Valero Refining Company, based in California and popularly known as Valero, has shared its course of action regarding the Benicia Refinery, revealing plans to idle the facility by April 2026. The move will begin with a phased shutdown of processing units starting in February, due to state-mandated inspections that cannot be postponed. Although a shutdown of activities is on the horizon, the refinery will not halt production immediately; it will continue to produce gasoline to exhaust existing inventories, as mentioned by Valero Refining Company. Valero has indicated that they will fulfill the California market's needs by importing additional gasoline to the Bay Area post-idling.
Maintaining its commitment to employees, Valero has disclosed plans to submit a Worker Adjustment and Retraining Notification notice and is offering Benicia staff opportunities at other Valero locations or outplacement services to assist them during this transition. Alongside these measures, operations at the Wilmington Refinery in Los Angeles County will continue as normal.
In a show of support for Valero's decision, Governor Gavin Newsom released a statement applauding the company's approach to ensuring steady gasoline supplies for Northern California despite the idling plans. He praised Valero for its commitment to supply chain stability and its willingness to import to the area, serving as a mitigation measure amid ongoing discussions about the refinery's future. Newsom's statement highlighted efforts to collaborate with the industry, as he stressed the state's proactive stance in working with data and transparency to protect consumers. This was further elaborated in the Governor's official release.
Amidst efforts to secure California's fuel supply, Newsom and the Legislature have taken action over recent years to combat fuel price volatility and plan for the long-term energy transition of the state. The Governor has enacted bipartisan legislation to increase domestic crude availability, enhance consumer protections, and foster a comprehensive energy future. Underlining California's preparedness, the historic steps include requiring refineries to provide a year's advance notice before closure, prompting special legislative sessions that led to the passage of SB X1-2 in 2023 and SB X2-1 in 2024. These actions have been crucial in averting severe gasoline price hikes and are detailed in the Governor's statement.
