Overview

• Lawmakers held talks through the weekend on a deal to cover Valero’s maintenance costs at the Benicia plant, according to people familiar with the negotiations.
• Between $80 million and $200 million is under discussion for routine maintenance and upgrades, which are among refiners’ largest recurring expenses.
• The refinery has been slated for closure as soon as April, and Valero has not responded to requests for comment on the reported talks.
• The California Energy Commission has backed away from a proposed profit cap on refiners and declined to say whether it is involved in these discussions.
• Local and statewide stakes include a roughly $10 million annual budget hit for Benicia if the plant shuts and forecasts of gasoline nearing $8 a gallon if this and a Los Angeles refinery also go offline.