Overview

• People familiar with the negotiations say lawmakers are discussing earmarking roughly $80 million to $200 million for routine maintenance to keep the Benicia plant operating.
• Discussions took place as recently as the past weekend under a tight window to introduce legislation this week, and neither Valero nor state leaders have publicly confirmed any terms.
• The refinery, built in 1968 and the sixth-largest in California, is slated to close by April 2026 if no deal is reached.
• Governor Gavin Newsom has pressed regulators to safeguard fuel supplies, and the California Energy Commission has walked back a proposed profit cap on refiners.
• A USC forecast projects pump prices could approach $8 per gallon if both the Benicia facility and Phillips 66’s Los Angeles refinery shut, and Benicia’s mayor warns the city faces a roughly $10 million budget gap if the plant closes.