Valero Refining Co. fined unprecedented $82 million for air quality violations

BENICIA, California. – The Bay Area Air Quality Management District and the California Air Resources Board on Thursday announced a nearly $82 million penalty as part of a legal settlement against Valero Refining Co. of Benicia in hopes of addressing significant air pollution violations.

Officials said the fine was the largest ever imposed in the Air District’s history.

More than $64 million of those funds will be returned to the local community to fund projects aimed at reducing exposure to air pollution, mitigating the effects of air pollution and improving public health in areas surrounding the refinery, air district officials said in a press release.

These projects will be selected through a public process with input from residents, community organizations, elected officials and advocates representing the affected area.

The remainder of the fine will be used to fund clean air projects in “overburdened communities” in the Bay Area and to cover the costs of the investigation and prosecution of the case.

“Today’s historic penalty imposed on Valero Refining Co. for egregious emissions violations underscores the Air District’s unwavering commitment to holding polluters accountable and protecting the health of residents in refining communities,” Bay Area Air Quality Management District Chief Executive Officer Philip Fine said in a statement. . . “Investing these funds back into the community will empower local residents to pursue air quality projects that will benefit surrounding neighborhoods and advance our mission of cleaner air for everyone.”

Valero has a feature Section of the website dedicated to this placement.

“Valero is committed to environmental compliance and has worked closely with the district to make progress in reducing emissions containing trace organic compounds from the hydrogen vent long before this solution was achieved,” the company said. “This agreement underscores Valero’s unwavering commitment to safe and environmentally responsible operations while demonstrating our commitment to continuing to be one of California’s lowest-emitting refineries.”

Benicia’s mayor was pleased with the news.

“This penalty sends a strong message; compliance with air quality standards is both required and expected, and failure to do so can result in significant fines,” Benicia Mayor Steve Young and an Air District Board member said in a statement. he said. “Benicia residents need to know that air quality violations are taken seriously.”

The penalty stems from a 2019 inspection that found unreported emissions from the facility’s hydrogen system containing harmful organic compounds that violated Air District regulations.

These organic compounds contribute to the Bay Area’s regional smog and particle pollution problems and include benzene, toluene, ethylbenzene and xylene, or BTEX, compounds that cause cancer, reproductive harm and other toxic health effects, officials said.

Air District inspectors said they discovered that refinery management knew since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air pollutants but failed to report them or take any steps to prevent them.

Officials said the refinery released an estimated total of 8,400 tons of these organic compounds during that time period, in violation of Air District regulations; This averages out to more than 2.7 tonnes for each day the breach occurs, or 360 times the legal limit.

Subsequent investigations revealed a number of other problems with the hydrogen system, including emissions that violated applicable limits, failure to install required emissions abatement equipment, failure to inspect equipment for leaks, and failure to report required information, among other violations.

In response, Valero stated on its website that the company was trying to comply with federal rules regarding its hydrogen system; but the district “has much stricter regulations.”

​In 2022, Valero said the district’s own Health Risk Assessments modeling showed that exposure to these emissions at levels that could potentially cause short-term effects could occur in just two hours out of 43,710 hours, or 0.005% of the time. The HRA also found that the risk of developing adverse health conditions from long-term exposures was negligible, below the accepted risk threshold, Valero said.

​“State-of-the-art robust air monitoring systems with readily publicly accessible data” also show that the Benicia refinery consistently has very low ambient benzene concentrations at the fence line compared to other U.S. refineries. The company emphasized that the EPA action level is well below 9 ug/m3, or 2.8 parts per billion.

In addition to the penalty, Valero will be required to take various measures to prevent future violations.

Valero will need to reconfigure the plant’s main hydrogen vent and vents at hydrogen production facilities to prevent emissions from being released directly into the atmosphere, officials said. Valero will also need to implement a training program to ensure its staff are fully aware of all relevant Air Zone regulations.

This penalty is the third major fine the Air District has levied 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 take into account refineries and other industrial operations,” Alexander Crockett, the air district’s general counsel, said in a statement. “If you violate our regulations and pollute our air, we will hold you responsible to the fullest extent of the law.”

CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to combat climate change. From clean car and fuel requirements to adopting innovative solutions to reduce greenhouse gas emissions, California has pioneered a number of effective approaches that set the standard for effective weather and climate programs for the nation and the world.

The Bay Area Air Quality Management District is the regional agency responsible for maintaining air quality in the nine-county Bay Area.