Valero Winds Down Benicia Refinery, Shifting Bay Area Fuel Supply To Imports

BENICIA, CA — After decades of sending plumes of white smoke over the Bay Area, the Valero refinery is counting down its final months in Benicia.

The company announced Tuesday that the refinery will power down local operations by April. As the Benicia refinery is idled, Valero said it would continue supplying the Bay Area with fuel by using existing inventory and backup imports.

Valero first announced plans to cease operations at the Benicia facility in April 2025, citing fines and growing demands over environmental regulations.

Instead of a total shutdown as originally announced in 2025, under Valero’s updated plan, the Benicia refinery will continue producing gasoline until April, and then continue importing gasoline into Northern California once the refinery fully idles—a strategy that will help maintain steady supply and stable prices as discussions continue on a path forward for the refinery, according to a statement by Gov. Gavin Newsom.

The California Energy Commission and state partners are working with a variety of market players and stakeholders on "necessary steps to protect consumers and support a stable and affordable fuel supply while holistically advancing this critical phase of the energy transition in our path to achieving the state’s climate goals," the Commission's vice chairman, Siva Gunda, said in a statement.

The refinery is one of the most important sources of jobs in Benicia. Valero said it is preparing to file a legally required Worker Adjustment and Retraining Notification (WARN), which applies when an employer with 75 or more workers lays off 50 or more employees within a 30-day period.

The company said that employees at the Benicia refinery are being offered transfers to other company facilities or assistance with finding new employment, according to reports. The company’s Wilmington refinery in Los Angeles County will continue production.