California Coordinates With Valero on Benicia Refinery Idling Plan to Maintain Fuel Supply
Photo Credit: California Governor’s Office
SACRAMENTO, January 7, 2026 (CALIFORNIA NEWS TODAY) — California State officials are coordinating with energy company Valero following an updated plan to idle the company’s Benicia refinery while continuing to supply Northern California with gasoline through existing inventories and imports, according to a statement released by Governor Gavin Newsom.
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Under the updated plan, Valero will continue producing gasoline at the Benicia refinery through April 2026. After production ends, the company plans to import gasoline to supply the Northern California market as discussions continue regarding the facility’s long-term future. The revised approach follows an earlier announcement that included the possibility of a full closure and exit from the regional market in early 2026.
“This marked a constructive development from an earlier announcement that included the possibility of full closure and exit from the Northern California market in early 2026,” the Governor’s office stated, noting that the updated plan is intended to help maintain steady supply and price stability during the transition period.
Governor Newsom said the state is continuing discussions with Valero to evaluate options for continued operations at the Benicia refinery while ensuring consumer protections remain in place.
“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs. We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime,” said Newsom.
The California Energy Commission (CEC) is also working with Valero and other market participants to support fuel supply reliability during the state’s energy transition.
“We want to express our appreciation to Valero for continuing to work with us collaboratively to evaluate options for the Valero Benicia refinery and for maintaining fuel supply to Northern California. The CEC and state partners are working with a variety of market players and stakeholders on necessary steps to protect consumers and support a stable and affordable fuel supply while holistically advancing this critical phase of the energy transition in our path to achieving the state’s climate goals,” said Siva Gunda, Vice Chair of the California Energy Commission.
According to the statement, operations at Valero’s Wilmington refinery in Los Angeles County will remain unchanged.
State officials also cited recent legislative actions aimed at reducing fuel price volatility and improving refinery transparency, including requirements for advance notice of refinery closures. The administration said these measures have allowed California to better prepare for potential supply disruptions and maintain more stable gasoline prices compared with prior years.
Source: Office of Governor Gavin Newsom
