In October 2024, Morgan Gonzalez learned that the Phillips 66 refinery in Wilmington, California, would close this year, stirring mixed emotions. Gonzalez’s family has lived near the Port of Long Beach for almost a century, dealing with health issues attributed to nearby truck traffic and five local refineries.
“I don’t want to understate the health impact this refinery closure will have,” said Gonzalez, an advocate with the environmental group Communities for a Better Environment (CBE). “It’s a significant change for the community.”
However, concerns about the cleanup process are overshadowing the excitement. The refinery sits atop a subterranean “lake of hydrocarbons,” hazardous waste, and groundwater contaminated with chemicals like benzene and PFAS. Phillips 66 has not disclosed the full costs for water and soil remediation or whether funds are set aside for this purpose.
This uncertainty is troubling, especially with plans to develop the 444-acre site into a complex featuring warehouses, a shopping center, and sports facilities.
Gonzalez expressed concerns, asking, “What will we find once we break ground, and what will it mean for our health?” He noted a lack of a clear land remediation plan from the refinery.
Other energy infrastructure owners, like those of nuclear reactors, are required by regulators to have decommissioning plans and provide financial assurances for cleanups, said Ann Alexander, an environmental consultant. She released a report on the risks of refinery closures in California, highlighting that refinery regulations are less stringent than in other industries.
Alexander reviewed documents and spoke to agency staff and experts for the report commissioned by CBE and the Asian Pacific Environmental Network.
Phillips 66 estimated $205 million for closure costs, but Alexander found these only cover infrastructure removal and asbestos, not long-term soil and groundwater remediation.
Extensive remediation is needed. In 1994, the Los Angeles Regional Water Quality Control Board ordered the company to address pollution at the site, including hydrocarbons and buried sludge. Recent investigations found high PFAS levels in groundwater.
The water board indicated cleanup might take years. In September, Phillips 66 submitted a “framework for ongoing remediation efforts” to the board, indicating demolition would wait for redevelopment approval.
Alexander noted regulatory processes might work in some situations but pose problems for communities planning large-scale cleanups. Refineries are not required to set aside money in advance for cleanup costs, posing financial risks if companies go bankrupt.
Gonzalez cited the Carousel neighborhood in Carson as a cautionary example, where Shell Oil left toxic chemicals unaddressed.
Phillips 66 is collaborating with real estate developers Catellus Development Corporation and Deca Companies for the site’s remediation. Proposed projects include industrial logistics centers and retail developments.
The September work plan indicates that shallow soil remediation would be handled by prospective purchasers and evaluated through the environmental impact report. Developers seek voluntary cleanup agreements for liability immunity.
The Five Points Union project review under the California Environmental Quality Act requires a full environmental impact report and community input.
Alexander recommends local governments seek public input before any closure, re-zone properties for future use, mandate decommissioning plans, and introduce taxes or funds for cleanup costs.
As Phillips 66 nears closure, worker safety is a concern. Many employees have left, increasing risks of exhaustion and accidents among remaining staff. The report suggests new safety provisions for refinery wind downs.
Previous announcements, such as Valero’s Benicia refinery closure, prompted emergency measures to ensure refinery operations and prevent gasoline shortfalls.
Alexander believes more closures are imminent due to declining oil demand, urging proactive planning for future refinery shutdowns.
Original Story at insideclimatenews.org