RULE 6-5 AGREEMENTS FACT SHEET
The Air District has achieved a decisive victory in defending Rule 6-5 resulting in some of the largest penalties ever paid for air quality violations statewide. Chevron and MRC will make major reductions in particulate matter emissions to comply with the Air District's rule.
WHAT DOES IT MEAN FOR
THE BAY AREA?
The Air District estimates that the
emission reductions achieved by the
rule will result in tens of millions of
dollars per year in health benefits by
reducing early deaths and other health
impacts of exposure to particulate matter.
WHAT ARE THE AGREEMENTS?
The agreements are related to both refineries dropping their legal challenges to the Air District’s enforcement of Regulation 6, Rule 5, which reduces particulate matter (PM)
emissions from petroleum refinery fluidized
catalytic cracking units, or FCCUs.
FCCUs are devices used in the
manufacture of gasoline.
$
COMMUNITY
AIR QUALITY FUND
Chevron will pay $20+ million to
create a Community Air Quality Fund
to fund projects aimed at reducing
PM exposures.
INSIDE THE HISTORIC AGREEMENTS:
MRC AGREEMENT HIGHLIGHTS:
ATTORNEY FEES
Chevron will pay half the Air District's
attorney fees, up to $500,000.
COMMITMENT TO
EMISSIONS REDUCTIONS
EMISSIONS MONITORING ATTORNEY FEES
MRC will reduce PM emissions from
its FCCU to comply with Rule 6-5
standards.
MRC will demonstrate compliance
with the rule using a continuous
monitoring system instead of
quarterly stack testing.
MRC will pay half the Air District's
attorney fees, up to $500,000.
CHEVRON AGREEMENT HIGHLIGHTS:
Agreement Terms Total
Past Violations $20 million $20 million
Total $137.5 million
Rule 6-5 Non-Compliance
$17 million for year 1
$17 million for year 2
$17 million for year 3
$32 million for year 4
Up to $83 million
Community Air Quality Fund $20 million +
$3.5 million per year for up to 4 years Up to $34 million Attorney Fees Chevron – 50 percent of costs, up to $500,000 Up to $500,000 Chevron will pay $20 million in fines
for past violations and will implement
measures to reduce pollution from
flaring and improve public
transparency.
PENAL TIES AND MEASURES
TO REDUCE FLARING
COMMITMENT TO
EMISSIONS REDUCTIONS
Chevron will reduce PM emissions
from its FCCU, ensuring compliance
with Rule 6-5 standards.
INTERIM EMISSIONS
REDUCTIONS
Chevron will implement some PM
reductions at its FCCU right away and
before the 2026 compliance deadline,
which will reduce emissions earlier
than when the rule takes effect.
ENFORCEMENT AND
COMPLIANCE AGREEMENT
Chevron will be subject to escalating
penalties if it does not comply with
Rule 6-5 by the rule's deadline.