The Valero Energy Corporation’s recent notice of the pending Valero Refinery closure in Benicia by April of 2026 has sent shock waves through the city—it’s the number-one topic of discussion for pretty much everyone in this southern Solano County town of 28,000. We all pretty much knew it would close sometime due to a decreasing need for fossil fuels, but we felt that closure was safely “in the future.” Now, although the notice is for possible closure, it is quite likely that this will be the case.

Valero’s Complex Legacy in Benicia

Benicia has had a tumultuous relationship with the refinery, which opened in 1969 as a Humble Oil facility. Its tax revenues currently amount to nearly 17 percent of the city’s $60 million annual operating budget.  But a history of dangerous emissions, including a 15-year stint of emissions of benzene, toluene, ethylbenzene and Xylene that the refinery allowed to continue without reporting, have made residents angry and uneasy with their 900-acre neighbor.

The end of the refinery means more than lost tax revenues—Valero currently employs more than 400 workers and about 200 contract workers. Many do not live in Benicia, although the exact number is unclear, but this will impact the county as a whole. Also, Valero has contributed millions of dollars over the years to Benicia schools for STEM programs and given very generously to the Little League and food bank.

What’s Behind the Potential Closure of the Valero Refinery

It is coincidental that the notice comes a month after the city approved a new Industrial Safety Ordinance (ISO) that would require additional monitoring and transparency of the facility’s emissions. However, it appears highly unlikely that the ISO caused Valero to decide to close. Fees for the ISO have not been set, but city council discussion indicates that they might be similar to the $331,320 fee Valero is already paying the city in a cooperative air quality agreement.

One of the more likely reasons, according to those knowledgeable about the matter, is Senate Bill X1-2, known as the California Gas Price Gouging and Transparency Law, which may require significant capital improvements to the facility and others like it in California, depending upon the condition of their equipment, which is not publicly known. It is possible that Valero officials think the ISO’s additional monitoring could bring these issues to light sooner rather than later, however.

It should also be noted that the Bay Area Air Quality Management District recently fined Valero a record $82 million for the 15 years of unreported pollution, which may also have soured the Valero brass on the site.

Possible Futures for the Benicia Refinery Site

For Benicia, there are four possible scenarios for the closure:

1. Valero could sell the refinery to another refiner or similar industry. This happened in Martinez some years ago. The concern here is that, as appears to be the case in Martinez, the new owner doesn’t maintain it as well as the original refinery owner did and there are more problems related to the Valero refinery closure in Benicia.

2. The site becomes an energy hub, greener/renewable energy, hydrogen, battery storage.

3. Prolonged stagnation and site blight. There are federal, and much stronger state, requirements for cleanup for sites that contain toxic materials. However, the time frame and speed with which Valero actually does the cleanup would be unclear.

4. Full site remediation in which the site is cleaned up and transformed into a mixed-use area with business, industry and recreation. This depends on how much and how fast Valero cleans up the site, as well as whether other businesses want to locate in Benicia. It is likely to take some time.

In the meantime, we in Benicia are likely facing at least a few years of significantly-reduced services—weed abatement, recreation, parks, public safety and the library.

What You Can Do Now to Prepare

• If you live in Benicia, get involved in the 2025-2026 fiscal year budget planning process –  see links on the city website or the email newsletters the city manager sends out weekly (sign up for these on the website). Some budget cuts will need to be made for the fiscal year starting July 1, and significant ones will be on the horizon the following year.

• If you live in a Contra Costa city where there is a refinery, start talking with your elected officials and city staff about planning for the day that refinery might close—planning to attract new business and industry, etc.

🍃🍃🍃

A thank you to Benicia resident Justin Lockwood for pulling together and referencing industry and other sources for much of this information and posting on Benicia Happenings to better inform our residents.