WeestablishedanewCommunityInvestmentsOfficetodevelopandmanagetailoredprogramsforfundingstreamsgeneratedbypenaltiesandrelatedfunds.
TheCommunityInvestmentsOfficewilloverseethereinvestmentofpenaltiespaidbyviolatorsbackintothelocalcommunitieswheretheviolationsoccurredtofinanceprojectsaimedatreducingairpollutionexposure,mitigatingairpollutionimpacts,andimprovingpublichealth.ThisdirectionofpenaltyfundsbackintothecommunitiesimpactedbytheviolationsistheresultofagroundbreakingpolicythatourBoardofDirectorsadoptedinMay.Underthispolicy,allpenaltieswecollectaboveaspecifiedamountthatisretainedtooffsetthecostsofinvestigatingandprosecutingtheviolationswillbeallocatedtolocalprojectsspecificallydesignedtoreducepollutionandenhancepublichealth.
Thenewofficewillhavesubstantialfundstouseforthesepurposesthankstorecord-breakingpenaltieswecollectedin2024,includingthreemajorpenaltiesagainstBayArearefineries.InFebruary,wefinedChevronUSAInc.$20millionforviolationsatitsrefineryinRichmond;inOctober,wefinedMarathonMartinezRefinery$5millionforviolationsatitsrefineryinMartinez;andinNovember,incollaborationwiththeCaliforniaAirResourcesBoard,wesecuredanearly$82millionpenaltyagainstValeroRefiningCo.forviolationsatitsrefineryinBenicia.Thesearethelargestpenaltieseverassessedinouragencyshistoryandareapowerfuldemonstrationofourcommitmenttoholdingpollutersaccountable.
TheCommunityInvestmentsOfficewillalsooverseethedisbursementofcommunityfundsChevronhasagreedtopayinresolutionofitslawsuitoverRegulation6,Rule5,arulethatourBoardofDirectorsadoptedin2021toreduceparticulateemissionsfromrefineriesandachievemajorhealthbenefits.ChevrondroppeditslawsuitinFebruaryandagreedtopay$20milliontocreateacommunityairqualityfundtoprovidefundingforprojectsandprogramstoreduceparticulatematteremissionsandexposuresinthevicinityofChevron'sRichmondrefinery.