Air regulators fine Valero Benicia refinery $3.25 million for multiple air quality violations
The Valero refinery in Benicia was issued fines totaling $3.25 million for multiple air quality violations and ongoing compliance issues, air regulators announced Tuesday.
The Bay Area Air District said in a press release that the violations stemmed from a series of operational and equipment-related incidents at the refinery over multiple years that resulted in excess emissions and community complaints. The 118 violations cited included exceeding particulate matter levels and a release of butane, along with failing to have a monitoring plan to meet emission tracking rules, the Air District said.
"This penalty holds Valero accountable for air quality violations and makes clear that noncompliance has consequences," Dr. Philip Fine, executive officer of the Air District, said in a prepared statement. "In addition to the financial penalty, this action strengthens air monitoring and public access to essential data so the Benicia community can see what is happening at the refinery through the idling of operations."
The refinery began idling its processing units in February after Valero announced last year it planned to "idle, restructure, or cease" operations at the Benicia site. The decision reflects the decline in California's oil industry, as strict environmental regulations and high operational costs combine with a drop in gasoline demand amid higher fuel efficiency standards and the rise in zero-emission vehicles. The number of refineries in California has dropped from 23 in 2000 to 12 in 2026, according to the U.S. Energy Information Administration.
Until its idling, the Benicia refinery produced jet fuel, gasoline and asphalt with a throughput capacity of 170,000 barrels per day, according to the company. Valero is still producing gasoline at the refinery from existing inventory; the site will becoming a hub for importing gasoline and other refined products, along with possible low-carbon energy projects, after processing operations cease.
The Air District said it was also requiring Valero to take corrective actions such as implementing a fenceline montoring plan, public access to real-time and historical data, and quarterly reports on pollutant concentrations and quality checks.
CBS News Bay Area has contacted Valero for a response about the Air District's enforcement action.
In 2024, the BAAD and the California Air Resources Board fined Valero $82 million for air quality violations at the facility dating back to 2003, at the time the largest ever assessed in the Air District's history. The district said following the latest violations, Valero has since made required improvements to equipment and updated monitoring and operational practices.
Funds collected from enforcement actions support local and regional projects that improve air quality and public health, the district said.
