East Bay refineries end lawsuits, agree to abide by BAAQMD's emissions rule
A major settlement aimed at reducing the impact of East Bay refineries on the surrounding community is leaving some people living nearby unconvinced that it will result in lasting change.
Regulators in Contra Costa County were celebrating what they called a landmark victory for public health Tuesday.
The Bay Area Air Quality Management District announced a pair of settlements with the Chevron Refinery in Richmond and the Martinez Refining Company or MRC.
As part of the settlement, each company has agreed to meet stricter emissions standards by 2026 and both will also drop lawsuits challenging those standards.
The settlements center around the district's so-called "Regulation 6, Rule 5."
That rule is intended to reduce emissions of particulate matter from the refineries' fluidized catalytic cracking units (FCCUs), which are used to make gasoline and are the largest sources of such emissions, according to district officials.
"As a result of Chevron and MRC's compliance with Rule 6-5, there will be an estimated 70 percent reduction of (particulate matter) emissions from Chevron's FCCU and an 80 percent reduction from MRC's FCCU," BAAQMD officials said in a news release Tuesday.
As part of the agreement Chevron will reduce emissions and faces up to $85 million in fines for any potential future violations past the compliance deadline of July 2026.
The company also agreed to pay $20 million into a Richmond-area Community Air Quality Fund on top of a $3.5 million annual payment to the fund for four years, according to air district officials.
Chevron will also pay a $20 million fine for 678 other violations, will implement "measures designed to reduce persistent flaring" and will pay up to $500,000 of the district's attorney fees.
However, one Martinez resident told KPIX she's not sure if the settlement will make much of a difference.
"Every time I plant I'm hoping it will be ok, but always, I never know," said Heidi Taylor, pointing at her tomato and broccoli plants.
The garden is one of her favorite things about her Martinez home. She and her husband moved to the area in 2022. Their house is literally in the shadows of the Martinez refinery. It's also walking distance to downtown with plenty of space for vegetable gardens and lemon trees.
"Nobody wants my lemons, not living in Martinez. That's the sad thing. What do you do?" she asked as she pointed toward a tree overflowing with ripe lemons.
Taylor is worried about chemical contamination from the nearby Martinez Refining Company.
"We deserve clean air, clean water, clean soil. End of story," she said.
That's what the settlement is all about.
"When we start hitting companies in the pocket book, I think that's when they really start to realize that they have to start making changes or it's going to impact their bottom line," said Cesar Zepeda.
He is a city council member in Richmond and says this settlement is a good first step in holding corporate polluters accountable, but there are others in the area that still need to be addressed.
"There are more conversations about what the rules should be and hopefully at the end of the day our community is the one that wins," said Zepeda.
It's that level of change that nearby residents like Taylor said is needed most.
"This is the best place I have ever lived, and I am not going to just pack up and leave. I'm going to hold that refinery accountable," Taylor explained.
KPIX reached out to the refineries for comment. Chevron responded with a statement, saying in part, "Chevron is committed to working with agencies like the BAAQMD. However we remain concerned that the rulemaking process is fundamentally broken and believe it's another example of how California policies have led to a hostile business environment for manufacturers."
Earlier Tuesday, Chevron reported flaring at the Richmond refinery. The fire department says it's no longer flaring and there is no public health risk.
In a separate agreement, the Martinez Refining Company said it "will demonstrate compliance with the regulation using a continuous monitoring system instead of periodic quarterly stack testing" and will pay up to $500,000 of the district's attorney fees.
"Martinez Refining Company (MRC) is pleased to announce that the Bay Area Air Quality Management District (BAAQMD) has approved an Alternative Emission Monitoring System (AEMS) for purposes of MRC's compliance with Rule 6-5 effective July 2026 and, as a result, we have agreed to withdraw our lawsuit against the BAAQMD challenging Rule 6-5," Martinez Refining Company posted on social media Tuesday.
Katie Nielsen contributed to this story.
