After a CEQA lawsuit stopped the Chevron refinery modernization project and settlement negotiations failed at the end of 2010, the Richmond City Council encouraged Chevron to re-start the process to obtain a conditional use permit to complete it. The flaws the Court found in the EIR would have to be fixed, and appropriate mitigations for any adverse impacts would have to be incorporated.
For more background, see:
City Council Trio Urges Chevron to Restart Refinery Project, January 29, 2011 Richmond to Chevron: We Never Wanted the Project to Die, March 6, 2011 Contra Costa Times Editorial: Chevron Retrofit Can and Should Be Worked Out, March 9, 2011
Chevron made the move yesterday. Press releases from Chevron and the Bay Area Air Quality Management District follow:

Below is the statement the Bay Area Air District is issuing today regarding the Chevron project. Please feel free to contact me if you have questions.
Lisa Fasano Communications Director Bay Area Air Quality Management District 415-710-3505 Cell

NEWS
FOR IMMEDIATE RELEASE CONTACT: Lisa Fasano May 23, 2011 415.749.4900 Bay Area Air Quality Management District statement regarding Chevron Refinery project
SAN FRANCISCO – Today the Bay Area Air Quality Management District, along with the City of Richmond, heard plans for Chevron’s Conditional Use Permit application, submitted to restart Chevron’s refinery project. The Air District is committed to providing technical assistance to the City of Richmond throughout the CEQA phase of the application process. Additionally, upon submission, the Air District will review Chevron’s air quality permit application, ensuring it meets all applicable air quality standards.
The Bay Area Air Quality Management District (www.baaqmd.gov) is the regional agency chartered with protecting air quality in the nine-county Bay Area.