Tag Archives: Valero Benicia Refinery

KQED: Benicia Takes First Steps Toward Future Without Valero Refinery

The City Council on Tuesday unanimously approved a proposal to create four task forces…

The Valero Benicia Refinery in Benicia on May 8, 2025, which processes up to 170,000 barrels of oil a day, making gasoline, diesel and other fuels for California. Valero plans to shut down the Benicia refinery by April 2026, citing high costs and strict environmental rules. The Solano County city is proposing task forces to address the potential fallout of a Valero refinery closure. (Beth LaBerge/KQED)

KQED News, By Matthew Green, May 21, 20125

Benicia city leaders are taking initial steps to prepare for the likely closure of the Valero refinery, a month after the oil giant announced plans to cease operations at its sprawling Solano County facility within a year.

The City Council on Tuesday unanimously approved the mayor’s proposal to create four economic and community-focused task forces to “understand potential economic impacts, develop strategies to mitigate those impacts and plan for the future.”

The groups are intended to ready the small North Bay city for the potentially seismic fallout if Valero makes good on its intent to cease operations at the refinery by April 2026.

Valero is Benicia’s largest employer and accounts for almost 20% of its tax base.

“I think we are taking some serious steps trying to address as many of the known and unknown facts that we have,” said Mayor Steve Young, who tapped specific council members to head each of the groups, and said no one attending the meeting voiced any opposition to the plan. “We’re basically trying to utilize the respective strengths of the council members, all of whom have significant things that they can bring to the table.”

Benicia Mayor Steve Young sits in the City Hall offices in Benicia on May 8, 2025. (Beth LaBerge/KQED)

That includes a group to address economic recovery options for the city as it braces for a massive budget shortfall, and another to collaborate with nonprofits, schools and local sports leagues that have long relied on Valero’s donations, and now face losing their primary funding source.

“We’re in a situation where we’re going to have $10 [million] to $12 million less than last year,” Young said. “The hit on the community is going to be severe. My main job is to ease that transition as much as we can.”

A third group would map out next steps for the city’s port and the many businesses in its industrial park that for decades have supplied equipment and services to Valero, while a fourth would tackle plans to redevelop the 930 acres of land the company owns.

Oakland-based Signature Development Group recently announced it was in talks with Valero to redevelop the land on the eastern side of the city into housing and commercial property.

Doing so, however, would require a costly remediation effort — one Valero is legally required to undertake— that would likely take a decade to complete before any development takes place. During that time, the city would receive no revenue, Young said.

Valero has taken the land off the market, which implies that it’s given Signature the exclusive right to negotiate for it, he said.

“So [Signature’s] got a year to sort of do their due diligence, look at redeveloping options and then at the end of that year presumably buy the site and then move forward with who knows what kind of development options,” Young said.

He noted, however, “there are so many unknowns that probably things will pivot a month from now, three months from now. Six months from now, we might be doing something different.”

Councilmember Terry Scott, whom Young asked to help lead the redevelopment group, said his priority is to focus on the 400 acres of the Valero property that haven’t been used for manufacturing and processing operations. That land wouldn’t require the same degree of remediation, and could potentially be turned into housing and other uses within several years.

As for the refinery property, he said, the city would need to court industries that could operate on land that will remain fairly contaminated, even after the remediation process.

A fire at the Valero Oil Refinery in Benicia, California. The fire comes just weeks after Valero executives announced they were considering closing the sprawling refinery by next April. (Courtesy of Bay Area Air District)

“There’s gonna be some pretty bad brown spots there,” said Scott, who is hoping to attract less-polluting industries to replace the refinery. “This will not be growing gardens, and having front lawns and having kids running across it.”

Valero’s announcement in mid-April to “idle, restructure or cease” operations at the refinery that it’s operated since 2000, caught Young and other city officials completely off guard. The company cited California’s tough “regulatory and enforcement environment” as the main driver behind its move to consider closing the sixth-largest refinery in the state, which makes up about 9% of the state’s total crude oil capacity.

The news dropped less than two weeks after the City Council unanimously approved modest rules to increase their oversight of the refinery, and some six months since regional and state air regulators fined the company a record $82 million for secretly exceeding toxic emissions standards for more than 15 years.

Although that money is reserved for future public health initiatives, Young said he is pressing regulators to consider “a lenient and liberal” interpretation of what they mean by public health, so that Benicia leaders may use those funds “to offset some of the losses that the city’s going to see.”

Young also hopes he can help broker a deal with Valero and state officials to convince the company to continue operating the refinery for at least a few more years. He additionally intends to make the case that closing the facility next year could pose a serious national security threat, as it’s currently the sole provider of roughly 50 million gallons of jet fuel to nearby Travis Air Force Base, which it delivers via a direct pipeline.

“The threat of no jet fuel for Travis potentially puts the future of the whole base at risk,” he said. “If we could get three years instead of one year, that certainly eases the transition period for the city and gives us a little bit of breathing room to try to stabilize the financial hit that we’re going to see, and at the same time, plan for the eventual closure.”

Young said members of the City Council and community leaders have so far been generally supportive of the proposal to form task forces as part of the city’s abrupt effort to begin processing and planning for an uncertain future. People, he said, are glad to see that the city is at least trying to create a blueprint.

“Even though a lot of it is out of our hands, we are addressing it to the best of our ability so far,” he said.

Scott called Valero’s announcement last month “a warning shot” that he hopes will galvanize the community into action.

“We cannot let weeks or months go by without really looking at the future and saying, what are the things that we can do?” he said.


More KQED coverage:

Benicia ISO Coalition awarded SF Baykeeper’s 2025 Community Partner Award

“So many people worked so hard and for so many years to achieve this.”

Benicia ISO Advocates gather at San Francisco’s Dolphin Club to celebrate the Baykeeper’s 2025 Blue Rivet Award. PHOTO: Michaela Joy Photography

Benicia Industrial Safety and Health Ordinance (BISHO), 5/25/25

Benicia, CA—A coalition of Benicia citizen activists and government leaders has been awarded the 2025 San Francisco Baykeeper’s Blue Rivet Award for its work in passing the Benicia Industrial Safety Ordinance (ISHO). The group was presented the award at the annual SF Baykeeper Celebration of Community of Support on Saturday, May 17 at San Francisco’s Dolphin Club.

Baykeeper Executive Director Sejal Choksi-Chugh presents the 2025 Blue Rivet Award to Benicia City Council Member Kari Birdseye and BISHO member Terry Mollica. PHOTO: Michaela Joy Photography

SF Baykeeper Executive Director Sejal Choksi-Chugh presented the award to Benicia Council member Kari Birdseye and BISHO member Terry Mollica with more than a dozen other Benicia ISO advocates attending.

Birdseye and fellow Benicia Council member Terry Scott were the sponsors and advocates for passage of the Benicia ISHO. After the Council voted in December 2023 to have City staff study the issue of formulating a specific Industrial Safety and Health Ordinance for Benicia, Birdseye, Scott and Benicia Fire Chief Josh Chadwick spent months talking with citizens, stakeholders, businesses, and others to determine the best piece of legislation to monitor and protect Benicia’s air quality. Last month, the Council voted unanimously to pass the draft ISO.

Benicia Industrial Safety and Health Ordinance (BISHO) group is a citizens advocacy group which was founded in early 2023 to work toward passage of a strong ISO. More than 265 supporters became part of the group calling for more accountability from Valero and other industrial companies in the City.

For several years, Benicia has had a Memorandum of Understanding (MOU) specifically with Valero but it was long believed and advocated that a stronger, more accountable and enforceable ordinance was necessary, particularly in light of ongoing violations. Benicia was the only refinery city in the Bay Area without such an ordinance. Passage of an ISO came close in 2018 but ultimately was not passed by the then-City Council who opted for the MOU. BISHO was formed as an outgrowth of the 2018 effort.

SF Baykeeper was founded in 1989 with the mission to defend the San Francisco Bay and its watershed by holding polluters and government agencies accountable to create healthier communities and help wildlife thrive. The organization uses a unique combination of investigation, advocacy, and litigation to defend the Bay’s waters and the Bay Area’s communities including science field teams that use boats and drones to patrol the waters checking on reports of polluters and legal teams that challenge polluters in court.

The annual Blue Rivet Award honors individuals and groups who have made a significant difference for San Francisco Bay. The Blue Rivet Award includes a plaque with an actual Golden Gate Bridge rivet representing individual efforts by the many community members and businesses that join together to create a thriving, healthy San Francisco Bay.

“The Benicia Industrial and Safety Ordinance is a pivotal legislative public health safeguard that was created through a process of transparency and substantial community outreach,” said Benicia Council Member Terry Scott, who co-sponsored the Ordinance. “And Saturday, we celebrated how a community focused on working toward solving a common problem can come together and achieve greatness.”

“We are honored to be recognized by SF Baykeeper for the success in passing the ISO,” Mollica said. “So many people worked so hard and for so many years to achieve this. All of Benicia should be proud of this significant move toward making our community safer, cleaner and an even better place to live, work and raise families.”

ALERT – SHORT NOTICE! Important Benicia events Mon. & Tues. May 19 & 20

Benicia’s abuzz with important upcoming events

 Stephen Golub, A Promised Land – America as a Developing Country

By Stephen Golub, Benicia resident and author, “Benicia and Beyond” column in the Benicia Herald, May 18, 2025

Benicia is always buzzing with various political, social, cultural, artistic, athletic and other activities. Here are a few I’d like to highlight, starting with two very important events that could prove pivotal in paving the path for our community’s future:

On Monday, May 19 at 6 pm at City Hall (250 East L Street), the City’s Sustainability Commission will hear and discuss a vitally important presentation on the process by which the Bay Area Air District’s newly established Community Investments Office will decide how the Air District’s fine/settlement with Valero will be spent. As you may recall, the penalty was imposed due to the Valero refinery’s 15+ years of undisclosed toxic emissions, hundreds of times the legal limits, into our air. The public is welcome to attend and comment, whether in person or by Zoom. I believe that CIO representatives may also be present. (See agenda and how to participate here.)

This event is significant because it will help shape how at least $56 million from that $82 million fine will benefit Benicia at a time when it is in potentially dire financial straits due to Valero’s announced plan to close that facility. (Benicia will not get a blank check for those funds; the Air District will make the ultimate decisions on making grants that draw on the funds, though we can have substantial input.) I’m somewhat skeptical over whether that closure will come to pass – at least by the April 2026 date Valero announced – as it seems that the Texas oil giant may be negotiating with California over keeping it open. But regardless of what unfolds in that regard, we can help influence how this huge chunk of change is spent.

I’ve argued that the fine should be substantially devoted to a Benicia Bridge to the Future Fund, which will ease a financial transition away from Valero, especially since the facility will close sooner or later – quite possibly sooner, even if not in one year. More broadly, my experience with grant-making convinces me that the more flexible the grants are, the better for the beneficiary – in this case, Benicia. I hope you can participate in order to weigh in to favor such flexibility or otherwise make your opinions known.

In a closely related vein, on Tuesday, May 20 at 6 pm, also at City Hall, the City Council will discuss and welcome public comment (again, in person or by Zoom) on its new plan to convene four ad hoc task forces, led by Council members, to start planning for Benicia’s post-Valero path. This meeting marks another pivotal point for Benicia’s future. Offering our thoughts and questions at this early stage of the process can be crucial for how it unfolds. (Here’s more about this on the BenIndy.)

Again, regardless of whether the refinery closes as soon as Valero has stated, it’s imperative that we move ahead with such planning. In fact, our post-Valero world presents not just challenges to Benicia; it can also offer numerous substantial benefits. These include public health benefits from ceasing the spewing of carcinogenic emissions into our air, and potentially reducing the relatively high asthma and cancer rates our community experiences – though I should caution that whether Valero actually spurs such illnesses has not been determined.

The benefits also could include expanded tourism, the hosting of cleaner technologies and businesses, higher real estate values as we’ll no longer be seen as a “refinery town” by potential residents, and not least the construction of new housing on the large portions of Valero’s property that are open space rather than housing the refinery. Some such potential plots are less than a mile from downtown. (It’s noteworthy that the company has contracted with a major Bay Area developer to explore this kind of option.) Residential development could help house Benicians and buttress our tax base.
The City Council’s meeting is the first step in the crucially important process it launches for planning for life after Valero.

Ok. Enough with the heavy political stuff. While I can’t cover nearly all of the more cultural upcoming activities – the other pages of the Herald are great for that – here are a few well worth noting:

On Monday, June 2 at 6 pm (with doors opening at 5:30 pm), at the Benicia Clock Tower (1189 Washington Street), there will be the first Jazz O’Clock at the Clock Tower. The evening will feature the excellent Bruce Forman Trio, with the Benicia High School Jazz Band as the opening act. Kudos to the Benicia Performing Arts Foundation and the City’s Community Services Department for collaborating to make this happen.

Though my musical tastes run more toward Bruce Springsteen and Tim McGraw than more sophisticated options, I fully appreciate the rich, diverse Benicia music scene, as personified by these two groups. Even above and beyond the music itself, the event should be lots of fun. I understand that seating will be set up to make the performance a more intimate affair than the cavernous Clock Tower venue might otherwise entail. Plus, it’s bring your own food and drink (including alcoholic).

Google Jazz O’Clock at the Benicia Clock Tower to find online ticket purchase options. The price will be $20 in advance (with kids under 18 free, though you need to obtain a ticket for them), and $25 at the door.

On Saturday, June 7 at 2 pm, also at the Clock Tower, the Golden Gate Symphony and Chorus, which includes some great Benicia residents, will perform highlights from famous operas like La Traviata, Carmen, and Die Zauberflöt. Benicia’s own Alodiah Lunar, a mezzo soprano, is one of the Chorus’s several superb soloists. (The group also will appear on Sunday, June 8 at 2 pm at the Palace of Fine Arts in San Francisco.)

But wait, there’s more! If you’re interested in joining here in Benicia, here’s some useful information courtesy of a friend: “The Benicia Chorus welcomes singers of all experience levels in a supportive environment. You don’t need to be an experienced singer to join. Newcomers learn alongside more experienced singers. Rehearsals take place on Tuesday evenings from 7:00 to 9:00 PM at St. Paul’s Episcopal Church, led by Chorus Director Bruce Rockwell.” You can find more information about the group at the Golden Gate Symphony and Chorus site.

Tickets for the concert are available at a different site, at $50 per head, with senior and under-21 discounts. Please google Golden Gate Symphony and Chorus, City Box Office, in order to purchase them. They’ll also be available at the door.

On Saturday, June 7, from 1-6 pm, Arts Benicia will host a public reception for its Art of a Community show at 1 Commandant’s Lane (its lovely showplace/former Arsenal Commandant’s mansion). Open to the public, anyone can attend. The event will also feature some fine music, as well as wine, beer and sparkling water at a reasonable price.

The show itself will run Thursdays through Sundays at 1-5 pm, from May 31 through July 20. It’s extra special because it features art by our talented friends and neighbors – meaning mainly Benicia residents.

(Note: I may be a bit biased by the fact that some of the participating artists are friends, and one is someone I’m quite close to. But having attended several such receptions and shows, I can attest to the fact that they’re very worthwhile and enjoyable, and the location is a beautiful venue.)

For more information on Arts Benicia in general and particularly on becoming a member of this important part of the community, please go to its site.


Benicia resident and author Stephen Golub, A Promised Land

CHECK OUT STEPHEN GOLUB’S BLOG, A PROMISED LAND

…and… here’s more Golub on the Benicia Independent

Benicia City Council to appoint four task groups to look into possible Valero closure

Benicia City Council Agenda, Tues. May 20, 2025

Item 15.B – Staff Report

TO : City Council
FROM : City Manager
SUBJECT : APPOINTMENT OF CITY COUNCIL MEMBERS TO AD HOC “ACT” TASK FORCE GROUPS IN RESPONSE TO POTENTIAL BENICIA VALERO REFINARY CLOSURE

EXECUTIVE SUMMARY:
With the recent news by the Valero Energy Company to potentially cease operation at the Valero Benicia Refinery in April 2026, the City believes it is worthwhile for the City Council to spearhead task force groups to work with various stakeholders to understand potential economic impacts, develop strategies to mitigate those impacts and plan for the future. To that end, Mayor Young is proposing four (4) separate City Council Task Force Groups to understand the impacts of any closure will have on the community.

RECOMMENDATION:
Move to adopt by motion the nomination of the respective members of the City Council to the proposed Ad Hoc Task Force Groups.

BUDGET INFORMATION:
Staff does not anticipate any direct impact on the City’s budget due to the action of creating the proposed Task Force Groups.

BACKGROUND:
To help facilitate engagement and information with impacted stakeholder groups, advocate for the protection of Benicia’s economy and imagine the possible transition of redeveloping 930 acres of the Valero Benicia Refinery, Mayor Young is proposing four (4) ad hoc City Council “ACT” Task Force Groups: Advocacy, Collaboration & Transition.

These proposed groups will be ad hoc in nature and not subject to the Brown Act or Open Government Ordinance. The respective member(s) of Council may solicit feedback and participation from stakeholders as they deem helpful to gather information germane to their purpose, including business owners, employees, labor leaders, community members and governmental and non-governmental organizations. The second City Council meeting of each month will serve as an opportunity for the members of Council to report on the progress of each ad hoc group.

Task Force 1: ADVOCATE for Benicia’s Economy: Mayor Young
It is proposed that Mayor Young will serve as a point of contact and lead efforts to work with State Officials such as the Governor’s Office of Economic Development, The California Energy Commission, elected leaders, labor and business representatives to advocate on behalf of Benicia relating to the potential shutdown of the refinery. The purpose is to gather information and reports on the economic value of the refining operations to Benicia’s economy, county employment, the States economy as well as the importance the Benicia refinery is to Travis Air Force Base.

Task Force 2: COLLABORATE with Community: Non-Profit Organizations, Sports Groups, Benicia Unified School District, Restaurants & HotelsCouncil Member Largaespada
The focus of this Task Force is to coordinate between the various community groups that receive contributions and support from Valero. Understand the economic impact to these groups and facilitate collaboration between groups to maximize resources where possible and generate plans on how to proceed with either less funding or new means of revenue. Similarly, with sports groups, the intent is to quantify the financial contribution made to sports groups and how reduced support from Valero could impact users. Additionally, this Task Force will coordinate with Benicia Unified School District to analyze the impact on property tax revenue to the District and any other direct revenue loss from Valero’s cessation of operations. Finally, this Task Force will seek to quantify the economic impact on hotels and restaurants with Valero’s exit. The work of Councilmember Largaespada is to coordinate information, facilitate cooperation of resources between groups where feasible, and develop a plan of action on how to overcome the loss of revenue with Valero’s departure.

Task Force 3: COLLABORATE with Benicia Industrial Park (BIP): Existing industrial park businesses, Rose Estates and Port of BeniciaCouncil Member Birdseye
This Task Force is designed to work with impacted BIP businesses; understanding the impact on jobs, lost revenue and impacts on the stream of commerce. Additionally, this Task Force shall coordinate the plans and actions of Rose Estates, the Priority Production Area plan of the Port with redevelopment efforts of the 930 acres of Valero’s property with any interested developers. There may be an opportunity to synchronize development activity and/or work to incentivize new business development into the BIP including offshore wind manufacturing.

Task Force 4: TRANSITION Prepare for Transition and Redevelopment of Valero’s 930 acres: Valero & Signature Development GroupVice Mayor Macenski & Council Member Scott
This Task Force is to collaborate with Valero and Signature Development Group to imagine the possible reuse opportunities for the 930 acres of Valero’s property. This Task Force would help to facilitate stakeholder involvement to solicit public feedback and visioning. Identify the types of uses, be it residential commercial or industrial and those uses can be best incorporated into Benicia. Identify reports and information that would be helpful to forecast highest and best use for Benicia’s economic viability and environmental sustainability.

NEXT STEPS:
If approved, the various Task Force groups can meet at their convenience with stakeholders of their choosing to help facilitate their mission.

ALTERNATIVE ACTIONS:
None.

CEQA Analysis
The requested action is exempt from CEQA because it will not result in a direct or indirect physical change in the environment and therefore it is not a project as defined in CEQA Guidelines Section 15378.

ATTACHMENT:
None.

For more information contact: Mario Giuliani, City Manager
Phone: 707-746- 4289
E-mail: mgiuliani@ci.benicia.ca.us