[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, Lifelong Resident & former Solano County Planning Commissioner, Vice Mayor, City Councilman & School Board President
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