California legislators are considering giving Valero Energy Corp. hundreds of millions of dollars to cover refinery maintenance costs in a bid to prevent the closure of a San Francisco-area fuel plant.
Under such a deal, the state would pay Valero to continue operating its Benicia refinery, according to people familiar with the negotiations who asked not to be identified discussing private deliberations. The plant is slated to close by April, the latest in a string of recent California fuel-plant shutdowns.
Between $80 million and $200 million of state funds would likely be earmarked for routine maintenance work, although the terms of the arrangement could be subject to change, the people said. Maintenance is one of the biggest operating costs for refiners and the expense of major overhauls typically performed every four or five years can be a catalyst for closure. Discussions with lawmakers over keeping the Valero facility open were held as recently as this past weekend. Absent a deadline extension, legislators have until late Tuesday to submit bills for consideration.
Valero shares briefly dropped on news of the talks but have since recovered and were up 2.8% to $161.77 at 1:10 p.m. in New York, making it the day’s best-performing oil stock in the S&P 500.
Valero didn’t respond to requests for comment. California Governor Gavin Newsom’s office declined to comment while representatives for state senate and assembly leaders didn’t respond to inquiries.
Newsom has in recent months taken a new tack with refiners and encouraged regulators to work with the industry to maintain fuel supplies in a state that often has the nation’s highest gasoline prices. The California Energy Commission has since walked back plans to impose a profit cap on refiners, a key factor in spurring recent plant closures.
Communities Against Carbon Transport and Injection – CACTI
On September 9, 2025, CACTI was launched. Montezuma LLC is proposing to inject carbon dioxide waste underground near the Montezuma Wetlands in Solano County. Known as the Montezuma Carbon Hub, the project would involve capturing CO2 from Bay Area refineries and power plants, transporting it via underwater pipeline or boat, and injecting it near a site of sensitive ecological restoration.
The pipeline network and injection site would be developed near Bay Area communities like Martinez, Benicia, Antioch, Richmond, and Collinsville. Carbon waste dumping projects like this one threaten the health and safety of local residents, especially because CO2 pipelines are dangerous and underregulated. Pipeline leaks can cause suffocation or even death to people and wildlife.
Each year my wife and I pay thousands of dollars in property taxes that support Benicia schools, even though we’ve never had kids or grandkids attend them. People pay such taxes without reaping direct benefits partly because it’s required, but also because it’s part of being a good citizen: It’s what people do in and for a community.
But hey, I’m by no means presenting myself as a paragon of virtue here. Paying such taxes is very much in my self-interest.
How’s that? Great schools are part of what keeps Benicia such a great place to live, which in turn fuels our property values that rise over time.
Similarly, I don’t drive around town much – maybe a few times per week – but good roads benefit my investment in my home. So yeah, it’s in my self-interest to pay for schools and roads even as I, like many of you, don’t directly benefit much or at all from them. We willingly (though perhaps not gladly) pay such levies because we each benefit.
The same goes for parks. And for the proposed Citywide Parks, Landscape, and Lighting Assessment District (PLLAD). Property owners can vote for or against the measure by October 14 via mail-in ballot (which must be received by the City, and not simply postmarked, by that date), by submitting it at the City Council meeting that day or by returning it to the City Clerk’s Office at City Hall by then.
(FYI: The City is convening a community meeting this Tuesday, September 9, from 6 to 8 pm, at the Fitzgerald Field Grandstand, 249 East H Street, at which City staff will share information, welcome feedback and answer questions about the PLLAD. You can also find additional details at a City site: BelieveInBenicia.org.)
I hardly use Benicia’s parks. But I do recall that years ago when my wife and I were checking Benicia out as a place to move to, we visited the Community Park, passed by several other parks and were impressed by now nice they all were.
Now, what if the Community Park’s ballfields were completely run-down? What if the others were weed-filled lots? What if broken lighting makes the facilities less usable or safe for early evening use? What if our trails are heavily littered or less accessible? I don’t know if we would have made this wonderful town our own or if future prospective residents would do the same. Maybe some young families who are potential Benicians would move elsewhere after seeing a disrepaired state of affairs here.
I do know that other attractive Bay Area cities – our neighbors in some respects, competitors for residents and businesses in others – appreciate and invest in the appeal of pleasant parks, trails, lighting and the like.
Parks are similarly part of what makes Benicia such a pleasant locale in which to live and a home here such a sound investment – even for those of us who don’t live near a park or use them much. They’re a face of this fantastic place. Together with our waterfront setting and First Street, they’re the first things many visitors see as they stroll or drive through town.
I realize and respect that some Benicians have trouble with specific aspects of the PLLAD. I might even agree with one or two such criticisms.
But let’s not lose the forest for the trees in deciding whether we’re going to maintain and improve our parks and related facilities, including gradually dealing with $55 million of deferred maintenance and repairing our 19 (out of 21) playgrounds that are over 20 years old. The value of private property flows partly from the appeal of an area’s public places.
The benefits are not just financial. Good parks are good for public health in all sorts of ways. In line with “broken windows” data on crime (which indicates that crime can rise in communities that appear broken-down) and research indicating that well-maintained parks and lighting deter unsavory conduct, they contribute to public safety.
And of course, while public health and public safety are highly desirable in and of themselves, they in turn contribute to property values.
Furthermore, while some out-of-towners may simply come and go in using these facilities – a benefit we shouldn’t begrudge them – others aid Benicia businesses and employment by coupling park and beach use here with visits to our supermarkets, restaurants, shops or galleries.
I’d add that we’ve recently been down a similar road and unfortunately decided to forego financial benefits. Last year, before Valero announced its plans to shutter the refinery, Benicians voted to reject a property transfer tax. If that measure had passed, the eventual sale of the refinery could have netted Benicia $10 million or more. Now we’ll net nada.
Some may say that the parks will be fine even without the proposed PLLAD. But the closure of the Valero refinery sooner or later will put a big burden on the City budget. Cuts will have to come somewhere. Without the PLLAD, parks will seriously suffer if we want to try to maintain police and fire protection – or do folks wish to cut those services instead?
Even if the refinery closes later rather than sooner, Benicia’s still dealing with resource challenges that undercut our capacity to maintain the parks, trails and related facilities.
Some understandably object to yet another fee for city services. I know that the maximum assessment of $208 per parcel is nothing to sneeze at. But that 57 cents per day (and far less for many property owners) is still a small price to pay for many thousands of dollars in annually increasing property value. It’s an investment in our own homes and businesses.
If you could spend a relatively tiny bit more to ensure that your home’s worth rises rather than falls, that you profit by thousands or tens of thousands of dollars more when you eventually sell it, that your kids inherit a better property down the line or that you can rent it out for more, you might decide it makes sense to shell out those 10 or 25 or 57 cents per day for your home.
Well, Benicia is our home. The parks are our living room and front yard.
Finally, let’s face it: We know of other Bay Area communities where public service breakdowns have damaged property values, as well as public safety and health. It can happen all too easily if things start to slip. We can’t let the same fate befall Benicia.
So let’s not let the perfect be the enemy of the good. Please vote for the PLLAD not just because it benefits this lovely community we call home, but because – even if we don’t use the parks or we dislike elements of the proposal – it’s good for each of us and our pocketbooks.
By Stephen Golub, Benicia resident and author. September 2, 2025. [First published in the Benicia Herald on 8/31/25.]
Before the California State Legislature session ends on September 12, the legislators and other State officials may well make crucial decisions on bills and policies regarding the Valero Benicia Refinery’s future. Benicians have barely any time to weigh in on this matter so essential to our health, safety and future, particularly by contacting State Assemblywoman Lori Wilson. She represents Benicia and plays a significant role in this process.
While there’s still a chance that Valero might depart by its self-proclaimed April 2026 deadline, it seems at least as likely that the company and the State will extend its stay by at least a few years.
I’d favor pressing for Valero to stick to that 2026 date. My main concern is that a few years could turn into many, blocking us from biting the bullet to diversify our economy and realize potential benefits such as clean air and enhanced property values in a refinery-free community. A continued presence poses demonstrated risks, including polluting our politics as well as our air. Valero’s harmful operational and advocacy track record is a testament to those risks.
For at least 16 years, the Valero Benicia Refinery spewed toxic emissions hundreds of times the regulatory limits into the City’s air, spurring an $82 million Bay Area Air District fine.According to the Air District, from at least 2003 to 2019 the Benicia refinery committed “egregious emissions violations,” pouring into the city’s air “harmful organic compounds” containing “benzene, toluene, ethylbenzene and xylene…which cause cancer, reproductive harm and other toxic health effects.”
Valero knowingly committed these violations, yet did not inform governmental authorities. In the same statement just cited, the Air District explained that “refinery management had known since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air contaminants but did not report them or take any steps to prevent them.”
These 16 years of violations and toxic emissions are but one example of Valero’s hazardous track record in Benicia and across America, including Arkansas, Louisiana, New Jersy, New York, Tennessee and Texas. Even the arguably oil industry-friendly Texas Attorney General sued Valero in 2019 for refinery violations there, in effect citing it as an egregious repeat offender.
Benicia’s cancer rates are far higher than those of the State and Solano County. For example, the city’s breast cancer rate is 93.7 percent higher than California’s and 35.9 percent higher than the County’s. The possible connection to the Benicia refinery is buttressed by research from around the country and world indicating elevated cancer, leukemia and asthma disease rates in refinery communities.
Valero’s contributions to climate change threaten Benicia. Above and beyond its facilities’ direct environmental impact, the Texas-based corporation has played a major role in the Western States Petroleum Association (WSPA), which has sought to stymie policies and legislation that would limit rising sea levels and other climate changes that challenge our town. Have you noticed the First Street Green parking lot’s winter flooding? Thank Valero and the WSPA if that kind of climate change damage increasingly bedevils Benicia in years to come.
Having said all this…
If the corporation and California nonetheless decide to extend the refinery’s stay despite these and other concerns, let’s press for ironclad Valero guarantees that it will: 1) close the refinery by 2029; 2) assure severance pay and other appropriate benefits for its workers, especially our Benicia-based friends and neighbors, who bear no responsibility for the Texas-based corporation’s track record; 3) abide by all legal and moral clean-up requirements for the property, rather than pursuing bankruptcy or other options to evade its responsibilities; and 4) not sell the property to another petrochemical industry operator, which might have as bad or worse an environmental record.
We should similarly seek State guarantees that it will 1) support Benicia’s existing Industrial Safety Ordinance; 2) not block any other local measures to protect or enhance our community’s well-being; 3) not undertake any joint venture with the firm, as that could undercut both our refinery oversight and refinery-linked revenues; and 4) not water down or overturn State, regional and local environmental regulations.
I emphasize Wilson because, as Chair of the Assembly’s Transportation Committee, she plays a central role regarding any Valero-related legislation and policies – which, again, may well be determined in the days to come.
We can also email Benicia’s City Council members, pressing them to lobby state officials on our behalf if they’re not already doing so.
Time is growing very short. Now’s the time to act.
A few more noteworthy Benicia notes:
First, property owners should please vote for the Parks, Landscape and Lighting Assessment District (PLLAD ) plan on the ballot recently mailed to you. Funds to provide for vital services for our parks and related facilities are inadequate, not having been updated since 1989. The PLLAD will help keep Beautiful Benicia moving forward, as well as enhancing our property values regardless of whether we use those facilities.
Big kudos for City Manager Mario Giuliani for the “Mondays with Mario” session he hosted at Lucca’s Bar and Grill on August 25. For the 20 or so folks present, it was an illuminating discussion of why we need PLAAD, what’s happening with Valero and several other topics. Councilmembers Trevor Macenski and Terry Scott, and former Councilmember Tom Campbell, also usefully chipped in to the discussion. The next Monday with Mario will be on September 15 at Roundtable Pizza, 878 Southampton Rd, at 6-7 pm.
Equally big kudos to the Benicia Police for all that they do, but particularly (as reported in the Herald) for the August 21 arrest near the Lake Herman Road reservoir of an escaped fugitive wanted for ten counts of arson in Washington State. I don’t want to rush to judgment: As far as I know, we don’t know whether he was associated with recent blazes near Benicia or other details of his background. But if in fact he’s guilty of such acts, it’s good to get him off the streets – especially our streets.
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