Valero Fined $82 Million for Releasing Toxic Air Contaminants at Benicia Refinery

California regulators fined Valero Refining Company $82 for air quality violations at its Benicia refinery. The Bay Area Air Quality Management District and the California Air Resources Board (CARB) assessed the record fine for toxic chemical releases and other violations dating back to at least 2003.

The penalty is the result of a 2019 inspection that found unreported emissions from the refinery’s hydrogen system that contained harmful organic compounds in violation of the Air District’s regulations. The facility released an estimated 8,400 tons of organic compounds, including benzene, toluene, ethylbenzene, and xylene (BTEX), between 2003 and 2019. These compounds are associated with cancer, reproductive harm, and other toxic health effects.

Inspectors found that refinery management had known about the emissions since at least 2003 but did not disclose them or take corrective action. In addition to failing to report emissions, Valero exceeded applicable limits, neglected to install required abatement equipment, failed to conduct leak inspections, and withheld required reports.

Under the terms of the settlement, Valero will be required to reconfigure its hydrogen vent systems to stop direct atmospheric releases and implement a training program to ensure that refinery staff understand and comply with Air District regulations.

In accordance with a May 2024 Air District policy, more than $64 million of the settlement will fund local projects to reduce air pollution exposure, mitigate health impacts, and improve public health in neighborhoods surrounding the refinery.

This is the third major fine issued against Bay Area refineries in 2024 after a $20 million penalty against Chevron’s Richmond refinery and a $5 million penalty against Marathon’s Martinez refinery.