[BenIndy Contributor Nathalie Christian – Texas-based Valero raked in about $11.5B of profit in 2022 — and that’s pure profit. While this fine represents progress, it also represents less than 1 hour of Valero’s 2022 profits. That’s right — in 2022, Valero made more than $1M just in profit per hour, 24 hours a day, for 365 days (Valero doesn’t stop profiting just because it’s a holiday or weekend). It’s clear Valero treats fines like these as fees; they represent just another minor cost of doing business in Benicia. Examples of fines from recent years: Valero Benicia Refinery was fined $266,000 in 2018, $122,500 in 2016 and $183,000 in 2014. It is rare for fines like these to actually financially benefit Benicia. The full text of the EPA News Release is available below this article from the Chronicle.– N.C.]
U.S. EPA hits Valero’s oil refinery in Benicia with $1.2 million penalty for two toxic flaring incidents
Incidents at the Valero refinery in Benicia in 2017 and 2019 forced people to shelter in place because of the risk of exposure to harmful chemicals, according to the U.S. Environmental Protection Agency. (Samantha Laurey/The Chronicle 2022)
Oil refining giant Valero must pay a $1.2 million penalty for major flaring incidents at its Benicia facility that spewed dark plumes of pollutants into neighborhoods, the U.S. Environmental Protection Agency announced Wednesday.
The “significant chemical incidents” occurred in 2017 and 2019 and forced people, including schoolchildren, to shelter in place because of the risk of exposure to harmful chemicals, according to the agency.
Following a federal investigation, Valero executives agreed to make specific changes to their Benicia operations and pay a penalty totaling $1,224,550 in a settlement reached with the EPA. Martha Guzman, regional administrator for the EPA in California, Nevada and New Mexico, said the changes will help protect Valero workers, Benicia residents and the environment.
The EPA’s announcement is the latest investigation into problems at the Bay Area’s oil refineries. Earlier this year, health officials in Contra Costa County warned people living near the Martinez Refinery run by PBF Energy to avoid eating foods grown in surrounding neighborhoods, four months after the facility sent 20 tons of dust into the community that coated cars, homes and backyards in a mysterious fine white powder.
Last year, the Bay Area Air Quality Management District announced it had found Valero had been releasing unlawful and potentially harmful amounts of hydrocarbons from its hydrogen stacks — undetected — from 2003 to 2019. Valero said it also hadn’t detected the releases and took steps to end them.
On Wednesday, Valero didn’t immediately respond to requests for comment about the federal fines.
Benicia Mayor Steve Young said the city wasn’t notified by the EPA about its investigation or the findings. The city has been pushing for greater transparency from oil refineries and the agencies that oversee them, especially after finding out last year that local air-quality regulators failed to tell the community about harmful releases until three years after the problems were discovered.
“We have concerns that we’re being left in the dark and only find out well after the fact,” Young said.
Oil refineries sometimes burn off flammable gases through tall stacks to keep careful equilibrium within pipes and other equipment and avoid disasters like explosions. But flaring is a highly regulated activity meant to be used sparingly because of the risks those burned gases and other pollutants pose to people nearby.
One major pollutant generated by these flares is sulfur dioxide, which can harm human respiratory tracts, exacerbating problems like asthma, and worsen pollution from particulate matter and acid rain.
On May 5, 2017, Valero stacks began shooting flames and churning out dark plumes of pollutants when the facility unexpectedly lost power. The emissions coated cars in an oily substance and sent employees at a nearby musical instrument factory to the emergency room, according to the EPA. More than 1,000 people were evacuated, including staff and students at both Robert Semple and Matthew Turner elementary schools. Ultimately, more than 10,000 pounds of flammable materials and 74,420 pounds of sulfur dioxide were released from the facility, according to the EPA.
Valero reported the flaring caused more than $10 million in damage to its facility, according to EPA records. The company later sued Pacific Gas and Electric Co. for the outage.
Then on March 11, 2019, another flaring incident led Solano County health officials to warn residents with respiratory issues to stay indoors. Some businesses sheltered in place. An investigation revealed more than 15,000 pounds of sulfur dioxide were released.
The EPA inspected the facility following both incidents and in 2019 found “several” cases where the company was violating the law.
“Valero failed to immediately report releases of hazardous substances, update certain process safety information, adequately analyze certain process hazards, and develop and implement certain written operating procedures,” the EPA said.
The agency found the company had violated the federal Clean Air Act’s regulations for preventing chemical accidents.
Valero is based in San Antonio and operates 15 petroleum facilities in the United States, Canada and the United Kingdom.
In a press release, Larry Starfield, with the EPA’s enforcement division, said the settlement “sends a clear message that EPA will prosecute companies that fail to expend the resources needed to have a compliant, well-functioning Risk Management Plan to the fullest extent of the law.”
SAN FRANCISCO (April 5, 2023) – The U.S. Environmental Protection Agency (EPA) announced a settlement with Valero Refining-California to resolve violations of the Clean Air Act’s Chemical Accident Prevention regulations at their Benicia Refinery. The company will pay a $1,224,550 penalty and make changes to improve process safety at the refinery.
“This settlement sends a clear message that EPA will prosecute companies that fail to expend the resources needed to have a compliant, well-functioning Risk Management Plan to the fullest extent of the law,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance.
“Failure to properly manage hazardous materials can pose serious risks to our California communities,” said Martha Guzman, Regional Administrator of EPA Region 9. “This settlement will help protect Valero workers, the Benicia community, and the environment more broadly.”
After significant chemical incidents at the Benicia Refinery in 2017 and 2019, a 2019 EPA inspection at the facility identified several areas of noncompliance, including that Valero failed to immediately report releases of hazardous substances, update certain process safety information, adequately analyze certain process hazards, and develop and implement certain written operating procedures.
Under the terms of the settlement, Valero has agreed to make significant chemical safety improvements at the Benicia Refinery. The company has already made several of these changes, related to chemical safety, in response to EPA’s inspection. These improvements include updating and modifying process hazard analyses, modifying operating procedures, modifying reporting policies, and improving employee training. The settlement also requires Valero to modify several pressure-relief valves and update process hazard analyses to consider hazards of power loss at the facility. As part of the settlement, Valero will continue to implement safety improvements through June 2025.
The Benicia Refinery is one of thousands of facilities nationwide that make, use, and store extremely hazardous substances. Reducing the risk of accidental releases at industrial and chemical facilities like the Benicia Refinery is one of EPA’s National Enforcement and Compliance Initiatives. Catastrophic accidents at these facilities can result in death or serious injuries; impacts to the community, including orders to evacuate or shelter-in-place; and other harm to human health and the environment. The Clean Air Act requires that industrial and chemical facilities that store large amounts of hazardous substances develop and implement a Risk Management Plan to reduce the risk of accidental releases.
For more information on the Clean Air Act’s Risk Management Plan Program, please visit EPA’s Risk Management Program (RMP) Rule webpage.
For more information on reporting possible violations of environmental laws and regulations visit EPA’s enforcement reporting website.
File photo from May 5, 2017 incident. The city of Benicia was given a shelter in place alert and areas south of the Valero Refinery were evacuated after a power outage caused a flare up sending plumes of black smoke across Interstate 680. (Chris Riley/Times-Herald)
“Refineries are being forced to measure toxic chemicals they release. But they still don’t want the people next door to know what they’re breathing,” said Dr. Gwen Ottinger, Associate Professor at Drexel University in Philadelphia. “That’s where Refinery Air Watch comes in.”
Launched this week, RefineryAirWatch.org is a project of Ottinger’s lab, the Fair Tech Collective, graphic design firm SAYGRID, and a coalition of residents from refinery-adjacent communities in the San Francisco Bay area.
>> The site lets users download air quality data that industry and government-run websites make hard to access. It calls out refineries that take measurements but don’t make them available for download by the public. And it exposes widespread failures by the oil industry to support communities’ right to know. Out of 116 refineries in the United States, only 12 measure chemical concentrations continuously or collect data about more than one pollutant.
“In our community,” Benicia, California resident Constance Beutel said, “We went 15 years with undisclosed toxic emissions from the Valero refinery. There was no monitoring in the community so we didn’t know how dangerous our air had become.”
Beutel’s group, the Good Neighbor Steering Committee, eventually established the Benicia Community Air Monitoring Program, which measures hazardous pollutants at 5-minute intervals and has publicly available data. Getting the program going was incredibly significant for the community, Beutel said: “Without actual real-time data, we in the public are unaware of the health risks and dangers we live with daily. Having RefineryAirWatch.org as a resource for us and other communities is a huge step forward for the public.”
Refinery Air Watch makes data available for download. It also uses standardized measurements of benzene, required by the Environmental Protection Agency to be taken at refineries across the U.S., to show which refineries have the largest impact on neighbors, which states have the worst polluters, and which corporations are responsible. The site’s designer, Andee Mazzocco of SAYGRID, notes “we collected data from a federally mandated data dump and transformed it into meaningful information citizens can easily access and rely on.”
“This is an environmental justice issue,” said Ottinger. “Six million people live within three miles of an oil refinery, and they’re more likely than other Americans to be people of color, low income, or both. We know that toxic emissions from refineries are one more manifestation of structural racism. But we can’t understand the full extent of the problem if we’re not insisting that refineries measure their pollution and make the data readily available for communities, scientists, and investigative journalists to analyze. Refinery Air Watch sends the message that regulatory agencies need to drastically improve their requirements for air monitoring and data access.”
Environmental watchdog group Baykeeper filed a lawsuit in federal court against Amports, which owns the Port of Benicia, and Valero for allegedly mishandling petroleum coke, a refinery product that can damage the heart and lungs.
Peninsula|Press, a project of Stanford Journalism, by Elissa Miolene, May 16, 2022
From a cliff overlooking the Port of Benicia, Cole Burchiel pumped his fists in the air. It was a silent, solitary celebration – born not of happiness, but of vindication.
As a field investigator at the San Francisco Baykeeper, an environmental watchdog group, Burchiel had been conducting one of his regular patrols of the bay. As he maneuvered his drone around the port, black plumes towered from the ship beneath it. And as he hit record, the drone – affectionately named Osprey – captured what for months had been impossible to prove.
Petroleum coke, a refinery byproduct that can damage the heart and lungs, was being mishandled at the Port of Benicia.
“It’s heartbreaking to see this happening to the environment,” Burchiel said. “But it was exciting because finally – after all this time – we have enough to do something about it.”
Five months later, in March of 2020, Baykeeper officially filed a lawsuit in federal court against Amports, which owns the Port of Benicia, and Valero, which produces the petroleum coke itself. According to Baykeeper, the incident Burchiel caught on camera was just one of many documented by the organization between November 2020 and March 2021.
Valero declined to comment on the suit, while Amports did not return requests to do so.
“We have a solid case lined up and some of the best lawyers I’ve ever met, so I don’t see any reason why we shouldn’t be able to deliver justice to this community,” said Burchiel. “The wheels are now in motion and the train can no longer be stopped.”
Baykeeper hopes the lawsuit will lead to increased regulation not just in Benicia, but across the East Bay, where many think decades of contamination – and the presence of five oil refineries – have led to increased asthma, respiratory disease, and other illnesses.
Elusive East Bay pollutants
The first call to Baykeeper’s hotline came from a longshoreman at the Port of Benicia in 2016. Black dust was billowing everywhere, the caller said, along with a thick, black substance that was seeping into the Carquinez Strait.
On land, many Benicia residents were noticing something similar. Pat Toth Smith, for example, said that those living near the Valero Benicia Refinery would wake up with a layer of powder on their cars. Constance Beutel, another Benicia resident, described seeing black dust, suspended and shimmering, in sun-lit air.
Baykeeper speculated that the black dust was petroleum coke, a bottom-of-the-barrel byproduct packed with heavy metals. Petroleum coke resembles coal, but is much dirtier – and when burned, it emits 5 to 10 percent more carbon dioxide.
At first, the Baykeeper team tried to locate the source of the petroleum coke on its small, blue-and-white speedboat. They knew that most of the petroleum coke produced in the area came from the Valero Benicia Refinery, which shipped the material to Asia via the Port of Benicia. In their boat, Baykeeper skippers and field investigators circled the strait, but were ultimately unable to detect evidence of contamination from the water.
Years later, Baykeeper was able to see the port – and spot the evasive pollution – from a new angle: the sky.
“The most significant pollution was an aerial plume of black smoke nearly 500 feet tall,” Burchiel said.
Cole Burchiel peers into a telephoto lens to survey ships at the Port of Benicia. Photo by Elissa Miolene for the Peninsula Press
Over the last decade alone, 277 toxic spills in Benicia were reported to the Governor’s Office of Emergency Services (Cal OES), with 75 spills reported by the Valero Benicia Refinery itself. As part of their investigation into Amports and Valero, Baykeeper also found significantly high levels of zinc, nickel, mercury, copper, and arsenic in dredging material taken from the bay in 2010, 2013, and 2016, materials that point to consistent petroleum coke contamination, the organization said.
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These findings occurred amid a regular barrage of pollution, smoke, and contaminants already drifting across the East Bay, which – even if reported – were usually invisible to those breathing them in.
Can’t see it, can’t prove it
While Baykeeper was looking into Valero, the Bay Area Air Quality Management District (Air District) was doing the same – albeit, from a different lens.
After an investigation into the refinery in late 2018, the Air District found that Valero was producing toxic emissions, including cancer-causing agents like benzene, that were hundreds of times higher than permitted. The Air District mandates that refineries produce less than 15 pounds of “precursor organic compounds,” or hazardous air pollutants, per day. But over the three years of their investigation, the Air District found that Valero was producing 5,200.
According to the Air District, Valero had been aware of these elevated levels since 2003.
“This wasn’t just a little bit over the legal limit,” said Kathy Kerridge, director of the Good Neighbor Steering Committee, an organization focused on environmental issues in Benicia. “This was like somebody driving 400 miles per hour in a five mile per hour speed zone.”
Though the Air District made these findings – and issued a notice of violation to Valero – in 2019, the agency did not notify the public until earlier this year, when it announced the imposition of an abatement order against the refinery.
Benicia Mayor Steve Young said he met with the general manager of the Valero Refinery nearly every month since he took office. Nothing about the investigation or the violation was ever revealed to him, either by Valero or the Air District, Young said.
“The fact that none of this was mentioned to me during any of these meetings is dispiriting,” said Mayor Young. “This was first discovered in 2003, but the Air District didn’t find out about it until 2018. Once they started to address it, they still didn’t let the city know. We are frustrated that something like this could go on – undetected and unreported – for this long.”
At a community meeting in February, Benicia residents repeatedly asked representatives how such pollution could have been concealed at Valero, and why the public was not notified until three years after the Air District began their investigation. According to the Air District, this information was kept from the public to protect the integrity of the ongoing investigation. Before releasing its findings, the Air District was working with Valero to develop a solution to the exceedance – one that ultimately reduced emissions, but not enough to comply with existing regulations.
“We could have done better, and we should have done better sooner,” said Damian Breen, the Senior Deputy Executive Officer at the Air District, at the community meeting.
In mid-March, the Air District approved an abatement order for Valero that requires the refinery to halt unreported emissions.
Even before these emissions were publicized, Valero was already the fourth largest greenhouse gas emitter in the Bay Area, producing an estimated total of 2,186,096 metric tons of CO2 per year.
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Valero was surpassed only by other oil producers, including the Shell Martinez, Chevron Richmond, and Tesoro refineries – the latter of which is now idled.
Life in a refinery corridor
According to Andres Soto, Benicia resident and environmental activist, the battle for transparency and accountability is nothing new to his community – one that is at the tail end of the Bay Area’s refinery corridor.
After living in Richmond and Benicia, Soto has seen similar things in both refinery towns, including a lack of trust with the Air District, a lack of trust with the refineries, and the impact those factors have on community members. Soto’s grandson, for example, plays on the local baseball team sponsored by Valero. He also has severe asthma, a condition which can be linked to the inhalation of refinery-produced materials.
Kerridge has also seen such illness firsthand. Two of her neighbors have died of lung cancer, and in the past two years, two of her friends’ husbands. She has had breast cancer. None of them were smokers.
“It’s very difficult to say this is caused by excess pollution, you can’t really pin it on that,” Kerridge said. “But I don’t know how typical it is to have that many people die of lung cancer in your neighborhood.”
Though it can be difficult to link pollution with health effects, Benicia’s toxic release score – used to enumerate exposure to chemical emissions from large facilities – is higher than 83 percent of the state, according to the US Environmental Protection Agency. A 2016 report also showed that Solano County has rates of asthma and some cancers that are higher than the state average.
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With three other refineries operating across the East Bay, communities like Richmond, Martinez, and Vallejo share Benicia’s health risks – and in some cases, face additional challenges. Richmond, for example, is home to Chevron, the largest refinery in the East Bay. In the neighborhood surrounding Richmond’s Levin Terminal, which handles coal and petroleum coke, asthma rates are higher than 99% of all neighborhoods in California, according to CalEnviroScreen.
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Eduardo Martinez, a Richmond city councilmember and retired elementary school teacher, is intimately aware of such health effects. When he first moved to Richmond, he couldn’t understand why so many of his students were refusing to participate in their physical education classes.
“When I kept trying to push them, I got complaints from parents saying, I don’t know whether my son’s told you, but he has asthma,” said Martinez. “I started doing an inventory of my students, and I found out that over half my students had asthma.”
Realizing the extent of the issue, Martinez created an alternate physical education curriculum for those suffering from asthma, thereby creating an “asthma club” for children who couldn’t previously participate in gym classes.
It’s something that is not lost on the refineries, including Chevron in Richmond. In response to a request for comment, Chevron pointed to its efforts to reduce emissions, increase refinery safety, and monitor air quality. It also highlighted its own community air monitoring program, which has been in operation since 2014. The full comment can be accessed here.
“Chevron has a long-standing commitment to reduce emissions at our Richmond facility,” said the refinery in an email. “Our recent major investment in a Modernization Project is a great example of efforts taken to improve energy efficiency, reduce air emissions overall, cap greenhouse gas emissions, and increase the safety and reliability of the refinery. This project enabled the refinery to achieve more than 25 percent reduction of particulate matter emissions refinery-wide.”
Still, many activists say such efforts are not enough.
“This is a huge issue: that you can have oil extraction and facilities around sensitive receptors – kids, older people, even you and me,” said Janet Scoll Johnson, Coordinator of the Sunflower Alliance, a Bay Area environmental group. “This is the fight in the East Bay. It’s an environmental justice issue of the highest order.”
Cole Burchiel surveys Richmond’s Levin Terminal from his drone. Photo by Elissa Miolene for the Peninsula Press
Pushing forward, on land and at sea
Despite these challenges, organizations across the East Bay are continuing to push forward on land and at sea. From 1989 to today, Baykeeper has won over 300 lawsuits against polluters – and both the organization and Benicia residents are hopeful that their latest suit against Valero will lead to decreased pollution.
“We hope to work with the defendants to resolve this case quickly and in a way that protects the health of the bay and the local community,” said Sejal Choksi-Chugh, the executive director of Baykeeper, in an email.
The San Francisco skyline from the Baykeeper’s boat, shot during a regular patrol in February 2022. Photo by Elissa Miolene for the Peninsula Press.
In the meantime, community members are remaining hopeful. Kerridge and a team of activists recently unveiled the Benicia Community Air Monitoring Program, a system that scans for benzene, black carbon, and other pollutants right outside Valero’s gates. Martinez is running for mayor, with a foundational pillar of his campaign centered around a transition from fossil fuels. And Soto, though recently retired, is continuing to work with those in the ecosystem to hold institutions – both private and public – accountable.
“My hope comes from the fact that we have been able to organize, pull people together, and create networks all around the Bay Area addressing this,” said Soto. “The industry is going kicking and screaming, resisting these changes – but that’s nothing new. We expect that.”
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