Managing Physical RisksWith re昀椀neries along coastlines and ethanol plants in the U.S. Midwest, Valero has long evaluated and prepared forphysical risks to its facilities from natural disasters and weather events, including hurricanes, tornadoes and otherthreats. Our emergency preparedness and response programs are focused on the mitigation of these risks.Enhancing Physical ResilienceIn the last 10 years, Valero has investedmore than $14 billion of capital to sustain itsoperations, including turnarounds, catalysts,investments in safety, preventive equipmentmaintenance, environmental mitigation, andreliability and regulatory compliance. Sustainingcapital is used to keep our facilities performingand to mitigate and reduce physical risks to ouroperations and our people, including:• New infrastructure at raised elevations toreduce the effects of 昀氀ooding.• Upgraded critical buildings, including controlrooms and employee shelters resilient tophysical risks.• Re昀椀neries designed to withstand hurricaneforces, with safe shutdowns and nonessential personnel evacuations initiated inadvance of major hurricanes.Emergency response team at Valero St. Charles Re昀椀nerydemonstrates Valero's strong relationships with localresponse personnel.Hurricane PreparednessValero’s U.S. Gulf Coast facilities are periodically exposed to hurricanes and other severe weather events, includingstrong winds, storm surges and 昀氀ooding. While our re昀椀neries are engineered to withstand these weather impacts,our management and re昀椀nery leadership teams use a sophisticated hurricane-speci昀椀c preparedness programto protect our people and assets. This includes pre-hurricane season activities, as well as a 昀椀ve-phase processto monitor evolving conditions as the storm approaches, allowing for adequate time and resources for ouremployees and facilities to safely prepare.PHASE1At the start of hurricane season with facility plans reviewed and updated, verify supplies andbegin daily monitoring.PHASE2Assess predicted storm path and potential for impact.PHASE3Determine site(s) that are likely to be signi昀椀cantly impacted, and activate the CorporateEmergency Operations Center, operating plan and contingencies, call center and equipmentand service providers.PHASE4Execute shutdown, ride-out and/or evacuation plans.PHASE5Initiate post-hurricane response, including the assessment of impacts on employees, theenvironment, surrounding communities and plant operations and implementation of plans forrecovery, support and safe startup of operations.40
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