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Chevron Richmond modernization project report criticized by state Attorney General's Office
By Robert Rogers
Contra Costa Times
Posted: 06/10/2014 02:46:13 PM PDTUpdated: 57 min. ago
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RICHMOND -- State Attorney General Kamala Harris' office criticized Richmond's draft environmental impact report of the $1 billion proposal to expand and modernize Chevron's Richmond oil refinery. In a 10-page letter to the city, the office said the company needs to do more to reduce safety risks and air pollution.
The letter, dated June 6, also directly challenges the oft-stated claim by Chevron and city staff members that the 1,100-plus-page report is among the most comprehensive ever prepared involving an oil company seeking to modernize facilities.
"We urge the city of Richmond to revise the EIR so that it will fully inform the public and the City Council of the local and statewide impacts of this project," the letter concluded.
Aerial view of the Chevron Richmond refinery on Oct. 14, 2010, in Richmond. (Susan Tripp Pollard/Staff file)
A spokesman for the Attorney General's Office said Tuesday that the office is in talks with the city and Chevron, and that he expects the concerns in the letter will be addressed before the city approves an EIR.
The letter immediately raised concerns by one city councilman that the city's review of the mammoth project could drag on for several more months, and that it could trigger a lawsuit similar to one that halted a similar project several years ago.
"I'm not sure where we go from here, but this is a major development that may thwart my objective to get the (final environmental impact report) certified and a permit issued before we go on August break," Councilman Tom Butt wrote in his online e-forum. "At this point, I would say we would be doing well to get it done before the end of 2014, and then it will likely become the target of a (California Environmental Quality Act) lawsuit like the last one."
The city released a final version of the environmental impact report on Monday, after Harris' letter was sent. City Manager Bill Lindsay said the EIR was complete before Harris' letter was received, but that her concerns will be addressed in supplemental documents.
"All comments are taken seriously and will be addressed," Lindsay said. Chevron spokeswoman Melissa Ritchie said Monday that the company had reviewed Harris' letter and that the issues she raised were already addressed in the final EIR, which she characterized as the "most comprehensive and thorough EIR ever developed for a refinery project."
The Attorney General's Office letter, written by deputy attorneys general Rose Fua and David Zonana, comes amid building resistance to the project, which is under review by the city's Planning Commission. One day before Harris' letter, lawyers for a state environmental group sued the Bay Area Air Quality Management District in San Francisco Superior Court, demanding that the board rescind its permitting of the project until the city completes its environmental review.
Ritchie questioned the Attorney General Office's complaints and its failure to mention other aspects of the project."Surprisingly, the letter fails to acknowledge the economic and environmental benefits of the project -- including the unprecedented commitment to no net increase in criteria air pollutants, greenhouse gas emissions and health risks -- as well as the scope and depth of work done," Ritchie wrote in an email.
The letter, addressed to city planner Lina Velasco, called on the city to address five main concerns: fuller evaluations of safety risks and air quality impacts; an explanation of how the project will meet state climate change goals; exploring more emission-mitigation measures; and providing a broader range of project alternatives.
Harris emphasized that the central point of the project is that Chevron plans to process higher sulfur crude, which caused the corrosion that sparked a fire and explosion at the refinery in August 2012.
"There is an increased safety risk associated with the project's proposal to process higher sulfur crude and gas oils, and the EIR needs to adequately address at least three critical safety issues," Harris wrote, listing needs for a quantitative risk assessment, a risk-management plan and an explanation of its assumption that corrosion risks will not increase.
Facing a $10 to $20 million budget deficit, according to Lindsay,, the City Council last week urged the Planning Commission to complete its review this month so that the council could weigh in on any appeals before itsAugust recess. The modernization project promises around 1,000 jobs and could restore tax revenues from the refinery, which plunged after the 2012 fire.
The Planning Commission is scheduled to hold a hearing on the EIR on July 9.
In his e-forum newsletter, Butt complained that the letter arrived to city officials on Friday but that he didn't hear about it until he was informed by a Chevron official on Monday.
"I talked to a representative from the city's EIR and legal team last night who told me that they felt blindsided by (Harris' office)," Butt wrote. "They also believe that most, if not all, of the AG's concerns have been resolved in revisions to the (draft report) that are included in the (final report)."
Still, Butt expressed disappointment that the EIR now appears vulnerable to legal challenge, a situation he wanted to avoid in the aftermath of a previous version of the project being halted in court in 2009.
"There appear to be some significant differences of opinion between our EIR team and the AG regarding legal requirements of what must be covered in an EIR," Butt wrote. "We charged our EIR and legal team with producing a bulletproof EIR, and I thought we were there. Obviously not."
Contact Robert Rogers at 510-262-2726. Follow him at Twitter.com/sfbaynewsrogers.
AG Kamala Harris submits comments on Draft EIR for Chevron Richmond refinery modernization
June 10, 2014 by Mike Aldax
Attorney General Kamala Harris says the 1,100–page draft environmental review (DEIR) for the Chevron Richmond refinery modernization project needs to do more to prove that the planned upgrades will make the plant cleaner and safer.
In a 10-page letter to Richmond’s planning department, which can be viewed in full here, Harris called the city’s DEIR “incomplete,” saying the document fails to fully evaluate safety risks of the modernization project, address air quality impacts or adhere to the state’s climate change goals.
Chevron Richmond says the issues Harris raised have “either already been addressed in the draft EIR, or will be addressed in the final EIR [FEIR].”
The FEIR was released by the city on Monday and can be viewed here.
“Surprisingly, [Harris'] letter fails to acknowledge the economic and environmental benefits of the Project — including the unprecedented commitment to no net increase in criteria air pollutants, greenhouse gas emissions, and health risks — as well as the scope and depth of work done by the City, its independent third-party experts, and expert agencies such as the Bay Area Air Quality Management District and Contra Costa Health Services to prepare the most comprehensive and thorough EIR ever developed for a refinery project,” Chevron Richmond spokeswoman Melissa Ritchie said.
Richmond City Councilman Tom Butt, who is known to be a critic of Chevron Richmond, said Tuesday morning city officials felt blindsided by Harris’ letter.
“[The city] had been working closely with the AG’s office for a long time in an effort to resolve any concerns [about the EIR] and believed that resolution had been successful,” Butt said. “They also believe that most, if not all, of the AG’s concerns have been resolved in revisions to the DEIR that are included in the FEIR.”
The modernization project would replace a hydrogen plant operating on 1960s-era technology with a more energy-efficient version, and enhance the refinery’s sulfur recovery units. It would not change the grade of crude oil processed at the refinery but would allow crude with higher sulfur content to be used.
When the EIR for the project was first released in April, an attorney hired by the city of Richmond to vet the proposed project said the EIR sets a new standard for transparency in environmental reports.
“The final EIR will demonstrate that the modernization project will result in a newer, safer, cleaner refinery by replacing some of the oldest processing equipment with more modern technology that is inherently safer and meets the nation’s toughest air quality standards,” Ritchie said. “Modernization will increase energy efficiency, enhance the refinery’s rigorous inspection program, protect the environment and create 1,000 local construction jobs.”
The Communities for a Better Environment, a state environmental activist group, lauded Harris’ letter, saying it has raised the same concerns posed by the attorney general.
Kamala Harris’ office clarifies letter about EIR for Chevron Richmond refinery modernization
June 11, 2014 by Mike Aldax
A spokesperson for Attorney General Kamala Harris released a statement Tuesday afternoon clarifying Harris’ position on the environmental review process for the Chevron Richmond refinery modernization project.
“Our office met with Chevron and city officials to address many of these concerns,” spokesperson David Beltran said. “We are currently reviewing the revised EIR and expect that many of these concerns will have been addressed.”
The statement was a response to our report earlier today about the city’s concern over a letter Harris sent to Richmond’s planning department on Friday. In the letter, which was widely publicized Monday, Harris was critical of parts of the draft version of the EIR.
The letter blindsided the city, which had reportedly been working with Harris’ office for a long time on resolving the attorney general’s concerns. Both the city and Chevron believed Harris’ concerns were either already addressed in the draft EIR or would be addressed in the final EIR.
The final EIR was released Monday.
“The letter went out before [Harris’ office] saw the final EIR,” said Councilman Tom Butt.
Butt, a critic of Chevron, first reported in his e-forum Tuesday morning that the city felt blindsided.
“Our consulting team said they thought a lot of those issues had been addressed,” Butt said Tuesday afternoon. “I guess if that’s true, then the disruption to the process is minimal. I read the letter and looked at the final EIR and my personal opinion is there are still some significant issues hanging out there.”
Following our report this morning, Beltran called the Richmond Standard to say that Harris’ letter had been taken out of context. He then issued the above statement.
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