California Could Levy a New 'Windfall' Tax on Oil Companies. Here's What That Might Look Like
In Benicia's City Council Race, the Valero Refinery Is on People's Minds
Safety Agency Issues $1.75 Million in Fines Over Worker's Death at Valero Refinery
'First I Had Heard of It': Valero's Benicia Refinery Secretly Released Toxic Chemicals for Years
Benicia Considers Proposal for City Hall to Fact-Check Political Ads During Elections
Candidate Targeted by Valero Wins Benicia Mayoral Race
Valero-Funded PAC Pours More Than $250,000 Into Benicia Mayor's Race
Solano County Says Valero Violated State Regulations in March Refinery Shutdown
California Oil Industry Sounds Alarm Over Utilities' Power Shutoff Plans
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He's worked as a senior talk show producer for WILL in Champaign-Urbana, Illinois, and was the founding producer and editor of \u003cem>Racist Sandwich\u003c/em>, a podcast about food, race, class, and gender. He is a Filipino-American from Hong Kong and a graduate of Reed College in Portland, Oregon.","avatar":"https://secure.gravatar.com/avatar/d5e4e7a76481969ccba76f4e2b5ccabc?s=600&d=blank&r=g","twitter":"alanmontecillo","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"","roles":["editor"]},{"site":"news","roles":["editor"]}],"headData":{"title":"Alan Montecillo | KQED","description":"KQED Contributor","ogImgSrc":"https://secure.gravatar.com/avatar/d5e4e7a76481969ccba76f4e2b5ccabc?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/d5e4e7a76481969ccba76f4e2b5ccabc?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/amontecillo"},"mesquinca":{"type":"authors","id":"11802","meta":{"index":"authors_1591205172","id":"11802","found":true},"name":"Maria Esquinca","firstName":"Maria","lastName":"Esquinca","slug":"mesquinca","email":"mesquinca@kqed.org","display_author_email":false,"staff_mastheads":[],"title":"Producer, The Bay","bio":"María Esquinca is a producer of The Bay. Before that, she was a New York Women’s Foundation IGNITE Fellow at Latino USA. She worked at Radio Bilingue where she covered the San Joaquin Valley. Maria has interned at WLRN, News 21, The New York Times Student Journalism Institute and at Crain’s Detroit Business as a Dow Jones News Fund Business Reporting Intern. She is an MFA graduate from the University of Miami. In 2017, she graduated from the Walter Cronkite School of Journalism and Mass Communication with a Master of Mass Communication. A fronteriza, she was born in Ciudad Juárez, Chihuahua, Mexico and grew up in El Paso, Texas.","avatar":"https://secure.gravatar.com/avatar/77cedba18aae91da775038ba06dcd8d0?s=600&d=blank&r=g","twitter":"@m_esquinca","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"news","roles":["editor"]}],"headData":{"title":"Maria Esquinca | KQED","description":"Producer, The Bay","ogImgSrc":"https://secure.gravatar.com/avatar/77cedba18aae91da775038ba06dcd8d0?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/77cedba18aae91da775038ba06dcd8d0?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/mesquinca"}},"breakingNewsReducer":{},"campaignFinanceReducer":{},"firebase":{"requesting":{},"requested":{},"timestamps":{},"data":{},"ordered":{},"auth":{"isLoaded":false,"isEmpty":true},"authError":null,"profile":{"isLoaded":false,"isEmpty":true},"listeners":{"byId":{},"allIds":[]},"isInitializing":false,"errors":[]},"navBarReducer":{"navBarId":"news","fullView":true,"showPlayer":false},"navMenuReducer":{"menus":[{"key":"menu1","items":[{"name":"News","link":"/","type":"title"},{"name":"Politics","link":"/politics"},{"name":"Science","link":"/science"},{"name":"Education","link":"/educationnews"},{"name":"Housing","link":"/housing"},{"name":"Immigration","link":"/immigration"},{"name":"Criminal Justice","link":"/criminaljustice"},{"name":"Silicon Valley","link":"/siliconvalley"},{"name":"Forum","link":"/forum"},{"name":"The California Report","link":"/californiareport"}]},{"key":"menu2","items":[{"name":"Arts & Culture","link":"/arts","type":"title"},{"name":"Critics’ Picks","link":"/thedolist"},{"name":"Cultural Commentary","link":"/artscommentary"},{"name":"Food & Drink","link":"/food"},{"name":"Bay Area Hip-Hop","link":"/bayareahiphop"},{"name":"Rebel Girls","link":"/rebelgirls"},{"name":"Arts Video","link":"/artsvideos"}]},{"key":"menu3","items":[{"name":"Podcasts","link":"/podcasts","type":"title"},{"name":"Bay Curious","link":"/podcasts/baycurious"},{"name":"Rightnowish","link":"/podcasts/rightnowish"},{"name":"The Bay","link":"/podcasts/thebay"},{"name":"On Our Watch","link":"/podcasts/onourwatch"},{"name":"Mindshift","link":"/podcasts/mindshift"},{"name":"Consider This","link":"/podcasts/considerthis"},{"name":"Political Breakdown","link":"/podcasts/politicalbreakdown"}]},{"key":"menu4","items":[{"name":"Live Radio","link":"/radio","type":"title"},{"name":"TV","link":"/tv","type":"title"},{"name":"Events","link":"/events","type":"title"},{"name":"For Educators","link":"/education","type":"title"},{"name":"Support KQED","link":"/support","type":"title"},{"name":"About","link":"/about","type":"title"},{"name":"Help Center","link":"https://kqed-helpcenter.kqed.org/s","type":"title"}]}]},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_11930321":{"type":"posts","id":"news_11930321","meta":{"index":"posts_1591205157","site":"news","id":"11930321","score":null,"sort":[1666921011000]},"guestAuthors":[],"slug":"california-could-levy-a-new-windfall-tax-on-oil-companies-heres-what-that-might-look-like","title":"California Could Levy a New 'Windfall' Tax on Oil Companies. Here's What That Might Look Like","publishDate":1666921011,"format":"standard","headTitle":"CALmatters | KQED News","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>Few things agitate drivers — and make politicians sweat — like rising prices at the pump.[pullquote size=\"medium\" align=\"right\" citation=\"Gov. Gavin Newsom\"]'Big oil is ripping people off at the pump, and they’re making more in profits off of Californians than in any other state – that’s why we need a price gouging penalty to hold them accountable and get these profits into your pockets.'[/pullquote]\u003c/p>\n\u003cp>\u003ca href=\"https://www.energy.ca.gov/data-reports/energy-insights/what-drives-californias-gasoline-prices\">Gas prices in California are consistently higher than in the rest of the country\u003c/a>, thanks to state taxes, a cleaner fuel blend, an isolated gas-refining market and more. But in September, California prices jumped even higher and that gap grew wider.\u003c/p>\n\u003cp>Gov. Gavin Newsom pointed the finger at the gas industry when he talked to reporters in early October, saying companies were “fleecing” drivers and \u003ca href=\"https://calmatters.org/politics/2022/10/newsom-gas-rebate-special-session/\">called for a new “windfall profit” tax\u003c/a> on oil companies.\u003c/p>\n\u003cp>“Big oil is ripping people off at the pump, and they’re making more in profits off of Californians than in any other state – that’s why we need a price gouging penalty to hold them accountable and get these profits into your pockets,” said Newsom in a press release on Thursday after a third quarter earnings report showed \u003ca href=\"https://protect-us.mimecast.com/s/3S27Cn5zDjC67680s9pEqp?domain=mclist.us7.list-manage.com\">a dramatic profit increase for PBF Energy and Shell\u003c/a>. PBF Energy’s profit jumped from $59.1 million at this time last year to $1.06 billion — an increase of nearly 1,700%. Shell also increased profits from $4.1 billion last year to $9.45 billion.\u003c/p>\n\u003cp>Valero, an international oil company that owns refineries in California, saw its \u003ca href=\"https://www.gov.ca.gov/2022/10/25/valero-profits-more-than-500-higher-than-a-year-ago-amid-gas-price-hikes/\">profits from July to September increase 500%\u003c/a> over the same period last year. And \u003ca href=\"https://www.consumerwatchdog.org/energy/cas-big-5-oil-refiner-profits-top-26-billion-1-gallon-watchdog-make-case-profits-disclosure\">profits on West Coast gas operations increased dramatically\u003c/a> in April through June, compared to the same time last year, at companies that own some of the state’s largest refineries, an analysis by Consumer Watchdog found.\u003c/p>\n\u003cp>With Newsom planning to convene a special legislative session in early December to focus on the new tax, CalMatters spoke to experts about how the idea has worked in the U.S. and abroad.\u003c/p>\n\u003ch2 id=\"h-windfall-profit-tax-s-checkered-past\">Windfall profit tax's checkered past\u003c/h2>\n\u003cp>This isn’t something states have done often.\u003c/p>\n\u003cp>No state has done a windfall profit tax before, said David Brunori, visiting professor of public policy at George Mason University and an expert on state-level tax policy. The one debatable exception: In 2006, \u003ca href=\"https://www.alaskajournal.com/business-and-finance/2014-07-10/evolution-alaskas-oil-taxes\">Alaska began taxing net revenues on oil production\u003c/a>, with a tax rate that increased as the price of a barrel of oil increased. After some tweaks in 2007, the tax \u003ca href=\"https://www.seattletimes.com/seattle-news/windfall-tax-lets-alaska-rake-in-billions-from-big-oil/\">brought in billions of dollars for the state\u003c/a>, some of which was used to issue $1,200 payments to residents to help with high gas prices, according to The Seattle Times.\u003c/p>\n\u003cp>After the tax was imposed, however, \u003ca href=\"https://www.alaskajournal.com/business-and-finance/2014-07-10/evolution-alaskas-oil-taxes\">drilling decreased\u003c/a> and the amount oil companies invested in developing new oil dropped, according to the Alaska Journal of Commerce. But, Brunori said, it wasn’t really a windfall profit tax because it wasn’t a direct tax on profits. It’s also not clear whether Newsom’s proposal will look anything like Alaska’s tax.[aside postID=\"news_11929137,news_11929646,news_11928011\" label=\"Related Posts\"]A windfall tax isn’t likely to raise or lower gas prices, says Severin Borenstein, energy economist at UC Berkeley, but it would be “very difficult to actually implement.”\u003c/p>\n\u003cp>Policymakers have to decide exactly how much profit constitutes a windfall. “Above what level do we say, ‘That’s too much profit and we’re going to tax it away?’” he said. The United States temporarily embraced excess profit taxes during World War I, World War II and the Korean War, with \u003ca href=\"https://www.washingtonpost.com/made-by-history/2022/10/24/windfall-profit-taxes/\">mixed results\u003c/a>. When the U.S. government massively ramped up spending during WWI, some companies saw their profit margins balloon. So, the government began taxing all industries’ profits above a certain return on investment, which wound up bringing in about \u003ca href=\"https://www.washingtonpost.com/made-by-history/2022/10/24/windfall-profit-taxes/\">40% of the tax revenue raised for the war\u003c/a>.\u003c/p>\n\u003cp>But, because the taxes were complicated, well-paid attorneys at large companies could use “creative gamesmanship” to reduce their employers’ tax bill, while small companies without a phalanx of lawyers shouldered more of the burden, said Joe Thorndike, director of the Tax History Project at Tax Analysts.\u003c/p>\n\u003cp>“These taxes, more than most, really are dependent on a moral argument, a moral justification, to exist, and when that starts to get picked apart by these fairness failures, it really makes it a problem,” said Thorndike.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://datawrapper.dwcdn.net/Lrr5u/2/\" width=\"800\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>The idea was revived in 1980, as the federal government prepared to relax price controls on oil produced in the U.S. That year, Congress passed what it dubbed a windfall profit tax, aimed at oil industry profits. The thinking, said Thorndike, was that companies would profit massively as crude oil rose to the market price, and the process would be expensive and painful for consumers. The tax, however, was not a tax on profits, but rather a system of excise taxes on oil, according to \u003ca href=\"https://liheapch.acf.hhs.gov/pubs/oilwindfall.pdf\">a Congressional Research Service report (PDF)\u003c/a>.\u003c/p>\n\u003cp>It wasn’t a resounding success. During the eight years it was in effect, it brought in $80 billion — far lower than the $393 billion it was projected to generate, according to congressional researchers. Because the tax only applied to oil produced in the U.S., it likely decreased domestic production while increasing the country’s reliance on foreign oil, congressional researchers found. It was also difficult for the Internal Revenue Service to administer, and difficult for the oil industry to comply with. So, in 1988 it was repealed.\u003c/p>\n\u003ch2 id=\"h-europe-embraces-the-windfall-tax\">Europe embraces the windfall tax\u003c/h2>\n\u003cp>As energy prices have spiked in Europe and the United Kingdom, leaders there have also turned to windfall taxes.\u003ca href=\"https://taxfoundation.org/windfall-tax-europe/\"> Greece, Hungary, Italy, Romania, Spain and the U.K. all have implemented their own\u003c/a>, and six other countries have shown intentions to impose similar taxes, according to a September analysis by The Tax Foundation. In late September, the \u003ca href=\"https://www.cnn.com/2022/09/30/economy/europe-energy-crisis-windfall-tax\">European Union agreed to a windfall tax\u003c/a> on oil and gas profits.\u003c/p>\n\u003cp>Different countries have taken different approaches. Hungary, for example, is taxing a wide range of sectors, from petroleum producers to renewable energy companies to pharmaceutical companies, while the U.K. is taxing oil and gas companies within the country. \u003ca href=\"https://www.reuters.com/business/energy/italy-faces-shortfall-over-9-bln-energy-windfall-tax-document-2022-08-02/\">Italy has seen much less revenue than expected\u003c/a>, seemingly caused by Italian energy companies not complying with the tax.\u003c/p>\n\u003cp>Because these taxes in Europe are so recent — and because they are temporary — it’s hard to tell what impact they will have, said Sean Bray, EU tax policy analyst at The Tax Foundation.\u003c/p>\n\u003cp>Here in California, Borenstein, the energy economist at Berkeley, hopes the Legislature will use the special session to discuss what he sees as the Golden State’s “fundamental problem” when it comes to gas: figuring out how to maintain adequate supplies while the state is using its cleaner blend and trying to phase out fossil fuel usage.\u003c/p>\n\u003cp>“We ignore this issue entirely, until there's a big price spike,” said Borenstein. “And then everybody runs around yelling about how outrageous this is, instead of actually having a serious policy discussion of what's the right way to deal with this.”\u003c/p>\n\u003ch2 id=\"h-so-how-would-this-work\">So how would this work?\u003c/h2>\n\u003cp>Details are spare at this point. But the basic idea is that companies that extract, produce and refine oil would pay a higher tax rate on their earnings above a set amount each year, a spokesperson for the governor said. The money raised by the tax would be sent via refunds to “California taxpayers impacted by high gas prices,” said a spokesperson for the governor in an email.\u003c/p>\n\u003cp>The logic behind windfall profit taxes is to tax a company at a higher rate when they’re making giant profits — a “windfall” — for some reason not of their own making.\u003c/p>\n\u003cp>Often there’s a moral dimension to the thinking as well, said Kirk Stark, tax law professor at UCLA. Theoretically, taxing extra-high profits at an extra-high rate should make companies less likely to capitalize on circumstances like war and natural disasters and jack up prices — like a shopkeeper who raises the price of bottled water from $2 to $40 following a hurricane. “There's almost a kind of moral judgment that, in some situations, market prices can be immoral,” said Stark.\u003c/p>\n\u003cp>Getting the incentives right is tricky, said Borenstein, as is preventing companies from evading the tax. If, for example, the state taxes profits at California refineries, those refineries — owned by companies including Chevron and Valero — could start buying oil from another division of their parent companies at \u003cem>higher\u003c/em> prices.\u003c/p>\n\u003cp>By doing that, they could reduce their profit. And if they’re no longer making large profits, their tax bill would go down.\u003c/p>\n\u003cp>“The devil is in the details,” said Borenstein.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Gov. Gavin Newsom proposed the tax in response to price spikes at the pump amid soaring oil company profits.","status":"publish","parent":0,"modified":1666973731,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":true,"iframeSrcs":["https://datawrapper.dwcdn.net/Lrr5u/2/"],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":28,"wordCount":1543},"headData":{"title":"California Could Levy a New 'Windfall' Tax on Oil Companies. Here's What That Might Look Like | KQED","description":"Gov. Gavin Newsom proposed the tax in response to price spikes at the pump amid soaring oil company profits.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California Could Levy a New 'Windfall' Tax on Oil Companies. Here's What That Might Look Like","datePublished":"2022-10-28T01:36:51.000Z","dateModified":"2022-10-28T16:15:31.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11930321 https://ww2.kqed.org/news/?p=11930321","disqusUrl":"https://ww2.kqed.org/news/2022/10/27/california-could-levy-a-new-windfall-tax-on-oil-companies-heres-what-that-might-look-like/","disqusTitle":"California Could Levy a New 'Windfall' Tax on Oil Companies. Here's What That Might Look Like","nprByline":"\u003ca href=\"https://calmatters.org/author/grace-gedye/\">Grace Gedye\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11930321/california-could-levy-a-new-windfall-tax-on-oil-companies-heres-what-that-might-look-like","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Few things agitate drivers — and make politicians sweat — like rising prices at the pump.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'Big oil is ripping people off at the pump, and they’re making more in profits off of Californians than in any other state – that’s why we need a price gouging penalty to hold them accountable and get these profits into your pockets.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Gov. Gavin Newsom","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://www.energy.ca.gov/data-reports/energy-insights/what-drives-californias-gasoline-prices\">Gas prices in California are consistently higher than in the rest of the country\u003c/a>, thanks to state taxes, a cleaner fuel blend, an isolated gas-refining market and more. But in September, California prices jumped even higher and that gap grew wider.\u003c/p>\n\u003cp>Gov. Gavin Newsom pointed the finger at the gas industry when he talked to reporters in early October, saying companies were “fleecing” drivers and \u003ca href=\"https://calmatters.org/politics/2022/10/newsom-gas-rebate-special-session/\">called for a new “windfall profit” tax\u003c/a> on oil companies.\u003c/p>\n\u003cp>“Big oil is ripping people off at the pump, and they’re making more in profits off of Californians than in any other state – that’s why we need a price gouging penalty to hold them accountable and get these profits into your pockets,” said Newsom in a press release on Thursday after a third quarter earnings report showed \u003ca href=\"https://protect-us.mimecast.com/s/3S27Cn5zDjC67680s9pEqp?domain=mclist.us7.list-manage.com\">a dramatic profit increase for PBF Energy and Shell\u003c/a>. PBF Energy’s profit jumped from $59.1 million at this time last year to $1.06 billion — an increase of nearly 1,700%. Shell also increased profits from $4.1 billion last year to $9.45 billion.\u003c/p>\n\u003cp>Valero, an international oil company that owns refineries in California, saw its \u003ca href=\"https://www.gov.ca.gov/2022/10/25/valero-profits-more-than-500-higher-than-a-year-ago-amid-gas-price-hikes/\">profits from July to September increase 500%\u003c/a> over the same period last year. And \u003ca href=\"https://www.consumerwatchdog.org/energy/cas-big-5-oil-refiner-profits-top-26-billion-1-gallon-watchdog-make-case-profits-disclosure\">profits on West Coast gas operations increased dramatically\u003c/a> in April through June, compared to the same time last year, at companies that own some of the state’s largest refineries, an analysis by Consumer Watchdog found.\u003c/p>\n\u003cp>With Newsom planning to convene a special legislative session in early December to focus on the new tax, CalMatters spoke to experts about how the idea has worked in the U.S. and abroad.\u003c/p>\n\u003ch2 id=\"h-windfall-profit-tax-s-checkered-past\">Windfall profit tax's checkered past\u003c/h2>\n\u003cp>This isn’t something states have done often.\u003c/p>\n\u003cp>No state has done a windfall profit tax before, said David Brunori, visiting professor of public policy at George Mason University and an expert on state-level tax policy. The one debatable exception: In 2006, \u003ca href=\"https://www.alaskajournal.com/business-and-finance/2014-07-10/evolution-alaskas-oil-taxes\">Alaska began taxing net revenues on oil production\u003c/a>, with a tax rate that increased as the price of a barrel of oil increased. After some tweaks in 2007, the tax \u003ca href=\"https://www.seattletimes.com/seattle-news/windfall-tax-lets-alaska-rake-in-billions-from-big-oil/\">brought in billions of dollars for the state\u003c/a>, some of which was used to issue $1,200 payments to residents to help with high gas prices, according to The Seattle Times.\u003c/p>\n\u003cp>After the tax was imposed, however, \u003ca href=\"https://www.alaskajournal.com/business-and-finance/2014-07-10/evolution-alaskas-oil-taxes\">drilling decreased\u003c/a> and the amount oil companies invested in developing new oil dropped, according to the Alaska Journal of Commerce. But, Brunori said, it wasn’t really a windfall profit tax because it wasn’t a direct tax on profits. It’s also not clear whether Newsom’s proposal will look anything like Alaska’s tax.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11929137,news_11929646,news_11928011","label":"Related Posts "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>A windfall tax isn’t likely to raise or lower gas prices, says Severin Borenstein, energy economist at UC Berkeley, but it would be “very difficult to actually implement.”\u003c/p>\n\u003cp>Policymakers have to decide exactly how much profit constitutes a windfall. “Above what level do we say, ‘That’s too much profit and we’re going to tax it away?’” he said. The United States temporarily embraced excess profit taxes during World War I, World War II and the Korean War, with \u003ca href=\"https://www.washingtonpost.com/made-by-history/2022/10/24/windfall-profit-taxes/\">mixed results\u003c/a>. When the U.S. government massively ramped up spending during WWI, some companies saw their profit margins balloon. So, the government began taxing all industries’ profits above a certain return on investment, which wound up bringing in about \u003ca href=\"https://www.washingtonpost.com/made-by-history/2022/10/24/windfall-profit-taxes/\">40% of the tax revenue raised for the war\u003c/a>.\u003c/p>\n\u003cp>But, because the taxes were complicated, well-paid attorneys at large companies could use “creative gamesmanship” to reduce their employers’ tax bill, while small companies without a phalanx of lawyers shouldered more of the burden, said Joe Thorndike, director of the Tax History Project at Tax Analysts.\u003c/p>\n\u003cp>“These taxes, more than most, really are dependent on a moral argument, a moral justification, to exist, and when that starts to get picked apart by these fairness failures, it really makes it a problem,” said Thorndike.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://datawrapper.dwcdn.net/Lrr5u/2/\" width=\"800\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>The idea was revived in 1980, as the federal government prepared to relax price controls on oil produced in the U.S. That year, Congress passed what it dubbed a windfall profit tax, aimed at oil industry profits. The thinking, said Thorndike, was that companies would profit massively as crude oil rose to the market price, and the process would be expensive and painful for consumers. The tax, however, was not a tax on profits, but rather a system of excise taxes on oil, according to \u003ca href=\"https://liheapch.acf.hhs.gov/pubs/oilwindfall.pdf\">a Congressional Research Service report (PDF)\u003c/a>.\u003c/p>\n\u003cp>It wasn’t a resounding success. During the eight years it was in effect, it brought in $80 billion — far lower than the $393 billion it was projected to generate, according to congressional researchers. Because the tax only applied to oil produced in the U.S., it likely decreased domestic production while increasing the country’s reliance on foreign oil, congressional researchers found. It was also difficult for the Internal Revenue Service to administer, and difficult for the oil industry to comply with. So, in 1988 it was repealed.\u003c/p>\n\u003ch2 id=\"h-europe-embraces-the-windfall-tax\">Europe embraces the windfall tax\u003c/h2>\n\u003cp>As energy prices have spiked in Europe and the United Kingdom, leaders there have also turned to windfall taxes.\u003ca href=\"https://taxfoundation.org/windfall-tax-europe/\"> Greece, Hungary, Italy, Romania, Spain and the U.K. all have implemented their own\u003c/a>, and six other countries have shown intentions to impose similar taxes, according to a September analysis by The Tax Foundation. In late September, the \u003ca href=\"https://www.cnn.com/2022/09/30/economy/europe-energy-crisis-windfall-tax\">European Union agreed to a windfall tax\u003c/a> on oil and gas profits.\u003c/p>\n\u003cp>Different countries have taken different approaches. Hungary, for example, is taxing a wide range of sectors, from petroleum producers to renewable energy companies to pharmaceutical companies, while the U.K. is taxing oil and gas companies within the country. \u003ca href=\"https://www.reuters.com/business/energy/italy-faces-shortfall-over-9-bln-energy-windfall-tax-document-2022-08-02/\">Italy has seen much less revenue than expected\u003c/a>, seemingly caused by Italian energy companies not complying with the tax.\u003c/p>\n\u003cp>Because these taxes in Europe are so recent — and because they are temporary — it’s hard to tell what impact they will have, said Sean Bray, EU tax policy analyst at The Tax Foundation.\u003c/p>\n\u003cp>Here in California, Borenstein, the energy economist at Berkeley, hopes the Legislature will use the special session to discuss what he sees as the Golden State’s “fundamental problem” when it comes to gas: figuring out how to maintain adequate supplies while the state is using its cleaner blend and trying to phase out fossil fuel usage.\u003c/p>\n\u003cp>“We ignore this issue entirely, until there's a big price spike,” said Borenstein. “And then everybody runs around yelling about how outrageous this is, instead of actually having a serious policy discussion of what's the right way to deal with this.”\u003c/p>\n\u003ch2 id=\"h-so-how-would-this-work\">So how would this work?\u003c/h2>\n\u003cp>Details are spare at this point. But the basic idea is that companies that extract, produce and refine oil would pay a higher tax rate on their earnings above a set amount each year, a spokesperson for the governor said. The money raised by the tax would be sent via refunds to “California taxpayers impacted by high gas prices,” said a spokesperson for the governor in an email.\u003c/p>\n\u003cp>The logic behind windfall profit taxes is to tax a company at a higher rate when they’re making giant profits — a “windfall” — for some reason not of their own making.\u003c/p>\n\u003cp>Often there’s a moral dimension to the thinking as well, said Kirk Stark, tax law professor at UCLA. Theoretically, taxing extra-high profits at an extra-high rate should make companies less likely to capitalize on circumstances like war and natural disasters and jack up prices — like a shopkeeper who raises the price of bottled water from $2 to $40 following a hurricane. “There's almost a kind of moral judgment that, in some situations, market prices can be immoral,” said Stark.\u003c/p>\n\u003cp>Getting the incentives right is tricky, said Borenstein, as is preventing companies from evading the tax. If, for example, the state taxes profits at California refineries, those refineries — owned by companies including Chevron and Valero — could start buying oil from another division of their parent companies at \u003cem>higher\u003c/em> prices.\u003c/p>\n\u003cp>By doing that, they could reduce their profit. And if they’re no longer making large profits, their tax bill would go down.\u003c/p>\n\u003cp>“The devil is in the details,” said Borenstein.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11930321/california-could-levy-a-new-windfall-tax-on-oil-companies-heres-what-that-might-look-like","authors":["byline_news_11930321"],"categories":["news_8","news_13"],"tags":["news_28585","news_641","news_3273","news_16","news_31911","news_20022"],"affiliates":["news_18481"],"featImg":"news_11930324","label":"news_18481"},"news_11929409":{"type":"posts","id":"news_11929409","meta":{"index":"posts_1591205157","site":"news","id":"11929409","score":null,"sort":[1666173643000]},"guestAuthors":[],"slug":"benicia-cc-valero","title":"In Benicia's City Council Race, the Valero Refinery Is on People's Minds","publishDate":1666173643,"format":"audio","headTitle":"In Benicia’s City Council Race, the Valero Refinery Is on People’s Minds | KQED","labelTerm":{},"content":"\u003cp>\u003cspan style=\"font-weight: 400\">Benicia is home to an oil refinery operated by Valero, which employs hundreds of people and contributes tax revenue totaling an estimated 20% of the city’s general budget.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The company has also played a very active role in local elections. Valero’s political action committee spent hundreds of thousands of dollars in 2018 and 2020.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Now, with this year’s city council race underway — and residents frustrated \u003c/span>\u003ca href=\"https://www.kqed.org/news/11905065/first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years\">\u003cspan style=\"font-weight: 400\">over recent controversies at the refinery\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> — Valero’s role in Benicia looms large once again.\u003c/span>\u003c/p>\n\u003cp>\u003cb>Guest\u003c/b>\u003cspan style=\"font-weight: 400\">: \u003ca href=\"https://twitter.com/OakMorr\">Scott Morris\u003c/a>, reporter for the Vallejo Sun\u003c/span>\u003c/p>\n\u003cdiv class=\"card card--enclosed grey\">\n\u003cp id=\"embed-code\" class=\"inconsolata\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm?e=KQINC7380528814&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\n\u003c/p>\n\u003c/div>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003cstrong>Links\u003c/strong>:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli>\u003cb>‘\u003ca href=\"https://www.vallejosun.com/benicia-city-council-candidates-forum-october-2022/\">Valero looms over Benicia City Council candidates forum\u003c/a>\u003cspan style=\"font-weight: 400\">,’ by Scott Morris, Oct. 13, 2022.\u003c/span>\u003c/b>\u003c/li>\n\u003cli>\u003cstrong>‘’\u003ca href=\"https://www.kqed.org/news/11906922/in-benicia-the-public-has-been-kept-in-the-dark-about-toxic-chemicals-at-valeros-refinery\">First I Had Heard of It’: Valero’s Benicia Refinery Secretly Released Toxic Chemicals for Years\u003c/a>,’ \u003c/strong>\u003cspan style=\"font-weight: 400\">by Ted Goldberg, Feb. 24, 2022.\u003c/span>\u003c/li>\n\u003cli>\u003cspan style=\"font-weight: 400\">LISTEN: \u003c/span>\u003ca href=\"https://www.kqed.org/news/11906922/in-benicia-the-public-has-been-kept-in-the-dark-about-toxic-chemicals-at-valeros-refinery\">\u003cb>For 15 Years, Valero’s Benicia Refinery Released Toxic Chemicals — And No One Knew, \u003c/b>\u003c/a>Mar. 1, 2022.\u003c/li>\n\u003cli>\u003cspan style=\"font-weight: 400\">WATCH: \u003c/span>\u003ca href=\"https://youtu.be/RPfGKJEMUFQ\">\u003cb>Benicia City Council Candidate Forum\u003c/b>\u003c/a> \u003cspan style=\"font-weight: 400\">on Oct. 12, 2022.\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1700690248,"stats":{"hasAudio":true,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":7,"wordCount":175},"headData":{"title":"In Benicia's City Council Race, the Valero Refinery Is on People's Minds | KQED","description":"Benicia is home to an oil refinery operated by Valero, which employs hundreds of people and contributes tax revenue totaling an estimated 20% of the city’s general budget. The company has also played a very active role in local elections. Valero’s political action committee spent hundreds of thousands of dollars in 2018 and 2020. Now,","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"In Benicia's City Council Race, the Valero Refinery Is on People's Minds","datePublished":"2022-10-19T10:00:43.000Z","dateModified":"2023-11-22T21:57:28.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"source":"The Bay","sourceUrl":"https://www.kqed.org/podcasts/thebay","audioUrl":"https://www.podtrac.com/pts/redirect.mp3/traffic.megaphone.fm/KQINC7380528814.mp3","excludeFromSiteSearch":"Include","path":"/news/11929409/benicia-cc-valero","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cspan style=\"font-weight: 400\">Benicia is home to an oil refinery operated by Valero, which employs hundreds of people and contributes tax revenue totaling an estimated 20% of the city’s general budget.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">The company has also played a very active role in local elections. Valero’s political action committee spent hundreds of thousands of dollars in 2018 and 2020.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Now, with this year’s city council race underway — and residents frustrated \u003c/span>\u003ca href=\"https://www.kqed.org/news/11905065/first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years\">\u003cspan style=\"font-weight: 400\">over recent controversies at the refinery\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> — Valero’s role in Benicia looms large once again.\u003c/span>\u003c/p>\n\u003cp>\u003cb>Guest\u003c/b>\u003cspan style=\"font-weight: 400\">: \u003ca href=\"https://twitter.com/OakMorr\">Scott Morris\u003c/a>, reporter for the Vallejo Sun\u003c/span>\u003c/p>\n\u003cdiv class=\"card card--enclosed grey\">\n\u003cp id=\"embed-code\" class=\"inconsolata\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm?e=KQINC7380528814&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\n\u003c/p>\n\u003c/div>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003cstrong>Links\u003c/strong>:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli>\u003cb>‘\u003ca href=\"https://www.vallejosun.com/benicia-city-council-candidates-forum-october-2022/\">Valero looms over Benicia City Council candidates forum\u003c/a>\u003cspan style=\"font-weight: 400\">,’ by Scott Morris, Oct. 13, 2022.\u003c/span>\u003c/b>\u003c/li>\n\u003cli>\u003cstrong>‘’\u003ca href=\"https://www.kqed.org/news/11906922/in-benicia-the-public-has-been-kept-in-the-dark-about-toxic-chemicals-at-valeros-refinery\">First I Had Heard of It’: Valero’s Benicia Refinery Secretly Released Toxic Chemicals for Years\u003c/a>,’ \u003c/strong>\u003cspan style=\"font-weight: 400\">by Ted Goldberg, Feb. 24, 2022.\u003c/span>\u003c/li>\n\u003cli>\u003cspan style=\"font-weight: 400\">LISTEN: \u003c/span>\u003ca href=\"https://www.kqed.org/news/11906922/in-benicia-the-public-has-been-kept-in-the-dark-about-toxic-chemicals-at-valeros-refinery\">\u003cb>For 15 Years, Valero’s Benicia Refinery Released Toxic Chemicals — And No One Knew, \u003c/b>\u003c/a>Mar. 1, 2022.\u003c/li>\n\u003cli>\u003cspan style=\"font-weight: 400\">WATCH: \u003c/span>\u003ca href=\"https://youtu.be/RPfGKJEMUFQ\">\u003cb>Benicia City Council Candidate Forum\u003c/b>\u003c/a> \u003cspan style=\"font-weight: 400\">on Oct. 12, 2022.\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11929409/benicia-cc-valero","authors":["11649","11802"],"programs":["news_28779"],"categories":["news_8","news_33520"],"tags":["news_30879","news_31864","news_3111","news_2919","news_22598","news_20022"],"featImg":"news_11913908","label":"source_news_11929409"},"news_11913837":{"type":"posts","id":"news_11913837","meta":{"index":"posts_1591205157","site":"news","id":"11913837","score":null,"sort":[1652308589000]},"guestAuthors":[],"slug":"state-issues-1-75m-in-fines-over-worker-death-at-valero-refinery","title":"Safety Agency Issues $1.75 Million in Fines Over Worker's Death at Valero Refinery","publishDate":1652308589,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>State workplace regulators have issued $1.75 million in fines to Valero and three other companies, alleging dozens of safety violations in connection with the death of a contract worker at Valero's Benicia refinery last fall.\u003c/p>\n\u003cp>California's Division of Occupational Safety and Health said the fines are the highest it's ever levied in connection with a refinery worker's death.\u003c/p>\n\u003cp>Cal/OSHA said it discovered the violations after investigating the Nov. 12 death of 35-year-old Luis Gutierrez. The agency said Gutierrez died from asphyxiation when a broken welding torch leaked argon gas into an enclosed \"oxygen-deficient\" area he had just entered.\u003c/p>\n\u003cp>The agency issued a $528,000 fine to Valero and a $988,000 fine to the Houston-based company Total Safety, one of the outside firms that works in the refinery. It also issued a $135,000 fine to J.T. Thorpe and Son, the Richmond-based company that employed Gutierrez, and a $101,000 fine to T.R.S.C., a Vallejo-based firm.\u003c/p>\n\u003cp>The firms were cited for varying numbers of violations, with three of the four companies alleged to have committed \"serious and willful\" violations — Cal/OSHA's most severe category of infraction. [aside label=\"related coverage\" tag=\"valero-refinery\"]\u003c/p>\n\u003cp>The alleged safety breaches include failure to repair the broken welding apparatus; failure to test and monitor conditions in the enclosed space where Gutierrez died; and failure to equip the team that retrieved Gutierrez with the appropriate breathing apparatus and other safety equipment.\u003c/p>\n\u003cp>\"It appears that this was a classic case of poor communications and poor attention to details,\" said Craig Peters, an attorney specializing in workplace accidents at San Francisco's Altair Law, who reviewed the state investigation's summary.\u003c/p>\n\u003cp>\"The circumstances indicate a serious inattention to basic safety protocols when dealing with dangerous confined spaces and gases that can be deadly,\" he said.\u003c/p>\n\u003cp>According to Cal/OSHA's summary of the incident, night-shift crews were getting ready to do welding in a part of the refinery called a regenerator, and the welding area needed to be cleaned up first. Gutierrez, a member of the union Laborers' Local 130, based in Southern California, entered the regenerator at about 11:15 p.m. to see how much cleanup was needed.\u003c/p>\n\u003cp>Gutierrez apparently lost consciousness as he climbed down a ladder into the regenerator. He fell backward, was caught by a retractable lanyard connected to his work harness, and was then suspended in midair.\u003c/p>\n\u003cp>Fellow workers tried to wake him by shaking the lanyard, Cal/OSHA's report said. They called a refinery emergency rescue team, who retrieved him. That team, along with Benicia firefighters, tried unsuccessfully to resuscitate him.\u003c/p>\n\u003cp>Federal workplace regulators say argon — the gas that allegedly leaked from a broken welding torch — \"\u003ca href=\"https://www.osha.gov/sites/default/files/publications/OSHA_FS-3647_Welding.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">can lead to suffocation\u003c/a>\" when it's used for welding in enclosed spaces.\u003c/p>\n\u003cp>Cal/OSHA said Valero knew at some point that an employee inside the enclosed area where the accident took place had felt dizzy. Regulators say the refinery failed to ensure the use of respiratory protective equipment in the area and failed to identify respiratory hazards in its workplace, among other violations.\u003c/p>\n\u003cp>The agency said Total Safety failed to provide the proper equipment at the work site and did not ensure the area was safe for crews. It also said the company did not keep track of who was at the site and allowed unauthorized people in the area.\u003c/p>\n\u003cp>Regulators say T.R.S.C. should have made sure the welding torch was repaired or moved it away from where crews were working. They say J.T. Thorpe should have tested conditions in the area before allowing Gutierrez to enter the area where he died.\u003c/p>\n\u003cp>Thomas B. Song, an attorney representing T.R.S.C., said in an email the company is \"currently considering its options, including appeal of the citations.\" He added that the company \"believes very strongly that the safety and health of its employees is of paramount importance and concern, and is confident in its safety protocols.\"\u003c/p>\n\u003cp>The three other companies cited in Cal/OSHA's investigation did not reply immediately to requests for comment.\u003c/p>\n\u003cp>The last fatal oil refinery incident in California took place in July 2019 at the Torrance Refining Co. facility in suburban Los Angeles.\u003c/p>\n\u003cp>In that incident, a J.T. Thorpe worker was doing maintenance and repairs on a storage tank when part of a device used to lift the tank's roof struck and killed him. Cal/OSHA fined J.T. Thorpe $70,000. The company filed an appeal, which is ongoing.[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Cal/OSHA cited Valero and three other firms for a wide range of alleged safety violations in connection with the death of a contract worker at Valero's Benicia refinery in November 2021. The safety agency says it's the single largest fine it's ever assessed in connection with a refinery worker's death.","status":"publish","parent":0,"modified":1652381533,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":20,"wordCount":772},"headData":{"title":"Safety Agency Issues $1.75 Million in Fines Over Worker's Death at Valero Refinery | KQED","description":"Cal/OSHA cited Valero and three other firms for a wide range of alleged safety violations in connection with the death of a contract worker at Valero's Benicia refinery in November 2021. The safety agency says it's the single largest fine it's ever assessed in connection with a refinery worker's death.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Safety Agency Issues $1.75 Million in Fines Over Worker's Death at Valero Refinery","datePublished":"2022-05-11T22:36:29.000Z","dateModified":"2022-05-12T18:52:13.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11913837 https://ww2.kqed.org/news/?p=11913837","disqusUrl":"https://ww2.kqed.org/news/2022/05/11/state-issues-1-75m-in-fines-over-worker-death-at-valero-refinery/","disqusTitle":"Safety Agency Issues $1.75 Million in Fines Over Worker's Death at Valero Refinery","subhead":"Oil company and three contractors hit with dozens of citations.","excludeFromSiteSearch":"Include","path":"/news/11913837/state-issues-1-75m-in-fines-over-worker-death-at-valero-refinery","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>State workplace regulators have issued $1.75 million in fines to Valero and three other companies, alleging dozens of safety violations in connection with the death of a contract worker at Valero's Benicia refinery last fall.\u003c/p>\n\u003cp>California's Division of Occupational Safety and Health said the fines are the highest it's ever levied in connection with a refinery worker's death.\u003c/p>\n\u003cp>Cal/OSHA said it discovered the violations after investigating the Nov. 12 death of 35-year-old Luis Gutierrez. The agency said Gutierrez died from asphyxiation when a broken welding torch leaked argon gas into an enclosed \"oxygen-deficient\" area he had just entered.\u003c/p>\n\u003cp>The agency issued a $528,000 fine to Valero and a $988,000 fine to the Houston-based company Total Safety, one of the outside firms that works in the refinery. It also issued a $135,000 fine to J.T. Thorpe and Son, the Richmond-based company that employed Gutierrez, and a $101,000 fine to T.R.S.C., a Vallejo-based firm.\u003c/p>\n\u003cp>The firms were cited for varying numbers of violations, with three of the four companies alleged to have committed \"serious and willful\" violations — Cal/OSHA's most severe category of infraction. \u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"valero-refinery"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The alleged safety breaches include failure to repair the broken welding apparatus; failure to test and monitor conditions in the enclosed space where Gutierrez died; and failure to equip the team that retrieved Gutierrez with the appropriate breathing apparatus and other safety equipment.\u003c/p>\n\u003cp>\"It appears that this was a classic case of poor communications and poor attention to details,\" said Craig Peters, an attorney specializing in workplace accidents at San Francisco's Altair Law, who reviewed the state investigation's summary.\u003c/p>\n\u003cp>\"The circumstances indicate a serious inattention to basic safety protocols when dealing with dangerous confined spaces and gases that can be deadly,\" he said.\u003c/p>\n\u003cp>According to Cal/OSHA's summary of the incident, night-shift crews were getting ready to do welding in a part of the refinery called a regenerator, and the welding area needed to be cleaned up first. Gutierrez, a member of the union Laborers' Local 130, based in Southern California, entered the regenerator at about 11:15 p.m. to see how much cleanup was needed.\u003c/p>\n\u003cp>Gutierrez apparently lost consciousness as he climbed down a ladder into the regenerator. He fell backward, was caught by a retractable lanyard connected to his work harness, and was then suspended in midair.\u003c/p>\n\u003cp>Fellow workers tried to wake him by shaking the lanyard, Cal/OSHA's report said. They called a refinery emergency rescue team, who retrieved him. That team, along with Benicia firefighters, tried unsuccessfully to resuscitate him.\u003c/p>\n\u003cp>Federal workplace regulators say argon — the gas that allegedly leaked from a broken welding torch — \"\u003ca href=\"https://www.osha.gov/sites/default/files/publications/OSHA_FS-3647_Welding.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">can lead to suffocation\u003c/a>\" when it's used for welding in enclosed spaces.\u003c/p>\n\u003cp>Cal/OSHA said Valero knew at some point that an employee inside the enclosed area where the accident took place had felt dizzy. Regulators say the refinery failed to ensure the use of respiratory protective equipment in the area and failed to identify respiratory hazards in its workplace, among other violations.\u003c/p>\n\u003cp>The agency said Total Safety failed to provide the proper equipment at the work site and did not ensure the area was safe for crews. It also said the company did not keep track of who was at the site and allowed unauthorized people in the area.\u003c/p>\n\u003cp>Regulators say T.R.S.C. should have made sure the welding torch was repaired or moved it away from where crews were working. They say J.T. Thorpe should have tested conditions in the area before allowing Gutierrez to enter the area where he died.\u003c/p>\n\u003cp>Thomas B. Song, an attorney representing T.R.S.C., said in an email the company is \"currently considering its options, including appeal of the citations.\" He added that the company \"believes very strongly that the safety and health of its employees is of paramount importance and concern, and is confident in its safety protocols.\"\u003c/p>\n\u003cp>The three other companies cited in Cal/OSHA's investigation did not reply immediately to requests for comment.\u003c/p>\n\u003cp>The last fatal oil refinery incident in California took place in July 2019 at the Torrance Refining Co. facility in suburban Los Angeles.\u003c/p>\n\u003cp>In that incident, a J.T. Thorpe worker was doing maintenance and repairs on a storage tank when part of a device used to lift the tank's roof struck and killed him. Cal/OSHA fined J.T. Thorpe $70,000. The company filed an appeal, which is ongoing.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11913837/state-issues-1-75m-in-fines-over-worker-death-at-valero-refinery","authors":["258"],"categories":["news_1758","news_19906","news_457","news_6188","news_8"],"tags":["news_20902","news_6145","news_26179","news_20022","news_21030","news_23063"],"featImg":"news_11913908","label":"news"},"news_11905065":{"type":"posts","id":"news_11905065","meta":{"index":"posts_1591205157","site":"news","id":"11905065","score":null,"sort":[1645735042000]},"guestAuthors":[],"slug":"first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years","title":"'First I Had Heard of It': Valero's Benicia Refinery Secretly Released Toxic Chemicals for Years","publishDate":1645735042,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Officials in Benicia and Solano County want to know why Valero's oil refinery there was able to release excessive levels of hazardous chemicals for more than 15 years before regional air regulators discovered the emissions — and why those regulators failed for another three years to alert local communities to the potential danger.\u003c/p>\n\u003cp>A Bay Area Air Quality Management District investigation launched in November 2018 found that one refinery unit produced pollutant emissions that were, on average, hundreds of times higher than levels permitted by the agency.\u003c/p>\n\u003cp>The emissions consisted of a variety of \"precursor organic compounds,\" or POCs, including benzene and other toxic chemicals.\u003c/p>\n\u003cp>An air district rule limits the release of such compounds to 15 pounds a day and a maximum concentration of 300 parts per million. The district's investigation found that from December 2015 through December 2018, POC emissions averaged 5,200 pounds a day — nearly 350 times the daily limit. The average POC concentration recorded during the first year of that period was 19,148 parts per million, more than 60 times the level set by the agency.\u003c/p>\n\u003cfigure id=\"attachment_11906319\" class=\"wp-caption alignright\" style=\"max-width: 940px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png\">\u003cimg class=\"size-full wp-image-11906319\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png\" alt=\"Map showing location of Valero's Benicia refinery\" width=\"940\" height=\"986\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png 940w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery-800x839.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery-160x168.png 160w\" sizes=\"(max-width: 940px) 100vw, 940px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">\u003ci>Map by Matthew Green/KQED\u003c/i>\u003c/figcaption>\u003c/figure>\n\u003cp>Those findings led the air district to issue a notice of violation to Valero in March 2019. But it wasn't until late last month that \u003ca href=\"https://www.baaqmd.gov/~/media/files/communications-and-outreach/publications/news-releases/2022/hbvalero_220124_2022_005-pdf.pdf?la=en\" target=\"_blank\" rel=\"noopener noreferrer\">the agency went public\u003c/a> and announced it would seek to impose \u003ca href=\"https://s3.documentcloud.org/documents/21273425/baaqmd-valero-stipulated-order-of-abatement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">an abatement order\u003c/a> requiring the refinery to halt the excessive pollution releases.\u003c/p>\n\u003cp>\"That was the first I had heard of it,\" said Benicia Mayor Steve Young, one of four members of the city council who say they want to know why the community was not told earlier.\u003c/p>\n\u003cp>\"We should have been notified by the air district when this was first discovered in 2019, and certainly while negotiations with Valero were going on,\" he said.\u003c/p>\n\u003cp>The Solano County agency responsible for inspecting the Valero refinery and investigating incidents there says it was also left out of the loop.\u003c/p>\n\u003cp>Chris Ambrose, a hazardous materials specialist with the county's Environmental Health Division, said in an email his agency \"was never formally notified by or requested to participate in BAAQMD's emissions investigation.\"\u003c/p>\n\u003cp>A health risk assessment carried out by the air district in 2019 found that the refinery's release of benzene and other pollutants posed an elevated risk of cancer and chronic health threats and violated several agency regulations.\u003c/p>\n\u003cp>Solano County Health Officer Bela Matyas told KQED that because the wind often pushes refinery emissions away from Benicia, the refinery's prolonged pollution releases didn't likely pose any extreme risk to residents.\u003c/p>\n\u003cp>\"But it doesn't excuse the process. It doesn't excuse the failure to adhere to standards and it doesn't provide any excuse for the fact that the city of Benicia was put at some risk as a result of these emissions,\" Matyas said.\u003c/p>\n\u003cp>The air district, which plans to hold a \u003ca href=\"https://www.baaqmd.gov/news-and-events/workshops?event=d7aa32de-98c2-4541-8a5a-b8d1c7673fd1\" target=\"_blank\" rel=\"noopener noreferrer\">virtual public workshop\u003c/a> on the Valero releases on Thursday night, is defending its decision to not alert local officials earlier.\u003c/p>\n\u003cp>\"To protect the integrity of the air district's investigation and ensure that Valero is held accountable, we were not able to notify the city of Benicia until the investigation was concluded,\" district spokesperson Kristine Roselius said.\u003c/p>\n\u003cp>\"Going forward, the air district is committed to additional transparency around these types of ongoing violations, to putting companies in front of our hearing board in a public forum where information can be shared, and working to ensure these types of cases are brought into that forum as quickly as possible,\" she said.\u003c/p>\n\u003cp>The hearing board Roselius referred to is an independent panel created under state law to rule on issues that arise at individual facilities that the air district regulates. The board is scheduled to consider the district's abatement order at \u003ca href=\"https://www.baaqmd.gov/~/media/files/board-of-directors/hearing-board/misc/valero-hearing-board-case-feb-2022/hearing-board-fact-sheet_2_14_22_proof-pdf.pdf?la=en\" target=\"_blank\" rel=\"noopener noreferrer\">an all-day public session on March 15\u003c/a>.\u003c/p>\n\u003cp>[aside label=\"Related Coverage\" tag=\"valero\"]At issue is the infrastructure that produces hydrogen for the facility. Hydrogen is integral to several refining processes, but demand for it throughout the refinery fluctuates. When the supply of hydrogen in the system is higher than the demand for it, the refinery vents the unneeded gas into the atmosphere.\u003c/p>\n\u003cp>The air district says that soon after it launched its investigation in late 2018, it discovered that Valero had known since 2003 that the refinery was venting hydrogen that contained a range of regulated pollutants, including benzene, toluene, ethylbenzene and xylene.\u003c/p>\n\u003cp>In 2019, Valero devised a workaround that reduced emissions significantly but still failed to bring them within allowable limits.\u003c/p>\n\u003cp>The air district's proposed abatement order would set up a timeline for the company to design and build a new vent system to bring the facility into compliance, with the work completed no later than the facility's next \"turnaround\" — the industry term for a refinery-wide maintenance shutdown.\u003cbr>\n[ad fullwidth]\u003c/p>\n\u003cp>The Benicia City Council has asked Valero executives and air district officials to answer questions at its \u003ca href=\"https://granicus_production_attachments.s3.amazonaws.com/benicia/b50b09eaf4e7a188f73586983b664a010.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">March 1 council meeting\u003c/a>.\u003c/p>\n\u003cp>Mayor Young, Vice Mayor Tom Campbell and council members Christina Strawbridge and Lionel Largaespada all say they want to know how the emissions went undetected for so long.\u003c/p>\n\u003cp>\"I'd like to know how it was missed when Valero has had two or three full plant turnarounds since 2003 and the air board is out there every week,\" Campbell said.\u003c/p>\n\u003cp>A Valero representative responded to a request for comment by referring KQED to \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Press_Release_-_BAAQMD_Valero_Stipulated_Order_01.25.22.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">a city of Benicia press release\u003c/a> that includes the air district's proposed abatement order.\u003c/p>\n\u003cp>The air district says it's consulting with the U.S. Environmental Protection Agency to determine whether the Valero releases violated federal law. It's unclear when the EPA learned of the refinery problems.\u003c/p>\n\u003cp>The Benicia facility has been the subject of repeated scrutiny for past problems, leading to investigations by not only air regulators but also \u003ca href=\"https://www.kqed.org/news/11771298/solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown\" target=\"_blank\" rel=\"noopener noreferrer\">county hazardous materials specialists\u003c/a> and \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">the California Public Utilities Commission\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Local officials want to know why the refinery's excessive pollution releases went undetected for 15 years — and why air regulators didn't inform them. The air district plans to hold a virtual public workshop on the releases Thursday night. ","status":"publish","parent":0,"modified":1645738083,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":27,"wordCount":985},"headData":{"title":"'First I Had Heard of It': Valero's Benicia Refinery Secretly Released Toxic Chemicals for Years | KQED","description":"Local officials want to know why the refinery's excessive pollution releases went undetected for 15 years — and why air regulators didn't inform them. The air district plans to hold a virtual public workshop on the releases Thursday night. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"'First I Had Heard of It': Valero's Benicia Refinery Secretly Released Toxic Chemicals for Years","datePublished":"2022-02-24T20:37:22.000Z","dateModified":"2022-02-24T21:28:03.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11905065 https://ww2.kqed.org/news/?p=11905065","disqusUrl":"https://ww2.kqed.org/news/2022/02/24/first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years/","disqusTitle":"'First I Had Heard of It': Valero's Benicia Refinery Secretly Released Toxic Chemicals for Years","subhead":"The Air District is revealing more about Valero's years long refinery gases venting problem. ","excludeFromSiteSearch":"Include","path":"/news/11905065/first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Officials in Benicia and Solano County want to know why Valero's oil refinery there was able to release excessive levels of hazardous chemicals for more than 15 years before regional air regulators discovered the emissions — and why those regulators failed for another three years to alert local communities to the potential danger.\u003c/p>\n\u003cp>A Bay Area Air Quality Management District investigation launched in November 2018 found that one refinery unit produced pollutant emissions that were, on average, hundreds of times higher than levels permitted by the agency.\u003c/p>\n\u003cp>The emissions consisted of a variety of \"precursor organic compounds,\" or POCs, including benzene and other toxic chemicals.\u003c/p>\n\u003cp>An air district rule limits the release of such compounds to 15 pounds a day and a maximum concentration of 300 parts per million. The district's investigation found that from December 2015 through December 2018, POC emissions averaged 5,200 pounds a day — nearly 350 times the daily limit. The average POC concentration recorded during the first year of that period was 19,148 parts per million, more than 60 times the level set by the agency.\u003c/p>\n\u003cfigure id=\"attachment_11906319\" class=\"wp-caption alignright\" style=\"max-width: 940px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png\">\u003cimg class=\"size-full wp-image-11906319\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png\" alt=\"Map showing location of Valero's Benicia refinery\" width=\"940\" height=\"986\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery.png 940w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery-800x839.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/BeniciaRefinery-160x168.png 160w\" sizes=\"(max-width: 940px) 100vw, 940px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">\u003ci>Map by Matthew Green/KQED\u003c/i>\u003c/figcaption>\u003c/figure>\n\u003cp>Those findings led the air district to issue a notice of violation to Valero in March 2019. But it wasn't until late last month that \u003ca href=\"https://www.baaqmd.gov/~/media/files/communications-and-outreach/publications/news-releases/2022/hbvalero_220124_2022_005-pdf.pdf?la=en\" target=\"_blank\" rel=\"noopener noreferrer\">the agency went public\u003c/a> and announced it would seek to impose \u003ca href=\"https://s3.documentcloud.org/documents/21273425/baaqmd-valero-stipulated-order-of-abatement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">an abatement order\u003c/a> requiring the refinery to halt the excessive pollution releases.\u003c/p>\n\u003cp>\"That was the first I had heard of it,\" said Benicia Mayor Steve Young, one of four members of the city council who say they want to know why the community was not told earlier.\u003c/p>\n\u003cp>\"We should have been notified by the air district when this was first discovered in 2019, and certainly while negotiations with Valero were going on,\" he said.\u003c/p>\n\u003cp>The Solano County agency responsible for inspecting the Valero refinery and investigating incidents there says it was also left out of the loop.\u003c/p>\n\u003cp>Chris Ambrose, a hazardous materials specialist with the county's Environmental Health Division, said in an email his agency \"was never formally notified by or requested to participate in BAAQMD's emissions investigation.\"\u003c/p>\n\u003cp>A health risk assessment carried out by the air district in 2019 found that the refinery's release of benzene and other pollutants posed an elevated risk of cancer and chronic health threats and violated several agency regulations.\u003c/p>\n\u003cp>Solano County Health Officer Bela Matyas told KQED that because the wind often pushes refinery emissions away from Benicia, the refinery's prolonged pollution releases didn't likely pose any extreme risk to residents.\u003c/p>\n\u003cp>\"But it doesn't excuse the process. It doesn't excuse the failure to adhere to standards and it doesn't provide any excuse for the fact that the city of Benicia was put at some risk as a result of these emissions,\" Matyas said.\u003c/p>\n\u003cp>The air district, which plans to hold a \u003ca href=\"https://www.baaqmd.gov/news-and-events/workshops?event=d7aa32de-98c2-4541-8a5a-b8d1c7673fd1\" target=\"_blank\" rel=\"noopener noreferrer\">virtual public workshop\u003c/a> on the Valero releases on Thursday night, is defending its decision to not alert local officials earlier.\u003c/p>\n\u003cp>\"To protect the integrity of the air district's investigation and ensure that Valero is held accountable, we were not able to notify the city of Benicia until the investigation was concluded,\" district spokesperson Kristine Roselius said.\u003c/p>\n\u003cp>\"Going forward, the air district is committed to additional transparency around these types of ongoing violations, to putting companies in front of our hearing board in a public forum where information can be shared, and working to ensure these types of cases are brought into that forum as quickly as possible,\" she said.\u003c/p>\n\u003cp>The hearing board Roselius referred to is an independent panel created under state law to rule on issues that arise at individual facilities that the air district regulates. The board is scheduled to consider the district's abatement order at \u003ca href=\"https://www.baaqmd.gov/~/media/files/board-of-directors/hearing-board/misc/valero-hearing-board-case-feb-2022/hearing-board-fact-sheet_2_14_22_proof-pdf.pdf?la=en\" target=\"_blank\" rel=\"noopener noreferrer\">an all-day public session on March 15\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Coverage ","tag":"valero"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>At issue is the infrastructure that produces hydrogen for the facility. Hydrogen is integral to several refining processes, but demand for it throughout the refinery fluctuates. When the supply of hydrogen in the system is higher than the demand for it, the refinery vents the unneeded gas into the atmosphere.\u003c/p>\n\u003cp>The air district says that soon after it launched its investigation in late 2018, it discovered that Valero had known since 2003 that the refinery was venting hydrogen that contained a range of regulated pollutants, including benzene, toluene, ethylbenzene and xylene.\u003c/p>\n\u003cp>In 2019, Valero devised a workaround that reduced emissions significantly but still failed to bring them within allowable limits.\u003c/p>\n\u003cp>The air district's proposed abatement order would set up a timeline for the company to design and build a new vent system to bring the facility into compliance, with the work completed no later than the facility's next \"turnaround\" — the industry term for a refinery-wide maintenance shutdown.\u003cbr>\n\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The Benicia City Council has asked Valero executives and air district officials to answer questions at its \u003ca href=\"https://granicus_production_attachments.s3.amazonaws.com/benicia/b50b09eaf4e7a188f73586983b664a010.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">March 1 council meeting\u003c/a>.\u003c/p>\n\u003cp>Mayor Young, Vice Mayor Tom Campbell and council members Christina Strawbridge and Lionel Largaespada all say they want to know how the emissions went undetected for so long.\u003c/p>\n\u003cp>\"I'd like to know how it was missed when Valero has had two or three full plant turnarounds since 2003 and the air board is out there every week,\" Campbell said.\u003c/p>\n\u003cp>A Valero representative responded to a request for comment by referring KQED to \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Press_Release_-_BAAQMD_Valero_Stipulated_Order_01.25.22.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">a city of Benicia press release\u003c/a> that includes the air district's proposed abatement order.\u003c/p>\n\u003cp>The air district says it's consulting with the U.S. Environmental Protection Agency to determine whether the Valero releases violated federal law. It's unclear when the EPA learned of the refinery problems.\u003c/p>\n\u003cp>The Benicia facility has been the subject of repeated scrutiny for past problems, leading to investigations by not only air regulators but also \u003ca href=\"https://www.kqed.org/news/11771298/solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown\" target=\"_blank\" rel=\"noopener noreferrer\">county hazardous materials specialists\u003c/a> and \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">the California Public Utilities Commission\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11905065/first-i-had-heard-of-it-valeros-benicia-refinery-secretly-released-toxic-chemicals-for-years","authors":["258"],"categories":["news_19906","news_8","news_356"],"tags":["news_20628","news_20902","news_30247","news_21390","news_30707","news_23938","news_20022","news_30709"],"featImg":"news_11685771","label":"news"},"news_11892590":{"type":"posts","id":"news_11892590","meta":{"index":"posts_1591205157","site":"news","id":"11892590","score":null,"sort":[1634597882000]},"guestAuthors":[],"slug":"benicia-considers-ordinance-for-city-hall-to-fact-check-political-ads-during-elections","title":"Benicia Considers Proposal for City Hall to Fact-Check Political Ads During Elections","publishDate":1634597882,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Benicia lawmakers are considering a proposal that could eventually require the city to fact-check political campaign advertisements — a novel response to alleged election misinformation that could face legal scrutiny.\u003c/p>\n\u003cp>The ordinance comes after a political action committee funded by Valero, the oil giant that runs a refinery in town, tried to influence voters in the last two city council elections. The company's involvement in city politics also came as the Valero plant experienced two of the region's worst refinery accidents in the last four years.\u003c/p>\n\u003cp>The \u003ca href=\"https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/1094721/Staff_Report_-_Consider_Updates_to_Campaign_Ordinances.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">ordinance\u003c/a> was co-authored by Mayor Steve Young, whom the Valero PAC opposed in the last election. He said the \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Working_Families_for_a_Strong_Benicia_496_7.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">committee\u003c/a> put out ads that manipulated photos of him and distorted his record.\u003c/p>\n\u003cp>[aside postID=\"news_11843632\" label=\"Related Posts\"]\u003c/p>\n\u003cp>Now, Young said, the city should consider whether its campaign regulations \"can be amended to prohibit digital or voice manipulation of images and whether any lying can be prohibited.\"\u003c/p>\n\u003cp>The PAC, dubbed Working Families for a Strong Benicia, raised hundreds of thousands of dollars for the 2018 and 2020 city council elections. Both votes revived debate between some city officials and environmentalists on one side, who want more regulations on the refinery, and oil executives and unionized refinery workers on the other, who say they fear the city's real motivation is to shut the plant down.\u003c/p>\n\u003cp>In 2018, \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">two candidates backed by the PAC\u003c/a>, which is also funded by several labor organizations allied with the refinery, won seats on the Benicia City Council. Another candidate, an environmentalist who was opposed by the committee, lost.\u003c/p>\n\u003cp>Last year, Young won the mayor's race \u003ca href=\"https://www.kqed.org/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race\" target=\"_blank\" rel=\"noopener noreferrer\">despite the PAC's opposition\u003c/a> to his candidacy. The ads said that he was against affordable housing and that he didn't need a job because he receives a pension from previous local government work.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The mayor said he does want cheaper housing and there's nothing wrong with receiving a pension. He said Valero's opposition to him began in 2016, when the Benicia Planning Commission, which Young was a member of, voted to \u003ca href=\"https://www.marinij.com/2016/02/12/benicia-commissioners-deny-valeros-crude-by-rail-application/\" target=\"_blank\" rel=\"noopener noreferrer\">reject the company's crude-by-rail proposal\u003c/a>.\u003c/p>\n\u003cp>\"Steve Young wants to turn Benicia into a place where young families can't afford to live and work,\" one flier stated. \"Who would vote against kids playing at the ballpark? Steve Young did,\" another one said.\u003c/p>\n\u003cp>Young and the proposal's co-author, Councilmember Tom Campbell, said the ads mean the city should do a better job of making sure future elections are fair and honest.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Jessica Levinson, Loyola Marymount University professor\"]'We know the First Amendment does in fact protect lies. I think this is absolutely open to a legal challenge the second they pass it, if they do.'[/pullquote]\u003c/p>\n\u003cp>But turning the government into a fact-checking body would be ripe for a legal challenge, according to Jessica Levinson, a Loyola Marymount University professor specializing in election law.\u003c/p>\n\u003cp>\"We know the First Amendment does in fact protect lies,\" Levinson said in an interview. \"I think this is absolutely open to a legal challenge the second they pass it, if they do.\"\u003c/p>\n\u003cp>\"Who decides what's an embellishment, what's misleading, what's just an omission versus what's actually a lie?\" Levinson asked.\u003c/p>\n\u003cp>Since the 2016 election and the beginning of Donald Trump's presidency, misinformation has become one of the biggest issues in American politics, said Levinson.\u003c/p>\n\u003cp>\"We are tackling a situation where there are more lies and there's more technology that allows us to lie than for sure the framers every dreamed of,\" she added.\u003c/p>\n\u003cp>At the same time, the local news industry, which traditionally acts like a fact-checking body, has been decimated. Benicia gets some news coverage but is often overshadowed by larger Bay Area cities like San Francisco and Oakland.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Jessica Levinson, Loyola Marymount University professor\"]'One of the things that keeps me up at night is not just misinformation and disinformation and the fact that people believe it, but the fact that we have a dwindling press corps and particularly in smaller jurisdictions.'[/pullquote]\u003c/p>\n\u003cp>\"One of the things that keeps me up at night is not just misinformation and disinformation and the fact that people believe it, but the fact that we have a dwindling press corps and particularly in smaller jurisdictions,\" Levinson said.\u003c/p>\n\u003cp>The details over how the city would fact-check political ads has yet to be worked out. The proposal, set to go before the city council on Tuesday, would forward the issue to Benicia's Open Government Commission, a body that would consider changing the city's election campaign regulations. The commission would work on new rules and forward them to the city council next April.\u003c/p>\n\u003cp>Valero fought with the city's last mayor, Elizabeth Patterson, after she called for more regulations to be placed on the refinery following a \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">May 2017 power outage\u003c/a> that led to a major release of toxic sulfur dioxide and prompted emergency shelter-in-place orders. Less than two years later, the plant had \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener noreferrer\">a series of malfunctions\u003c/a> that led to another significant pollution release.\u003c/p>\n\u003cp>Jason Kaune, the PAC's treasurer and head of political law at Nielsen Merksamer, a Sacramento-based lobbying firm, declined to comment. Representatives for Valero and unions that supported the committee did not respond to requests for comment.\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The ordinance comes after a political action committee funded by Valero, the oil giant that runs a refinery in town, tried to influence voters in the last two city council elections. But turning the government into a fact-checking body would be ripe for a legal challenge, according to an elections expert.","status":"publish","parent":0,"modified":1634605168,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":25,"wordCount":901},"headData":{"title":"Benicia Considers Proposal for City Hall to Fact-Check Political Ads During Elections | KQED","description":"The ordinance comes after a political action committee funded by Valero, the oil giant that runs a refinery in town, tried to influence voters in the last two city council elections. But turning the government into a fact-checking body would be ripe for a legal challenge, according to an elections expert.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Benicia Considers Proposal for City Hall to Fact-Check Political Ads During Elections","datePublished":"2021-10-18T22:58:02.000Z","dateModified":"2021-10-19T00:59:28.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11892590 https://ww2.kqed.org/news/?p=11892590","disqusUrl":"https://ww2.kqed.org/news/2021/10/18/benicia-considers-ordinance-for-city-hall-to-fact-check-political-ads-during-elections/","disqusTitle":"Benicia Considers Proposal for City Hall to Fact-Check Political Ads During Elections","subhead":"Benicia's mayor says a Valero PAC lied in the last election.","path":"/news/11892590/benicia-considers-ordinance-for-city-hall-to-fact-check-political-ads-during-elections","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Benicia lawmakers are considering a proposal that could eventually require the city to fact-check political campaign advertisements — a novel response to alleged election misinformation that could face legal scrutiny.\u003c/p>\n\u003cp>The ordinance comes after a political action committee funded by Valero, the oil giant that runs a refinery in town, tried to influence voters in the last two city council elections. The company's involvement in city politics also came as the Valero plant experienced two of the region's worst refinery accidents in the last four years.\u003c/p>\n\u003cp>The \u003ca href=\"https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/1094721/Staff_Report_-_Consider_Updates_to_Campaign_Ordinances.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">ordinance\u003c/a> was co-authored by Mayor Steve Young, whom the Valero PAC opposed in the last election. He said the \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Working_Families_for_a_Strong_Benicia_496_7.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">committee\u003c/a> put out ads that manipulated photos of him and distorted his record.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11843632","label":"Related Posts "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Now, Young said, the city should consider whether its campaign regulations \"can be amended to prohibit digital or voice manipulation of images and whether any lying can be prohibited.\"\u003c/p>\n\u003cp>The PAC, dubbed Working Families for a Strong Benicia, raised hundreds of thousands of dollars for the 2018 and 2020 city council elections. Both votes revived debate between some city officials and environmentalists on one side, who want more regulations on the refinery, and oil executives and unionized refinery workers on the other, who say they fear the city's real motivation is to shut the plant down.\u003c/p>\n\u003cp>In 2018, \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">two candidates backed by the PAC\u003c/a>, which is also funded by several labor organizations allied with the refinery, won seats on the Benicia City Council. Another candidate, an environmentalist who was opposed by the committee, lost.\u003c/p>\n\u003cp>Last year, Young won the mayor's race \u003ca href=\"https://www.kqed.org/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race\" target=\"_blank\" rel=\"noopener noreferrer\">despite the PAC's opposition\u003c/a> to his candidacy. The ads said that he was against affordable housing and that he didn't need a job because he receives a pension from previous local government work.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The mayor said he does want cheaper housing and there's nothing wrong with receiving a pension. He said Valero's opposition to him began in 2016, when the Benicia Planning Commission, which Young was a member of, voted to \u003ca href=\"https://www.marinij.com/2016/02/12/benicia-commissioners-deny-valeros-crude-by-rail-application/\" target=\"_blank\" rel=\"noopener noreferrer\">reject the company's crude-by-rail proposal\u003c/a>.\u003c/p>\n\u003cp>\"Steve Young wants to turn Benicia into a place where young families can't afford to live and work,\" one flier stated. \"Who would vote against kids playing at the ballpark? Steve Young did,\" another one said.\u003c/p>\n\u003cp>Young and the proposal's co-author, Councilmember Tom Campbell, said the ads mean the city should do a better job of making sure future elections are fair and honest.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'We know the First Amendment does in fact protect lies. I think this is absolutely open to a legal challenge the second they pass it, if they do.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Jessica Levinson, Loyola Marymount University professor","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But turning the government into a fact-checking body would be ripe for a legal challenge, according to Jessica Levinson, a Loyola Marymount University professor specializing in election law.\u003c/p>\n\u003cp>\"We know the First Amendment does in fact protect lies,\" Levinson said in an interview. \"I think this is absolutely open to a legal challenge the second they pass it, if they do.\"\u003c/p>\n\u003cp>\"Who decides what's an embellishment, what's misleading, what's just an omission versus what's actually a lie?\" Levinson asked.\u003c/p>\n\u003cp>Since the 2016 election and the beginning of Donald Trump's presidency, misinformation has become one of the biggest issues in American politics, said Levinson.\u003c/p>\n\u003cp>\"We are tackling a situation where there are more lies and there's more technology that allows us to lie than for sure the framers every dreamed of,\" she added.\u003c/p>\n\u003cp>At the same time, the local news industry, which traditionally acts like a fact-checking body, has been decimated. Benicia gets some news coverage but is often overshadowed by larger Bay Area cities like San Francisco and Oakland.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'One of the things that keeps me up at night is not just misinformation and disinformation and the fact that people believe it, but the fact that we have a dwindling press corps and particularly in smaller jurisdictions.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Jessica Levinson, Loyola Marymount University professor","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"One of the things that keeps me up at night is not just misinformation and disinformation and the fact that people believe it, but the fact that we have a dwindling press corps and particularly in smaller jurisdictions,\" Levinson said.\u003c/p>\n\u003cp>The details over how the city would fact-check political ads has yet to be worked out. The proposal, set to go before the city council on Tuesday, would forward the issue to Benicia's Open Government Commission, a body that would consider changing the city's election campaign regulations. The commission would work on new rules and forward them to the city council next April.\u003c/p>\n\u003cp>Valero fought with the city's last mayor, Elizabeth Patterson, after she called for more regulations to be placed on the refinery following a \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">May 2017 power outage\u003c/a> that led to a major release of toxic sulfur dioxide and prompted emergency shelter-in-place orders. Less than two years later, the plant had \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener noreferrer\">a series of malfunctions\u003c/a> that led to another significant pollution release.\u003c/p>\n\u003cp>Jason Kaune, the PAC's treasurer and head of political law at Nielsen Merksamer, a Sacramento-based lobbying firm, declined to comment. Representatives for Valero and unions that supported the committee did not respond to requests for comment.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11892590/benicia-considers-ordinance-for-city-hall-to-fact-check-political-ads-during-elections","authors":["258"],"categories":["news_19906","news_8","news_13"],"tags":["news_20902","news_17968","news_20022","news_21030"],"featImg":"news_11703286","label":"news"},"news_11845559":{"type":"posts","id":"news_11845559","meta":{"index":"posts_1591205157","site":"news","id":"11845559","score":null,"sort":[1604525687000]},"guestAuthors":[],"slug":"candidate-in-valeros-crosshairs-wins-benicia-mayoral-race","title":"Candidate Targeted by Valero Wins Benicia Mayoral Race","publishDate":1604525687,"format":"standard","headTitle":"Candidate Targeted by Valero Wins Benicia Mayoral Race | KQED","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Benicia Councilman Steve Young, a candidate attacked by a political action committee funded mainly by the Valero Energy company, will be the city’s new mayor.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race\" target=\"_blank\" rel=\"noopener noreferrer\">Working Families for a Strong Benicia PAC\u003c/a> raised more than $250,000 to defeat Young and support Councilwoman Christina Strawbridge. The committee said Young would put blue collar jobs, like those at Valero’s Benicia refinery, at risk.\u003c/p>\n\u003cp>But the city’s voters were not swayed.\u003c/p>\n\u003cp>With Young leading the race with \u003ca href=\"https://www.livevoterturnout.com/SolanoCA/LiveResults/en/Index_6.html\" target=\"_blank\" rel=\"noopener noreferrer\">close to 52% of the vote\u003c/a>, Strawbridge, who garnered about 31%, conceded the election Wednesday morning.\u003c/p>\n\u003cp>“I believe the voters reacted strongly against the negative ads and mailers that the Valero-funded PAC tried to use against me,” Young said.\u003c/p>\n\u003cp>“Hopefully, Valero will learn the obvious lesson from this result: Interference in Benicia elections will be rejected in the future as well,” Young said.\u003c/p>\n\u003cp>https://twitter.com/TedrickG/status/1324030762966900737?s=20\u003c/p>\n\u003cp>Strawbridge called Young’s election a “decisive victory.”\u003c/p>\n\u003cp>“Congratulations to him,” Strawbridge said, adding that the two lawmakers exchanged text messages Wednesday morning. “Even though it was a tough election, we have and will work together for Benicia.”\u003c/p>\n\u003cp>Since 2019, Valero has donated $240,000 to the political action committee targeting Young. The International Brotherhood of Boilermakers Local 549 donated some $50,000 as well.\u003c/p>\n\u003cp>The same PAC \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">spent thousands\u003c/a> to help Strawbridge and Lionel Largaespada win seats on the Benicia City Council, and to defeat Kari Birdseye, who chairs the city’s Planning Commission and was a member of the same panel that denied Valero’s crude-by-rail expansion project in 2016.\u003c/p>\n\u003cp>Young will take over from Mayor Elizabeth Patterson, a critic of Valero who has served in Benicia city government for two decades.\u003c/p>\n\u003cp>Patterson had become increasingly outspoken about efforts to place more regulations on the Valero plant, scene of the two worst refinery accidents in the Bay Area in the last three years.\u003c/p>\n\u003cp>The fact that Young withstood the Valero PAC’s campaign is hugely significant, according to Matto Mildenberger, an assistant professor of political science at UC Santa Barbara, who focuses on oil politics.\u003c/p>\n\u003cp>“It means that Benicia voters are willing to take their climate future into their own hands and are going to resist efforts by oil companies to control local politics,” Mildenberger said.\u003c/p>\n\u003cp>\u003cem>— Ted Goldberg (\u003ca href=\"http://@TedrickG\">@TedrickG\u003c/a>)\u003c/em>\u003c/p>\n","blocks":[],"excerpt":"Councilman Steve Young, attacked by the Valero PAC, wins the mayor's race.","status":"publish","parent":0,"modified":1696441880,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":15,"wordCount":403},"headData":{"title":"Candidate Targeted by Valero Wins Benicia Mayoral Race | KQED","description":"Councilman Steve Young, attacked by the Valero PAC, wins the mayor's race.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Candidate Targeted by Valero Wins Benicia Mayoral Race","datePublished":"2020-11-04T21:34:47.000Z","dateModified":"2023-10-04T17:51:20.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"templateType":"standard","featuredImageType":"standard","justInHeadline":"Candidate targeted by Valero wins Benicia mayoral race","subhead":"Political action committee funded mainly by Valero raised more than a quarter million dollars. ","excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11845559/candidate-in-valeros-crosshairs-wins-benicia-mayoral-race","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Benicia Councilman Steve Young, a candidate attacked by a political action committee funded mainly by the Valero Energy company, will be the city’s new mayor.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race\" target=\"_blank\" rel=\"noopener noreferrer\">Working Families for a Strong Benicia PAC\u003c/a> raised more than $250,000 to defeat Young and support Councilwoman Christina Strawbridge. The committee said Young would put blue collar jobs, like those at Valero’s Benicia refinery, at risk.\u003c/p>\n\u003cp>But the city’s voters were not swayed.\u003c/p>\n\u003cp>With Young leading the race with \u003ca href=\"https://www.livevoterturnout.com/SolanoCA/LiveResults/en/Index_6.html\" target=\"_blank\" rel=\"noopener noreferrer\">close to 52% of the vote\u003c/a>, Strawbridge, who garnered about 31%, conceded the election Wednesday morning.\u003c/p>\n\u003cp>“I believe the voters reacted strongly against the negative ads and mailers that the Valero-funded PAC tried to use against me,” Young said.\u003c/p>\n\u003cp>“Hopefully, Valero will learn the obvious lesson from this result: Interference in Benicia elections will be rejected in the future as well,” Young said.\u003c/p>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"singleTwitterStatus","attributes":{"named":{"id":"1324030762966900737"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>Strawbridge called Young’s election a “decisive victory.”\u003c/p>\n\u003cp>“Congratulations to him,” Strawbridge said, adding that the two lawmakers exchanged text messages Wednesday morning. “Even though it was a tough election, we have and will work together for Benicia.”\u003c/p>\n\u003cp>Since 2019, Valero has donated $240,000 to the political action committee targeting Young. The International Brotherhood of Boilermakers Local 549 donated some $50,000 as well.\u003c/p>\n\u003cp>The same PAC \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">spent thousands\u003c/a> to help Strawbridge and Lionel Largaespada win seats on the Benicia City Council, and to defeat Kari Birdseye, who chairs the city’s Planning Commission and was a member of the same panel that denied Valero’s crude-by-rail expansion project in 2016.\u003c/p>\n\u003cp>Young will take over from Mayor Elizabeth Patterson, a critic of Valero who has served in Benicia city government for two decades.\u003c/p>\n\u003cp>Patterson had become increasingly outspoken about efforts to place more regulations on the Valero plant, scene of the two worst refinery accidents in the Bay Area in the last three years.\u003c/p>\n\u003cp>The fact that Young withstood the Valero PAC’s campaign is hugely significant, according to Matto Mildenberger, an assistant professor of political science at UC Santa Barbara, who focuses on oil politics.\u003c/p>\n\u003cp>“It means that Benicia voters are willing to take their climate future into their own hands and are going to resist efforts by oil companies to control local politics,” Mildenberger said.\u003c/p>\n\u003cp>\u003cem>— Ted Goldberg (\u003ca href=\"http://@TedrickG\">@TedrickG\u003c/a>)\u003c/em>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11845559/candidate-in-valeros-crosshairs-wins-benicia-mayoral-race","authors":["258"],"programs":["news_72"],"categories":["news_28750"],"tags":["news_20902","news_28760","news_28759","news_20022"],"featImg":"news_11685771","label":"news_72"},"news_11843632":{"type":"posts","id":"news_11843632","meta":{"index":"posts_1591205157","site":"news","id":"11843632","score":null,"sort":[1603924302000]},"guestAuthors":[],"slug":"valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race","title":"Valero-Funded PAC Pours More Than $250,000 Into Benicia Mayor's Race","publishDate":1603924302,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>A political action committee funded mainly by the Valero Energy company has raised more than a quarter-million dollars to convince Benicia residents to vote for its preferred candidate in the city's mayoral race.\u003c/p>\n\u003cp>The San Antonio-based oil giant runs the Benicia refinery, one of California's largest, which is located in the small Solano County city.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Christina Strawbridge, Benicia city councilwoman and mayoral candidate\"]'Once again, Valero has gone after my opponent with negative ads. That does not work in Benicia.'[/pullquote]\u003c/p>\n\u003cp>Contributions to the Working Families for a Strong Benicia PAC represent four times the total combined amount raised from individual donations by the city's three mayoral candidates.\u003c/p>\n\u003cp>In the mayor's race, Valero and one of its allied unions are supporting \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Christina_Strawbridge_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Christina Strawbridge\u003c/a>, a councilwoman and vice mayor, against Councilman \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Steve_Young_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Steve Young\u003c/a> — both Democrats — funding phone polls, digital ads and mailers and reigniting a debate over the city's future.\u003c/p>\n\u003cp>Since 2019, Valero has donated $240,000 to the committee. The donations come two years after the Valero-funded PAC spent thousands to help Strawbridge and Lionel Largaespada \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">win seats\u003c/a> on the Benicia City Council and defeat Kari Birdseye, an environmentalist candidate who supported tighter regulation of the refinery.\u003c/p>\n\u003cp>The PAC also received a $25,000 contribution from the International Brotherhood of Boilermakers Lodge 549 in what the union calls an effort to stop \"coastal politicians\" from killing manufacturing jobs.\u003c/p>\n\u003cp>\"Steve Young wants Benicia to be a town where tech professionals buy a latte and telecommute. Christina Strawbridge wants it to be a place where our members who live in Benicia, who come home from work dirty and tired, can continue to raise their families, too,\" said Timothy Jefferies, the union's business manager.\u003c/p>\n\u003cp>Elizabeth Patterson, Benicia's current mayor and one of Valero's leading critics, is leaving office after serving in that position for 13 years and on the City Council for 17 years prior to that.\u003c/p>\n\u003cp>The election arrives as Valero and other oil companies that produce and process petroleum in California face declining sales because of the coronavirus pandemic and \u003ca href=\"https://www.kqed.org/news/11841676/behind-the-battle-for-the-future-of-californias-oil\" target=\"_blank\" rel=\"noopener noreferrer\">increasing calls\u003c/a> for the state to move away from fossil fuels as it battles climate change-driven wildfires.\u003c/p>\n\u003cp>With \u003ca href=\"https://www.kqed.org/news/11839077/strong-california-gas-demand-unlikely-to-return-as-even-refineries-go-renewable\" target=\"_blank\" rel=\"noopener noreferrer\">gasoline demand dropping\u003c/a>, two of the Bay Area's refineries, the Marathon plant in Martinez and Phillips 66 in Rodeo, are shifting to producing renewable fuels.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Last Thursday, Valero announced a \u003ca href=\"https://investorvalero.com/news/news-details/2020/Valero-Energy-Reports-Third-Quarter-2020-Results/default.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">loss of $464 million in the third quarter\u003c/a> of this year.\u003c/p>\n\u003cp>The two worst refinery accidents in the Bay Area in the last three years took place at Valero's Benicia refinery. \u003c/p>\n\u003cp>A May 2017 \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">power outage at the refinery\u003c/a> led to a major release of toxic sulfur, prompting city leaders to call for an industrial safety ordinance. In March 2019, the plant had a series of malfunctions that led to \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener noreferrer\">another significant pollution release\u003c/a>.\u003c/p>\n\u003cp>Patterson and Young have since pushed for the city to have more regulatory control over the refinery. Attacks from the Valero PAC followed.\u003c/p>\n\u003cp>\"Steve Young doesn't need a job because he is supported by the taxpayers of California. He has no reason to protect Benicia's jobs and tax base,\" states one of the recent mailers from the Valero PAC that was widely distributed to Benicia voters.\u003c/p>\n\u003cp>\"Christina is a local business owner and knows how important it is to keep Benicia working. Now, more than ever, we need leaders like Christina Strawbridge,\" it states.\u003c/p>\n\u003cp>Benicia residents have also received several rounds of calls paid for by the Valero-funded PAC, aimed at convincing voters to back Strawbridge.\u003c/p>\n\u003ch3>Young: 'Leave it to Benicia Voters'\u003c/h3>\n\u003cp>Young says he's not against the refinery, noting that it's a major part of Benicia's economy and that Valero frequently contributes to \"worthy local causes.\"\u003c/p>\n\u003cp>He says the PAC is targeting him because he led a Planning Commission vote several years ago that ultimately led to the \u003ca href=\"https://www.ci.benicia.ca.us/index.asp?SEC=B7EDC93A-FFF0-4A14-9B1A-1C8563BC256A\" target=\"_blank\" rel=\"noopener noreferrer\">rejection of Valero's crude-by-rail application\u003c/a>.\u003c/p>\n\u003cp>\"Their ongoing attempts to influence the makeup of the City Council go far beyond normal corporate interest in local affairs,\" Young said in an email. \"Leave it to Benicia voters to elect their own representatives.\"\u003c/p>\n\u003cp>Young says he wants the company to be more transparent about problems and accidents at the refinery and to send out immediate alerts to Benicia residents when accidents occur. He also says the city should have stronger air quality monitoring systems in place.\u003c/p>\n\u003cp>\"The relationship between Valero and the community is strained,\" Young said, adding that city officials and refinery executives can change that by holding monthly meetings.\u003c/p>\n\u003cp>Young says he's a stronger candidate than Strawbridge because of his career working in local government and his better understanding of how to address problems facing the city.\u003c/p>\n\u003ch3>Strawbridge: 'Heal the Divide'\u003c/h3>\n\u003cp>Strawbridge says that since she was elected to the City Council in 2018, relations between Benicia and the refinery have improved.\u003c/p>\n\u003cp>She notes that while the city did not put in place the more stringent regulations that Young and Patterson wanted, Benicia reached an agreement with Valero that includes the addition of portable air monitors, notifications during hazardous material incidents and increased disclosure on incident investigations.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"valero\"]But she also acknowledges that the campaign work by the company's PAC is not helping the two sides get along.\u003c/p>\n\u003cp>\"The relationship needs to improve and may have had a setback with this election cycle and Valero's formation of a PAC,\" Strawbridge said in an email.\u003c/p>\n\u003cp>\"There is now a continued lack of trust within the community about the methods used during the election that were similar to 2018,\" she added. \"Once again, Valero has gone after my opponent with negative ads. That does not work in Benicia.\"\u003c/p>\n\u003cp>Strawbridge believes the pushback from Valero's critics has also gone too far.\u003c/p>\n\u003cp>\"There has been a concerted effort to discredit me on social media and the local paper by supporters of my opponent,\" Strawbridge said. \"As mayor of Benicia, I plan to heal the divide our city has experienced for many years.\"\u003c/p>\n\u003cp>Strawbridge touts her experience promoting nonprofits, preserving historic buildings and advocating for parks and local tourism. She says her background in small business will help guide the city through the pandemic.\u003c/p>\n\u003cp>A third mayoral candidate, \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Jason_Diavatis_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Jason Diavatis\u003c/a>, who has not been supported or opposed by the Valero PAC, did not respond to a request for comment.\u003c/p>\n\u003ch3>Influence in California\u003c/h3>\n\u003cp>Valero's donations to the PAC represent just one place the oil company has made campaign contributions to influence California races.\u003c/p>\n\u003cp>The oil giant and its various political action committees have contributed at least $14.1 million to California groups and congressional candidates in the state since 2015, according to a review of state and federal campaign finance data by \u003ca href=\"https://maplight.org/data/\">MapLight\u003c/a>, a Berkeley-based nonprofit that follows money in politics.\u003c/p>\n\u003cp>Jason Kaune, the Benicia PAC's treasurer and head of political law at Nielsen Merksamer, a Sacramento-based lobbying firm, declined to comment. A Valero spokeswoman also did not return a request for comment.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/11700855/valero-backed-group-spends-heavily-to-sway-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">work of a similar PAC in the 2018 election\u003c/a> led to a significant divide in Benicia, pitting environmentalists against refinery workers.\u003c/p>\n\u003cp>During that election, the city filed a complaint with state campaign finance regulators, alleging that Valero sponsored a so-called push poll intended to negatively characterize Birdseye, the environmental candidate. The state's Fair Political Practices Commission, though, declined to investigate the calls.\u003c/p>\n\u003cp>The dispute led the City Council to approve stronger disclosure rules for political committees involved in local elections.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Two years ago, a political action committee funded mostly by the oil giant targeted a Benicia City Council contest. Now it's focused on the mayor's race, with a war chest aimed at electing a candidate friendlier to its interests.","status":"publish","parent":0,"modified":1603989207,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":41,"wordCount":1267},"headData":{"title":"Valero-Funded PAC Pours More Than $250,000 Into Benicia Mayor's Race | KQED","description":"Two years ago, a political action committee funded mostly by the oil giant targeted a Benicia City Council contest. Now it's focused on the mayor's race, with a war chest aimed at electing a candidate friendlier to its interests.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Valero-Funded PAC Pours More Than $250,000 Into Benicia Mayor's Race","datePublished":"2020-10-28T22:31:42.000Z","dateModified":"2020-10-29T16:33:27.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11843632 https://ww2.kqed.org/news/?p=11843632","disqusUrl":"https://ww2.kqed.org/news/2020/10/28/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race/","disqusTitle":"Valero-Funded PAC Pours More Than $250,000 Into Benicia Mayor's Race","path":"/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>A political action committee funded mainly by the Valero Energy company has raised more than a quarter-million dollars to convince Benicia residents to vote for its preferred candidate in the city's mayoral race.\u003c/p>\n\u003cp>The San Antonio-based oil giant runs the Benicia refinery, one of California's largest, which is located in the small Solano County city.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'Once again, Valero has gone after my opponent with negative ads. That does not work in Benicia.'","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Christina Strawbridge, Benicia city councilwoman and mayoral candidate","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Contributions to the Working Families for a Strong Benicia PAC represent four times the total combined amount raised from individual donations by the city's three mayoral candidates.\u003c/p>\n\u003cp>In the mayor's race, Valero and one of its allied unions are supporting \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Christina_Strawbridge_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Christina Strawbridge\u003c/a>, a councilwoman and vice mayor, against Councilman \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Steve_Young_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Steve Young\u003c/a> — both Democrats — funding phone polls, digital ads and mailers and reigniting a debate over the city's future.\u003c/p>\n\u003cp>Since 2019, Valero has donated $240,000 to the committee. The donations come two years after the Valero-funded PAC spent thousands to help Strawbridge and Lionel Largaespada \u003ca href=\"https://www.kqed.org/news/11704576/valero-backed-candidates-win-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">win seats\u003c/a> on the Benicia City Council and defeat Kari Birdseye, an environmentalist candidate who supported tighter regulation of the refinery.\u003c/p>\n\u003cp>The PAC also received a $25,000 contribution from the International Brotherhood of Boilermakers Lodge 549 in what the union calls an effort to stop \"coastal politicians\" from killing manufacturing jobs.\u003c/p>\n\u003cp>\"Steve Young wants Benicia to be a town where tech professionals buy a latte and telecommute. Christina Strawbridge wants it to be a place where our members who live in Benicia, who come home from work dirty and tired, can continue to raise their families, too,\" said Timothy Jefferies, the union's business manager.\u003c/p>\n\u003cp>Elizabeth Patterson, Benicia's current mayor and one of Valero's leading critics, is leaving office after serving in that position for 13 years and on the City Council for 17 years prior to that.\u003c/p>\n\u003cp>The election arrives as Valero and other oil companies that produce and process petroleum in California face declining sales because of the coronavirus pandemic and \u003ca href=\"https://www.kqed.org/news/11841676/behind-the-battle-for-the-future-of-californias-oil\" target=\"_blank\" rel=\"noopener noreferrer\">increasing calls\u003c/a> for the state to move away from fossil fuels as it battles climate change-driven wildfires.\u003c/p>\n\u003cp>With \u003ca href=\"https://www.kqed.org/news/11839077/strong-california-gas-demand-unlikely-to-return-as-even-refineries-go-renewable\" target=\"_blank\" rel=\"noopener noreferrer\">gasoline demand dropping\u003c/a>, two of the Bay Area's refineries, the Marathon plant in Martinez and Phillips 66 in Rodeo, are shifting to producing renewable fuels.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Last Thursday, Valero announced a \u003ca href=\"https://investorvalero.com/news/news-details/2020/Valero-Energy-Reports-Third-Quarter-2020-Results/default.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">loss of $464 million in the third quarter\u003c/a> of this year.\u003c/p>\n\u003cp>The two worst refinery accidents in the Bay Area in the last three years took place at Valero's Benicia refinery. \u003c/p>\n\u003cp>A May 2017 \u003ca href=\"https://www.kqed.org/news/11681218/cpuc-probe-says-pge-mistakes-led-to-benicia-refinery-outage\" target=\"_blank\" rel=\"noopener noreferrer\">power outage at the refinery\u003c/a> led to a major release of toxic sulfur, prompting city leaders to call for an industrial safety ordinance. In March 2019, the plant had a series of malfunctions that led to \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener noreferrer\">another significant pollution release\u003c/a>.\u003c/p>\n\u003cp>Patterson and Young have since pushed for the city to have more regulatory control over the refinery. Attacks from the Valero PAC followed.\u003c/p>\n\u003cp>\"Steve Young doesn't need a job because he is supported by the taxpayers of California. He has no reason to protect Benicia's jobs and tax base,\" states one of the recent mailers from the Valero PAC that was widely distributed to Benicia voters.\u003c/p>\n\u003cp>\"Christina is a local business owner and knows how important it is to keep Benicia working. Now, more than ever, we need leaders like Christina Strawbridge,\" it states.\u003c/p>\n\u003cp>Benicia residents have also received several rounds of calls paid for by the Valero-funded PAC, aimed at convincing voters to back Strawbridge.\u003c/p>\n\u003ch3>Young: 'Leave it to Benicia Voters'\u003c/h3>\n\u003cp>Young says he's not against the refinery, noting that it's a major part of Benicia's economy and that Valero frequently contributes to \"worthy local causes.\"\u003c/p>\n\u003cp>He says the PAC is targeting him because he led a Planning Commission vote several years ago that ultimately led to the \u003ca href=\"https://www.ci.benicia.ca.us/index.asp?SEC=B7EDC93A-FFF0-4A14-9B1A-1C8563BC256A\" target=\"_blank\" rel=\"noopener noreferrer\">rejection of Valero's crude-by-rail application\u003c/a>.\u003c/p>\n\u003cp>\"Their ongoing attempts to influence the makeup of the City Council go far beyond normal corporate interest in local affairs,\" Young said in an email. \"Leave it to Benicia voters to elect their own representatives.\"\u003c/p>\n\u003cp>Young says he wants the company to be more transparent about problems and accidents at the refinery and to send out immediate alerts to Benicia residents when accidents occur. He also says the city should have stronger air quality monitoring systems in place.\u003c/p>\n\u003cp>\"The relationship between Valero and the community is strained,\" Young said, adding that city officials and refinery executives can change that by holding monthly meetings.\u003c/p>\n\u003cp>Young says he's a stronger candidate than Strawbridge because of his career working in local government and his better understanding of how to address problems facing the city.\u003c/p>\n\u003ch3>Strawbridge: 'Heal the Divide'\u003c/h3>\n\u003cp>Strawbridge says that since she was elected to the City Council in 2018, relations between Benicia and the refinery have improved.\u003c/p>\n\u003cp>She notes that while the city did not put in place the more stringent regulations that Young and Patterson wanted, Benicia reached an agreement with Valero that includes the addition of portable air monitors, notifications during hazardous material incidents and increased disclosure on incident investigations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"valero"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>But she also acknowledges that the campaign work by the company's PAC is not helping the two sides get along.\u003c/p>\n\u003cp>\"The relationship needs to improve and may have had a setback with this election cycle and Valero's formation of a PAC,\" Strawbridge said in an email.\u003c/p>\n\u003cp>\"There is now a continued lack of trust within the community about the methods used during the election that were similar to 2018,\" she added. \"Once again, Valero has gone after my opponent with negative ads. That does not work in Benicia.\"\u003c/p>\n\u003cp>Strawbridge believes the pushback from Valero's critics has also gone too far.\u003c/p>\n\u003cp>\"There has been a concerted effort to discredit me on social media and the local paper by supporters of my opponent,\" Strawbridge said. \"As mayor of Benicia, I plan to heal the divide our city has experienced for many years.\"\u003c/p>\n\u003cp>Strawbridge touts her experience promoting nonprofits, preserving historic buildings and advocating for parks and local tourism. She says her background in small business will help guide the city through the pandemic.\u003c/p>\n\u003cp>A third mayoral candidate, \u003ca href=\"https://www.ci.benicia.ca.us/vertical/sites/%7BF991A639-AAED-4E1A-9735-86EA195E2C8D%7D/uploads/Jason_Diavatis_Candidate_Statement.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Jason Diavatis\u003c/a>, who has not been supported or opposed by the Valero PAC, did not respond to a request for comment.\u003c/p>\n\u003ch3>Influence in California\u003c/h3>\n\u003cp>Valero's donations to the PAC represent just one place the oil company has made campaign contributions to influence California races.\u003c/p>\n\u003cp>The oil giant and its various political action committees have contributed at least $14.1 million to California groups and congressional candidates in the state since 2015, according to a review of state and federal campaign finance data by \u003ca href=\"https://maplight.org/data/\">MapLight\u003c/a>, a Berkeley-based nonprofit that follows money in politics.\u003c/p>\n\u003cp>Jason Kaune, the Benicia PAC's treasurer and head of political law at Nielsen Merksamer, a Sacramento-based lobbying firm, declined to comment. A Valero spokeswoman also did not return a request for comment.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/11700855/valero-backed-group-spends-heavily-to-sway-benicia-city-council-election\" target=\"_blank\" rel=\"noopener noreferrer\">work of a similar PAC in the 2018 election\u003c/a> led to a significant divide in Benicia, pitting environmentalists against refinery workers.\u003c/p>\n\u003cp>During that election, the city filed a complaint with state campaign finance regulators, alleging that Valero sponsored a so-called push poll intended to negatively characterize Birdseye, the environmental candidate. The state's Fair Political Practices Commission, though, declined to investigate the calls.\u003c/p>\n\u003cp>The dispute led the City Council to approve stronger disclosure rules for political committees involved in local elections.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11843632/valero-funded-pac-pours-more-than-250000-into-benicia-mayors-race","authors":["258"],"programs":["news_72"],"categories":["news_1758","news_19906","news_457","news_6188","news_28250","news_8","news_13"],"tags":["news_20902","news_21826","news_28722","news_20022","news_21030"],"featImg":"news_11703286","label":"news_72"},"news_11771298":{"type":"posts","id":"news_11771298","meta":{"index":"posts_1591205157","site":"news","id":"11771298","score":null,"sort":[1567670450000]},"guestAuthors":[],"slug":"solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown","title":"Solano County Says Valero Violated State Regulations in March Refinery Shutdown","publishDate":1567670450,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Solano County inspectors documented a long list of shortcomings and inadequate procedures at Valero's Benicia oil refinery that contributed to a major pollution release from the facility earlier this year, newly released county documents show.\u003c/p>\n\u003cp>The county's Department of Resource Management documented violations of eight separate state regulations. The infractions included failure to fix important sensors in a refinery furnace unit, infrequent inspections of key equipment, and failure to have an operating plan in place to deal with unexpected refinery conditions.\u003c/p>\n\u003cp>Solano's probe relied in part on \u003ca href=\"http://solanocounty.com/civicax/filebank/blobdload.aspx?BlobID=30736\" target=\"_blank\" rel=\"noopener\">Valero's root cause analysis\u003c/a> of the shutdown, which found that one of the worst refinery incidents in the Bay Area in years was caused by a mistake made months earlier.\u003c/p>\n\u003cp>Both reports focused on tubes in the refinery's furnace that heat up crude oil before it's routed to other parts of the facility for processing. County and refinery officials say those furnace tubes were damaged during maintenance work last November, which caused the devices to fail and contributed to the plant's malfunctions in March.\u003c/p>\n\u003cp>The Valero complex ended up belching out a massive amount of black sooty smoke, which led to \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener\">health concerns\u003c/a> for people living nearby.\u003c/p>\n\u003cp>[documentcloud url=\"https://www.documentcloud.org/documents/6382447-Valero-Benicia-Exceedance-Investigation-Report.html\" responsive=true text=false]\u003c/p>\n\u003cp>[documentcloud url=\"https://www.documentcloud.org/documents/6382464-Solano-County-Valero-Inspection.html\" responsive=true text=false]\u003c/p>\n\u003cp>The refinery's subsequent closure contributed to a \u003ca href=\"https://www.kqed.org/news/11745576/valero-restarts-benicia-refinery-helping-to-slow-statewide-gas-price-hike\" target=\"_blank\" rel=\"noopener\">statewide spike in gasoline prices\u003c/a> and prompted investigations by several government agencies, renewing attention on the refinery two years after a power outage caused a major release of toxic sulfur dioxide in the area.\u003c/p>\n\u003cp>Valero spokeswoman Lillian Riojas declined to comment directly on the company's violations. Instead, she pointed to the company's May filing with the Securities and Exchange Commission in which it reported \u003ca href=\"https://www.kqed.org/news/11746990/valero-says-it-faces-342000-in-penalties-over-benicia-refinery-pollution-incident\" target=\"_blank\" rel=\"noopener\">it's facing more than $342,000 in fines\u003c/a> in connection with the incident. The company told the SEC it expects to face $242,840 in proposed penalties from Solano County and $100,000 from the Bay Area Air Quality Management District.\u003c/p>\n\u003cp>Valero's root cause analysis, completed in July, examines a series of problems that led to the refinery malfunctions.\u003c/p>\n\u003cp>Company inspections during the refinery shutdown found that furnace tubes were bulging and leaking. Valero says when the facility was restarting a unit last November, a safety valve improperly \"lifted,\" allowing crude oil to bypass one of the refinery's furnaces.\u003c/p>\n\u003cp>Valero says \"it was not appreciated at the time\" that allowing the bypass \"exposed the furnace tubes to elevated temperatures.\" Extreme heat gradually deformed the tubes and allowed a solid substance called petroleum coke to form inside. Valero's analysis concedes that the deteriorating conditions were \"not timely identified and mitigated, leading to the tubes' subsequent failure\" and the March refinery malfunctions.\u003c/p>\n\u003cp>Solano County's investigation reported that carbon monoxide and oxygen sensors in the refinery furnace were not operational for at least three years.\u003c/p>\n\u003cp>\"Proper functioning sensors would have provided an indication that the furnace was malfunctioning to Valero staff, allowing them to act sooner to correct the condition and prevent additional release,\" said Terry Schmidtbauer, the county's assistant director of resource management, in an email.\u003c/p>\n\u003cp>\"The issue with the furnace upset the system,\" Schmidtbauer said.\u003c/p>\n\u003cp>Those system issues became more evident in early March as two other refinery components experienced problems. One was a fluid coker, which heats up and \"cracks\" the thickest components of crude oil processed at the refinery. Another, a flue gas scrubber, removes fine particles before gases are released from the facility's smokestacks.\u003c/p>\n\u003cp>Malfunctions with those devices led to an increase in carbon monoxide levels, according to Valero, To reduce those levels, refinery crews ended up increasing the temperature on the furnace tubes, thus accelerating their deterioration.\u003c/p>\n\u003cp>[aside tag=\"valero\" label=\"Related Stories\"]\u003c/p>\n\u003cp>There was little liquid in the tubes, which puts them at risk of damage, according to Professor Eric Smith of Tulane University's Energy Institute, who specializes in refinery operations.\u003c/p>\n\u003cp>\"One result is thermal degradation of the metal tube,\" said Smith, who reviewed company and county findings. \"Another effect is that the liquid that does make it through the tube is converted into petroleum coke.\"\u003c/p>\n\u003cp>That dynamic led to the release of sooty smoke and resulted in elevated levels of particulate matter and a health advisory.\u003c/p>\n\u003cp>County inspectors discovered several problems with lines that carry petroleum coke. On the day the refinery was shut down, one was leaking. Valero staff told Solano officials in April another line had failed five times in the last three years.\u003c/p>\n\u003cp>The county's Department of Resource Management has ordered Valero to make a series of changes, some of which it has already completed. They include orders to reduce petroleum coke releases, new procedures for preventing the overheating of furnace tubes and increased training.\u003c/p>\n\u003cp>Solano County's Schmidtbauer said the department was still assessing what penalties it will levy against the refinery.\u003c/p>\n\u003cp>Local air regulators issued 12 notices of violation against Valero. Ralph Borrmann, a spokesman for the air district, said the agency's probe is not yet complete.\u003c/p>\n\u003cp>An investigation by California's Division of Occupational Safety and Health, Cal/OSHA, is expected to wrap up in the coming weeks, according to agency spokesman Frank Polizzi.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Refinery infrastructure damaged in November led to Valero's malfunctions and shutdown in March. ","status":"publish","parent":0,"modified":1567640855,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":28,"wordCount":905},"headData":{"title":"Solano County Says Valero Violated State Regulations in March Refinery Shutdown | KQED","description":"Refinery infrastructure damaged in November led to Valero's malfunctions and shutdown in March. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Solano County Says Valero Violated State Regulations in March Refinery Shutdown","datePublished":"2019-09-05T08:00:50.000Z","dateModified":"2019-09-04T23:47:35.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11771298 https://ww2.kqed.org/news/?p=11771298","disqusUrl":"https://ww2.kqed.org/news/2019/09/05/solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown/","disqusTitle":"Solano County Says Valero Violated State Regulations in March Refinery Shutdown","path":"/news/11771298/solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Solano County inspectors documented a long list of shortcomings and inadequate procedures at Valero's Benicia oil refinery that contributed to a major pollution release from the facility earlier this year, newly released county documents show.\u003c/p>\n\u003cp>The county's Department of Resource Management documented violations of eight separate state regulations. The infractions included failure to fix important sensors in a refinery furnace unit, infrequent inspections of key equipment, and failure to have an operating plan in place to deal with unexpected refinery conditions.\u003c/p>\n\u003cp>Solano's probe relied in part on \u003ca href=\"http://solanocounty.com/civicax/filebank/blobdload.aspx?BlobID=30736\" target=\"_blank\" rel=\"noopener\">Valero's root cause analysis\u003c/a> of the shutdown, which found that one of the worst refinery incidents in the Bay Area in years was caused by a mistake made months earlier.\u003c/p>\n\u003cp>Both reports focused on tubes in the refinery's furnace that heat up crude oil before it's routed to other parts of the facility for processing. County and refinery officials say those furnace tubes were damaged during maintenance work last November, which caused the devices to fail and contributed to the plant's malfunctions in March.\u003c/p>\n\u003cp>The Valero complex ended up belching out a massive amount of black sooty smoke, which led to \u003ca href=\"https://www.kqed.org/news/11737076/valeros-pollution-release-exposes-weaknesses-in-benicias-air-monitoring-system\" target=\"_blank\" rel=\"noopener\">health concerns\u003c/a> for people living nearby.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"documentcloud","attributes":{"named":{"url":"https://www.documentcloud.org/documents/6382447-Valero-Benicia-Exceedance-Investigation-Report.html","responsive":"true","text":"false","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"documentcloud","attributes":{"named":{"url":"https://www.documentcloud.org/documents/6382464-Solano-County-Valero-Inspection.html","responsive":"true","text":"false","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The refinery's subsequent closure contributed to a \u003ca href=\"https://www.kqed.org/news/11745576/valero-restarts-benicia-refinery-helping-to-slow-statewide-gas-price-hike\" target=\"_blank\" rel=\"noopener\">statewide spike in gasoline prices\u003c/a> and prompted investigations by several government agencies, renewing attention on the refinery two years after a power outage caused a major release of toxic sulfur dioxide in the area.\u003c/p>\n\u003cp>Valero spokeswoman Lillian Riojas declined to comment directly on the company's violations. Instead, she pointed to the company's May filing with the Securities and Exchange Commission in which it reported \u003ca href=\"https://www.kqed.org/news/11746990/valero-says-it-faces-342000-in-penalties-over-benicia-refinery-pollution-incident\" target=\"_blank\" rel=\"noopener\">it's facing more than $342,000 in fines\u003c/a> in connection with the incident. The company told the SEC it expects to face $242,840 in proposed penalties from Solano County and $100,000 from the Bay Area Air Quality Management District.\u003c/p>\n\u003cp>Valero's root cause analysis, completed in July, examines a series of problems that led to the refinery malfunctions.\u003c/p>\n\u003cp>Company inspections during the refinery shutdown found that furnace tubes were bulging and leaking. Valero says when the facility was restarting a unit last November, a safety valve improperly \"lifted,\" allowing crude oil to bypass one of the refinery's furnaces.\u003c/p>\n\u003cp>Valero says \"it was not appreciated at the time\" that allowing the bypass \"exposed the furnace tubes to elevated temperatures.\" Extreme heat gradually deformed the tubes and allowed a solid substance called petroleum coke to form inside. Valero's analysis concedes that the deteriorating conditions were \"not timely identified and mitigated, leading to the tubes' subsequent failure\" and the March refinery malfunctions.\u003c/p>\n\u003cp>Solano County's investigation reported that carbon monoxide and oxygen sensors in the refinery furnace were not operational for at least three years.\u003c/p>\n\u003cp>\"Proper functioning sensors would have provided an indication that the furnace was malfunctioning to Valero staff, allowing them to act sooner to correct the condition and prevent additional release,\" said Terry Schmidtbauer, the county's assistant director of resource management, in an email.\u003c/p>\n\u003cp>\"The issue with the furnace upset the system,\" Schmidtbauer said.\u003c/p>\n\u003cp>Those system issues became more evident in early March as two other refinery components experienced problems. One was a fluid coker, which heats up and \"cracks\" the thickest components of crude oil processed at the refinery. Another, a flue gas scrubber, removes fine particles before gases are released from the facility's smokestacks.\u003c/p>\n\u003cp>Malfunctions with those devices led to an increase in carbon monoxide levels, according to Valero, To reduce those levels, refinery crews ended up increasing the temperature on the furnace tubes, thus accelerating their deterioration.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"tag":"valero","label":"Related Stories "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>There was little liquid in the tubes, which puts them at risk of damage, according to Professor Eric Smith of Tulane University's Energy Institute, who specializes in refinery operations.\u003c/p>\n\u003cp>\"One result is thermal degradation of the metal tube,\" said Smith, who reviewed company and county findings. \"Another effect is that the liquid that does make it through the tube is converted into petroleum coke.\"\u003c/p>\n\u003cp>That dynamic led to the release of sooty smoke and resulted in elevated levels of particulate matter and a health advisory.\u003c/p>\n\u003cp>County inspectors discovered several problems with lines that carry petroleum coke. On the day the refinery was shut down, one was leaking. Valero staff told Solano officials in April another line had failed five times in the last three years.\u003c/p>\n\u003cp>The county's Department of Resource Management has ordered Valero to make a series of changes, some of which it has already completed. They include orders to reduce petroleum coke releases, new procedures for preventing the overheating of furnace tubes and increased training.\u003c/p>\n\u003cp>Solano County's Schmidtbauer said the department was still assessing what penalties it will levy against the refinery.\u003c/p>\n\u003cp>Local air regulators issued 12 notices of violation against Valero. Ralph Borrmann, a spokesman for the air district, said the agency's probe is not yet complete.\u003c/p>\n\u003cp>An investigation by California's Division of Occupational Safety and Health, Cal/OSHA, is expected to wrap up in the coming weeks, according to agency spokesman Frank Polizzi.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11771298/solano-county-says-valero-violated-state-regulations-in-march-refinery-shutdown","authors":["258"],"programs":["news_72"],"categories":["news_19906","news_8","news_356"],"tags":["news_20902","news_21390","news_21107","news_20022"],"featImg":"news_11703286","label":"news_72"},"news_11767970":{"type":"posts","id":"news_11767970","meta":{"index":"posts_1591205157","site":"news","id":"11767970","score":null,"sort":[1566326884000]},"guestAuthors":[],"slug":"california-oil-industry-sounds-alarm-over-utilities-power-shutoff-plans","title":"California Oil Industry Sounds Alarm Over Utilities' Power Shutoff Plans","publishDate":1566326884,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>The industry group representing oil companies in California says if the state's utilities shut off power to refineries during periods of high fire danger, the facilities could be knocked offline, resulting in major pollution releases and increased gasoline prices.\u003c/p>\n\u003cp>The Western States Petroleum Association asked California regulators in early May for exemptions from \u003ca href=\"https://www.kqed.org/news/11751074/regulators-ok-pges-big-wildfire-safety-program-and-set-new-rules-for-protective-power-shutoffs\" target=\"_blank\" rel=\"noopener\">power shutoff plans\u003c/a> that the state and electrical utilities have adopted to reduce the chances of power lines starting fires during extremely windy and hot conditions.\u003c/p>\n\u003cp>[aside postID=\"news_11767619,news_11750896,news_11750455\" label=\"PG&E and Wildfire Safety\"]\u003c/p>\n\u003cp>The industry group warned that an outage as short as a minute could result in refineries going off line for up to three weeks, triggering a series of ugly consequences.\u003c/p>\n\u003cp>\"An uncontrolled shutdown of a refinery from a de-energization action would result in immediate emergency load shedding, flaring and a heightened risk of a catastrophic event,\" the association wrote in a \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M292/K287/292287411.PDF\" target=\"_blank\" rel=\"noopener\">letter\u003c/a> to the California Public Utilities Commission.\u003c/p>\n\u003cp>The filing has prompted an angry reaction from a leading environmental group, which says it fears the oil companies will use a power shutdown as a justification for harmful emissions.\u003c/p>\n\u003cp>\"It's outrageous that action to protect against wildfire risk might result in dangerous pollution,\" said Clare Lakewood, a senior attorney at the Center for Biological Diversity. \"Refineries shouldn't be allowed to use this as an excuse to contaminate the air we breathe.\"\u003c/p>\n\u003cp>When asked recently about the petroleum association's concerns, a PG&E representative said the utility would work to restore power faster for refineries after the shutoffs.\u003c/p>\n\u003cp>\"We are continually working to analyze our systems, refine our procedures and further assess how we can minimize the impacts of a public safety power shutoff. This includes working towards the ability to be able to prioritize the re-energization of critical infrastructure like oil refineries,\" said Jeff Smith, a PG&E spokesman.\u003c/p>\n\u003cp>Two weeks after the association's filing, the commission \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M296/K598/296598822.PDF\" target=\"_blank\" rel=\"noopener\">approved PG&E's shutoff plans\u003c/a>. Oil companies did not get the break they wanted.\u003c/p>\n\u003cp>But the association's concerns have not faded. The head of the industry group continues to call on the state's utilities to keep the power flowing to refineries even during periods of high fire danger.\u003c/p>\n\u003cp>\"Unplanned shutdowns imposed by a utility can result in health, safety and environmental impacts,\" Catherine Reheis-Boyd, the group's president, said in a statement.\u003c/p>\n\u003cp>\"If a utility's actions disrupt the fuel supply chain, this could significantly impact affordable fuel costs for businesses and consumers in California,\" Reheis-Boyd said. \"Utilities need to make sure that they are investing adequate resources to protect critical facilities to ensure that any de-energization event is used as an absolute last resort and does not cause more harm to Californians.\"\u003c/p>\n\u003cp>\u003cstrong>PG&E Shutoff Plan Scrutinized\u003c/strong>\u003c/p>\n\u003cp>The industry's concerns were highlighted last week when state lawmakers scrutinized PG&E's shutoff plans. State Sen. Scott Wiener. D-San Francisco, mentioned the refineries while questioning a PG&E executive.\u003c/p>\n\u003cp>\"We saw the oil industry, and I'm not usually aligned with the oil industry, but their letter was very compelling. That's pretty problematic for that to happen,\" Wiener said during a state Senate subcommittee \u003ca href=\"https://www.sfchronicle.com/business/article/Very-broad-and-very-dangerous-PG-E-14304972.php?psid=amCL5\" target=\"_blank\" rel=\"noopener\">hearing\u003c/a> last Wednesday.\u003c/p>\n\u003cp>PG&E says it recently met with the industry to discuss its concerns, but it has not signaled an intention to alter its shutoff plans.\u003c/p>\n\u003cp>Sumeet Singh, the PG&E vice president overseeing the company's wildfire safety program, told the panel that the transmission system serving refineries is built with redundancy in mind.\u003c/p>\n\u003cp>\"When you look at our transmission system, by nature, especially the 100-kilovolt and above ... there's quite a lot of reliability that's built into it,\" Singh said. That means \"if you lose a line, you have another\" line as a backup, he added.\u003c/p>\n\u003cp>Singh also suggested that the oil industries can take PG&E to court \"if they fundamentally believe that the decision that we made was inaccurate, inappropriate, targeted in some way, led to some harm.\"\u003c/p>\n\u003cp>\u003cstrong>2017 Power Outage at Valero Refinery\u003c/strong>\u003c/p>\n\u003cp>An oil company lawsuit against the utility would not be unprecedented. A May 2017 power failure at Valero's Benicia plant triggered a major release of toxic sulfur dioxide and prompted emergency shelter-in-place orders.\u003c/p>\n\u003cp>The CPUC blamed PG&E for the outage, but \u003ca href=\"https://www.kqed.org/news/11685464/state-decides-not-to-penalize-pge-for-major-valero-outage\" target=\"_blank\" rel=\"noopener\">declined to punish the company.\u003c/a> Valero filed a \u003ca href=\"https://www.kqed.org/news/11541168/valero-sues-pge-for-reckless-outage-at-benicia-refinery\" target=\"_blank\" rel=\"noopener\">lawsuit\u003c/a> against the utility, seeking more than $75 million in damages. That lawsuit is currently on hold pending the outcome of PG&E's bankruptcy proceedings.\u003c/p>\n\u003cp>The industry's filing with the commission says the 2017 Valero outage proves the dangers an electricity failure poses to a refinery.\u003c/p>\n\u003cp>Currently, the Valero refinery is not in an area designated by PG&E as one at high risk for a public safety power shutoff. Solano County inspectors and Benicia fire officials note that the \u003ca href=\"https://www.timesheraldonline.com/2019/06/14/questions-on-pge-public-safety-shut-offs-prompt-benicia-response/\" target=\"_blank\" rel=\"noopener\">refinery gets power from two separate lines\u003c/a>.\u003c/p>\n\u003cp>Terry Schmidtbauer, Solano County's assistant director of resource management, which oversees the Benicia facility, says the likelihood of Valero losing power from a pre-emptive shutoff is low.\u003c/p>\n\u003cp>\"That being said, we are all aware of the past events where Valero did lose all power and had to shut down rather quickly. Such an event is not impossible, even if highly unlikely,\" Schmidtbauer said.\u003c/p>\n\u003cp>Both in 2017 and last March, when Valero shut down due to two refinery component malfunctions, the \u003ca href=\"https://www.kqed.org/news/11745576/valero-restarts-benicia-refinery-helping-to-slow-statewide-gas-price-hike\" target=\"_blank\" rel=\"noopener\">cost of gasoline in California increased\u003c/a>.\u003c/p>\n\u003cp>Schmidtbauer said after the 2017 outage, county inspectors told Valero to set up a procedure by which it would rely more on fuel gas and steam to generate electricity at the plant to run the refinery if it were to lose power from PG&E.\u003c/p>\n\u003cp>A Valero spokeswoman did not respond to a request for comment.\u003c/p>\n\u003cp>Contra Costa County's refineries — the Chevron, Shell, Phillips 66 and Marathon plants — are expected to rely more on their cogeneration facilities and reduce refining in cases of power shutoffs, according to Randy Sawyer, the county's chief environmental health and hazardous materials officer.\u003c/p>\n\u003cp>\"I am expecting that they will cut back on their operations so they can continue to operate somewhat on their own,\" Sawyer said.\u003c/p>\n\u003cp>Shell's Martinez refinery has emergency backup systems, but they are not enough to power the entire plant, according to Shell spokeswoman Ann Notarangelo.\u003c/p>\n\u003cp>\"We do not have enough onsite generation to sustain plant operations in the event of a complete loss of power from PG&E,\" Notarangelo said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Jamal Kheiry, a spokesman for Marathon, which also runs a refinery in Martinez, said the company is working with PG&E \"to ensure the reliability and safety of our operations.\" He did not provide specifics on those plans.\u003c/p>\n\u003cp>A spokesman for Chevron's Richmond refinery referred questions on the issue to the petroleum association. A representative for Phillips 66 in Rodeo did not return a request for comment.\u003c/p>\n\u003cp>The oil industry group also noted in its filing that while utilities like PG&E hope to give \"industrial customers\" an early heads up before they cut off electricity, it's possible they will not get advance notification.\u003c/p>\n\u003cp>\"This message is shocking,\" WSPA's filing said.\u003c/p>\n\u003cp>The Center for Biological Diversity's Clare Lakewood doesn't buy the association's arguments.\u003c/p>\n\u003cp>\"This situation is profoundly unfair to people living around these refineries,\" she said.\u003c/p>\n\u003cp>\"These highly profitable enterprises are already responsible for shocking levels of air pollution and planet warming emissions,\" Lakewood said. \"If they can't find a way to obey the same rules as other businesses and operate safely as California tries to curb wildfire risk, they should shut their doors.\"\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Industry group warns that shutdowns contemplated to stem wildfire risk could knock refineries offline, leading to major releases of pollution and increasing the price of gasoline. ","status":"publish","parent":0,"modified":1566340987,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":43,"wordCount":1294},"headData":{"title":"California Oil Industry Sounds Alarm Over Utilities' Power Shutoff Plans | KQED","description":"Industry group warns that shutdowns contemplated to stem wildfire risk could knock refineries offline, leading to major releases of pollution and increasing the price of gasoline. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California Oil Industry Sounds Alarm Over Utilities' Power Shutoff Plans","datePublished":"2019-08-20T18:48:04.000Z","dateModified":"2019-08-20T22:43:07.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11767970 https://ww2.kqed.org/news/?p=11767970","disqusUrl":"https://ww2.kqed.org/news/2019/08/20/california-oil-industry-sounds-alarm-over-utilities-power-shutoff-plans/","disqusTitle":"California Oil Industry Sounds Alarm Over Utilities' Power Shutoff Plans","path":"/news/11767970/california-oil-industry-sounds-alarm-over-utilities-power-shutoff-plans","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The industry group representing oil companies in California says if the state's utilities shut off power to refineries during periods of high fire danger, the facilities could be knocked offline, resulting in major pollution releases and increased gasoline prices.\u003c/p>\n\u003cp>The Western States Petroleum Association asked California regulators in early May for exemptions from \u003ca href=\"https://www.kqed.org/news/11751074/regulators-ok-pges-big-wildfire-safety-program-and-set-new-rules-for-protective-power-shutoffs\" target=\"_blank\" rel=\"noopener\">power shutoff plans\u003c/a> that the state and electrical utilities have adopted to reduce the chances of power lines starting fires during extremely windy and hot conditions.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11767619,news_11750896,news_11750455","label":"PG&E and Wildfire Safety "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The industry group warned that an outage as short as a minute could result in refineries going off line for up to three weeks, triggering a series of ugly consequences.\u003c/p>\n\u003cp>\"An uncontrolled shutdown of a refinery from a de-energization action would result in immediate emergency load shedding, flaring and a heightened risk of a catastrophic event,\" the association wrote in a \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M292/K287/292287411.PDF\" target=\"_blank\" rel=\"noopener\">letter\u003c/a> to the California Public Utilities Commission.\u003c/p>\n\u003cp>The filing has prompted an angry reaction from a leading environmental group, which says it fears the oil companies will use a power shutdown as a justification for harmful emissions.\u003c/p>\n\u003cp>\"It's outrageous that action to protect against wildfire risk might result in dangerous pollution,\" said Clare Lakewood, a senior attorney at the Center for Biological Diversity. \"Refineries shouldn't be allowed to use this as an excuse to contaminate the air we breathe.\"\u003c/p>\n\u003cp>When asked recently about the petroleum association's concerns, a PG&E representative said the utility would work to restore power faster for refineries after the shutoffs.\u003c/p>\n\u003cp>\"We are continually working to analyze our systems, refine our procedures and further assess how we can minimize the impacts of a public safety power shutoff. This includes working towards the ability to be able to prioritize the re-energization of critical infrastructure like oil refineries,\" said Jeff Smith, a PG&E spokesman.\u003c/p>\n\u003cp>Two weeks after the association's filing, the commission \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M296/K598/296598822.PDF\" target=\"_blank\" rel=\"noopener\">approved PG&E's shutoff plans\u003c/a>. Oil companies did not get the break they wanted.\u003c/p>\n\u003cp>But the association's concerns have not faded. The head of the industry group continues to call on the state's utilities to keep the power flowing to refineries even during periods of high fire danger.\u003c/p>\n\u003cp>\"Unplanned shutdowns imposed by a utility can result in health, safety and environmental impacts,\" Catherine Reheis-Boyd, the group's president, said in a statement.\u003c/p>\n\u003cp>\"If a utility's actions disrupt the fuel supply chain, this could significantly impact affordable fuel costs for businesses and consumers in California,\" Reheis-Boyd said. \"Utilities need to make sure that they are investing adequate resources to protect critical facilities to ensure that any de-energization event is used as an absolute last resort and does not cause more harm to Californians.\"\u003c/p>\n\u003cp>\u003cstrong>PG&E Shutoff Plan Scrutinized\u003c/strong>\u003c/p>\n\u003cp>The industry's concerns were highlighted last week when state lawmakers scrutinized PG&E's shutoff plans. State Sen. Scott Wiener. D-San Francisco, mentioned the refineries while questioning a PG&E executive.\u003c/p>\n\u003cp>\"We saw the oil industry, and I'm not usually aligned with the oil industry, but their letter was very compelling. That's pretty problematic for that to happen,\" Wiener said during a state Senate subcommittee \u003ca href=\"https://www.sfchronicle.com/business/article/Very-broad-and-very-dangerous-PG-E-14304972.php?psid=amCL5\" target=\"_blank\" rel=\"noopener\">hearing\u003c/a> last Wednesday.\u003c/p>\n\u003cp>PG&E says it recently met with the industry to discuss its concerns, but it has not signaled an intention to alter its shutoff plans.\u003c/p>\n\u003cp>Sumeet Singh, the PG&E vice president overseeing the company's wildfire safety program, told the panel that the transmission system serving refineries is built with redundancy in mind.\u003c/p>\n\u003cp>\"When you look at our transmission system, by nature, especially the 100-kilovolt and above ... there's quite a lot of reliability that's built into it,\" Singh said. That means \"if you lose a line, you have another\" line as a backup, he added.\u003c/p>\n\u003cp>Singh also suggested that the oil industries can take PG&E to court \"if they fundamentally believe that the decision that we made was inaccurate, inappropriate, targeted in some way, led to some harm.\"\u003c/p>\n\u003cp>\u003cstrong>2017 Power Outage at Valero Refinery\u003c/strong>\u003c/p>\n\u003cp>An oil company lawsuit against the utility would not be unprecedented. A May 2017 power failure at Valero's Benicia plant triggered a major release of toxic sulfur dioxide and prompted emergency shelter-in-place orders.\u003c/p>\n\u003cp>The CPUC blamed PG&E for the outage, but \u003ca href=\"https://www.kqed.org/news/11685464/state-decides-not-to-penalize-pge-for-major-valero-outage\" target=\"_blank\" rel=\"noopener\">declined to punish the company.\u003c/a> Valero filed a \u003ca href=\"https://www.kqed.org/news/11541168/valero-sues-pge-for-reckless-outage-at-benicia-refinery\" target=\"_blank\" rel=\"noopener\">lawsuit\u003c/a> against the utility, seeking more than $75 million in damages. That lawsuit is currently on hold pending the outcome of PG&E's bankruptcy proceedings.\u003c/p>\n\u003cp>The industry's filing with the commission says the 2017 Valero outage proves the dangers an electricity failure poses to a refinery.\u003c/p>\n\u003cp>Currently, the Valero refinery is not in an area designated by PG&E as one at high risk for a public safety power shutoff. Solano County inspectors and Benicia fire officials note that the \u003ca href=\"https://www.timesheraldonline.com/2019/06/14/questions-on-pge-public-safety-shut-offs-prompt-benicia-response/\" target=\"_blank\" rel=\"noopener\">refinery gets power from two separate lines\u003c/a>.\u003c/p>\n\u003cp>Terry Schmidtbauer, Solano County's assistant director of resource management, which oversees the Benicia facility, says the likelihood of Valero losing power from a pre-emptive shutoff is low.\u003c/p>\n\u003cp>\"That being said, we are all aware of the past events where Valero did lose all power and had to shut down rather quickly. Such an event is not impossible, even if highly unlikely,\" Schmidtbauer said.\u003c/p>\n\u003cp>Both in 2017 and last March, when Valero shut down due to two refinery component malfunctions, the \u003ca href=\"https://www.kqed.org/news/11745576/valero-restarts-benicia-refinery-helping-to-slow-statewide-gas-price-hike\" target=\"_blank\" rel=\"noopener\">cost of gasoline in California increased\u003c/a>.\u003c/p>\n\u003cp>Schmidtbauer said after the 2017 outage, county inspectors told Valero to set up a procedure by which it would rely more on fuel gas and steam to generate electricity at the plant to run the refinery if it were to lose power from PG&E.\u003c/p>\n\u003cp>A Valero spokeswoman did not respond to a request for comment.\u003c/p>\n\u003cp>Contra Costa County's refineries — the Chevron, Shell, Phillips 66 and Marathon plants — are expected to rely more on their cogeneration facilities and reduce refining in cases of power shutoffs, according to Randy Sawyer, the county's chief environmental health and hazardous materials officer.\u003c/p>\n\u003cp>\"I am expecting that they will cut back on their operations so they can continue to operate somewhat on their own,\" Sawyer said.\u003c/p>\n\u003cp>Shell's Martinez refinery has emergency backup systems, but they are not enough to power the entire plant, according to Shell spokeswoman Ann Notarangelo.\u003c/p>\n\u003cp>\"We do not have enough onsite generation to sustain plant operations in the event of a complete loss of power from PG&E,\" Notarangelo said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Jamal Kheiry, a spokesman for Marathon, which also runs a refinery in Martinez, said the company is working with PG&E \"to ensure the reliability and safety of our operations.\" He did not provide specifics on those plans.\u003c/p>\n\u003cp>A spokesman for Chevron's Richmond refinery referred questions on the issue to the petroleum association. A representative for Phillips 66 in Rodeo did not return a request for comment.\u003c/p>\n\u003cp>The oil industry group also noted in its filing that while utilities like PG&E hope to give \"industrial customers\" an early heads up before they cut off electricity, it's possible they will not get advance notification.\u003c/p>\n\u003cp>\"This message is shocking,\" WSPA's filing said.\u003c/p>\n\u003cp>The Center for Biological Diversity's Clare Lakewood doesn't buy the association's arguments.\u003c/p>\n\u003cp>\"This situation is profoundly unfair to people living around these refineries,\" she said.\u003c/p>\n\u003cp>\"These highly profitable enterprises are already responsible for shocking levels of air pollution and planet warming emissions,\" Lakewood said. \"If they can't find a way to obey the same rules as other businesses and operate safely as California tries to curb wildfire risk, they should shut their doors.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11767970/california-oil-industry-sounds-alarm-over-utilities-power-shutoff-plans","authors":["258"],"programs":["news_72"],"categories":["news_19906","news_8","news_13","news_356"],"tags":["news_20902","news_140","news_25816","news_26179","news_17041","news_20022"],"featImg":"news_11768635","label":"news_72"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.","airtime":"SUN 2pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Possible-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.possible.fm/","meta":{"site":"news","source":"Possible"},"link":"/radio/program/possible","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/possible/id1677184070","spotify":"https://open.spotify.com/show/730YpdUSNlMyPQwNnyjp4k"}},"1a":{"id":"1a","title":"1A","info":"1A is home to the national conversation. 1A brings on great guests and frames the best debate in ways that make you think, share and engage.","airtime":"MON-THU 11pm-12am","imageSrc":"https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/1a.jpg","officialWebsiteLink":"https://the1a.org/","meta":{"site":"news","source":"npr"},"link":"/radio/program/1a","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?s=143441&mt=2&id=1188724250&at=11l79Y&ct=nprdirectory","tuneIn":"https://tunein.com/radio/1A-p947376/","rss":"https://feeds.npr.org/510316/podcast.xml"}},"all-things-considered":{"id":"all-things-considered","title":"All Things Considered","info":"Every weekday, \u003cem>All Things Considered\u003c/em> hosts Robert Siegel, Audie Cornish, Ari Shapiro, and Kelly McEvers present the program's trademark mix of news, interviews, commentaries, reviews, and offbeat features. 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But is this once sleepy suburb ready for them?","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/American-Suburb-Podcast-Tile-703x703-1.jpg","officialWebsiteLink":"/news/series/american-suburb-podcast","meta":{"site":"news","source":"kqed","order":"13"},"link":"/news/series/american-suburb-podcast/","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?mt=2&id=1287748328","tuneIn":"https://tunein.com/radio/American-Suburb-p1086805/","rss":"https://ww2.kqed.org/news/series/american-suburb-podcast/feed/podcast","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkMzMDExODgxNjA5"}},"baycurious":{"id":"baycurious","title":"Bay Curious","tagline":"Exploring the Bay Area, one question at a time","info":"KQED’s new podcast, Bay Curious, gets to the bottom of the mysteries — both profound and peculiar — that give the Bay Area its unique identity. And we’ll do it with your help! You ask the questions. You decide what Bay Curious investigates. And you join us on the journey to find the answers.","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Bay-Curious-Podcast-Tile-703x703-1.jpg","imageAlt":"\"KQED Bay Curious","officialWebsiteLink":"/news/series/baycurious","meta":{"site":"news","source":"kqed","order":"4"},"link":"/podcasts/baycurious","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/bay-curious/id1172473406","npr":"https://www.npr.org/podcasts/500557090/bay-curious","rss":"https://ww2.kqed.org/news/category/bay-curious-podcast/feed/podcast","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93dzIua3FlZC5vcmcvbmV3cy9jYXRlZ29yeS9iYXktY3VyaW91cy1wb2RjYXN0L2ZlZWQvcG9kY2FzdA","stitcher":"https://www.stitcher.com/podcast/kqed/bay-curious","spotify":"https://open.spotify.com/show/6O76IdmhixfijmhTZLIJ8k"}},"bbc-world-service":{"id":"bbc-world-service","title":"BBC World Service","info":"The day's top stories from BBC News compiled twice daily in the week, once at weekends.","airtime":"MON-FRI 9pm-10pm, TUE-FRI 1am-2am","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/BBC-World-Service-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.bbc.co.uk/sounds/play/live:bbc_world_service","meta":{"site":"news","source":"BBC World Service"},"link":"/radio/program/bbc-world-service","subscribe":{"apple":"https://itunes.apple.com/us/podcast/global-news-podcast/id135067274?mt=2","tuneIn":"https://tunein.com/radio/BBC-World-Service-p455581/","rss":"https://podcasts.files.bbci.co.uk/p02nq0gn.rss"}},"code-switch-life-kit":{"id":"code-switch-life-kit","title":"Code Switch / Life Kit","info":"\u003cem>Code Switch\u003c/em>, which listeners will hear in the first part of the hour, has fearless and much-needed conversations about race. Hosted by journalists of color, the show tackles the subject of race head-on, exploring how it impacts every part of society — from politics and pop culture to history, sports and more.\u003cbr />\u003cbr />\u003cem>Life Kit\u003c/em>, which will be in the second part of the hour, guides you through spaces and feelings no one prepares you for — from finances to mental health, from workplace microaggressions to imposter syndrome, from relationships to parenting. The show features experts with real world experience and shares their knowledge. Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Code-Switch-Life-Kit-Podcast-Tile-360x360-1.jpg","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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