Clearing the Air

Chevron’s Use of Reclaimed Water Saves Millions of Gallons of Fresh Water

Refinery Flaring Emissions Continued to Drop in 2010

Richmond Refinery Renewal Project Update

Restoring Richmond’s ‘Main Street’ Appeal

Brookside Community Health Center Provides Lifeline to Residents

Chevron’s Environmental Stewardship

Chevron Richmond TodayThe Official News Magazine of Chevron Richmond

Volume 3 Issue 2 | Q2 2011

2 | Chevron Richmond Today

Welcome to Chevron Richmond Today, our quarterly news magazine that highlights local Chevron operations as well as issues that are important to the community. In this edition, we share several stories about actions that Chevron is taking at the Richmond Refinery to protect and improve the environment and how those efforts are paying off.

In fact, air quality in Richmond overall ranks among the best in the Bay Area, as measured by the Bay Area Air Quality Management District (BAAQMD), the regulatory agency overseeing air quality in the nine Bay Area counties. That said, particulate from mobile sources such as trucks remains a focus for air quality regulators.

I am the Richmond manager of Chevron’s Health, Environment and Safety (HES) Department. We’re part of Chevron’s worldwide HES workforce, which includes several thousand employees around the world and more than 100 locally. One of my primary job responsibilities (and one of the primary job responsibilities for many other people at Chevron) is to help protect the health and safety of people and the quality of the environment in the communities in which we operate.

Here in Richmond, HES helps the refinery comply with very rigorous health, environmental and safety regulations of local, state and federal agencies that oversee us, including the Environmental Protection Agency, the California Air Resources Board, the Bay Area Air Quality Management District and the San Francisco Regional Water Quality Control Board.

As a member of the Richmond community, it is very important to Chevron and everyone at the refinery that we are in full compliance with health, environmental and safety regulations. In fact, many of our practices go beyond regulatory compliance.

For example, we have an extremely capable fire department with over 25 highly trained, full-time employees and approximately 70 volunteers. They are available 24/7 to address any situation that arises. In addition, our team trains alongside the City of Richmond’s fire department and those of other refineries throughout the Bay Area so that mutual aid can be provided, if needed.

And, as you’ll read in the article on page 3, the new water recycling and purification plant recently completed at the refinery saves approximately 3.5 million gallons of fresh, drinkable water – enough to supply 16,000 homes.

I joined Chevron 31 years ago right out of the University of Michigan, where I earned a degree in chemical engineering. In fact, my first job was right here at the Richmond Refinery. Overall, I’ve spent 17 years in Richmond, so I have strong feelings for the community.

What stands out for me is not just that our goal is to be respectful of, and sensitive to, Richmond’s needs because we do business here, but that we are part of this community and have been for over 100 years. It’s important for us to act responsibly and understand that role so that Richmond continues to flourish.

To learn more about Chevron’s environmental performance in Richmond, visit our website, www.chevronrichmond.com, and click Environment & Safety.

A Message From the Manager of Health, Environment and Safety

Jeff Hartwig

2 | Chevron Richmond Today

© 2011 Chevron U.S.A. Inc. All rights reserved. Chevron and the Chevron Hallmark are registered trademarks of Chevron Intellectual Property LLC. All other trademarks are the property of their respective owners.

Million Gallons Per Year

RARE Reclaim Water

North Richmond Reclaim Water

1995 1997 2001 2003 2005 2007 2011(est.)

Now > 60%reclaimed water

0.0

1,000

2,000

3,000

4,000

5,000

Fresh and Reclaimed Water Usage

1999 2009

Potable Water

Chevron Richmond Today | 3

Chevron’s Use of Reclaimed Water Saves Millions of Gallons of Fresh Water

Why Recycle Water?Using recycled water helps conserve our limited supply of available drinking water during water shortage emergencies, including droughts. It helps to strengthen and sustain the local economy by making more potable water available for other residential and business uses.

Depending on its level of purification, recycled water may be used for:

In years like 2011, when near-record rainfall and snowpack conditions have reservoirs overflowing, it’s sometimes hard to remember that water conservation must remain a top environmental priority, both for individuals and for businesses.

That’s certainly how Chevron sees it. Oil refining is a very water-intensive process. In fact, it takes about 1 gallon of water to process a gallon of crude oil. Where possible, we use recycled water – wastewater that has been treated to remove solids and impurities. For example, for the last several years the Richmond Refinery has used recycled water in our cooling towers as a way to conserve fresh water.

Last July, the East Bay Municipal Utility District (EBMUD) completed construction of a water recycling and purification plant onsite at the Richmond Refinery called RARE (Richmond Advanced Recycled Expansion) in order to meet Chevron’s need for recycled water. This plant uses microfiltration and reverse osmosis to produce the extremely high-purity water needed to make the steam we use to manufacture gasoline and other oil products.

With the startup of the RARE Plant, 7 million gallons — 60 percent — of the water Chevron now uses is EBMUD recycled water. Chevron’s use of

y Industrial cooling

y Residential and commercial landscaping and irrigation (including parks, freeways, golf courses, non-food-bearing trees)

y Fire prevention

y Soil compaction and dust control at construction sites

y Street sweeping

y Toilet flushing in dual-plumbed buildings

y Making concrete

recycled water has freed up 3.5 million gallons a day of fresh water for other water users, enough water to supply 16,000 homes or approximately 46,000 people.

In April, Chevron received the Recycled Water Customer of the Year Award for the RARE plant from the California Section of the WateReuse Association, a nonprofit organization whose mission is to advance the beneficial and efficient uses of high-quality, locally produced, sustainable water sources.

“We are very pleased to have been recognized by WateReuse California for this important and prestigious award,” says Mike Coyle, general manager of Chevron’s Richmond Refinery. “When EBMUD proposed joining with Chevron to build a new

water recycling plant at our Richmond refinery, we knew it would help fulfill an important objective of the City of Richmond, the surrounding community and Chevron – to better utilize scarce water resources.”

Emissions (average tons per day)

NMHC — non-methane hydrocarbons

SO2 — sulfur dioxide

2004 2005 2006 2007 2008 2009 2010

Down > 95%

0.00

0.05

0.010

0.015

0.020

0.025

0.030

Annual Average Non-Methane Hydrocarbon (NMHC)

0.035

Refinery Flaring Emissions Continued to Drop in 2010Oil refining is a dynamic manufacturing process that requires extensive monitoring and pressure control. Pressure relief systems are installed to help refinery equipment operate safely.

4 | Chevron Richmond Today

In most circumstances, materials sent to the pressure relief system, such as hydrogen and hydrocarbons, are recovered and reused in the refining process. In some cases, however, such as during plant shutdowns and startups, not all of the material can be recovered. Some of it is safely burned at the flare with the primary emissions of CO

2 and water.

Thanks to changes in our operating practices and new and upgraded equipment, we have been able to significantly reduce the number of times we use our flares. The Richmond Refinery flaring levels in 2010 were

reduced by more than 95 percent from 2004–2006 levels. In fact, according to the Bay Area Air Quality Management District (BAAQMD), our use of flares was the lowest of all Bay Area refineries in 2009, the most recent year for which the district has compiled data.

“We continue to look for new ways to reduce flaring in our daily operations and during plant turnarounds,” says Jeff Hartwig, Health, Environment and Safety manager at the Richmond Refinery. “It is part of our ongoing effort to respond to the community in which we live and work. It’s part of our commitment to being a good neighbor.”

Chevron Richmond Today | 5

Emissions, tons/yr

TSP — total suspended particulates

VOC — volatile organic compounds (light hydrocarbon, similar to those found in oil-based paint)

Average 1970 Average 1980 Average 1990 2006-2009

Down > 70%

Criteria Pollutant Emissions

CO — carbon monoxide

NOx — nitrogen oxides (e.g., NO

2 and NO

3)

SOX — sulfur oxides (e.g., SO

2 and S0

3)

Total Releases, lbs (thousand)

2004 2005 2006 2007 2008 2009

Down > 60%

0

200

600

1,000

1,400

1,800

Toxic Release Inventory (TRI) Waste and Emission

400

800

1,200

1,600

Reducing Air, Water and Solid Waste Emissions In 1970, the U.S. government established the Environmental Protection Agency (EPA) to enforce laws and regulations on everything from air quality to safe food and drinking water to energy-efficiency standards for consumer goods.

Each year, the EPA compiles and shares information on nearly 650 chemicals and chemical categories from companies in a variety of industries including manufacturing, metal and coal mining, refining and electric utilities – everything from local dry cleaners to giant automobile plants. This report includes data on air, water and solid emissions as well as on the quantities of chemicals sent to other facilities for further recycling and waste management.

Among the substances measured by the EPA are metals contained in the catalysts Chevron uses to refine oil and other products. As Richmond Health,

New Equipment, Procedures Help Lower EmissionsThe BAAQMD is the public agency entrusted with monitoring local air quality and regulating stationary sources of air pollution in the nine counties surrounding San Francisco Bay.

Richmond Health, Environment and Safety manager Jeff Hartwig notes, “The BAAQMD’s air standards are as rigorous as any in the world. They require around-the-clock monitoring of emissions, including having 24 hr/day video monitoring each of our flares. There are even two full-time air district inspectors assigned to the refinery.”

Every refinery is required to have an emission detection and repair program for plant components such as valves and connectors. “We routinely monitor our plant components for emissions using equipment so sensitive it can detect when a person is using a permanent marking pen,” says Hartwig.

Chevron has made significant investments in environmental controls and equipment over the past four decades. In fact, in 2000, we implemented an aggressive program to research the root causes of valve and connector emissions and to implement solutions, including the creation of one of the most stringent valve packing and flange gasket test requirements in the industry. As a result of many improvements like this program, there has been a more than 70 percent reduction in criteria air pollutant emissions from the refinery since the 1970s.

Bottom line: In the last 10 years of continuous BAAQMD monitoring of the station closest to the refinery, there has been no exceedance of state and national emissions standards related to refinery operation.

Environment and Safety manager Jeff Hartwig explains, “Once a catalyst has lost its reactivity, which is analogous to when a battery dies, the spent catalyst must be removed and either disposed of safely and properly or sent to facilities that can properly reclaim and reuse these specialty metals like molybdenum, vanadium and nickel.”

Through careful management of resources and new equipment investments, the Richmond Refinery has decreased waste and emissions by 60 percent since 2004. This decrease resulted both from reduced emissions and greater recycling efforts.

“This is another concrete example of efforts the refinery is taking to reduce our environmental footprint,” says Richmond Refinery general manager Mike Coyle. “It’s important to note that all refinery emissions are reported to the appropriate public agencies who in

turn ensure we are compliance with the regulatory limits. We work very hard to meet all of these protective regulatory limits, and in fact, in many cases our emissions are well below such limits.”

Richmond Refinery Renewal Project Update Chevron recently announced that it has submitted a Conditional Use Permit application to the City of Richmond, initiating a process to obtain approval for the construction of operational and environmental improvements to its Richmond Refinery. This effort will address questions raised by last year’s appellate court rulings on the city’s original Environmental Impact Report (EIR) for the Renewal Project.

“We are committed to working with the City of Richmond to move the Renewal Project forward with an open and transparent permitting process,” says Mike Coyle, general manager of Chevron’s Richmond Refinery. “The Renewal Project upgrades the refinery to improve energy efficiency and reliability while reducing overall emissions and achieving ‘net zero’ greenhouse gas mitigation. Equally important, the project puts a thousand people back to work and provides revenue for the city of Richmond.”

The Richmond City Council unanimously adopted a resolution on March 1, 2011, encouraging Chevron to submit a revised application for the Renewal Project.

“The City of Richmond is very happy to receive Chevron’s application,” says Mayor Gayle McLaughlin, adding, “We look forward to reviewing it as promptly as possible while ensuring full transparency and welcoming public input.”

From 2005 to 2008, the project was subjected to extensive environmental

and public review and was approved by both the City of Richmond and the Bay Area Air Quality Management District. A California court halted construction in July 2009, asking Chevron to clarify information in the City’s EIR related to greenhouse gas emissions mitigation and crude oil processing capability. Subsequent discussions with California lawmakers and Richmond city officials resulted in Chevron’s decision to submit an application requesting that the City revise the EIR.

The Renewal Project now includes:

y A new, more efficient hydrogen plant with the capacity to supply other Bay Area refineries as well as Chevron.

y Equipment improvements to enable the refinery to process higher-sulfur feedstocks with a reduction in sulfur emissions.

Construction of these units was approximately 50 percent complete before construction work was halted.

“We’re regulated by strict environ-mental standards enforced by government agencies whose role is to protect public health. It is our role to make sure the refinery meets these standards,” says Coyle. “It’s not about what goes into the refinery, but more importantly it’s about what goes out.”

The project must also be permitted by BAAQMD, the primary government agency in the Bay Area that is responsible for protecting and improving public health, air quality and the global climate. According to the BAAQMD, its programs and

policies are founded on science, developed with technical expertise and executed with quality. BAAQMD also notes that air in the Bay Area is cleaner than it was 50 years ago, in part due to the controls on industrial sources, including refineries.

“We welcome the support of both the City of Richmond, BAAQMD and California lawmakers to ensure that all project permitting milestones are met in a timely fashion and in a manner that fully complies with the California Environmental Quality Act,” adds Coyle. “We are optimistic that with strong collaboration, we can obtain approval to restart construction of the Renewal Project without further unnecessary delay. This is an environmentally sound project that will put people back to work.”

Commenting on the crude oil capability, Coyle notes that the environmental review will confirm that the project will not change the refinery’s capability to process light-intermediate crudes and will eliminate any confusion created by project opponents about the refinery’s ability to process heavy crude oil.

The City of Richmond, as lead agency for the preparation of a Revised Environmental Impact Report for the Chevron Richmond Revised Renewal Project will conduct a scoping meeting as part of the City’s early consultation process regarding the scope and contents of the Revised EIR. The scoping meeting will be held on June 22, 2011, at 6 p.m. in the City of Richmond Council Chambers, 440 Civic Center Plaza, Richmond, CA. The scoping meeting will assist the City in identifying any potentially significant effects to be analyzed in the Revised EIR. The application and related project materials for the Revised Project may be found on the City’s website at http://www.ci.richmond.ca.us/chevronrenewal. Please contact Lina Velasco, Senior Planner at 510-620-6841 with any questions.

6 | Chevron Richmond Today

Restoring Richmond’s ‘Main Street’ AppealFifty years ago, everyday life in towns across America revolved around a Main Street commercial and entertainment hub. By the late 1960s, however, downtown areas in Richmond and thousands of other communities began suffering economic hard times as commercial and residential developments shifted to the suburbs.

In 2000, Richmond Main Street Initiative (RMSI) was founded to help reverse that trend. “We’re a community-based, nonprofit organization dedicated to revitalizing historic downtown Richmond as a pedestrian-friendly urban village offering products, services, and arts and entertainment events that reflect our community’s rich and diverse heritage,” explains Amanda Elliott, RMSI’s executive director.

“We’ve joined forces with the City of Richmond, merchants, residents and other partner organizations to sponsor dozens of year-round community programs and events designed to make downtown Richmond cleaner, safer and more economically vibrant,” she adds.

Chevron Richmond Today | 7

Among RMSI’s more popular programs are:

Neighborhood Ambassadors Program. Volunteers in this program help create a regular, positive street presence by walking through the Macdonald Avenue commercial corridor throughout the day. Neighborhood Ambassadors are responsible for logging issues they observe, directly abating graffiti and other blight they encounter, and helping visitors find their way around the neighborhood.

Although only in its pilot phase, the Ambassador program has already helped RMSI demonstrate significant, visible reductions in neighborhood blight, increase reporting quality-of-life issues to appropriate authorities, and change perceptions about the district by actively engaging with visitors. Between October 2010 and March 2011, Neighborhood Ambassadors resolved 182 of the 260 issues (70 percent) they identified on their patrols.

Ambassador Andromeda Brooks explains why she volunteers: “Richmond is a diamond in the rough, but it’s my home and has so much to offer. I became a Neighborhood Ambassador because I love this city and I want it to realize its full potential. I volunteer a few hours a week — it’s the least I can do to keep downtown looking its best.”

Youth Entrepreneur Program. In partnership with Richmond YouthWORKS, RMSI conducts a five-week work readiness program that provides young adults with an opportunity to develop communications skills and paid, first-hand experience working in local retail businesses. This summer, 10 youths will participate.

Art in Windows. This year-round collaboration with the Richmond Arts and Culture Commission transforms vacant storefronts into living, breathing art spaces where local artists can display their works on a rotating basis.

Summer Music on the Main. Currently celebrating its 10th anniversary, this annual concert series on the fourth Wednesday of June through August features a wide variety of musical performances (youth, salsa, blues and more), arts and crafts for children, refreshments and other attractions.

Healthy Village Farm Stand. On the first Friday of June, July and August between noon and 2 p.m., residents, business owners and downtown employees can attend this event at the Community Green Space, located on the corner of Macdonald Avenue and Harbour Way, where they can sample free healthy treats during cooking demonstrations, purchase farm-fresh produce and receive information on healthier living options.

“Chevron has been a long-time supporter of Richmond Main Street Initiative,” says Mike Coyle, Richmond Refinery general manager. “Its mission to revitalize downtown Richmond strongly aligns with our goal to improve the quality of life in our community.”

To learn more about Richmond Main Street Initiative or to volunteer for an RMSI program, please visit www.richmondmainstreet.org, call 510-236-4050 or email admin@richmondmainstreet.org.

RecycledRecyclable

Chevron Richmond841 Chevron WayRichmond, CA 94801Tel 510 242 2000Fax 510 242 3515www.chevronrichmond.com

IDC 0611-087523

Resources, Links and Feedback To learn more about Chevron in Richmond, please visit www.chevronrichmond.com.

To share any comments or concerns you may have, please send an email to info@richmondrefinery.com, call 510-242-2000, or send correspondence to:

Melissa Hollander Communications Specialist 841 Chevron Way Richmond, CA 94801

For noise and odor complaints, please contact Chevron directly at 510-242-2127.

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Chevron Policy, Government and Public Affairs publishes this newsletter quarterly for Chevron’s neighbors in the Bay Area. If you would like to receive a copy via email, send your contact information to info@richmondrefinery.com with the subject “Chevron Richmond Today.” Please include your full name, mailing address, email address and phone number.

Brookside Community Health Center Provides Lifeline to ResidentsSince 1994, Brookside Community Health Center (BCHC) has provided primary health care services for tens of thousands of low-income, medically underserved Contra Costa County residents. Services offered to insured and uninsured residents include adult medicine, pediatrics, perinatal care, dentistry, mental health services and health education. Chevron is a long-time financial supporter of the health center, including supporting the rebuilding of its dental facilities.

y Health education and outreach programs including one-on-one counseling for understanding and managing diabetes, high blood pressure, high cholesterol, and heart, kidney and other diseases.

y Screenings and preventive care for diabetes, high blood pressure, high cholesterol and other conditions.

y Classes on nutrition, medication management and healthy lifestyle choices.

y Registered dietician and health educators assist pregnant women diagnosed with gestational

diabetes manage their conditions and give birth to healthy babies.

y Although not an emergency room, BCHC does offer urgent care for acute conditions ranging from influenza to sprains, working closely with area hospitals and county clinics.

y BCHC collaborates with other nonprofits at an annual health fair to offer general screenings and screenings for diabetes, cholesterol and obesity; dental and eye exams; and information and referrals.

The Clinic also helps uninsured community members to identify BCHC as their “health home.”

BCHC has clinics in Richmond and San Pablo. To make an appointment, contact:

Richmond Clinic 1030 Nevin Avenue Richmond, CA 94801 510-215-5001

San Pablo Clinic 2023 Vale Road San Pablo, CA 94806 510-215-9092

To learn more about Brookside Community Health Center, visit www.brooksideclinic.org.

Key programs include: