Richmond Refinery - East Bay Leadership Council

Richmond Refinery
Modernization Project Update
April 4, 2014
© 2014 Chevron
Chevron Richmond
Processes an average of
247,000 barrels of oil daily
Fuels 65% of jets at
Bay Area airports
Powers 20% of cars on
Bay Area roads
Produces 100% of base
oils on the West Coast
Economic Impacts:
2,100 employees / 1,500 contractors
$500 million spent in Richmond and West County – creating
jobs, supporting businesses and paying taxes – since 2009
© 2014 Chevron
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Richmond Refinery
Began Operations in 1902
 Originally Pacific Coast Oil Refinery
 Approximately 10,000 barrels per day
SO2 Emissions from Flaring
Located on ~2,900 acres
Refinery operations are
separated into 4 Business Units
Refinery-wide Emissions
 Distillation & Reforming (D&R)
 Hydroprocessing (Hydro)
 Cracking
 Utilities & Environmental (U&E) /
Blending & Shipping (B&S)
© 2014 Chevron
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Richmond Refinery – Then & Now
Point Orient Wharf (1907)
three ships waiting to be loaded
Richmond Long Wharf Today
can berth six tankers/barges.
SO2 Emissions from Flaring
Administration Building Today
© 2014 Chevron
Administration Building (1920)
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Modernization Project Objectives
1. Modernize and enhance facility reliability
by replacing some of the refinery’s oldest
processing equipment with newer,
cleaner, and inherently safer equipment
and technologies.
SO2 Emissions from Flaring
2. Allow the Facility to process crude oil
blends and externally sourced gas oils
containing higher levels of sulfur.
3. Ensure that there is no net increase in
emissions of greenhouse gases , criteria
pollutants or health risks associated with
toxic air contaminants.
4. Maintain the Facility's current throughput
processing capacity.
5. Does not enable crude by rail or a
switch to processing heavy crudes.
© 2014 Chevron
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Richmond Refinery Modernization
Project Overview
© 2014 Chevron
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CEQA 101
 Generally, CEQA requires analysis of whether a
proposed project results in a substantial or
potentially substantial adverse changes in any of the
physical conditions within the area affected by the
project. (an EIR for large projects like this one)
 Significant impacts must be mitigated to less than
significant (as generally compared to a threshold of
significance – here NNI) unless the lead agency
adopts a statement of overriding considerations
 Alternatives to the Project must also be considered
© 2014 Chevron
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Commitment to a No Net Increase
(Criteria Pollutants, Health Risks, & GHGs)
 Commitment is beyond the requirements of CEQA which in
general calls for mitigation to “less than significant”
 Being achieved through combination of:
−
Project components that have inherent emission
reduction benefits ( low-NOx burners, SRU Wet ESP)
−
Project Design Features ( LED Lighting)
−
Mitigation Measures (Tank Domes)
 With the type of measures above, CAPs and Health Risk will
have no physical increase except for:
−
CO: Refinery will retire Emission Reduction Credits (at
both 93% and 100%)
−
Volatile Organic Compounds: Refinery may need to retire
Emission Reduction Credits (at 100%)
 GHGs requires use of AB 32 to achieve NNI
 Project Case results in lower emissions than both Renewal and
no project
© 2014 Chevron
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Air Quality – Background
Stationary source emissions from all Bay Area refineries is a
small percent of total Bay Area emissions1
Bay Area Refinery Emissions
© 2014 Chevron
BAAQMD, “Annual Bay Area Air Quality Summaries,” http://www.baaqmd.gov/Divisions/Communications-andOutreach/Air-Quality-in-the-Bay-Area/Air-Quality-Summaries.aspx , 2008 data
Air Quality – Modernization Project
Reduction in air emissions
from 1970s levels
25,000
Tons per year
87%
20,000
Modernization results in:
4%+ SO reductions
Additional 6%+ NOx reductions
Additional 1%+ PM reductions
0 Net increase in CO and VOC
Additional
15,000
10,000
2
5,000
0
Average
1970's
© 2014 Chevron
Average
1980's
Average
1990's
Average
2000s
2010 - 2012
Post
Modernization
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Public Safety
 Extensive Public Safety analysis as a result of the
2012 incident
 Analyzes damage mechanisms related to increases in
feedstock sulfur
 Substantial reliability review with engagement of
expert City consultant
− Analyzed potential impacts throughout the
refinery
− Incorporate all recommendations from reliability
review (17 new pipe circuits, additional
PermaSense monitors)
− Re-evaluate and Report on Post-Project
Operating Assumptions from Reliability Review
(2.25% and 2.75% sulfur)
− Annual report to City
− Annual town hall meetings with the workforce
and community
© 2014 Chevron
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EIR Project Alternatives
 CEQA requires that EIRs analyze a
range of alternatives that could feasibly
attain project goals and objectives, while
avoiding or substantially reducing
significant impacts.
SO2 Emissions from Flaring
 Modernization EIR considers the
following alternatives:
− No Project
− Reduced H2 Production
− Reduced Sulfur Processing Capacity
(750 LT/D)
− Renewable Energy Alternative
 EIR Section 2.5.8 :
“The Project is environmentally superior
to all of the alternatives discussed in this
Chapter 6 [Project Alternatives].”
© 2014 Chevron
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Current Permitting Schedule
 Draft EIR released March 18th
 Public Workshop – April 2
 Planning Commission Study Session
– April 3
 Planning Commission Hearing for
Public Comment – April 17
 Close of Public Comment – May 2
SO2 Emissions from Flaring
 City of Richmond Approval –
Summer 2014
Refinery-wide Emissions
© 2014 Chevron
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Richmond Proud
© 2014 Chevron
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Creating a NEWER, SAFER and CLEANER
refinery that is BETTER for this community.
Replace some of the
refinery’s oldest processing
older equipment with modern
technologies




Hydrogen plant
Pressure Swing Absorbers
PAL ships w/ Tier 3 engines
Furnaces and tank domes
Create 1,000 union
construction jobs.
© 2014 Chevron
Install new piping and conduct
enhanced inspections.
 17 new piping circuits (4 CU)
 Additional Permasense
Monitors
 Backup H2S Scrubber
 New #6 H2S Plant
Achieve not net increase in
emissions (CAPs, GHGs and
health risks).
 NNI Voluntary Commitment
 +20% energy efficiency – new
hydrogen plant
 Approximately 6,000 LED lights
 Exceedances fund local Clean
Air Improvement Fund
Continue to be an economic
engine for the region.
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