“I am conflicted…”

From his email with permission, by Terry Scott, Sep 16, 2025

I am conflicted by the news that the Valero Benicia Refinery will close next April following the state legislature’s decision to halt discussions regarding environmental regulatory relief and potential operational funding.

My conflict stems from two profound realities now facing Benicia:

On one hand, I am genuinely relieved that sometime next year our air will become cleaner.

On the other hand, I am equally troubled by what this abrupt closure means for our City’s financial future.

Let’s start with cleaner air. Isn’t that what we all want? To breathe cleaner air?

We know our air quality will improve, potentially reducing asthma, cancer risks, and other health impacts our residents have endured by living in the shadow of the refinery for decades.

Huge win for Benicians. Huge win for the environment.

In additions, the constant concerns and notifications about refinery flaring, chemical leaks, fires, and emissions that Benicia has lived with since this refinery’s beginning will finally be in the past.

This represents a significant health victory for all residents, visitors and businesses operating in our community as well as the folks living downwind from the refinery.

However, as noted, I am equally troubled by what this abrupt closure means for our City’s financial future. The impact on our residents , our local businesses, our staff.

Our ability to maintain our quality of life obviously has a cost.

The Refinery closure comes at a cost. A big financial cost.

Had the state succeeded in creating a 3-5 year operational glide path with funding support for Valero’s continued operations, including their asphalt plant, we would have gained precious time to develop a comprehensive transition plan with many partners, including Valero’s Signature Development Group, local and regional organizations and development of our own Citizens Task Forces.

This extended timeline would have allowed us to implement our Industrial Safety Ordinance that would have provided better control during the transition of emissions through improved oversight while simultaneously preparing support systems for the small businesses that will be directly impacted by Valero’s departure.

The financial reality is stark: we face losing approximately $7.7-$10 million from our City budget—revenue that directly funds essential City services. This loss will require significant changes in how Benicia provides services to the entire community which will demand difficult decisions about our City’s operations.

However, this closure now provides us with a critical opportunity to apply direct pressure on the Bay Area Air District to provide Benicia with access to the approximately $54 million in settlement funds they received from Valero.

Utilizing these funds could help stabilize Benicia for several years of this transition and transformation, cushioning the immediate financial impact of Valero’s departure.

As importantly, this transformation creates an unprecedented opportunity to replace dirty industry with clean, sustainable industry.

At this point there are many questions yet to be discussed and answered. Will Valero create a tank storage farm for imported refined gas? If so, we will receive no revenue from that conversion and worst it could block development and remediation of the site for a lengthy period. Answers will soon be forthcoming.

Then there’s the decommissioning process and its impact on Benicia. Followed by the dismantling process with incumbent environmental issues. Finally, what will be considered acceptable site remediation?

Is there a Valero vision for the long road ahead? Now that the decision has been made, the City must be driving as much of the process as possible to create a vision for reimagining the 900+ acre site.

I can say with certainty that the City began moving forward with development of a comprehensive plan immediately after the Valero April announcement.

Despite these challenges, I believe in Benicia’s resilience. I believe our community will rise to meet these obstacles.

As noted, we will create a plan that identifies ways to navigate these financial losses , make the hard decisions necessary for our survival, and successfully partner with Signature Development Group to reimagine what that refinery property can become—ultimately reenergizing our city in ways we haven’t yet envisioned.

This is our moment to prove that Benicia’s strength lies not in dirty industrial dependence, but in our community and businesses ability to adapt, innovate, and thrive together while building a cleaner, more sustainable future.

As we envision the revolution that will take place on that 900+ acre site of Valero over the coming years, we can position Benicia as a leader in environmental innovation and economic sustainability.

I do not offer this as a cheer leader. I offer this as a dedicated public servant working with my fellow council members and Mayor, the people of Benicia, and with a staff that wants to succeed.

I’m hoping I’m talking to a community that embraces the transformative changes ahead and does not resort to pointing figures but lifting a hand to help our community.

I ask you to accept that this is our moment to prove that Benicia’s strength lies not in industrial dependence, but in our community’s ability to adapt, innovate, and thrive together while building a cleaner, more sustainable future.

We face a tough future. We need to face it together as a community that wants Benicia to succeed rather than dwell in the world of the what ifs and I told you so’s.

Terry Scott
Benicia City Councilmember