14 Feb Refineries End Lawsuits, Agree to Abide by Emissions Rule

Chevron will pay millions in a settlement as its Richmond facility, seen here, is one of two Contra Costa refineries to drop lawsuits against the Bay Area Air Quality Management District. (Pulse file photo) 

By Kiley Russell
Bay City News

Two refineries in Contra Costa County have agreed to end lawsuits against the Bay Area Air Quality Management District in a settlement that includes millions of dollars in payouts from Chevron.

BAAQMD officials announced Tuesday that they have reached separate agreements with the Chevron Richmond Refinery and the Martinez Refining Company over 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, 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.

“Today, Chevron and the Bay Area Air Quality Management District (BAAQMD) have reached an agreement that reduces particulate matter emissions at our Richmond facility and allocates funding for air quality projects in the Richmond area,” Chevron said in a social media post Tuesday. “The agreement provides a benefit to the Richmond community and solidifies Chevron Richmond as an essential producer of energy for the Bay Area and California.”

In a separate agreement, the Martinez Refining Company “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.

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