(MT Newswires) — Valero Energy (VLO) said Wednesday its Valero Refining subsidiary has submitted notice to the California Energy Commission of its current plan to idle, restructure, or cease refining operations at Valero’s Benicia Refinery by the end of April 2026.
Valero said it is evaluating strategic alternatives for its other operations in California.
In connection with the evaluation, the company said it has recorded a combined pre-tax impairment charge of $1.1 billion for its Benicia and Wilmington refineries, to be treated as a special item and excluded from first quarter 2025 adjusted earnings.
Included in the amount is the recognition of expected asset retirement obligations of $337 million as of March 31, 2025, the company said.
On April 8 the Air District invited us to help decide how those millions of dollars will be spent!
Smoke from the Valero Benicia refinery during a 2017 incident. | Bay Area Air Quality Management District.
For years, Benicians have been calling for the Bay Area Air District to direct some of the millions in violation money collected from refineries to the communities where the refineries are located – the communities that suffer from the harm caused by the violations.
Finally, this year, the Air District is getting serious about sharing those funds. And here in Benicia, the dollars are huge!
Last October, the Air District (and CARB) fined Valero Refining Co. $82 million for Benicia air quality violations! In an email yesterday, Benicia Mayor Steve Young sent out an alert with the subject line, “Help decide how to spend $64 million from the Valero settlement in Benicia.”
Young was referring to an invitation issued by the Air District to fill out a survey and attend an ONLINE WORKSHOP TODAY AT 5PM. Here is the content of the invitation as it appears in the Benicia City Manager’s latest newsletter:
Help Shape How Millions in Community Funds Are Spent – Take the Survey or Join the Workshop!
The Bay Area Air District has established a new Community Investments Office to help direct funding from enforcement actions into projects that benefit communities most impacted by air pollution across the Bay Area. Your voice is critical in shaping how these funds will be distributed.
We’re reaching out to ask for your input in two ways:
Take a brief survey to share your thoughts on community priorities, funding needs, and more: Take the Survey
Join us for a virtual community workshop on Tuesday, April 8, 2025, from 5:00– 6:00 PM to learn more and walk through the survey together.
Months after Bay Area regulators handed a record-setting fine for pollution violations to oil giant Valero Refining Co.’s Benicia facility, city leaders voted to establish stronger oversight over refinery emissions.
The Benicia City Council unanimously passed regulations Tuesday creating a new air quality monitoring program and requiring the refinery and other entities handling hazardous materials to promptly report emissions.
Vice Mayor Trevor Macenski said they hope to “foster a resilient business environment within Benicia while ensuring that our citizens don’t all need inhalers.”
The city’s plan is modeled after a similar ordinance in Contra Costa County, which for more than two decades has empowered county health officials to investigate potential emissions problems at three oil refineries, including Chevron, across the Carquinez Strait.
The Solano County city has lacked similar oversight power for Valero. Benicia leaders have been frustrated in recent years by revelations of emissions problems at Valero and a lack of notification from agencies charged with pollution oversight. The Bay Area Air Quality Management District waited three years to inform Benicia residents after agency staff discovered Valero was spewing illegal amounts of cancer-causing gases and chemicals into the air and had done so for 16 years.
Council Member Kari Birdseye, who campaigned on more refinery oversight when she was elected in 2022, said in an interview that the air district’s $82 million fine was a “wake-up call” for Benicia.
“Our community wants to know exactly what’s going wrong and how we can ensure those types of things don’t happen again,” Birdseye said.
The ordinance, which takes effect 120 days after the vote, allows the city to investigate pollution issues when other agencies, such as the Bay Area air quality district, state or federal agencies, aren’t conducting investigations. It also requires facilities such as the refinery to report potentially hazardous releases to the city.
The vote was unanimous despite strong opposition from some business representatives and Valero executives, who previously called the ordinance “governmental overreach.”
Valero refinery officials did not immediately respond to a request for comment this week.
The ordinance would also pertain to a dozen other businesses in the city, including the city’s water and wastewater treatment plants, paint company Sherwin-Williams, a chemical decontamination firm, cork supply company, and several manufacturers.
Under a current contract with the city, Valero provides the city a base amount of $331,320 annually. The ordinance would terminate that contract and replace it with fees based on how much hazardous material Valero handles. That applies to other industrial facilities that fall under the ordinance as well. The city’s new plan starts with no fees for the smallest operators and increases up to $386,260 annual fee for the largest.
Julie Johnson is a reporter with The Chronicle’s climate and environment team. Previously she worked as a staff writer at the Santa Rosa Press Democrat, where she had a leading role on the team awarded the 2018 Pulitzer in breaking news for coverage of 2017 wildfires.
CALL TO ATTEND – By the Benicia Industrial Safety and Health Ordinance citizens group (BISHO)
Benicia, CA (March 28, 2025) – On Tuesday, April 1, Benicia City Council will meet to discuss and conduct its final vote on the draft Industrial Safety Ordinance (ISO) that will help protect Benicians against potential fires, explosions and toxic emissions connected to the Valero Refinery and other facilities. The meeting will be at Benicia City Hall, 230 East L Street, Benicia, beginning at 6 p.m.
“Because this is the final up-or-down vote on the ISO, we are urging supporters to attend to show support, either in person or by Zoom,” said Terry Mollica, a member of Benicia Industrial Safety and Health Ordinance (BISHO), a citizens group formed in 2023 to advocate for the passage of a strong Benicia Industrial Safety and Health Ordinance. “This is our last, best chance to establish an ISO that will get Benicia a seat at the table to protect the health and safety of our kids, our seniors and everyone else in our wonderful city.” BISHO has more than 250 supporters, with membership and website visits growing as more refinery incidents occur. Benicia is the only Bay Area refinery town without an ISO.
Benicia City Council voted in January 2023 to begin the process of developing a draft ISO to ultimately be presented to City Council for vote. Since that time, a City Council subcommittee, led by Council Members Terry Scott and Kari Birdseye and Fire Chief Josh Chadwick, have conducted multiple meetings with stakeholders, citizens, experts in industrial emissions, environmental groups, other Bay Area refinery cities and many others to gain feedback as to the best ISO for Benicia.
On March 4, City staff, led by Chief Chadwick, presented the draft ISO to Council and the public. After presentations by many community members, Valero and other industrial organizations to be affected by the ISO, Council voted unanimously to move forward with the draft, calling for a second reading and final vote.
“Our citizens group is thrilled that the ISO is close to becoming a reality,” said Mollica. “Along with local health and environmental advocates, we have spent years calling for tighter regulations to protect citizens from dangerous industrial emissions that impact air quality and the health of Benicians. We are finally near the finish line and are so grateful that City Council has supported this effort.”
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