Overview

• Valero Energy Corp has formally notified California regulators of its intent to idle, restructure, or cease operations at its Benicia refinery by April 2026.
• The company recorded a $1.1 billion pre-tax impairment charge linked to its Benicia and Wilmington refineries, citing regulatory and cost challenges in California.
• The refinery, which processes 145,000 barrels of crude oil per day, is one of the largest employers in Benicia, with over 400 jobs potentially at risk.
• City officials described the closure as a 'significant transition' and pledged to collaborate with Valero and state agencies to address economic impacts.
• The announcement reflects broader trends of refinery closures and conversions in California, driven by stringent emissions targets and evolving energy policies.