The City of Benicia announced Wednesday that Valero Energy Corporation has submitted notice of its intent to “idle, restructure, or cease operations” operations at its Benicia refinery by April 2026 — a development that comes just months after the facility was hit with an unprecedented $82 million fine for long-standing air quality violations.
The penalty, announced in October 2024, was the largest ever issued by the Bay Area Air Quality Management District. It stemmed from a 2019 inspection that found the refinery had been emitting cancer-linked pollutants — including benzene, toluene, and xylene — without proper reporting or mitigation. A complaint filed jointly by state and federal regulators alleged the company knew about the emissions since at least 2003.
“This is a moment of significant transition for our city and community,” Benicia City Manager Mario Giuliani wrote in a statement. The refinery currently employs over 400 people, according to public records.
“Valero has long been a part of Benicia’s identity and economy, and today’s news is deeply impactful for our entire community,” wrote Mayor Steve Young. “While this potential transition raises many questions, I want to reassure our residents that the City is committed to transparency, collaboration, and careful planning.”
In an interview Wednesday, Benicia Public Information Officer Colette Schow said Valero’s move was “a long time coming,” and that there is no indication that it was a result of the historic penalty imposed on the company. “It seems to be more of an overall strategic move that they’re making across all the refineries.”
A spokesperson for Valero did not respond to a request for comment.
The proposed closure fits within a pattern of oil refinery closures across California over the past several years, including the 2023 closure of the Phillips 66 refinery in Santa Maria, the 2024 conversion of its Rodeo refinery to a renewable facility, and the 2023 conversion of the Marathon Martinez refinery to a renewable facility.
The 2024 settlement agreement mandated that, in addition to paying fines, Valero must implement stricter emissions controls, submit to regular inspections, and fund local air quality improvement projects with more than $64 million of the penalties.
In emailed statements to Open Vallejo, the Bay Area Air Quality Management District and California Air Resources Board confirmed that Valero has paid the fine for its air quality violations and satisfied the terms of the settlement.
Oil refinery emissions have long been linked to adverse health effects, including asthma. According to the most recent available data from the California Department of Public Health, Solano County has one of the highest rates of asthma diagnoses in the state, and both children and adults have sought emergency-room care for asthma at rates higher than the rest of California.
The Valero facility in Benicia is one of four refineries currently in operation near Vallejo.
The proposed closure comes two weeks after the city of Benicia unanimously adopted an ordinance to increase safeguards against pollution, including by expanding air quality monitoring in the region. The ordinance was spearheaded by city councilmember Kari Birdseye.
“We really don’t know what Valero’s plans are just yet,” Councilmember Birdseye wrote in an emailed statement to Open Vallejo. “In the months to come, we hope to better understand their intentions.” Until April 2026, she wrote, “Valero, just as other local businesses that handle hazardous materials,” will have to comply with the local ordinance.
