South Bay Refinery Violated Chemical Safety Regulations, Faces 6-Figure Fine

WILMINGTON, CA — A South Bay refinery has been fined hundreds of thousands of dollars over chemical safety violations and other hazards, the United States Environmental Protection Agency announced Wednesday.

Valero in Wilmington was fined $270,437 as part of a settlement with the federal agency and has since fixed the safety issues that were identified during a 2022 inspection.

"This settlement today ensures that Valero has improved its safety systems and emergency response procedures at the Wilmington refinery," EPA Pacific Southwest Regional Administrator Josh F.W. Cook said in a statement.

During the inspection, EPA officials found that the refinery violated the Clean Air Act, along with the Emergency Planning and Community Right-to-Know Act, according to the federal agency, which said Valero failed to notify state emergency officials when they released sulfur dioxide into the environment on three different occasions from 2018 to 2021.

When a company releases more than 500 pounds of sulfur dioxide, it must immediately report it to state officials, according to the EPA. High concentrations of this chemical can have harmful effects on lung function and worsen existing heart disease.

The inspection also revealed that Valero had underestimated the distance that dangerous chemicals could travel in a "worst-case scenario" release, which could then pose a risk to nearby communities, the EPA said.

Other violations included inaccuracies in the facility's equipment diagrams, which are essential for a rapid emergency response, insufficient analysis of how facility-wide power failures could compromise safety systems, omission of mandatory information in operating procedures and incident reports and failure to implement previously recommended safety measures, the EPA said.

The Valero refinery refines petroleum and uses hydrofluoric acid in the process — another chemical that can cause severe and permanent health problems if released into the environment, according to the EPA.

The settlement comes as the Texas-based company plans to permanently shut down or restructure its Valero refinery in Benicia by April 2026, as it continues to face growing costs and regulations. The company said in a statement in April that the Benicia and Wilmington refineries were taking a combined $1.1 billion pre-tax impairment charge this year, reflecting a reduction in the company's value.

“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” Lane Riggs, Chairman, CEO and President of Valero, said in a statement this year.

Environmental violations can be reported here.