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Valero Benicia Refinery.

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

The penalty is the largest ever imposed in the air district’s history, officials said.

More than $64 million of these funds will be returned to the local community to fund projects aimed at reducing exposure to air pollution, mitigating the impacts 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 rest of the penalty will be used to fund clean air projects in “burdened communities” in the Bay Area, as well as to offset the costs of investigating and prosecuting the case.

“Today’s historic penalty imposed on Valero Refining Co. for its egregious emissions violations underscores the Air District’s unwavering commitment to holding polluters accountable and protecting the health of people living in refinery communities,” Bay Area Air Quality Management District Executive Director Philip Fine said in a statement. . “Reinvesting these funds back into the community will allow local residents to lead air quality projects that will benefit surrounding neighborhoods, furthering our mission of cleaner air for all.”

Valero has a section of its website dedicated to this regulation.

“Valero is committed to respecting the environment and has worked closely with the District to make progress in reducing emissions containing trace organic compounds from the hydrogen vent well before this settlement was reached,” the company said. “This agreement demonstrates our commitment to remaining one of the lowest-emitting refiners in California, while underscoring Valero’s unwavering commitment to safe and environmentally responsible operations.”

The mayor of Benicia was pleased with the news.

“This penalty sends a strong message that compliance with air quality standards is both necessary and expected, and failure to comply with these standards can result in significant fines,” said Benicia Mayor Steve Young , and a member of the air district’s board of directors, in a statement. “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 in violation of Air District regulations.

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

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

The refinery emitted approximately 8,400 tons of these organic compounds in total during this period, in violation of air district regulations – an average of more than 2.7 tons for each day that a violation occurred, or more than 360 times the legal limit, officials said.

Subsequent investigations revealed a host of other problems involving the hydrogen system, including emissions in violation of applicable limits, failure to install required emissions reduction equipment, failure to inspect equipment to detect leaks and failure to communicate required information, among other violations.

In response, Valero said on its website that the company had attempted to comply with federal rules associated with the hydrogen system; however, the district “has much stricter regulations.”

​In 2022, Valero said modeling of the district’s health risk assessments indicated the possibility of exposure to these emissions at levels likely to cause short-term effects could have occurred for only two hours over 43,710 hours, or 0.005% of the time. The HRA also found that the risk of developing health problems from long-term exposures was negligible, below the recognized risk threshold, Valero said.

“Robust, state-of-the-art air monitoring systems, with data easily accessible to the community,” also show that the Benicia refinery has historically had very low ambient benzene concentrations at the fence line by compared to other U.S. refineries, with results well below the EPA action level of 9 ug/m3 or 2.8 parts per billion, the company noted.

In addition to the penalty, Valero will need to take several steps to prevent future violations.

Valero will need to reconfigure the facility’s main hydrogen vent and vents at its hydrogen production plants to prevent emissions from being released directly into the atmosphere, officials said. Valero will also be required to implement a training program to ensure that its personnel are fully familiar with all relevant air district regulations.

The penalty is the third major fine the Air District has levied on 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 sanctions should put refineries and other industrial operations on notice,” Alexander Crockett, general counsel for the Air District, said in a statement. “If you violate our regulations and pollute our air, we will hold you accountable to the fullest extent of the law.”

CARB is responsible for protecting the public from the harmful effects of air pollution and developing programs and actions to combat climate change. From requiring clean cars and fuels to adopting innovative solutions to reduce greenhouse gas emissions, California has pioneered a series of effective approaches that have established the standard for effective air and climate programs for the country and the world.

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