Groups Win Legal Challenges to Massive Bay Area Biofuel Refinery Projects

(Center for Biological Diversity) Flawed Reviews Downplayed Harms to Communities, Environment -- Communities for a Better Environment and the Center for Biological Diversity won legal victories today over Contra Costa County’s approval of two proposed biofuel refinery conversions in the Bay Area. The Superior Court of Contra Costa County found the county relied on incomplete and misleading environmental reviews in violation of the California Environmental Quality Act, or CEQA.

The court found that the county’s environmental review for one project, the Marathon-Tesoro refinery in Martinez, failed to properly evaluate ways to reduce odors from the refinery. For another project, the Phillips 66 refinery in Rodeo, the court found the county’s review failed to properly assess major project components as well as odor mitigation.

“I’m glad the court agreed with us that the county fell far short in failing to disclose critical information about the negative impacts from these projects,” said Victoria Bogdan Tejeda, an attorney at the Center for Biological Diversity’s Climate Law Institute. “CEQA is California’s bedrock environmental law, meant to provide decisionmakers and the public with vital information. In the face of the significant environmental and community harms these projects would cause, the county’s incomplete reviews were inexcusable.”

For the Phillips 66 project, the judge ordered the county to set aside its environmental review and redo flawed sections. For the Martinez project, the court ordered the county to improve its odor-mitigation measures.

The legal victories address lawsuits the groups filed against the projects last year.

The Phillips 66 refinery in Rodeo would produce more than a billion gallons per year of biofuel products, making it one of the largest biofuel refineries in the world. The Marathon-Tesoro project would produce more than 700,000 gallons per year of biofuel products, making it one of the largest biofuel refineries in California.

Combined, the projects would require at least 82,000 truck trips, nearly 29,000 railcars, and more than 760 ship and barge visits annually, adding to pollution, traffic and the risk of spills and accidents. In addition, generating and processing biofuels generates offensive odors to nearby communities, worsens the climate crisis, and can drive up food prices.

Communities near the refineries are categorized by the state as “disadvantaged” due to their high exposure to pollution from existing industries. The proposed refinery projects would lock in continued air and odor pollution for these residents for decades to come.

“Workers and local residents deserve to lead in shaping the future of the communities they call home,” said Ben Clark, a certified student attorney with the Stanford Environmental Law Clinic who argued the case against Marathon. “We hope that today’s decisions mark a turning point, one that begins to reverse a legacy of fossil fuel harm and advance a just transition to the equitable future that Martinez and Rodeo residents have fought so long and so hard for.”

The Stanford Environmental Law Clinic and Shute, Mihaly & Weinberger LLP represented Communities for a Better Environment and the Center for Biological Diversity. Communities for a Better Environment and the Center for Biological Diversity also served as co-counsel.

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 1.7 million members and online activists dedicated to the protection of endangered species and wild places.

The Environmental Law Clinic at Stanford enables students to provide legal assistance to nonprofit organizations on a variety of environmental issues, focusing primarily on natural resource conservation. The clinic's clients include large national environmental organizations and a variety of regional and local grassroots groups. READ MORE

Excerpt from Biomass Magazine: Marathon Petroleum Corp. on Oct. 31 reported that the renewable diesel joint venture at its Martinez refinery in California is expected to be operating at its full 730 MMgy capacity by the end of the year.

Mike Hennigan, CEO of Marathon, discussed the project and Marathon’s other renewable initiatives during the company’s third quarter earning call.

The Martinez project is being developed in partnership with Neste. The biorefinery reached full Phase I production capacity of 260 million gallons per year during the first quarter of 2023. Phase II activities to add a feedstock pretreatment unit and boost capacity to 730 MMgy began earlier this year.

“The Martinez renewable fuel facility is being delivered safely, on time, and on budget—and by the end of 2023, the facility is expected to produce 730 million gallons per year,” Hennigan said during the earnings call. “At that point, Martinez will be among the largest renewable diesel facilities, with a competitive operating profile, robust logistics flexibility, and advantaged feedstock slate, and should benefit from the global strategic relationship with Neste.”

Hennigan also noted the company’s 180 MMgy renewable diesel facility in Dickinson, North Dakota, is operating well. “The facility processed 75 percent advantaged feeds during the third quarter,” he said. The nearby Spiritwood soybean processing plant, developed via a joint venture with ADM, is nearing completion and is expected to deliver enough vegetable oil to produce approximately 75 MMgy of renewable diesel.

In addition to Marathon’s activities in the renewable diesel space, Hennigan said the company is also advancing early-stage developments through its interests in low carbon intensity renewable natural gas (RNG) and other small-scale investments. He said those projects will help lower the carbon intensity of the company’s operations and the products it supplies.

Marathon in March acquired a 49.9 percent interest in LF Bioenergy, and emerging U.S.-based RNG producer. Dave Heppner, senior vice president of strategy and business development at Marathon, commented on the LF Bioenergy acquisition during the earnings call, noting the company currently plans to build out 13 dairy RNG projects. READ MORE