Valero announces intent to cease operations at Benicia refinery

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.

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