Communities etc. v. South Coast Air Quality Management District ( 2020 )


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  •    Filed 4/30/20 (unmodified opn. attached)
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION EIGHT
    COMMUNITIES FOR A                         B294732
    BETTER ENVIRONMENT,
    (Los Angeles County
    Plaintiff and Appellant,               Super. Ct. No. BS169841)
    v.                                 ORDER MODIFYING
    OPINION AND
    SOUTH COAST AIR QUALITY                   DENYING PETITION
    MANAGEMENT DISTRICT,                      FOR REHEARING
    Defendant and Respondent;              [NO CHANGE IN
    JUDGMENT]
    TESORO REFINING AND
    MARKETING COMPANY, LLC,
    Real Party in Interest and
    Respondent.
    THE COURT:
    IT IS ORDERED that the opinion in the above-entitled
    matter filed on April 7, 2020, be modified as follows:
    1. On page 2, the second sentence of the first paragraph of the
    opinion is deleted and replaced as follows: “The report found the
    main environmental impact of the project would be to reduce air
    pollution from the refinery.”
    2. On page 8, the first two full sentences (“This change would align
    the permit with standard industry and agency practice. [¶] In
    other words, the third component of the project change would be
    to replace the old figure with a new figure of 302.4 in the Heater’s
    federal air pollution permit.”) are deleted.
    3. On page 12, the fourth sentence of the second paragraph
    (“Indeed, the 2010 case even involved the same Wilmington oil
    refinery [back when ConocoPhillips rather than Tesoro owned
    it].”) is deleted.
    4. On page 12, in the first sentence of the fourth paragraph, replace
    “the Wilmington refinery” with “a refinery.”
    5. On page 22, the first sentence of the last paragraph is deleted
    and replaced as follows: “So this project would reduce air
    pollution from the refinery, according to the environmental
    impact report.”
    6. On page 24, the second sentence of the first full paragraph is
    deleted and replaced as follows: “The agency selected the 98th
    percentile baseline to follow the practice of the federal EPA,
    which uses the 98th percentile standard to regulate air pollution
    at the national level.”
    2
    7. On page 24, the first sentence of the second full paragraph is
    deleted and replaced as follows: “Communities agrees federal
    regulators indeed do use the 98th percentile standard.”
    8. On page 32, the first full sentence is deleted and replaced as
    follows: “The federal use of the same 98th percentile standard is
    substantial evidence validating the agency’s approach.”
    Plaintiff and Appellant’s petition for rehearing is denied.
    [There is no change in the judgment.]
    ____________________________________________________________
    BIGELOW, P. J.          STRATTON, J.               WILEY, J.
    3
    Filed 4/7/20 (unmodified version)
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION EIGHT
    COMMUNITIES FOR A                        B294732
    BETTER ENVIRONMENT,
    (Los Angeles County
    Plaintiff and Appellant,              Super. Ct. No. BS169841)
    v.
    SOUTH COAST AIR QUALITY
    MANAGEMENT DISTRICT,
    Defendant and Respondent;
    TESORO REFINING AND
    MARKETING COMPANY, LLC,
    Real Party in Interest and
    Respondent.
    APPEAL from a judgment of the Superior Court of Los
    Angeles County, Richard L. Fruin, Jr., Judge. Affirmed.
    Shana Lazerow, Jennifer Ganata; Law Office of Jonathan
    Weissglass and Jonathan Weissglass for Plaintiff and Appellant.
    Woodruff, Spradlin & Smart, Bradley R. Hogin, Lucas V.
    Grunbaum; Bayron Gilchrist, Barbara Baird and Veera Tyagi for
    Defendant and Respondent.
    Gibson, Dunn & Crutcher, Daniel M. Kolkey, Peter S.
    Modlin, Cynthia Mullen and William F. Cole for Real Party in
    Interest and Respondent.
    ____________________
    A group called Communities for a Better Environment
    attacks an environmental impact report about an oil refinery
    project. The report found the main environmental impact of the
    project would be to reduce air pollution. The agency and the trial
    court certified the report.
    Communities criticizes this environmental impact report in
    four respects.
    First, it used the wrong “baseline.”
    Second, the agency did not obtain information about the
    pre-project composition of crude oil the refinery processes, but
    instead merely found the post-project input would remain within
    the refinery’s “operating envelope.”
    Third, the report did not explain how the agency calculated
    its so-called “6,000 barrel” figure.
    Fourth, the report did not disclose either the existing
    volume of crude oil the refinery processes as a whole or the
    refinery’s unused capacity.
    We resolve these issues as follows.
    First, the agency properly used its discretion to adopt a
    logical and conventional federal baseline.
    Second, the law did not require the report to detail
    immaterial information about input crude oil composition.
    2
    Third, Communities forfeited its right to complain about
    the 6,000-barrel figure because it was essential for Communities
    to raise this issue before the agency but Communities never did.
    Fourth, the law did not require the agency to list either the
    refinery’s pre-project volume or its unused capacity because these
    data were immaterial.
    We therefore affirm the judgment of the trial court, which
    rejected Communities’ attacks on this environmental impact
    report.
    The governing statute is the California Environmental
    Quality Act, which begins at section 21000 of the Public
    Resources Code. Environmental professionals often call the Act
    CEQA, but this acronym is not universally known, so we call it
    the Act. All unspecified citations are to that Code.
    I
    We begin with the essential facts, starting with crude oil.
    A
    Crude oil is a smelly, yellow-to-black liquid from
    underground and from around the world. Its precise chemical
    composition varies by its place of origin and is important to oil
    refiners, who design and build chemical plants to process crude
    oils of various kinds.
    A fundamental of the refinery business is the variousness
    of crude.
    Crude’s chemical composition can vary by sulfur content.
    Sweet crude has less sulfur than sour crude, and so sweet crude
    is easier to refine than sour, and for that reason is more valuable.
    Crude also is light or heavy, depending on the length of its
    hydrocarbon chains. Light crude has shorter hydrocarbons and
    takes less energy to refine than does heavy crude.
    3
    The shortest hydrocarbon molecules have only a few atoms
    of hydrogen and carbon. Examples are methane, ethane,
    propane, and butane, which normally are gases. Longer
    hydrocarbon molecules like those in gasoline and diesel are
    liquids. Very long hydrocarbon molecules like those constituting
    asphalt and tar are solids. (See Rodeo Citizens Assn. v. County of
    Contra Costa (2018) 
    22 Cal. App. 5th 214
    , 217 (Rodeo).)
    A refinery is an industrial plant that distills oil. The
    process separates the various hydrocarbons by their boiling or
    vaporization temperatures. These temperatures are related to
    each hydrocarbon’s molecular weight. Think of distilling a
    mixture of water and alcohol: the alcohol boils off more easily
    than the water and thus is concentrated in the vapor.
    At a refinery, you put crude in one end, the crude goes
    through pipes and processing units, and at the other end out
    flows gasoline, jet fuel, diesel, and such. The two refinery
    operations in this case have more than two dozen different
    processing units: the Crude Unit, Delayed Coker Unit, the Fluid
    Catalytic Cracking Unit, and so forth.
    Refineries are designed to process only particular ranges of
    crude. A refinery built to specialize in light sweet, for example,
    may not be able to handle heavy sour. That range is the
    refinery’s operating envelope.
    The processing units in a refinery are in a fixed chain: a
    mandatory order. Pipes connect these units. Their diameters
    limit the rate of total refinery throughput. Think of your car: gas
    tank, then engine, then muffler. Your car is a sequential system
    of tubes and pipes connecting these components. If you try to
    rearrange the components’ order, your car will suffer. And if you
    install a larger gas tank, that enlargement at one point in the
    4
    system does not increase throughput elsewhere: the bigger tank
    by itself can boost neither the gasoline flow into the engine nor
    the exhaust flow out the muffler. This principle is important in
    this case, as will appear.
    Tesoro owns and operates two adjacent oil refining facilities
    in Carson and Wilmington. These date from the early 1900s and
    originally had different owners and separate operations. Tesoro
    bought both and integrated them to a degree.
    The project triggering this case is Tesoro’s Los Angeles
    Refinery Integration and Compliance Project, which involves both
    the Carson and Wilmington facilities.
    As its name implies, the Los Angeles Refinery Integration
    and Compliance Project aimed to improve the integration of the
    Wilmington and Carson facilities and to comply with air quality
    regulations.
    The improved integration would increase Tesoro’s flexibility
    in altering the ratio of outputs like gasoline and jet fuel. If the
    price of one goes up and the other goes down, for instance, Tesoro
    (like any commercial enterprise) would like to respond to price
    signals by shifting its output to maximize profits.
    The project’s increased compliance would reduce air
    pollution. The main reduction would be of emission of gases from
    burners, which are also called heaters. Some refinery units heat
    petroleum over a fire the way a gas stove heats water in a pot.
    The fire’s combustion can emit air pollutants. Reducing these
    pollutants was a major goal of Tesoro’s project and
    correspondingly a major focus of the environmental impact report
    at the heart of this case.
    Tesoro’s Los Angeles Refinery Integration and Compliance
    Project has three main components. We describe the first two for
    5
    the sake of an overview, but it is the third component that has
    generated the four issues in this case.
    The first component involves shutting down a major
    pollution source called the Wilmington Fluid Catalytic Cracking
    Unit. A Fluid Catalytic Cracking Unit converts heavy
    hydrocarbons into lighter ones. This requires much heat, and so
    creates many emissions. Shuttering this unit would reduce air
    pollution.
    In addition, the first component would install new pipelines
    and would physically modify hydrocrackers, hydrotreaters, and
    other equipment. This component also would increase usage of
    certain equipment.
    The second component would involve installing new storage
    tanks. Increased storage tank capacity would mean oil tankers
    could make fewer trips, which would decrease shipping costs and
    air pollution.
    The third component is the source of this case’s
    controversies. This component would change the thermal
    operating limit of a particular heater in the Wilmington facility.
    The jargon for this particular heater is “H-100.” We simply
    call it the Heater. We describe the Heater and the proposed
    change to its level of operation.
    The Heater heats petroleum going into the Wilmington
    Delayed Coker Unit, which we refer to merely as the Coker. Like
    a gas range in a home kitchen, the Heater has burners, and these
    burners can operate at different heat rates. On a home gas stove,
    for instance, you turn the burner to full power by twisting the
    knob all the way open. This maximizes heat output. The
    Heater’s industrial burners operate on the same principle,
    although they dwarf any home stove.
    6
    The British thermal unit, or Btu, is the familiar measuring
    unit for the heat output of a burner, whether it is on a home stove
    or in the Heater. One Btu raises the heat of one pound of water
    by one degree Fahrenheit.
    The Heater has 36 burners. Each has a maximum output
    of 8.4 million Btu per hour. Thus the Heater as a whole has a
    maximum heat release of 36 times 8.4 million Btu per hour,
    which equals 302.4 million Btu per hour. To simplify, the
    Heater’s maximum rate is 302.4.
    Beside this “maximum” heat rate, a different heat rate —
    the “guaranteed” heat rate — also figures in this case. The
    guaranteed heat rate is the rate at which the Heater’s
    manufacturer guarantees the Heater will operate. That
    guaranteed rate is 7 million Btu per hour. With 36 burners, the
    total guaranteed rate is 36 times 7 equals 252 million Btus per
    hour. Again to simplify, the Heater’s guaranteed rate is 252.
    To recap, the total maximum rate for the Heater is 302.4,
    while the guaranteed rate is 252. The maximum rate of 302.4
    exceeds the guaranteed rate of 252, as one might suspect.
    This difference between 302.4 and 252 is important. In the
    past, the Heater had a federal air pollution permit keyed to the
    guaranteed rate of 252, even though Tesoro has operated the
    Heater above this rate when it had to perform certain tasks.
    Nothing in the record suggests Tesoro did wrong by burning over
    the guaranteed rate. A car warranty may be good for 36,000
    miles, for instance, but still you can drive your car further than
    that. The only issue might be who pays if there is a breakdown.
    The third component of the project proposed rewriting the
    Heater’s permit in terms of the maximum rate of 302.4 instead of
    7
    the guaranteed rate of 252. This change would align the permit
    with standard industry and agency practice.
    In other words, the third component of the project change
    would be to replace the old figure with a new figure of 302.4 in
    the Heater’s federal air pollution permit.
    This permit change has three important aspects.
    First, this change would be on paper only: there would be
    no physical changes to the Heater or to other hardware.
    Second, the agency simultaneously would impose a new
    permit limitation on air pollution from the Heater to maintain
    levels that would be generated if the Heater never operated above
    252 million Btus per hour.
    Third, by raising the thermal operating limit, the Coker
    either could potentially process a heavier blend of crude (heavier
    crude requires more heat to break it down), or could increase
    throughput through the Coker by 6,000 barrels per day. The
    change could do either but not both.
    This third aspect is the source of the 6,000-barrel figure,
    which in turn has created an issue in this appeal.
    B
    We summarize the procedural history of this case.
    If a governmental agency is considering approving certain
    kinds of projects, the Act demands the agency first prepare a
    “Draft” Environmental Impact Report. The agency must
    circulate it for public comment and respond to all public
    comments in a “Final” Environmental Impact Report certified by
    the agency. (Guidelines, §§ 15084–15090.)
    That relevant agency here is respondent South Coast Air
    Quality Management District.
    8
    After issuing its Initial Study and Notice of Preparation in
    September 2014 (which itself resulted in a 100-page report), the
    agency circulated a draft report for public comment in March of
    2016.
    The agency then prepared a draft report of more than 1,700
    pages analyzing impacts to air quality, hazards and hazardous
    materials, hydrology and water quality, noise, solid and
    hazardous waste, transportation and traffic, and greenhouse
    gases, with supporting reports.
    The Act requires an environmental impact report to be
    circulated for 45 days. (Cal. Code Regs., tit. 14, § 15105.) At
    Communities’ request, however, the agency extended this period
    an additional 49 days, for a total review interval of 94 days.
    The agency received 2,102 comments to the report.
    Communities actively participated throughout the drafting
    of the report. It submitted 1,112 pages of comments, to which the
    agency responded.
    Most comments (1,798 or 85%) supported the project. In
    response to comments questioning portions of the project, the
    agency clarified and supplemented parts of the report and
    responded individually to each comment in Appendix G1, which
    exceeds 5,700 pages.
    After the public comment period closed, the agency certified
    the Final Environmental Impact Report on May 12, 2017. This is
    the operative environmental impact report on appeal, which on
    occasion we call the Final Report or simply the Report.
    The Final Report contained 6,075 pages of comments
    received on the Draft Report and responses.
    The agency submitted the Final Report, including the
    comments on the Draft Report and the responses, to the federal
    9
    Environmental Protection Agency (EPA) in May of 2017. In June
    of 2017, the EPA completed its review and informed the agency
    that the EPA had no objection to issuing the revised Heater
    permit.
    On June 22, 2017, the agency certified the Final Report and
    issued the necessary permits to Tesoro.
    This completed a three-year process.
    The Final Report is many thousands of pages. The index to
    the Report is 180 pages in length.
    Communities challenged the agency’s certification of the
    Report by filing an action in the superior court in June 2017. The
    action alleged the Report was inadequate under the Act. The
    trial court carefully assessed each of Communities’ arguments
    and ruled they all lacked merit. The court wrote out its ruling in
    a 17-page single-spaced analysis. Communities appealed.
    II
    We review the governing law.
    A
    The fundamental statute is the California Environmental
    Quality Act. Our state enacted this landmark Act in 1970. In
    that same year was the first Earth Day, the passage of the
    National Environmental Policy Act, and the advent of the federal
    Environmental Protection Agency, now widely known as the
    EPA.
    The state Act aims to inform the public and government
    decision makers about the potential environmental effects of
    proposed activities. To facilitate this disclosure function, the Act
    requires the pertinent public agency to prepare an environmental
    impact report. This report must give decision makers what they
    need to take appropriate account of environmental consequences.
    10
    The report is also a document of accountability. It must arm
    those outside the approval process with an accessible and
    empowering document. If people disagree with the proposed
    project, the report is to help them respond accordingly. (Laurel
    Heights Improvement Assn. v. Regents of Univ. of California
    (1988) 
    47 Cal. 3d 376
    , 392.)
    B
    Many cases have construed the Act since 1970. These
    parties point us to four particular decisions. Two are from the
    Supreme Court; two are from courts of appeal. These four cases
    are ConocoPhillips, Smart, Richmond, and Rodeo. (Communities
    for a Better Environment v. South Coast Air Quality Management
    Dist. (2010) 
    48 Cal. 4th 310
    (ConocoPhillips); Neighbors for Smart
    Rail v. Exposition Metro Line Construction Authority (2013) 
    57 Cal. 4th 439
    (Smart); Communities for a Better Environment v.
    City of Richmond (2010) 
    184 Cal. App. 4th 70
    (Richmond); 
    Rodeo, supra
    , 
    22 Cal. App. 5th 214
    .)
    These four precedents support the following general
    statement of law.
    The agency must select a baseline based on actual
    conditions rather than hypothetical possibilities. There is,
    however, no single fixed method for measuring actual conditions.
    Measuring peak impacts can be appropriate under the right
    circumstances. The agency enjoys discretion to decide how best
    to measure actual conditions. Courts will review that choice for
    support from substantial evidence. An environmental impact
    report cannot, without explanation, present inconsistent and
    contradictory information on an important issue, or else it will
    fail on review.
    11
    We now describe in more detail these four cases:
    ConocoPhillips, Smart, Richmond, and Rodeo.
    1
    ConocoPhillips is a 2010 Supreme Court decision. We refer
    to the decision under the name of the real party in interest,
    which was ConocoPhillips, rather than by the official case title,
    which is Communities for a Better Environment v. South Coast
    Air Quality Management District. The official case title is exactly
    the same as the official case title for this case: here we have the
    same plaintiff organization and the same defendant agency.
    Indeed, the 2010 case even involved the same Wilmington oil
    refinery (back when ConocoPhillips rather than Tesoro owned it).
    These name similarities invite confusion we aim to avoid, so we
    depart from customary usage with the shorthand label of
    ConocoPhillips.
    ConocoPhillips is the leading case about the concept of a
    baseline in California environmental law.
    Refinery owner ConocoPhillips planned to add, replace, and
    modify equipment at the Wilmington refinery. The plan was to
    increase some refinery operations to produce diesel fuel with a
    lower sulfur content. 
    (ConocoPhillips, supra
    , 48 Cal.4th at p.
    317.)
    Based on an initial analysis flawed by a poor choice of a
    baseline, the agency decided no environmental impact report was
    necessary for ConocoPhillips’s project. The Supreme Court
    condemned the agency’s bad baseline decision.
    The agency’s bad decision was to pick an illusory baseline
    instead of an actual one. The project planned to increase the use
    of boilers, which would add more air pollution: between 201 and
    420 more pounds per day, depending on which of four boilers
    12
    were used. Was that a significant increase? Not compared to a
    baseline defined by the total of the refinery’s existing regulatory
    permits for operating this equipment, because the equipment
    would continue to operate within their total existing permit
    limits. 
    (ConocoPhillips, supra
    , 48 Cal.4th at p. 320.)
    The problem was this baseline was entirely unreal and
    thus was bad. The permit maximums were strictly theoretical.
    The actual reality, however, was a boiler ran at maximum only if
    another boiler was down for maintenance, which was atypical.
    Simultaneous and maximum operation therefore was not a
    realistic description of conditions before the project, so this
    baseline definition did not describe the boilers’ actual operation
    before the project. 
    (ConocoPhillips, supra
    , 48 Cal.4th at p. 322.)
    By comparing the proposed project’s effects to what could
    happen according to merely theoretical limits, rather than to
    what was actually happening, the agency had picked a “‘merely
    hypothetical’” baseline that was “illusory.” 
    (ConocoPhillips, supra
    , 48 Cal.4th at p. 322.)
    A freeway example can illustrate this point. The
    notoriously congested Interstate 405 has a speed limit of 65 miles
    per hour, but, during a typical Los Angeles rush hour, the real
    traffic speed is dramatically slower. For this illustration, suppose
    the rush hour average is about 10 miles per hour. Suppose also
    CalTrans wants to see if adding lanes to the 405 would increase
    the rush hour speed. To make this comparison, CalTrans would
    need a baseline. If the agency compared the speed after the lane
    increase with the 65 mph permitted limit beforehand, this
    baseline would be bad. It would yield unreal and illusory results,
    because today it is atypical for anyone actually to drive at 65
    miles per hour on the 405 during rush hour. A meaningful
    13
    comparison must be against actual conditions, not against some
    illusory hypothetical.
    Failure to use a real measure of actual baseline conditions
    was the agency error in ConocoPhillips. That error violated the
    Act. 
    (ConocoPhillips, supra
    , 48 Cal.4th at pp. 320–322.)
    ConocoPhillips showed one wrong way to set a baseline.
    But what baseline is right? The ConocoPhillips opinion declined
    to limit the discretion of future decision makers and declined to
    rule there is only one correct method. Rather, ConocoPhillips
    carefully explained why the right approach would vary in
    different circumstances and was up to the agency in the first
    instance.
    For our case, this portion of ConocoPhillips is crucial. We
    pore through it.
    The Supreme Court in ConocoPhillips rejected the
    suggestion an average emissions baseline was the one proper
    refinery baseline. There is no “uniform, inflexible rule for
    determination of the existing conditions baseline.”
    
    (ConocoPhillips, supra
    , 48 Cal.4th at p. 328.) The reason is
    environmental conditions can vary. Variability can make one or
    another baseline measure appropriate. In some circumstances,
    peak impacts may be as important environmentally as average
    conditions. The agency enjoys the discretion to decide how the
    existing physical conditions can most realistically be measured.
    Courts will review the agency’s choice to see whether substantial
    evidence supports it. (Id. at pp. 327–328.)
    ConocoPhillips also ruled agencies have flexibility to decide
    what time interval best captures actual baseline conditions.
    There is no one rigid rule. Environmental conditions can vary
    over time, so it might be better in some situations to measure
    14
    pre-project conditions over a time interval rather than on one
    single day. 
    (ConocoPhillips, supra
    , 48 Cal.4th at pp. 327–328.)
    We now continue on to the second of the four key
    precedents: the Smart case.
    2
    Smart is our second Supreme Court baseline case. This
    2013 opinion endorsed the baseline rules from ConocoPhillips.
    Smart reaffirmed ConocoPhillips (although it did not use
    the case label “ConocoPhillips,” which we have adopted for
    reasons peculiar to this suit). Smart recited ConocoPhillips’s rule
    that the baseline for environmental analysis ordinarily must be
    the actual physical conditions rather than hypothetical
    conditions. 
    (Smart, supra
    , 57 Cal.4th at p. 448.)
    The facts in Smart differed considerably from the facts
    here. The Smart project was not about a refinery, much less this
    refinery. Rather it was a proposed rail extension from Culver
    City to Santa Monica: the Expo Line.
    The Smart case was about using a future baseline instead
    of a past one. The Los Angeles County Metropolitan
    Transportation Authority was the agency in Smart, and it
    analyzed the impact of the proposed extension according to how it
    would affect traffic conditions in 2030. The agency projected the
    traffic and air quality conditions that would exist in the year
    2030, then estimated the effect the transit extension would have
    at that future time. So the baseline was in the future rather than
    at the time before the project began. 
    (Smart, supra
    , 57 Cal.4th at
    pp. 447–463.) This situation is not pertinent to this case, which
    involves no future baseline.
    3
    15
    Richmond is our third case. It held an environmental
    impact report cannot speak out of both sides of its mouth.
    In this 2010 decision from the Court of Appeal, Chevron
    proposed upgrading a Bay Area refinery. The Richmond decision
    found the environmental impact report, in describing this
    refinery expansion, was internally inconsistent to a fatal degree.
    
    (Richmond, supra
    , 184 Cal.App.4th at pp. 80–89.)
    This inconsistency doomed the report. The inconsistency
    concerned the crude oil the refinery would process. Opponents of
    Chevron’s project argued heavier, lower-quality crude requires
    more intensive processing and is inherently more polluting than
    lighter crude, and that the environmental impact report did not
    stick to a straight story about whether the project would or would
    not allow Chevron to refine heavier crude.
    The specific inconsistency was this. On one hand, the
    report claimed the project would allow more flexibility in refining
    increasingly heavier crude supplies. 
    (Richmond, supra
    , 184
    Cal.App.4th at p. 83.) Yet the report also denied the project
    would enable the refinery to process heavier crude. (Ibid.) Given
    this stark inconsistency, the Richmond decision disapproved the
    report as contradictory. (Id. at pp. 80–89.)
    In this case, Communities invokes Richmond in its attack
    on this report. We evaluate this attack shortly. But first we
    complete our case law tour by turning to our fourth guiding
    precedent: Rodeo.
    4
    Rodeo is a 2018 Court of Appeal decision about a refinery
    near another refinery: the one in the Richmond case. The same
    legal issue arose in both cases. The legal holdings in Richmond
    and Rodeo are consistent, but they point in opposite directions
    16
    due to a key factual difference: the environmental impact
    statement in Richmond was bad, but the report in Rodeo was
    good. We explain.
    Phillips 66 owned the refinery in Rodeo. Phillips wanted to
    alter its refinery to recover butane and propane from refinery fuel
    gas. (
    Rodeo, supra
    , 22 Cal.App.5th at p. 218.) Objectors claimed
    this project description was defective because it failed to disclose
    the project would involve more processing of high-contaminant
    crudes. (Id. at p. 219.) Phillips disputed this suggestion the
    report masked a covert plan to change the refinery’s crude inputs,
    arguing the project was designed and permitted based on the
    refinery’s existing operations. The project did not require, and
    was not required by, a switch in crude. (Id. at p. 220.)
    The court resolved this dispute by looking at one of the
    “master responses” the agency created while receiving public
    comments on the environmental impact report. (
    Rodeo, supra
    , 22
    Cal.App.5th at p. 220.) The court underlined the project
    description had remained “consistent” over time. (Id. at p. 221.)
    The court found substantial evidence to support the report’s
    treatment of this topic. (Id. at pp. 221–223.)
    Rodeo discussed and distinguished Richmond. The opinion
    recited that the problem with the environmental impact report in
    Richmond was inconsistency. By contrast, the report in Rodeo
    was clear and consistent. Hence the Rodeo decision approved the
    report and the project. (
    Rodeo, supra
    , 22 Cal.App.5th at pp. 223–
    225.)
    III
    We turn to Communities’ four arguments.
    A
    Communities’ first challenge to the Report targets the
    17
    baseline the agency selected to measure the project’s impact on
    air pollution.
    1
    What is a baseline?
    Logically, a baseline is simply a measure of some situation
    before it changes. There is no “true,” “normal,” or “natural”
    baseline. You decide what you want to measure, and then you
    select a baseline appropriate to your goal. What one wants to
    measure is a policy question, as is the choice of a baseline.
    To illustrate, suppose you want to determine the impact of
    your next engine tune-up on your car’s mileage. Your baseline
    would be your car’s gas mileage before the tune-up. You would
    compare this baseline mileage to mileage after the tune-up to
    determine the tune-up’s effect.
    In this example and in this case, there are many possible
    baselines. A mileage baseline could be simply an overall average
    of all miles you drove, divided by gas consumption. But if you
    wanted to calculate freeway mileage, you would divide total
    freeway miles by gas consumed while driving on the freeway.
    And similarly for city mileage. These illustrations show three
    different baselines: a total baseline, a freeway baseline, and a
    city baseline. There are many other conceivable baselines as
    well, depending on the specific issue you want to investigate.
    2
    The particular baseline controversy in this case pits a peak
    (or near-peak) baseline against an average baseline.
    The agency used a peak value of a particular kind: a near-
    peak or 98th percentile method. Communities argues for an
    average-value baseline. Communities sometimes cloaks this
    argument by omitting the word “average” and by saying merely
    18
    the agency should have analyzed environmental conditions
    representing the entire period, but this formulation is an
    equivalent proposition. That is because one definition of
    “average” is to take data representing the entire period and divide
    by the number of days. Another name for this is the arithmetic
    mean. In short, Communities contests the agency’s selection of a
    peak baseline by saying it was error not to use an average
    baseline instead.
    Given this dispute about peak versus average, we state four
    obvious facts about these competing ways to measure quantities.
    First, a “peak” value is synonymous with a “maximum”
    value. “Peak” and “maximum” mean the same in this context.
    Second, both peak and average data can measure actual
    situations that truly exist. For instance, you could describe your
    car’s “freeway” baseline as its “peak” baseline. This baseline
    measures peak performance: the best mileage your car can
    deliver. This peak baseline measures actual mileage, but in a
    different way than for instance the city mileage method. To put
    this idea in different words, a maximum measure is fully as real
    as an average measure, just as measuring in yards is fully as real
    as measuring in meters. Averages are not inherently more
    “actual” than peaks, and vice versa.
    Third, your analytical objective determines your choice of a
    baseline method. There is no “true,” natural,” or “normal” way to
    measure baselines because baselines did not exist in the pre-
    human natural world. Humans invented these concepts and
    humans determine which of the various baselines — peak or
    average — will better accomplish the specific objective at hand.
    Fourth, focusing on peaks rather than averages can be a
    superior way to think in many situations.
    19
    Some examples show why people often want to know the
    peak or maximum value — or the worst-case scenario, if you
    want to put it another way — rather than some average value.
    Hikers hoping to wade across a river want to know its
    maximum depth is 10 feet. They are less interested to know its
    average depth is two feet.
    Planners worry about the 100-year flood — the maximum
    — more than the average flood.
    When designing high-rises, bridges, or nuclear power
    plants, engineers are more interested in the peak earthquake
    magnitude than the average.
    If you are deciding how large a storm drain to install, you
    want to know the maximum likely rainfall, not the average.
    So the peak value, not the average, is sometimes the most
    important information to get.
    3
    The agency used a “98th percentile” or “near-peak” baseline
    in this case. Its approach was to collect factual information on
    the refinery’s worst air pollution emissions during a two-year
    interval before the project. The approach then excluded the top
    two percent of these data to rid the analysis of extreme and
    unrepresentative outliers. The agency used the remaining 98
    percent of the worst-day data as its pre-project baseline, which
    explains the “98th percentile” or “near-peak” labels. The agency’s
    analysis culminated by comparing these actual pre-project near-
    peak emissions with projected peak emissions after the project.
    The agency focused on measuring peak pollution days
    because it sought to measure and control the biggest health
    danger. Smog peaks create the most danger to the most
    vulnerable populations, such as people with respiratory illnesses
    20
    like asthma. Smog alerts are alerts about the peak smog days,
    which have many causes that include weather, peaking emissions
    from polluters like cars and industrial sites like power plants and
    oil refineries, and so forth.
    Smog alerts are the days of the greatest health concern.
    More people suffer more health problems from smog alert days —
    from peaks — than from days of average pollution levels. Data
    are not necessary to grasp this commonsense notion.
    It thus was rational for air pollution regulators to care most
    about the worst effects of air pollution, which occur when
    emissions hit their highest levels and the weather makes the
    perfect storm. Southern Californians are all too familiar with
    smog alerts: the air pollution peaks. Regulators quantitatively
    monitor our air quality every hour and rate it on a scale of six:
    hazardous; very unhealthy; unhealthy; unhealthy for sensitive
    groups; moderate; and good. (See, e.g., South Coast Air Quality
    Management Dist., Current Hourly Air Quality Index Map
     [as of March 24, 2020],
    archived at < https://perma.cc/U66U-E2RB>.)
    Reducing smog alerts is the same logical goal as reducing
    peak or near-peak levels of air pollution. That was what the
    agency was trying to do — obviously. It was not sinister or wrong
    to focus on reducing smog alerts and protecting public health.
    4
    The agency’s 98th percentile analysis determined the
    project would have the beneficial effect of reducing air pollution.
    We recount this analysis from the Report in some detail.
    Recall the Report proposed the Heater’s thermal operating
    limits would be increased from its pre-project permit description
    21
    of 252 million Btus per hour to 302.4 million Btus per hour. This
    change would allow Tesoro to operate the Heater to generate
    more heat.
    This heat increase could theoretically allow the refinery
    either to increase the throughput of the Coker by 6,000 barrels of
    crude oil per day, or allow the Coker to process a slightly heavier
    crude blend — but not both. This does not mean the refinery as a
    whole could process heavier crude or more crude — just the
    Coker.
    The change to the Heater’s thermal operating limits is just
    one of many combustion sources this overall project would
    modify. Table 4.2-7 of the Report lists 11 combustion sources,
    only one of which is associated with the Heater. Recall the
    project would shut down the Wilmington Fluid Catalytic
    Cracking Unit — a major source of emissions. That unit alone is
    composed of six associated combustion sources.
    Before the project, all combustion sources slated to be
    modified released a total of 1310.4 million Btus per hour. The
    Wilmington Cracking Unit alone accounted for 687 million Btus
    per hour of that total. Compare that increase against the
    potential firing rate of the Heater, which is merely 50.4 million
    Btus per hour. The firing rate of another process unit at
    Wilmington, its Hydrocracking Unit, will be increased from 71.1
    million Btus per hour to 96.1 to absorb part of the duties
    previously performed by the Fluid Catalytic Cracking Unit.
    So this project would reduce air pollution, according to the
    environmental impact report. Table 4.2-7 in the Report shows
    the pre-project total emissions rate of applicable emissions
    sources of 1,310.4 million Btus per hour will be reduced to 831.5,
    22
    representing a net decrease of over 36 percent from the pre-
    project setting.
    The agency was deliberately and self-consciously
    conservative in its analysis of the Heater’s heat increase. The
    agency and the Report assumed that, before the project, the
    Heater never operated above 252 million Btus per hour when, in
    fact, it had indeed operated above that limit in the past. In sum,
    the agency bent over backwards in favor of environmental
    protection.
    It is important to appreciate what the Heater’s modified
    federal air pollution permit actually says. Before the project,
    there were no enforced limits on the Heater’s firing rate. After
    the project, the Heater will be subject to enforceable emissions
    limits. And those limits will assume the Heater will fire at the
    lower 252 million Btus per hour rate. This means that,
    regardless of the projected increase in throughput or weight of
    the crude blend in the Coker, there can be no increase in
    emissions from the Heater.
    5
    We state the standard of review.
    The standard of review is deferential. We defer to the
    agency’s baseline decision if substantial evidence supports it.
    The Act imposes no uniform and inflexible rule for determining
    how the agency is to define the baseline an agency must use.
    Instead, the law leaves the choice of the exact baseline method to
    the agency’s sound discretion. 
    (Smart, supra
    , 57 Cal.4th at pp.
    452–453.)
    This deferential approach aligns with the rule that an
    agency’s decision to use one particular method and to reject
    another is amenable to substantial evidence review. (Sierra Club
    23
    v. County of Fresno (2018) 
    6 Cal. 5th 502
    , 514 (Sierra Club).)
    6
    Substantial evidence supports the agency’s baseline choice.
    The agency selected the 98th percentile baseline to follow the
    practice of the federal EPA, which uses the 98th percentile
    baseline approach to regulate air pollution at the national level.
    (See U.S. EPA, National Ambient Air Quality Standards Table
     [as of
    March 24, 2020], archived at .)
    The agency also selected this baseline because petroleum demand
    fluctuates on a daily basis.
    Communities agrees federal regulators indeed do use the
    98th percentile baseline. But Communities would dismiss this
    fact with four erroneous arguments. We take up these four
    arguments in turn.
    a
    First, Communities makes the incorrect argument the
    federal regulatory purpose differs from the California state
    regulatory purpose. This is mistaken because the federal and
    state goals are identical: to protect public health and welfare.
    We carefully recite Communities’ argument here to
    pinpoint its error.
    In the first sentence in the first paragraph of page 28 of its
    opening brief, Communities recites that Congress required the
    EPA to promulgate air quality standards to protect the public
    health and welfare. Communities tells us that, “[g]iven that
    purpose, EPA’s air quality standards are based on measurements
    of pollutants during peak pollution days, when people will be
    exposed to the highest levels of pollution such as the 98th
    percentile.” So far, so good.
    24
    But in the next paragraph on that page the argument goes
    awry. There Communities claims the California Environmental
    Quality Act has a purpose different than protecting public health
    and welfare: “In contrast to the protective purpose of the federal
    air quality standards, the [California Environmental Quality Act]
    baseline is meant to establish pre-project conditions to compare
    with post-project operations.” (Italics added.)
    This argument by Communities is incorrect. The statutory
    point of comparing pre-project and post-project conditions is to
    provide a yardstick to those outside the administrative process to
    measure a project’s environmental impact. A key reason we do
    that is to protect public health and welfare. Protecting public
    health and welfare is an overarching goal of California’s Act.
    (E.g., Sierra 
    Club, supra
    , 6 Cal.5th at pp. 519–520 [faulting an
    environmental impact statement for a merely cursory discussion
    of pollution’s health effects; citing authorities requiring
    environmental reviews to discuss health problems from
    pollution].)
    Communities’ claim that federal and state pollution
    regulations have clashing goals is surprising, unsupported, and
    wrong. The same goes for its suggestion that the Act is
    unconcerned with public health and welfare.
    This attempted attack on the federal precedent for the 98th
    percentile baseline founders. Federal and state pollution
    regulators share the common goals of protecting public health
    and welfare.
    b
    Second, Communities incorrectly claims the 98th percentile
    standard “ignores existing environmental conditions.” Yet
    Communities concedes the 98th percentile standard measured
    25
    the air pollution that actually existed on the 15 worst days in the
    730-day review period. Those 15 days were quite actual — all too
    actual for people with respiratory diseases like asthma who are
    at much greater risk when Los Angeles air pollution hits
    dangerous peaks. This is why EPA has focused on 98th
    percentile emissions for emissions like particulate matter since
    1997. (See U.S. EPA, Region 1: New England, “What are the Air
    Quality Standards for PM?”
    
    [as of March 24, 2020], archived at  [“The 24-hour standard was set at 65 μg/m3 based on the
    3-year average of the annual 98th percentile concentrations.”]
    [Italics added].)
    Reducing peak pollution means less human suffering:
    fewer airway constrictions, less gasping for air, fewer hospital
    trips. There is nothing hypothetical or illusory about that.
    Comparing pre- and post-project (near) worst days is a
    sensible and time-tested way to inform the public about potential
    health consequences because those are the days that matter most
    to human health. (See U.S. EPA, “Rules and Regulations that
    Impact Children’s Health”  [as of March 24, 2020],
    archived at  [as recently as April
    6, 2018, EPA reaffirmed it would continue to use the 98th
    percentile to regulate nitrogen dioxide air emissions to protect
    children’s health].)
    In short, Communities’ argument that the near peak
    criterion was an inaccurate description of existing pre-project
    conditions as a matter of law is mistaken.
    c
    26
    Third, Communities argues that whether the EPA uses a
    percentile approach is immaterial to what the agency should
    have done under California law.
    This is inaccurate. The practice of the federal EPA is
    tremendously material because the EPA is a free and helpful
    resource on air pollution. It made good sense for California
    regulators to piggyback on a federal effort with similar goals, a
    bigger budget, a cadre of scientists, and nationwide experience.
    Once the federal government develops air pollution science and
    information, that information is free for the taking. California
    does not have to buy a license to use it. And Californian
    taxpayers, of course, help support the federal EPA. So this
    federal effort has created a valuable resource available at no
    marginal cost that has been highly material to California air
    regulators, and to many others as well.
    The availability of free informed help is rarely immaterial.
    You can ignore it if you want to, but it is not clear why you would
    want to. The law does not require ignorance.
    California remains at liberty, of course, to go its own way
    on air pollution control. California often does, and does so
    proudly and with a sense of leadership. But that is different than
    saying California regulators, as a mandatory matter, must ignore
    everything the federal agency has ever done. That position would
    be illogical.
    We already have seen the federal EPA has similar goals in
    regulating air pollution as does California. A central goal for the
    state and the nation is protecting public health and welfare.
    The federal agency has more resources than does the state
    agency. This point is plain but we supply some points of
    reference to lend a sense of magnitude.
    27
    The EPA’s national budget exceeds California’s
    environmental protection budget by billions of dollars. (Compare
    U.S. EPA, FY 2021 Budget
     [as of March 24, 2020],
    archived at < https://perma.cc/728B-A4J3> [“The proposed FY
    2021 budget for the EPA provides $6.658 billion to support the
    Agency’s FY 2018 – FY 2022 Strategic Plan and mission of
    protecting human health and the environment.”] with
    California’s 2020-21 Governor’s Budget
     [as of
    March 24, 2020], archived at < https://perma.cc/BW3T-5SYE>
    [$3.944 million for environmental protection].) And the budget
    for the South Coast Air Quality Management District is, of
    course, but a tiny fraction of the money available to the federal
    EPA. (See South Coast Air Quality Management District, 2018
    Annual Report, p. 17  [as of
    March 24, 2020], archived at  [FY
    2018-2019 budget was $162.6 million, which is less than 3% of
    the EPA’s proposed $6.658 billion FY 2021 budget].)
    Because the EPA’s parallel and substantial efforts are of
    legitimate interest to California pollution regulators, we turn to
    what the EPA has to offer Californians with curiosity about the
    topic.
    The EPA explains air pollution basics to the public. The
    EPA’s extensive website offers a primer.
    The website explains the federal Clean Air Act requires the
    EPA to set regulatory standards for six of the most significant air
    pollutants, including particulate matter and nitrogen dioxide.
    “These pollutants are found all over the U.S. They can harm
    28
    your health . . . .” (U.S. EPA, Criteria Air Pollutants
     [as of March
    24, 2020], archived at .)
    The EPA’s sizable budget and decades of experience have
    allowed it to collect and to summarize the vast scientific research
    backing up its work on air pollution. The federal agency makes
    this storehouse of information available online. (See, e.g., U.S.
    EPA, Nitrogen Dioxide (NO2) Primary Air Quality Standards
     [as of March 24, 2020], archived at
     [listing and linking to planning
    documents, integrated science assessments, policy assessments,
    and other resources pertaining, for instance, to nitrogen dioxide
    pollution].)
    The EPA explains the dangers of air pollutants, including
    particulates and nitrogen dioxide. Breathing air with a high
    concentration of nitrogen dioxide, for instance, can irritate
    airways in the human respiratory system. Exposure over a short
    period can aggravate respiratory diseases, particularly asthma,
    leading to respiratory symptoms like coughing, wheezing, or
    difficulty breathing. It can also lead to hospital admissions and
    visits to the emergency room. (U.S. EPA, Basic Information
    about NO2: Effects of NO2  [as of March 24,
    2020], archived at .)
    The EPA website explains the agency “has developed
    ambient air quality trends for nitrogen dioxide (NO2). Under the
    Clean Air Act, EPA sets and reviews national air quality
    standards for NO2. Air quality monitors measure concentrations
    of NO2 throughout the country. EPA, state, tribal and local
    29
    agencies use that data to ensure that NO2 in the air is at levels
    that protect public health and the environment. Nationally,
    average NO2 concentrations have decreased substantially over
    the years.” (U.S. EPA, Nitrogen Dioxide Trends
     [as of
    March 24, 2020], archived at .)
    As science has progressed since 1971, the EPA’s standards
    for air pollution, including nitrogen dioxide, have evolved. (E.g.,
    U.S. EPA, Table of Historical Nitrogen Dioxide National Ambient
    Air Quality Standards (NAAQS)  [as of March 24, 2020], archived at
     [presenting evolution of national
    nitrogen dioxide emissions from 1971 through the present].)
    The EPA uses the 98th percentile standard, in several
    ways.
    First, the EPA uses the 98th percentile standard when
    reporting nitrogen dioxide air quality. For example, the EPA
    charts trends in nitrogen dioxide air quality, nationally and
    regionally, over various time intervals, such as from 1980 to
    2018. These tables report a single value: the “Annual 98th
    Percentile” of daily one-hour average observations. (See, e.g.,
    U.S. EPA, Nitrogen Dioxide 
    Trends, supra
    .)
    The EPA also uses the 98th percentile standard when
    regulating air pollution. In 2010, the EPA defined one nitrogen
    dioxide standard as “The form of the 1-hour standard is the 3-
    year average of the 98th percentile of the yearly distribution of 1-
    hour daily maximum NO2 concentrations.” (U.S. EPA, Table of
    Historical Nitrogen Dioxide National Ambient Air Quality
    Standards 
    (NAAQS), supra
    , at fn. 4.)
    30
    California’s Air Resources Board, which is separate from
    respondent South Coast Air Quality Management District,
    follows this federal regulatory convention of using the 98th
    percentile standard. (California Air Resources Board, Ambient
    Air Quality Standards (May 4, 2016) fn. 10
    
    [as of March 24, 2020], archived at  [“To attain the 1-hour national standard (for nitrogen
    dioxide), the 3-year average of the annual 98th percentile of the 1-
    hour daily maximum concentrations at each site must not exceed
    100 ppb.”] [Italics added].)
    This federal reliance on the 98th percentile standard was
    not “immaterial” to California regulators. It was rational for the
    South Coast Air Quality Management District to tap this free,
    substantial, and conventional resource.
    d
    Finally, during oral argument, Communities suggested the
    “normal” baseline is to use an average statistic and not a peak or
    near-peak analysis. The Supreme Court case law is to the
    contrary. 
    (ConocoPhillips, supra
    , 48 Cal.4th at pp. 327–328.)
    The suggestion that “average” is “normal” also ignores the
    diversity within the concept of “average” itself. There are three
    different definitions of average: mean, median, and mode. Which
    is “normal”? None is. “[T]he choice among the three measures
    depends on the purpose for which the data are selected as well as
    on the nature of the data gathered.” (Zuwaylif, General Applied
    Statistics (1970) p. 19.)
    7
    We uphold the agency’s decision to use the near-peak
    baseline. This baseline decision was for the agency in the first
    31
    instance. The federal use of the same 98th percentile baseline
    method is substantial evidence validating the agency’s approach.
    (See 
    ConocoPhillips, supra
    , 48 Cal.4th at pp. 327–328.)
    B
    We turn to Communities’ second attack on the Report,
    which was the agency did not obtain information about the pre-
    project composition of the crude oil the refinery processes, but
    instead merely found the crude oil input would remain within the
    refinery’s “operating envelope.”
    This second argument fails because there was no need for
    the Report to detail input crude oil composition. That
    information was not material to assessing the project’s
    environmental impact.
    The Report explained that processing heavier crude or
    increasing throughput through the Coker can increase air
    emissions by causing the refinery’s burners to consume more fuel.
    We quote the pertinent disclosure in full:
    “The application to revise the permit description of [the
    Heater] was submitted in early 2014, independent of the
    proposed project. As a result, this component of the proposed
    project was not described in the [Notice of Plan / Intent to Study].
    “But upon further review, it was concluded that this
    description change had the potential to create adverse
    environmental impacts, because, for example, it could enable a
    slight increase in crude oil throughput to the Refinery of up to
    two percent (or up to 6,000 bbl/day). While the Refinery could opt
    to process either a small increase in crude oil throughput or
    slightly heavier crude oil blend, the processing of additional crude
    oil would result in greater environmental impacts downstream of
    the [Coker], as described in Section 4.1.2.1. Therefore, for
    32
    purposes of analyzing the worst-case impacts, this document
    assesses an increase in crude oil throughput capacity. The
    increased heat release from the H-100 heater and/or increased
    crude oil throughput is anticipated to occur once the modified
    permit is issued. Including the permit revision as part of the
    proposed project ensures that all possible impacts from the
    modification of the Refinery are fully analyzed.”
    Communities’ complaint derives from this official response
    to comments inquiring about whether the crude oil composition
    would change:
    “Due to the fixed crude oil operating envelope that will
    exist before and after the proposed project, baseline data
    regarding the particular crude oils combined to meet that blend
    with the required properties was not necessary to conduct the
    impact analysis in the [Draft Environmental Impact Report].”
    As a result, “baseline crude oil data was not relied on or
    provided to the [agency], and need not be provided.”
    Communities concludes the agency’s failure to obtain and
    analyze such baseline crude composition data means “there is no
    way for [the agency] to assess whether crude oil properties would
    change significantly and therefore cause significant
    environmental effects.” The agency’s reliance upon “the crude oil
    operating envelope” was inadequate as a matter of law because it
    did not explain why crude oil composition could not change after
    the project.
    We hold reliance upon the “crude oil operating envelope”
    was appropriate. We explain why.
    Only a specific range of crude blends can be processed by
    the refinery. Acceptable crude oil blends must fall within
    specified ranges of weight and sulfur content known as
    33
    “operating envelopes.” The Carson and Wilmington operations
    each have their own operating envelopes. Individual process
    units, such as the Coker, also have their own distinct operating
    envelopes.
    A brief explanation of where the Coker sits within the oil
    refinery process stream is now necessary.
    The refinery processes many types of crude from all over
    the world, but it cannot automatically process any individual
    tanker-load of crude oil. This is because the refinery must blend
    incoming crude into an acceptable mixture of hydrocarbon weight
    and sulfur content. For example, if incoming crude has too much
    sulfur for the plant to tolerate, it must be blended with other
    crude containing less sulfur. The refinery can tolerate a range of
    weight plus sulfur content, and this range is the refinery’s
    “operating envelope.” The refinery as it has existed in the past
    and will exist after the project cannot process crude outside its
    operating envelope.
    Petroleum refining is a chemical industrial process where
    many specialized units cooperate to transform crude oil into
    products like gasoline, diesel, and jet fuel. These “process units”
    are assigned certain tasks. Each process unit chemically
    transforms hydrocarbons in a specific way. Some units use heat,
    pressure, and chemical catalysts to break large hydrocarbon
    molecules down. This is called “cracking.” Other process units do
    the reverse of cracking: they combine smaller hydrocarbon
    molecules into larger ones. Still other units can rearrange the
    chemical structure of the hydrocarbons by “reforming.” By
    sending material through these units, and sometimes turning
    that material around to run it through a previous unit, the
    34
    refinery can produce chemically pure petroleum products with
    specific properties.
    The next step after blending the crude into a weight and
    sulfur content range within the operating envelope is the
    distillation process. That takes place in the Crude Units.
    The Crude Units are the “front end” of the refining process.
    As the Crude Unit heats the crude, the lightest hydrocarbon
    molecules boil off first, traveling to the top of the tank. These are
    petroleum gases like butane and propane and they are the
    lightest “fraction.” Heavier hydrocarbons take more energy to
    become gaseous. So the next fraction, comprised of gasoline, boils
    off second, but settles below the petroleum gas in the crude unit
    tower because it is a liquid at higher temperatures than the
    petroleum gas. The third fraction is “distillate” material,
    including diesel and jet fuel, which settles below the gasoline
    fraction. Finally, the fourth and heaviest fraction is residual oil.
    These four layers are called “fractions” because together
    they constitute 100 percent of the material in the crude unit
    tower.
    The process unit at the heart of this appeal, the Coker,
    deals with the heaviest fraction that the Crude Unit was not able
    to break into precursors for petroleum products the first time.
    The Coker heats and breaks apart the heaviest fraction left over
    from the distillation process (as well as internally recycled oil
    that is also low quality) and then sends those layers
    “downstream” into additional process units for further refining.
    Cokers ideally recover all valuable hydrocarbon compounds left
    in the residue of the crude unit, leaving behind a heavy substance
    called coke.
    35
    We can now understand the agency’s response to
    Communities’ complaint during the administrative review
    process. The agency explained the complaint rested on a false
    premise:
    “The claims that the crude oil blend would change do not
    take into account the fact that the proposed project does not
    include changes to the Refinery Crude Units or the units
    immediately downstream of the Crude Units that would need to
    be modified in order to process a significantly different crude oil
    blend.”
    In other words, the Coker is sandwiched between the front
    end Crude Unit and downstream process units.
    The agency’s briefing extensively explains why this means
    crude oil composition cannot change. For instance, in order to
    process lighter crude, the refinery would have to increase the
    height of the crude unit towers to make room for the greater
    proportion of recoverable short hydrocarbons. To process heavier
    crude, the refinery would have to build larger coke drums for the
    coking units since it would have to break apart a greater
    proportion of long hydrocarbons. To process crudes with higher
    sulfur content, it would be necessary to modify the sulfur plant.
    And so on.
    Because the report disclosed the project would make no
    such changes, more information about crude oil composition was
    immaterial. Physical constraints boxed in the crude operating
    envelope. The project would not change that.
    Communities nowhere contests these technical points.
    Communities merely insists “it was incumbent on [the agency] to
    analyze the information that would support the conclusion that
    the changed blend would not matter.” We agree the agency had
    36
    to analyze whether crude oil composition would change. It did —
    extensively.
    Communities erroneously relies upon Richmond. That case
    does not aid Communities. Richmond held a report for a refinery
    modification project inadequately explained whether the project
    would allow the refinery to process a heavier blend of crude oil.
    
    (Richmond, supra
    , 184 Cal.App.4th at p. 83.) The project’s stated
    purpose was to “‘improve the Refinery’s ability to process a more
    varied proportional mix of crude oil types than it currently
    processes, including crude oil with higher sulfur content.’” (Id. at
    p. 80.) Unlike here, the project also involved major modifications
    to process equipment. (Id. at p. 77.) The report did not consider
    impacts that could result from processing a heavier blend of
    crude oil because, according to the report, “a change to a
    substantially heavier crude slate . . . would not be a reasonably
    foreseeable consequence of the Proposed Project.” (Id. at pp. 81–
    82.)
    The major problem in the Richmond case was facial
    inconsistency. The environmental impact report there kept
    changing its story about the project’s effect on crude quality.
    On the one hand, the report explained the project “does not
    include any process and equipment changes that would facilitate
    the processing of heavy crudes.” 
    (Richmond, supra
    , 184
    Cal.App.4th. at p. 85.)
    On the other hand, the report stated:
    “‘The supply of crude oil to California refineries has
    changed substantially during the last 10 years, with light to
    intermediate crudes becoming less available . . . . It is within the
    context of these changes in crude oil supply that the Renewal
    37
    Project is proposed.’” 
    (Richmond, supra
    , 184 Cal.App.4th. at p.
    83.)
    The court found the project description provided by the
    report was inadequate because it was unclear and inconsistent as
    to whether the project was designed to, or even would, allow the
    processing of heavier crude oils. 
    (Richmond, supra
    , 184
    Cal.App.4th at pp. 80–89.) This meant that, if the project in fact
    allowed the processing of heavier crudes, the project would have
    environmental impacts the report did not identify. That was a
    big problem.
    There is no problem here. The way in which Richmond is
    distinguishable from this case is what makes the Report here
    commendable: it is thorough and consistent.
    This Report gives a stable and logical explanation of why
    the Coker will not in fact process a heavier slate of crude
    following the project: the Coker is constrained by upstream and
    downstream equipment that would require physical modification,
    and that physical modification will not occur.
    A court has previously distinguished Richmond for this
    exact reason. 
    Rodeo, supra
    , 
    22 Cal. App. 5th 214
    , also involved a
    refinery modification project. The petitioners in Rodeo argued
    the report failed to disclose an “alleged switch to heavier crude oil
    feedstocks” and cited Richmond in support. (Id. at p. 220.)
    Rodeo distinguished Richmond because the report
    unequivocally stated the project would not affect “‘the types
    and/or quantities of crude oil feedstocks that can be processed at
    the refinery.’” (
    Rodeo, supra
    , 22 Cal.App.5th at p. 222.)
    Communities asks us to second-guess the agency about how
    this refinery works. But the report provides substantial evidence
    38
    for its analysis. That suffices. Communities’ second critique is
    unsuccessful.
    C
    Communities has forfeited its third argument, which
    concerns the “6,000 barrels” sum.
    Recall from our factual summary above that the project’s
    modifications to the Heater’s air permit could increase the
    throughput of just one process unit—the Coker: more heat
    implies the possibility of processing more oil.
    To put this same point in other words, we quote a portion of
    the report called Master Response 6:
    “The 6,000 bbl/day additional feed to the [Coker] will not
    result in any additional finished fuel production beyond the peak
    baseline day because the additional feed will partially ‘make up’
    lost production capacity associated with shutdown of the
    Wilmington Operations [Fluid Catalytic Cracking Unit].”
    We now summarize the thrust of Communities’ 6,000-
    barrels complaint.
    Communities claims that, without knowing exactly how the
    agency calculated this 6,000-barrels figure, the Act’s
    informational purpose is undermined because those who did not
    engage in the administrative process could not understand and
    critique this calculation.
    Communities forfeited its 6,000-barrels argument. The law
    requires objectors to raise their exact issue before the agency, on
    pain of forfeiture. Communities did not meet this requirement.
    The exact issue rule springs from the statute. Section
    21177 bars litigants from raising factual or legal issues that were
    not presented to the agency during the administrative process. (§
    21177, subd. (a).) Section 21177 specifically requires “the alleged
    39
    grounds for noncompliance” be “presented . . . during the public
    comment period provided by this division or before the close of
    the public hearing on the project.” (§ 21177, subd. (a).)
    The rationale for this rule is fairness and efficiency. The
    agency is entitled to learn the contentions of interested parties
    before litigation is instituted so it can gain the opportunity to act
    and to render litigation unnecessary. (Sierra Club v. City of
    Orange (2008) 
    163 Cal. App. 4th 523
    , 535.) To advance these
    purposes, an objector must present the “‘exact issue’” to the
    administrative agency. (Mani Brothers Real Estate Group v. City
    of Los Angeles (2007) 
    153 Cal. App. 4th 1385
    , 1394.)
    The agency correctly observes that, among the 1,716 pages
    of comments submitted by Communities and another firm,
    Adams Broadwell, there is no claim equivalent to this current
    one: that the Report was inadequate because it did not detail the
    calculation behind the 6,000-barrels number.
    Communities points to one comment in the record that
    purportedly raises the issue: comment G1-78.208. We quote this
    comment:
    “The [draft report] also reports a pre-Project capacity of
    363,000 bbl/day and indicates the Project would increase the
    throughput by 6,000 bbl/day by eliminating feed heater duty at
    the Wilmington Crude Unit and Coker, which would increase the
    crude capacity to 369,000 bbl/day.
    “However, this is inconsistent with information reported by
    Tesoro to the U.S. Securities and Exchange Corporation (SEC) in
    its most recent Form 10-K, where Tesoro reported that the crude
    oil capacity of its Los Angeles Refinery is 380,000 bbl/day and its
    2015 throughput was 369,000 bbl/day. Similarly, Tesoro’s
    website reports the refining capacity as 380,000 bbl/day.”
    40
    Nowhere in this comment does Communities complain the
    Report should have disclosed how the agency calculated the
    6,000-barrels figure.
    Communities’ reply brief does not squarely respond to the
    respondents’ forfeiture argument. Rather, the reply emphasizes
    the following quote from this comment: “the [draft report] does
    not contain any of the information required to evaluate
    throughput claims.” The reply then appears to concede the
    argument by stating: “But Dr. Fox broadly asked for ‘information
    required to evaluate throughput claims’ and specifically asked for
    ‘baseline throughputs’ and ‘modified processing unit
    throughputs.’” (Italics added.) Communities makes another
    concession in the next sentence: “Those requests encompass
    [Communities’] point in this appeal that the starting point for
    calculating the 6,000 barrels per day increase was undefined.”
    (Italics added.)
    Making “broad” requests that “encompass” an issue raised
    on appeal is not raising the “exact issue” during the
    administrative process.
    The point of Communities’ comment G1-78.208 appears to
    be to draw attention to a discrepancy between the Report’s pre-
    Project capacity figure of 363,000 barrels per day and its Form
    10-K in which Tesoro reported a capacity of 380,000 barrels per
    day.
    Communities never asked the agency to reveal its
    calculation of the 6,000-barrels figure. The issue is forfeited on
    appeal.
    D
    Communities’ fourth complaint is that the Report did not
    disclose two numbers: (1) the existing volume of crude oil the
    41
    refinery processes as a whole, and (2) the refinery’s unused
    capacity. This complaint is invalid because these two numbers
    are not material to the Report’s goal of evaluating the project’s
    air pollution impact.
    We review an agency’s decision about including information
    under an abuse of discretion standard. (
    Rodeo, supra
    , 22
    Cal.App.5th at p. 231.)
    We examine these two arguments — throughput and
    unused capacity — in that order.
    1
    Communities presents its throughput argument as follows.
    It claims the agency should have disclosed the total volume of
    crude moving through the refinery to “permit a cross-check” on
    the Report’s calculations. Communities acknowledges the Report
    does state any throughput increase beyond 6,000 barrels per day
    is impossible due to physical constraints, but claims the Report
    contains too little data to “verify” that conclusion. Communities
    also expresses concern the Report does not provide enough
    information to assure it that the actual post-project increase in
    capacity will not exceed 6,000 barrels per day.
    This argument fails because the Report adequately
    explains why the project will not increase the refinery’s overall
    throughput. As the Report phrases it, at oil refineries “the
    limitation on how much crude oil can be processed lies within the
    refining equipment itself.” We have reviewed this point above.
    As further illustrations, pump and piping capacity limitations
    constrain the Carson operation’s crude rate. To increase the
    crude oil processing rate would require bigger pipes and stronger
    pumps. The Project does not involve and would not make these
    changes.
    42
    The project’s modifications to the Heater’s air permit,
    however, could increase the throughput of just one process unit
    — the Coker. The project will have no effect on overall refinery
    throughput because the project will not physically modify
    upstream or downstream process units, as we have already
    reviewed.
    The assumed 6,000-barrels-per-day increase through the
    Coker will be offset by a 10,000-barrels-per-day decrease of
    vacuum gas oil that the refinery previously used as feedstock for
    the Wilmington Cracking Unit. This is why the Report concluded
    that the project will decrease overall refinery throughput.
    The Report’s presentation thus demonstrates the first
    number that Communities seeks — total pre-project throughput
    — is immaterial to its environmental assessment.
    No law requires a report to include unnecessary data.
    Further cross-checks or verifications are not needed if, as is true
    here, substantial evidence supports the agency’s analysis.
    2
    Now we tackle Communities’ argument about unused
    capacity, which is but a variant of Communities’ preceding
    argument.
    Communities faults the Report for failing to describe what
    Communities calls the refinery’s “unused capacity.”
    Communities develops this concept by noting the Report gives
    peak and average production figures for coker units within the
    refinery. Communities subtracts the average from the peak,
    notes the sum is positive, and concludes this demonstration
    proves the refinery had “unused capacity” in the past.
    Communities faults the Report for failing to state the total value
    of this unused capacity. But there was no need for the Report to
    43
    include these data when substantial evidence already supported
    the Report’s analysis, as was the case here.
    DISPOSITION
    The judgment is affirmed. Costs are awarded to Tesoro
    and South Coast Air Quality Management District.
    WILEY, J.
    I concur:
    BIGELOW, P. J.
    44
    STRATTON, J., Dissenting in part.
    I do not agree that substantial evidence supports the
    agency’s use of the 98 percentile “near peak” data as the baseline
    to measure the environmental impact of changes to Heater
    H-100’s Title V air permit. The majority holds that federal use of
    a 98 percentile baseline is substantial evidence that validates the
    agency’s use of the 98 percentile here. Federal custom and
    practice appears to be the only substantial evidence found by the
    majority to support the use of the 98 percentile near-peak
    emission data here.
    Applicable factual underpinnings in the record and
    applicable California caselaw belie the correctness of using the
    98 percentile as the baseline. First, section 15125, subdivision (a)
    of the CEQA Guidelines provides: “An EIR must include a
    description of the physical environmental conditions in the
    vicinity of the project. This environmental setting will normally
    constitute the baseline physical conditions by which a lead
    agency determines whether an impact is significant.” (Cal. Code
    Regs., tit. 14, § 15125, subd (a).) As our Supreme Court has
    pointed out, a “long line of Court of Appeal decisions holds, in
    similar terms, that the impacts of a proposed project are
    ordinarily to be compared to the actual environmental conditions
    existing at the time of CEQA analysis, rather than to allowable
    conditions defined by a plan or regulatory framework.”
    (Communities for a Better Environment v. South Coast Air
    Quality Management Dist. (2010) 
    48 Cal. 4th 310
    , 321
    (Communities).) In Communities, the agency used the maximum
    operational levels of the subject boilers as a baseline. The agency
    did so, even though it “acknowledged that in ordinary operation
    1
    any given boiler ran at the maximum allowed capacity only when
    one or more of the other boilers was shut down for maintenance;
    operation of the boilers simultaneously at their collective
    maximum was not the norm.” (Id. at p. 322.) This was error.
    Although running all the boilers at the maximum allowed
    capacity could occur even if the proposed project did not
    commence, running all the boilers at maximum capacity did not
    reflect “ ‘established levels of a particular use.’ ” Instead, the
    incorrect baseline reflected “ ‘merely hypothetical conditions
    allowable’ ” under the permits. (Ibid.)
    Similarly, in Neighbors for Smart Rail v. Exposition Metro
    Line Construction Authority (2013) 
    57 Cal. 4th 439
    (Neighbors),
    our Supreme Court reaffirmed that the fundamental goal of an
    EIR is to inform decision makers and the public of any significant
    adverse effects a project is likely to have on the physical
    environment. To make such an assessment, an EIR must
    “delineate environmental conditions prevailing absent the
    project, defining a baseline against which predicted effects can be
    described and quantified.” (Id. at p. 447.) In Neighbors, the
    agency’s baseline consisted solely of conditions projected to exist
    absent the project at a date in the distant future, instead of an
    analysis of the project’s significant impacts on measured
    conditions existing at the time the environmental analysis was
    performed. Our Court held that existing conditions is the normal
    baseline under CEQA, but factual circumstances can justify an
    agency departing from that norm when necessary to prevent
    misinforming or misleading the public and decision makers.
    (Id. at p. 448.) The Court reiterated its holding in Communities
    that an agency’s discretionary decision on “ ‘exactly how the
    existing physical conditions without the project can most
    2
    realistically be measured’ ” is reviewed for substantial evidence
    supporting the measurement method. (Id. at p. 449.) It pointed
    out that agencies do not enjoy discretion under CEQA and CEQA
    guidelines to omit all analysis of the project’s impacts on existing
    conditions. However, projected future conditions may be used as
    the sole baseline for impacts analysis if their use in place of
    measured existing conditions is justified by unusual aspect of the
    project or the surrounding conditions. (Id. at p. 451.)
    Here, the record reflects (and the majority finds) no
    unusual aspects of the project or surrounding conditions to justify
    ignoring existing environmental conditions. The evidence is
    undisputed that the 98 percentile “near-peak” emissions occurred
    on only 15 out of the 730 days in the review period. By using
    pollution measured only on the 15 worst days, the agency has not
    set a realistic baseline of existing conditions so that the public
    and decision makers can project the most accurate picture
    practically possible of the project’s likely impacts. Instead, by
    using the 15 worst days as the baseline, the project’s potential
    future negative environmental impact is, at worst, diluted and
    reduced, and is, at best, inaccurate.
    I would find this use of the 98 percentile “near-peak” data
    violates California law. The agency should have analyzed
    environmental conditions representing the entire period, or
    explained in the EIR why this was not possible, realistic, or
    informative. Whether the EPA uses a percentile approach is
    immaterial to what the agency should have done under California
    law.
    STRATTON, J.
    3
    

Document Info

Docket Number: B294732M

Filed Date: 5/1/2020

Precedential Status: Precedential

Modified Date: 5/1/2020