Workers at Valero refinery in Benicia unsure of future with operations set to end

Valero Benicia refinery idling leaving hundreds of workers in limbo

Workers at the Valero Refining Company's Benicia refinery are facing uncertainty after the company announced that it plans to idle refining operations at the facility.

The energy company says it will be offering staff an opportunity to transfer to another Valero facility, but it will leave Benicia without its biggest employer.

"Sad, really sad," said Jane Dumas, a crane operator at the Benicia refinery. 

Dumas has worked for Valero for four years but just moved to the Benicia location from Arizona a year ago, just a few months before the energy company announced a possible plan to cease or idle operations. The announcement wasn't on Dumas's radar.

"No idea," said Dumas about whether she knew about the closure before moving to California. "I wouldn't have done it, I don't think. No idea."

On Tuesday, Valero said it would idle operations in a phased approach that it expects to be completed by April.

"I don't exactly know yet what's in store for me," said Dumas. "But it's not the best news. Nothing that we would want to hear. From what I understand, they'll still be able to do a few things here, but nothing like what we're all used to. So most of us won't be working anymore here."

She hopes she can be one of the people who continue to work for Valero, but expects to be paid less.

"California is one of the most expensive places to be, so it's going to hit me and definitely has some effects," Dumas explained. "I have a daughter starting college in January. So it's definitely going to make an impact on us."

The City of Benicia will also feel the financial impacts. City manager Mario Giuliani says it commissioned a report after the soft announcement in April of 2025 so the city could be prepared.

"For the city, we're going to stand to lose nearly $12 million between our general fund and water," Giuliani detailed. "Geographically, regionally, we probably have anywhere from $128 million of lost economic activity when the refinery finally ceases operations."

Giuliani says the city has been informing residents on the possible impact. Now they're trying to minimize it.

"We're working to develop a plan on how we seek cost reduction within services in the city of Benicia," said Giuliani. "Looking to explore other opportunities for other investment and then working with Signature Development Group as we plan ahead and look on the horizon to what development opportunities exist on that site."

The refinery sits on 900 acres, Giuliani says it's valued at about $1 billion, and the city is determining whether Valero still wants to make use of it or if the city can build homes or commercial buildings there.

But for Dumas, she's just crossing her fingers that she'll still have some work after April.

"Hopefully, with the company I am with, we'll be able to keep me busy, but I don't know," said Dumas. "I'm hopeful. I'm positive as much as we can be here."

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