Overview

• Lawmakers are discussing a state-funded maintenance package in the range of $80 million to $200 million for Valero’s Benicia facility, according to people familiar with the talks.
• The proposal aims to keep the refinery operating past its planned April 2026 closure by financing routine overhauls that have become costly for aging plants.
• Recent discussions continued through the weekend as a bill deadline approached, and neither Valero nor the governor’s office has publicly commented.
• Officials warn California’s supply could tighten substantially if the plant closes, with a USC forecast projecting near-$8 gasoline if Benicia and Phillips 66’s Los Angeles refinery both shut.
• Benicia leaders say losing the refinery would create roughly a $10 million annual budget shortfall and jeopardize about 400 jobs in the city’s largest workplace.