Valero Plans 2026 Closure of Major California Refinery Impacting 400 Workers

The Valero oil refinery in Benicia, California, which processes 170,000 barrels per day and employs over 400 workers, is scheduled to close in April 2026, raising concerns about local economic impacts and national security due to its role as the sole jet fuel supplier to Travis Air Force Base. Local officials and residents face a significant budget shortfall, as Valero's tax contributions account for 16%-17% of the city's annual budget, threatening public services and prompting discussions about possible tax increases. While state and regional leaders have promised a "just transition" with retraining and reemployment services for displaced workers, past refinery closures in California have shown that many workers struggle to find comparable jobs, often facing long-term unemployment or lower wages. There is also potential for redevelopment of the 900-acre refinery site into housing and commercial properties, but this requires costly environmental remediation expected to take up to a decade. The community and policymakers are grappling with balancing the environmental benefits of refinery closures against economic and social challenges, highlighting the complexities involved in transitioning away from fossil fuel industries. These developments underscore the broader challenges faced by towns and workers dependent on boom-and-bust industries and the need for proactive planning and support.