Bay Area Air District previews draft guidelines for Richmond community benefits fund from Chevron penalties

The Bay Area Air Quality Management District on the Richmond Rising stakeholder call on Tuesday presented draft guidelines for returning penalty funds collected from Chevron to neighborhoods affected by refinery pollution.

John Gioia, a Contra Costa County supervisor and member of the Air District board, told the meeting the district has collected about $36,000,000 in fines, penalties and settlements from Chevron and that the recently adopted community benefits penalty funds policy directs that money “back to the communities in which those violations occurred.”

Emmy Wang, director of the Air District’s Office of Community Investment, said the draft guidelines are open for 30 days of public comment and are intended to create both local and regional funding streams. “Right before Thanksgiving, they’ll close,” she said, and the district aims to open the grant application period in late January or early February.

Why it matters: the policy changes how the Air District channels enforcement revenues. Under the draft formula, after a predetermined threshold the majority of funds flow to local funds (about an 80/20 split), with dedicated local allocations intended to reduce air pollution, lessen community exposure and improve health outcomes.

How the Richmond share is structured: Wang said Richmond’s allocation is roughly $35,000,000 and that it consists of two funding streams—a general penalty fund and a Richmond-specific mitigation fund focused on PM2.5 near the refinery. Applicants will submit a single application; Air District staff will determine which funding stream best fits a project.

Grant types and eligibility: the guidelines propose three award tiers. Catalyst awards would range from $10 million to $15 million (multi-applicant required, up to five-year terms). Opportunity awards are $500,000 to $5 million (one co-applicant required, three-year terms). Seed awards are $100,000–$200,000 for 501(c)(3) nonprofits (no co-applicant requirement). Eligible lead applicants include nonprofits, schools/districts, local governments and California Native American tribes; co-applicants may include for-profit contractors.

Geographic scope and metrics: the draft uses the “Path to Clean Air” boundary derived from the AB 617 process to determine eligibility; Wang said the boundary is larger than the local TCC boundary and includes unincorporated areas and nearby jurisdictions such as San Pablo and North Richmond. Applications must demonstrate community-rooted priorities, ongoing two-way engagement and measurable outcomes (quantitative tracking where possible).

Review and schedule: applications will be reviewed by technical staff and community reviewers recruited by the Air District; review recommendations will move to the district’s Community, Equity, Health and Justice subcommittee and then the full board for approval. Public comment is open for 30 days and the district expects to begin grant awards work in 2027, with applications posted in early 2025–2026 per the guideline schedule.

Public questions: residents asked whether the Richmond funds could leverage existing projects; Wang said leverage is not a strict requirement but will be considered in readiness scoring and that projects with other funding sources are likely viewed as more ready. Community members also requested robust outreach; board members said the district and local officials will publicize the opportunity.

Next steps: the Air District will accept written feedback during the comment period, refine the guidelines and bring final recommendations to its board subcommittee and full board for approval. The district’s website and mailing list have the draft guidance and instructions for community reviewers.

Sources: presentation and Q&A on the Richmond Rising TCC stakeholder meeting (start 00:12:28; Q&A 00:28:24).