blowing up more in our communities,” said Greg Karras, a consultant on refinery transitions. “That’s one possible future.”

Still, to community advocates, that is just one of many possible outcomes. Another future is one in which increased public scrutiny and public control prevents the types of accidents and releases that occurred this year.

“If I’ve learned one thing, it’s that nothing is going to happen overnight,” Taylor said. “But I believe the cumulative pressure is going to bring about a new era, and I am here for it.”

Video: Initial report on Chevron Refinery flaring incident released

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.