The Phillips 66 Company requests approval of an land use permit to implement the Rodeo Renewed Project at their refinery in Rodeo, California. The existing refinery is designed and operated to refine a variety of domestic and foreign crude oils, received by pipeline and tanker vessel, into a wide range of products including gasoline and diesel fuels primarily for the California market, and fuel gases and feedstocks for industrial applications.
The Rodeo Renewed Project would transform the existing Rodeo Refinery into a facility that would process renewable feedstocks into renewable diesel fuel, renewable components of other transportation fuels, and renewable fuel gas. The modified facility would mostly use existing process units, converted to handle the new feedstocks, and existing storage facilities, supplemented by a new renewable feedstocks pre-treatment unit and limited other new equipment. Several of the existing refinery tanks would be converted to the storage of the non-regulated renewable feedstocks, finished distillates, and gasoline blendstocks to meet customer demand (the project would allow the facility to continue to meet regional demand for gasoline via onsite blending of a limited quantity of gasoline blendstocks).
The project also includes decommissioning and potential demolition of an existing facility in Santa Maria, California that currently supplies semi-refined crude oil to the Rodeo Refinery via pipeline, as well as a petroleum coke processing facility (i.e. Carbon Plant) in nearby Franklin Canyon. Once the project is implemented, crude oil and other petroleum pipelines that span from the Central Coast to Rodeo would remain active, but out of service and not used by the project.
Once the Rodeo Renewed Project is complete, the Rodeo facility would no longer process crude oil and petroleum feedstocks into transportation fuels. Instead, it would receive renewable feedstocks via tanker vessel, railcar, and some truck traffic. Renewable feedstocks for the project are to be delivered across the Marine Terminal along with gasoline and gasoline blendstocks. The capacity of the rail infrastructure would not change, but the rail infrastructure would be slightly modified to accommodate receipt of the renewable feedstocks.
The renewable feedstocks would be processed into renewable diesel fuel, jet fuel, gasoline blendstock components, and fuel gases. At full operation, the project could produce approximately 55,000 barrels per day on an annual basis of renewable transportation fuels (upon completion of the project, the Rodeo facility would produce a total of 67,000 barrels per day on an annual basis of renewable transportation fuels, with the additional 12,000 barrels per day coming from existing production). The renewable products would be stored and blended in existing on-site tankage and sent to distribution facilities primarily throughout California and the western United States using distribution methods similar to the current operation. Other gasoline products would continue to be shipped from the existing facility.
Once the project is implemented, the quantity of transportation products delivered from the facility would be approximately the same as pre-project (approximately 105,000 barrels per day). However, the quantity of transportation products manufactured at the facility (i.e., the products manufactured from renewable feedstocks) would be much less (approximately 67,000 barrels per day), with the remainder being conventional gasoline that is blended at the facility using gasoline blendstocks received primarily via the Marine Terminal. Overall the manufacturing activity at the facility and intensity of land use would be lessened by the Rodeo Renewed Project. However, the approximate size of the employee workforce after the project is completed is not expected to significantly differ from current staffing levels.
Construction would take approximately 24 months and construction activities would include the following: building a new renewable feedstock pretreatment unit; replacing some equipment and process units within the refinery with units tailored to handle renewable feedstocks; repurposing some existing equipment; shutting down and potential demolition of the Carbon Plant; and converting the refinery's existing railcar loading facility to enable it to unload railcars. With the exception of the Santa Maria facility, no project activities or construction of any facilities outside the Rodeo refinery would be necessary. No conversion of undeveloped land would be needed. To replace the current crude oil feedstocks during construction, when the Santa Maria facility's output is no longer available, the refinery would temporarily increase imports of crude oil and gas oil via tanker vessels and barges through the existing Marine Terminal (Phillips 66 would submit or modify its existing, application to the Bay Area Air Quality Management District to increase crude oil throughput at the Marine Terminal up to 125,000 barrels/day on a 12-month rolling average). No modification of the terminal would be needed and crude oil deliveries would cease once the project was complete. Finally, Phillips 66 would surrender the existing air operating permits for the Santa Maria facility (after shutdown is complete), the Carbon Plant, and many of the Rodeo processing units that would be shut down.