To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Establishing Two Community Task Forces to Provide Ideas and Input on the Expenditure of the Community Benefit Funds
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ACKNOWLEDGE the Conservation and Development Director's establishment of two community task forces to provide ideas and input to the Department on the expenditure of funds being generated by the community benefits agreements for the Phillips 66 Rodeo Renewed Project and the Marathon Project.
FISCAL IMPACT:
No impact to the General Fund. Staff costs to coordinate the task forces will be covered by funds from the two community benefit agreements.
BACKGROUND:
In 2022, the Board of Supervisors (Board) approved the Phillips 66 Company land use permit (LUP) for the Phillips 66 Rodeo Renewed Project (Phillips 66 Project) and the Tesoro Refining & Marketing Company LLC LUP for the Martinez Renewable Fuels Project (Marathon Project). The Phillips 66 and Marathon Projects are unique land uses with unique impacts on the Rodeo and Crockett communities and Pacheco and Clyde communities, respectively. Each LUP contained a condition of approval (Phillips 66 Project Condition #10 and Marathon Project Condition #38), which provides that Contra Costa County and the applicant enter into a Community Benefits Agreement providing for certain payments to Contra Costa County upon certain conditions being satisfied relating to the respective Project. Both agreements were entered into on May 3, 2022.
The CBA with Phillips 66 requires Phillips 66 to pay a total of $10,000,000 to the County according to the milestones and time intervals set forth in the CBA over the course of approximately 13 years. The CBA with Marathon requires Marathon to pay a total of $10,000,000 to the County according to the milestones and time intervals set forth in the CBA over the course of approximately 10 years.
Currently, Phillips 66 has paid $2 million pursuant to the agreement, and an initial allocation of $392,700 from the Rodeo Renewed Community Benefit Fund has been approved by the Board of Supervisors to provide expanded services and benefits to the Rodeo and Crockett areas. Marathon has paid $2.06 million to date pursuant to the fund and no allocations have been made.
The CBAs state that the County will use the funds, in its sole discretion, for projects and programs that benefit the Rodeo and/or Crockett communities near the Phillips 66 Rodeo Refinery and the Pacheco and/or Clyde communities near the Marathon Martinez Refinery. These initiatives will focus on improving residents’ health, well-being, and quality of life, and supporting a robust local economy and workforce. This includes developing and implementing workforce development and training programs to prepare residents for careers in renewable and clean energy.
At the recommendation of Supervisor Glover, the Conservation and Development Director will establish two community task forces to provide ideas and input on the expenditure of funds being generated by the community benefits agreements for the Phillips 66 Project and the Marathon Project. The task forces’ role will be to provide input on the communities’ needs and priorities for expending the funds. The task forces will meet for a series of initial meetings through the end of 2024 to identify initial ideas and community needs and will continue to meet at regular intervals thereafter, as needed. The Task Forces will have no defined membership and meetings will be open to all.
Department of Conservation and Development staff will staff and facilitate the task forces, in coordination with District 5 staff.
CONSEQUENCE OF NEGATIVE ACTION:
Not applicable. This is an informational report.