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Valero Benicia Refinery to Close in 2026, Marking Major Transition for City

The City of Benicia and Valero collaborate to clarify the shutdown's timeline and address its economic impact on the community.

The city of Benicia was given a shelter in place alert and areas south of the Valero Refinery were evacuated after a power outage caused a flare up sending plumes of black smoke across Interstate 680. (Chris Riley/Times-Herald)
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Valera filed plans to potentially close its refinery in Benicia, seen here in March 2019.
Gov. Jerry Brown is racing to convince state lawmakers to extend California’s cap-and-trade program which puts a price on carbon emitted by polluters, including oil refineries like the Valero Benicia Refinery seen Wednesday, July 12, 2017, in Benicia, Calif. The program has been closely watched around the world as a market-based way to reduce greenhouse gas emissions, but it expires in 2020. (AP Photo/Rich Pedroncelli)

Overview

  • Valero Energy Corporation has confirmed its Benicia refinery will cease operations in 2026, ending over two decades of local operations under Valero's ownership.
  • A formal notice of intent to 'idle, restructure, or cease refining operations' was submitted to the California Energy Commission by Valero Refining Company-California.
  • City officials describe the refinery's closure as a significant shift for Benicia, given its longstanding role in the city's economy and identity since its construction in the late 1960s.
  • Benicia's local government is working closely with Valero to clarify the timeline and scope of the shutdown while planning for the economic and social impacts on the community.
  • Valero leadership has pledged to engage with employees, business partners, and the community throughout the transition process.