Valero considers possible closure of Benicia refinery in 2026
Operations at the Valero refinery in Solano County may be shut down as soon as next year, the petroleum producer announced Wednesday.
According to a company statement, Valero has submitted notice to the California Energy Commission of its plans to "idle, restructure, or cease" operations at the refinery in Benicia. The change is expected by the end of April 2026.
"We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," said Lane Riggs, the company's chairman, chief executive officer and president.
More than 400 employees work at the Benicia refinery, which is located near the Carquinez Strait and Interstate 680. The refinery produces jet fuel, gasoline and asphalt and has a throughput capacity of 170,000 barrels per day, according to the company.
According to a list from the California Energy Commission, Benicia has 8.94% of the state's crude oil capacity.
Speaking at a news conference on Wednesday, Gov. Gavin Newsom also weighed in on the oil company's plans for the Benicia refinery.
"I can assure you, beginning last night, we had all hands, and we are in the process of addressing any anxiety that may be created or any market disruption that may be created by that announcement," Newsom said.
Benicia city officials said Wednesday that the community would work with Valero to "seek clarity" around the timeline and scope of the proposed changes and would keep residents informed about possible economic impacts.
"While this potential transition raises many questions, I want to reassure our residents that the City is committed to transparency, collaboration, and careful planning," said Benicia Mayor Steve Young. "We will be working with Valero, regional partners, and state agencies to better understand the path ahead."
City Manager Mario Giuliani added, "Benicia has shown time and again that we are resilient. Over the past two years, we've faced tough budget challenges and worked hard to strengthen our economic foundation — and we will continue to move forward together."
In October of last year, the company was fined $82 million by the Bay Area Air Quality Management District and the California Air Resources Board (CARB) for air quality violations at the facility dating back to 2003. The fine was the largest ever assessed in the Air District's history.
At the time, Air District executive officer Philip Fine described the penalty as "historic" and said the company committed "egregious emissions violations."
In addition, Valero settled a lawsuit brought on by the environmental group Baykeeper for $2.38 million after the group said it uncovered evidence that the company was spilling oil refinery waste into the Bay.
The company, which is headquartered in San Antonio, Texas, currently has 15 refineries and 12 ethanol plants.
