Valero Benicia Refinery.
BENICIA, Calif. - The Bay Area Air Quality Management District and California Air Resources Board on Thursday announced a nearly $82 million penalty as part of a legal settlement against Valero Refining Company in Benicia in the hopes of addressing air pollution violations.
This penalty is the largest ever assessed in the Air District’s history, officials said.
The penalty stems from a 2019 inspection that found unreported emissions from the facility’s hydrogen system, violating air district regulations.
According to the air district, the emissions contribute to the Bay Area’s smog and pollution problems.
Air District inspectors said they discovered that refinery management had known since at least 2003 that emissions from the hydrogen system contained harmful and toxic air contaminants but did not take any further steps.
"The refinery emitted an estimated 8,400 tons of these organic compounds in total over this period in violation of Air District regulations -- an average of more than 2.7 tons for each day on which a violation occurred, over 360 times the legal limit," according to the air district.
Other problems were discovered during followup inspections, including the company's "failure to install required emissions abatement equipment, failure to inspect equipment for leaks and failure to report required information, among other violations," air district officials said.
Over $64 million of these funds will be returned to the community to pay for projects aimed at lowering air pollution exposure, mitigating the impact of air pollution and improving public health in areas surrounding the refinery, air district officials said in a news release.
The remainder of the penalty will be used to fund clean air projects in "overburdened communities" throughout the Bay Area, as well as to offset the costs of investigating and prosecuting the case.
"Today's historic penalty against Valero Refining Co. for its egregious emissions violations underscores the Air District’s unwavering commitment to holding polluters accountable and safeguarding the health of those living in refinery communities," Bay Area Air Quality Management District Executive Officer Philip Fine said in a statement. "Investing these funds back into the community will empower local residents to drive air quality projects that benefit the surrounding neighborhoods, advancing our mission of cleaner air for all."
Valero has a section on its website dedicated to this settlement.
"Valero is committed to environmental compliance and has worked closely with the district to make progress in reducing emissions containing trace levels of organic compounds from the hydrogen vent well before this settlement was reached," the company stated. "This agreement demonstrates our commitment to remain one of California's lowest-emitting refiners while underscoring Valero’s unwavering pledge to safe and environmentally responsible operations."
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In response, air district officials said the company's statement is focused on the potential short-term toxic health impacts rather than the long-term impacts that put the public at greater risk for a whole host of problems, including cognitive impairment, cancer and damage to the liver, kidneys and immune system.
"The statement does not acknowledge the harm to public health from the additional smog and particulate matter generated by Valero's more than 8,400 tons of illegal emissions over the course of these violations," air district officials said.
Benicia's mayor was pleased with the penalty news.
"This penalty sends a strong message; adherence to air quality standards is both necessary and expected, and failure to do so can lead to significant fines," Benicia Mayor Steve Young and a member of the Air District Board of Directors said in a statement. "Benicia residents need to know that air quality violations are taken seriously."
Earlier this month, Valero agreed to settle a lawsuit brought by environmental group Baykeeper for $2.38 million after the group uncovered evidence that the company was spilling oil refinery waste into the Bay.
In addition to the penalty, Valero will be required to undertake several measures to prevent future violations.
This penalty is the third major fine the Air District has assessed against Bay Area refineries this year, the agency said.
Bay City News contributed to this report.