The Valero Refining Company announced Wednesday that it had filed a notice of intent to cease operations at its Benicia refinery in one year.
According to Valero, it has notified the California Energy Commission that it intends to idle, restructure, or cease refining operations at Valero’s Benicia Refinery by the end of April 2026.
The refinery employs 400 workers in the Solano County city on the Carquinez Strait.
“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, Chairman, CEO and President of Valero in a statement released by the company on Wednesday.
The city of Benicia released a statement Wednesday informing the community of its formal notification from Valero about the intended closure. Valero is the city’s largest employer.
“The city will work with Valero to see clarity around the timeline and scope of the proposed operational changes, while continuing to keep the community informed about any potential economic impacts and challenges this may present for Benicia and its residents,” read the statement from Colette Schow, Benicia’s economic development manager.
Benicia City Manager Mario Guiliani acknowledged that losing the refinery will be a “significant transition” for the community but said that the city has shown its resiliency “time and time again.”
The refinery has been both embraced and opposed by community members over the years.
In October, Valero Refining Co. was charged nearly $82 million in fines, the largest-ever penalty by the Bay Area Air District, for a history of toxic chemical releases and other violations at its Benicia refinery dating back to 2003.
A 2019 inspection found the company failed to report toxic emissions from the facility’s hydrogen system, including benzene, toluene, ethylbenzene and xylene — compounds that “cause cancer, reproductive harm and other toxic health effects,” according to the air district.
Air district officials said refinery management knew about the hydrogen system problems since at least 2003 but failed to report or prevent them.
“Valero has long been a part of Benicia’s identity and economy, and today’s news is deeply impactful for our entire community,” Benicia Mayor Steve Young said in a statement Wednesday. “While this potential transition raises many questions, I want to reassure our residents that the city is committed to transparency, collaboration, and careful planning. We will be working with Valero, regional partners, and state agencies to better understand the path ahead.”
The Benicia facility produces 170,000 barrels of fuel per day, processing crude oil to make ethanol-blended gasoline, diesel oil, jet fuel and asphalt. The refinery was originally built in 1969 for Humble Oil, later called Exxon. Valero Energy Corporation, headquartered in Texas, has owned and operated the Benicia refinery since 2000.
Run out of town by the Bay Area Air District.
..and anti-business Newscum
$7.00/per gallon
Having an anti-business legislature and bureaucracy is hurting the people they pretend to protect. Fewer jobs, higher prices, and only the trial lawyers benefit.
Stupid California politicians running em outta town. It’ll be a huge toxic area and never be able to use it for anything.
Hubby retired from working there April 1st, 2024, …. a year ago.
Contacted his ex-coworkers today, … hoping for all to find new jobs sooner than later.
Once again Ca shoots it’s self in the foot….. cutting your nose off to spite your face. what a bunch of retards (Grease ball made it not a bad word anymore???? “dignity for all act”) you get the point
Years ago overheard a conversation that included a member of a governmental
inspection team. Mentioned, wasn’t IF problems would be found, but how large
the fine would be.
.
Going after deep pockets has metastasized into a cottage industry for CA’s
governmental types and unelected bureaucrats. Recall, 2017 when big box
hardware giants were sued because 2x4s sold, did not measure 2″ by 4″ ? ?
.
Shell sold out their Martinez refinery, Chevron moved headquarters to
Texas, U.S. Steel closed a profitable steel plant in Pittsburg that operated
for over 100 YEARS.
.
“On October 14, California Governor Gavin Newsom signed bill Abx2-1 into law, empowering California regulators to set and adjust minimum petroleum product inventory levels for refiners in the state, in part to address the state’s fuel price volatility. Shortly after, refiner Phillips 66 announced plans to close its Wilmington refinery in Los Angeles by the end of 2025, citing uncertainty surrounding the long-term sustainability of the refinery.”
https://shorturl.at/71wZ1
.
‘Is California Driving Oil Biz Out of State to Takeover Oil Refineries?’…
“California has highest-in-the-nation gas prices and the highest energy costs,
which have increased 50% since 2019 according to the Legislative Analyst’s
Office. The blame for the 50% increase in energy costs according to the LAO
is California’s “ambitious climate‑related goals,” “intended to reduce
greenhouse gas emissions from electricity generation and help the state
meet its larger climate goals.”
https://shorturl.at/65ED0
.
California doesn’t need to worry about attacks from china or n korea,
democrats are doing the job for them.
im looking forward to $8 gallons of gas and unbelievable electric rates! Newsom has got to be the worst!
You do realize this stuff is bad for you and your kids are breathing it! They had a choice to clean up their operations, lord knows they make enough money … yet they chose not to.
It’s practically impossible to build a new refinery these days, so another operator will come in soon (and hopefully bring it up to standards)