Dirk Fulton: Report on Benicia concerns before Assembly hearing in Sacramento

[Comment from BenIndy editor: We previously issued a call for Benicians to attend an August 20 hearing before a Joint California Assembly Committee in Sacramento to consider the legislation known as the “Petroleum Market Stabilization” bill. Several Benicia residents attended, including Dirk Fulton, who offers the following reflections. – RS]

California Assembly holds hearing on Gov. Newsom’s hot mess of a “Petroleum Market Stabilization” bill

By Dirk Fulton, August 21, 2025

My reflections on the 6 hour hearing yesterday:

The legislature is clearly following the recommendations of the California Energy Commission (CEC) at Gov. Newsom’s request. CEC Vice-Chair Gunda made a lengthy presentation and answered followup questions from legislators. Late in the hearing, an Assemblyman from Los Angeles asked if the State was considering “taking over” the refinery. Gunda responded saying that Valero is in private talks with the CEC and all options are being explored to keep Valero open. One option could of course include a joint venture structure between Valero & the State. Oil companies do this all the time.

This alternative would be a horrible result for Benicia from both a regulatory and refinery closure standpoint.

Another Assemblyman commented that if exports of California refined product to Nevada and Arizona were reduced, there would be a 10% surplus in capacity of refined product thereby eliminating the prospect of any California gas shortages following a Valero closure. There was also discussion of increasing imports which is doable, and subsidizing further EV usage thereby reducing demand for gasoline, which would allow Valero to close without causing gasoline prices to spike.

Importantly, a longtime energy consultant to Citizens for a Better Environment and now a consultant to the CEC released a study yesterday morning demonstrating that as the PBF Martinez refinery returns to production (closed since the February fire), its production will offset any loss of production from a Valero closure.

A lobbyist from the Western States Petroleum Association (WSPA) was allowed to present for twenty minutes and respond to questions for another twenty. He stated that he meets regularly with the CEC to advocate for Valero remaining open. He seemed to have strong influence over the CEC and legislators including Benicia’s representative Lori Wilson.

Mayor Young’s 10 minutes of testimony did not help us regarding getting Valero closed. He basically wants the refinery to remain open for at least five more years-which basically means forever. He did NOT address our high cancer or asthma rates or address ongoing health risks to residents.

My takeaways:

    • Refining capacity is manageable. It can be maintained at acceptable limits following a Valero closure so gas prices don’t spike.
    • A State/Valero venture would be horrible for Benicia as increased regulation would be difficult and the refinery likely would never close. This seems to be a WSPA idea and comes from the Donald Trump playbook , e.g., what Trump has our federal government doing with Intel – a joint-venture-like concept where USA is contributing capital to sustain Intel Corp and receiving equity and profits in return.
    • Our best strategy to discourage the State and Valero going forward and to discourage any potential buyer is the local Polluters Pay Excise tax ballot measure. A $1 per barrel tax would substantially diminish refinery profit thereby operating as a disincentive. The Richmond example shows it works. Mayor Young told me in a hallway conversation that he supports the idea, and has received advice from City Attorney Ben Stock this week that it is legal.
    • We need a local citizens committee to be formed to lobby for this proposal.

Dirk Fulton


Read more Dirk Fulton on the Benicia Independent


Dirk Fulton, Benicia

Dirk Fulton, Lifelong Resident & former Solano County Planning Commissioner, Vice Mayor, City Councilman & School Board President
For More Information visit: www.greatdayforbenicia.com

Dirk Fulton: A Great Day for Benicia – Making Polluters Pay

Valero fire 5/5/2025 | photo by Larnie Fox

AS THE CITY & STATE WORK TO KEEP VALERO OPEN, A LOCAL REFINERY “POLLUTERS PAY” EXCISE TAX IS REQUIRED TO PROTECT US

By Dirk Fulton, August 17, 2025

URGENT: STATE ACTION & LEGISLATIVE HEARING THIS WEDNESDAY, AUGUST 20

We know Governor Newsom, the California Energy Commission (CEC) and the legislature are seeking to keep the Valero Benicia refinery open. Our city leaders have been complicit with the State in this effort. In fact, the CEC is acting as a broker to find a replacement operator and the Governor is sponsoring legislation to cut refinery regulations as an enticement to attract a successor.

A hearing is set for 1:30 PM this Wednesday (8/20) before a Joint State Assembly Committee in Sacramento to consider the legislation, known as the ‘Petroleum Market Stabilization” bill. Benicia residents are encouraged to attend the hearing and express their opposition. A sign-up form is here. Further info and talking points will be provided once you’ve signed up. And please reach out to action@sunflower-alliance.org if you can give a ride on Wednesday or want to join some others on the train.

OUR HIGH CANCER RATES REQUIRE CITY ACTION

Benicia residents Dr. Richard Fleming and columnist Steve Golub have separately published articles documenting that Benicia’s rates of cancer are much higher than Solano County and the State of California. The rates are astonishing:

    • Our breast cancer rate is 94% higher than the California rate.
    • Our prostate cancer rate is 70% higher than the State’s.
    • Our rate of lung cancer is 44% higher than the State rate.

Valero’s emissions routinely exceed Air Board limits and over a 16-year period ending last November, the emissions exceeded Air Board limits by 360%, often constituting 2.7 metric tons of hazardous pollution daily. Extensive medical studies have found a well-documented connection between residents living in refinery communities and higher cancer rates.

A “POLLUTERS PAY” EXCISE TAX CAN BE USED TO PROTECT US

Unless citizens’ efforts in opposition to the Governor’s bill are successful on Wednesday, it appears likely that the State will cause the Valero refinery to remain open indefinitely, perhaps through a new operator.

The Benicia City Council, accordingly, should immediately take action to place a refinery $1-per-barrel excise tax (“Polluters Pay Tax”) on the ballot. Only a simple majority vote is needed for passage. The tax would apply to all feedstock refined at Valero’s two refineries, including product refined elsewhere and placed in storage tanks at the refinery, and would generate $50-$70 million per year for a 50-year period. The tax proceeds can support pollution-fighting services like real-time extensive air monitoring, air filters for schools, advanced health and safety monitoring for neighborhoods, and environmental oversight and cleanup. Importantly, the tax can be crafted as an excise tax—targeted specifically at local refining, not a broad manufacturing or consumer tax.

In mid-2024, the Richmond City Council unanimously approved placing a refinery excise tax ballot measure on the ballot targeted at the Chevron refinery. Chevron opposed the proposal which led to a settlement on June 18,2024 as follows: Chevron agreed to pay the city of Richmond $550 million structured as $50 million annually the first five years, and $60 million for the next five years in exchange for the city removing the tax proposal from the ballot.

Our Benicia City Council has a duty to protect us from refinery pollution and should move forward expeditiously to place a similar $1-per-barrel excise tax on the ballot. Should the City Council once again fail to act, residents can circulate Initiative petitions, gather signatures and cause the tax to be placed on the ballot in June 2026. Hopefully, our city leaders will do the right thing and the Initiative process will not be necessary.


Read Dirk Fulton’s series, A Great Day for Benicia


Dirk Fulton, Benicia

Dirk Fulton, Lifelong Resident & former Solano County Planning Commissioner, Vice Mayor, City Councilman & School Board President
For More Information visit: www.greatdayforbenicia.com