The California Air Resources Board (CARB) and the Bay Area Air Quality Management District (BAAQMD) have reached a joint settlement with Valero Refining Company – California, CARB said today in a release. Valero* operates a petroleum refinery in Benicia, California – processing crude oil to produce refined petroleum products such as gasoline and diesel fuels that are sold primarily to the California market. CARB and BAAQMD allege that Valero failed to comply with applicable statutory and regulatory requirements in connection with undisclosed emissions of air contaminants from equipment that generates and distributes hydrogen gas at the Refinery.
“CARB is pleased to have supported the Air District in investigating and settling this important case that helps remediate the harms Valero’s operations caused to surrounding communities,” said CARB Executive Officer Dr. Steven Cliff. “The Air District’s new community fund provides critical funding for projects that improve air quality and public health for impacted local communities. CARB is proud to direct the majority of its share of the penalties from this settlement to the community fund to expand the reach of its projects.”
Among the violations, CARB and BAAQMD allege that at various times Valero emitted organic compounds exceeding the regulatory limit of 15 lb./day and 300 parts per million. The Bay Area Air Quality Management District is the regional agency responsible for protecting air quality in the nine-county Bay Area.
The penalty arises 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 particulate pollution problems. They contained benzene, toluene, ethylbenzene and xylene, or BTEX, compounds, which cause cancer, reproductive harm and other toxic health effects. Air District inspectors discovered that refinery management had known since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air contaminants but did not report them or take any steps to prevent them. The refinery emitted an estimated 8400 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, more than 360 times the legal limit.
Subsequent investigations uncovered other problems involving the hydrogen system, including emissions in violation of applicable limits, failure to install required emissions abatement equipment, failure to inspect equipment for leaks and failure to report required information, among other violations. The Air District sought abatement orders from its independent Hearing Board to require Valero to abate ongoing violations. In conjunction with CARB, the Air District has now assessed this monetary penalty to resolve all the violations.
In addition to the penalty, Valero will be required to undertake several measures to prevent future violations. Valero will be required to reconfigure the facility’s main hydrogen vent and vents in its hydrogen production plants to prevent emissions from being released directly into the atmosphere. Valero will also be required to implement a training program to ensure that its staff are fully aware of all relevant Air District regulations.
To settle and resolve the alleged violations, Valero agreed to pay a total penalty of $81,962,602. Of the penalty amount, $80,800,000 shall be paid to BAAQMD, where it will be allocated according to BAAQMD’s recently adopted “Policy: Funding Community Benefits from Penalty Funds.” Under BAAQMD’s policy, the majority of the penalty money would be allocated to support locally-developed air quality and community health improvement projects in the community of Benicia, where the violations occurred, and in other Bay Area overburdened communities. The remaining $1,162,602 shall be paid to CARB for deposit into the Air Pollution Control Fund for cost recovery.
Valero fully cooperated with CARB and BAAQMD to resolve this matter.
In May 2024, the Bay Area Air Quality Management District Board of Directors adopted a policy that directs a significant portion of penalty funds to the communities most impacted by air quality violations. Under this policy, most of these penalty funds will be reinvested in local projects specifically designed to reduce pollution and enhance public health.
“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,” said Dr. Philip Fine, executive officer of the Air District. “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.”
*AutoInformed on
Valero Refining Company Fined $82 Million in California
The California Air Resources Board (CARB) and the Bay Area Air Quality Management District (BAAQMD) have reached a joint settlement with Valero Refining Company – California, CARB said today in a release. Valero* operates a petroleum refinery in Benicia, California – processing crude oil to produce refined petroleum products such as gasoline and diesel fuels that are sold primarily to the California market. CARB and BAAQMD allege that Valero failed to comply with applicable statutory and regulatory requirements in connection with undisclosed emissions of air contaminants from equipment that generates and distributes hydrogen gas at the Refinery.
“CARB is pleased to have supported the Air District in investigating and settling this important case that helps remediate the harms Valero’s operations caused to surrounding communities,” said CARB Executive Officer Dr. Steven Cliff. “The Air District’s new community fund provides critical funding for projects that improve air quality and public health for impacted local communities. CARB is proud to direct the majority of its share of the penalties from this settlement to the community fund to expand the reach of its projects.”
Among the violations, CARB and BAAQMD allege that at various times Valero emitted organic compounds exceeding the regulatory limit of 15 lb./day and 300 parts per million. The Bay Area Air Quality Management District is the regional agency responsible for protecting air quality in the nine-county Bay Area.
The penalty arises 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 particulate pollution problems. They contained benzene, toluene, ethylbenzene and xylene, or BTEX, compounds, which cause cancer, reproductive harm and other toxic health effects. Air District inspectors discovered that refinery management had known since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air contaminants but did not report them or take any steps to prevent them. The refinery emitted an estimated 8400 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, more than 360 times the legal limit.
Subsequent investigations uncovered other problems involving the hydrogen system, including emissions in violation of applicable limits, failure to install required emissions abatement equipment, failure to inspect equipment for leaks and failure to report required information, among other violations. The Air District sought abatement orders from its independent Hearing Board to require Valero to abate ongoing violations. In conjunction with CARB, the Air District has now assessed this monetary penalty to resolve all the violations.
In addition to the penalty, Valero will be required to undertake several measures to prevent future violations. Valero will be required to reconfigure the facility’s main hydrogen vent and vents in its hydrogen production plants to prevent emissions from being released directly into the atmosphere. Valero will also be required to implement a training program to ensure that its staff are fully aware of all relevant Air District regulations.
To settle and resolve the alleged violations, Valero agreed to pay a total penalty of $81,962,602. Of the penalty amount, $80,800,000 shall be paid to BAAQMD, where it will be allocated according to BAAQMD’s recently adopted “Policy: Funding Community Benefits from Penalty Funds.” Under BAAQMD’s policy, the majority of the penalty money would be allocated to support locally-developed air quality and community health improvement projects in the community of Benicia, where the violations occurred, and in other Bay Area overburdened communities. The remaining $1,162,602 shall be paid to CARB for deposit into the Air Pollution Control Fund for cost recovery.
Valero fully cooperated with CARB and BAAQMD to resolve this matter.
In May 2024, the Bay Area Air Quality Management District Board of Directors adopted a policy that directs a significant portion of penalty funds to the communities most impacted by air quality violations. Under this policy, most of these penalty funds will be reinvested in local projects specifically designed to reduce pollution and enhance public health.
“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,” said Dr. Philip Fine, executive officer of the Air District. “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.”
*AutoInformed on
EPA Approves Emergency Fuel Waiver for Tennessee