To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Phillips 66 Community Benefit Fund Allocation FY 2026/27
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
1. APPROVE the allocation of $963,600 from the Phillips 66 Community Benefit Fund to provide expanded services and benefits to communities near the Rodeo and Crockett areas, as recommended by Supervisor Scales-Preston.
2. AUTHORIZE the Conservation and Development Director, or designee, to execute contracts in a total amount not to exceed $963,600 with identified public and private organizations to carry out the services and benefit activities, as specified in Attachment A, for the period of July 1, 2026 through June 30, 2027, subject to approval by the County Administrator and approval as to form by County Counsel.
FISCAL IMPACT:
100% Phillips 66 Community Benefit Fund.
BACKGROUND:
On May 3, 2022, the Board of Supervisors approved a Land Use Permit (LUP) for the Phillips 66 Rodeo Renewal Fuels Project (County File #CDLP20-02040) at 1380 San Pablo Avenue in Rodeo, to repurpose the Phillips 66 Refinery, located at 1380 San Pablo Avenue in Rodeo, for fuel production from renewable resources rather than from crude. A condition within the LUP’s Conditions of Approval, Condition of Approval #10, required that Contra Costa County and the applicant enter into a Community Benefits Agreement providing for certain payments to the County upon conditions being satisfied relating to the Phillips 66 Rodeo Renewable Fuels Project. The Phillips 66 Community Benefit Agreement (CBA) was executed to satisfy that condition of the LUP.
Key CBA Payment Terms:
The CBA requires Phillips 66 to pay a total of $10,000,000 to the County over the course of approximately 13 years, according to milestones and time intervals set forth in the CBA. The first payment of $1,000,000 was due within 30 days following the later of (a) the County's final approval of the LUP, or (b) the Bay Area Air Quality Management District's final approval of the BAAQMD Air Permit. A second payment of $1,000,000 was due no later than December 31 of the year in which the County issued the first building permit authorizing construction of improvements covered by the LUP. Subsequent payments after the second payment are $615,000 and paid annually through year 12, beginning in the year when Phillips 66 first produces renewable fuels from equipment covered by the LUP, due on or before December 31 of each year. The final payment, in the amount of $620,000, is to be paid in year 13. Beginning January 1, 2023, and each January 1 thereafter, all payment amounts increase based on any increase in the Consumer Price Index for the San Francisco-Oakland-Hayward Combined Statistical Area. As of September 2026, Phillips 66 has paid approximately $3.36 million pursuant to the CBA.
Use of Fund and Review Process:
The CBA states that the County shall use the funds, in its sole discretion, for projects and programs that benefit the communities near Rodeo and Crockett, focusing on improving residents' health, well-being, and quality of life, and supporting a robust local economy and workforce, including workforce development and training programs to prepare residents for careers in renewable and clean energy.
On December 17, 2024, following a thorough community engagement process, the Board approved a report providing vision and guidance for distributing funds from the CBA. That report calls for allocation recommendations to be made by dedicated community review panels to the District 5 Supervisor and for the District 5 Supervisor to make final recommendations to the Board.
Proposals Received:
Earlier this year, the Phillips 66 Community Benefit Agreement Review Panel (Panel), a panel that is appointed by the Board of Supervisors consisting of community members who live or work in the unincorporated communities near Rodeo and Crockett, received and reviewed proposals from various public and private organizations to provide expanded services or community benefit activities in communities near Rodeo and Crockett.
The Panel's recommendations were subsequently reviewed by the District 5 Supervisor, who generally concurred with the recommendations while making certain modifications and identifying additional proposals for funding consideration. The final list of recommended proposals, including the proposed funding amounts, is provided in Attachment A.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the recommended allocations will result in delays in implementing important projects/programs that directly benefit the residents of the communities near Rodeo and Crockett.