Both Chevron and the Martinez Refining Company agreed to comply with a tougher pollution rule put in place by the Bay Area Air Quality Management District. The policy, Regulation 6, Rule 5, would have Chevron and Martinez cut emissions from their refineries by 70% and 80%.
Both refineries tried to challenge the rule in court, but have now agreed to drop the lawsuits, and commit to changes that will reduce pollution and frequent flaring.
As part of the agreement, Chevron will also pay $20 million for nearly 680 past violations, and up to $34 million over the next several years for a new community fund that's meant to finance health projects benefiting the Richmond area.
Communities near the refineries in Richmond and Martinez face higher rates of adult asthma, early deaths and other health issues.
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The District said Chevron also faces unprecedented, escalating fines each year that its Richmond refinery is out of compliance with the new rule.
While MRC also agreed to comply with the new regulations and monitoring, officials said fines were not part of this settlement because its violations are more recent, and the company is currently going through a litigation by the Contra Costa County District Attorney's office.
