The Valero Refining Co. has been fined $82 million for significant air pollution violations at its Benicia refinery, state and regional air quality agencies said Thursday.
In a joint news release, the Bay Area Air Quality Management District and California Air Resources Board announced the penalty, which they say is the largest ever assessed in the Bay Area air district’s history.
More than $64 million of those funds will be reinvested toward air pollution reduction and public health improvement projects in communities around the refinery, the agencies said.
The projects will undergo a public process, with community input and consideration from officials and advocates representing the impacted area, the agencies said.
"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," said Benicia Mayor Steve Young, who also is a member of the air district board. "Benicia residents need to know that air quality violations are taken seriously. The use of these funds will help us address local air quality issues going forward."
The rest of the penalty funds will be used for clean air projects in overburdened communities across the Bay Area, the agencies said. In total, nearly $80 million of this historic penalty will be returned to Bay Area communities.
The violation stems from a 2019 inspection that found unreported emissions from the Benicia refinery's hydrogen system containing an estimated 8,400 tons of harmful organic compounds over the period in question, the agencies said. Those emissions contained cancer-causing chemicals and contributed to the Bay Area’s smog, they said.
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Air district inspectors also found that refinery management knew about the toxic emissions since at least 2003 but did not report them or take steps to prevent them, the agencies said.
In addition to the fine, Valero will need to take preventive measures to avoid future violations, including reconfiguring its hydrogen vent system and implementing a worker training program, the agencies said.
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It's the third major fine against a Bay Area refinery this year. In February, the air district fined the Chevron refinery in Richmond $20 million, and earlier this month the Marathon refinery in Martinez was fined $5 million.
