To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Marathon Community Benefit Fund Allocation FY 2026/27
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
1. APPROVE the allocation of $770,000 from the Marathon Community Benefit Fund to provide expanded services and benefits to communities near the Marathon Martinez Refinery, 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 $770,000 with identified public and private organizations to carry out the services and benefit activities, as specified in Attachment A, for the period July 1, 2026 through June 30, 2027, subject to approval by the County Administrator and approval as to form by County Counsel.
FISCAL IMPACT:
No impact to the General Fund. 100% Marathon Community Benefit Fund.
BACKGROUND:
On May 3, 2022, the Board of Supervisors approved a Land Use Permit (LUP) for the Martinez Renewable Fuels Project (County File #CDLP20-02046) to repurpose the Marathon Martinez Refinery for fuel production from renewable resources rather than from crude oil. A condition within the LUP’s Conditions of Approval, Condition of Approval #38, 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 Martinez Renewable Fuels Project. The Marathon Community Benefit Agreement (CBA) was executed to satisfy that condition of the LUP.
Key CBA Payment Terms:
The CBA requires the Marathon Refinery to pay a total of $10,000,000 to the County over the course of approximately 10 years, according to milestones and time intervals set forth in the CBA. The first payment of $1,000,000 was due following the County's final approval of the LUP, the Bay Area Air Quality Management District's final approval of the BAAQMD Air Permit, or the County's issuance of the first building permit authorizing construction - whichever occurred last - payable on or before December 31 in the calendar year in which Final Approval occurred. After the first payment, Marathon is to pay $1,000,000 in each of the nine following years (each a "Subsequent Payment"), due on or before December 31 of each year.
Beginning January 1, 2023, and each January 1 thereafter, 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, Marathon had paid approximately $4 million pursuant to the agreement.
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 (unincorporated Martinez, Clyde, Pacheco, and nearby communities) near the Marathon Martinez Refinery, 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 Marathon 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 most proximate to the Marathon Project area, received and reviewed proposals from various public and private organizations to provide expanded services or community benefit activities in communities near the Marathon Martinez Refinery.
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 communities near the Marathon Martinez Refinery.