Governor Newsom’s statement on Valero’s Benicia refinery update

The Newsom administration and Valero will continue working closely together to explore opportunities for continued refinery operations and to ensure fuel supply reliability during California’s ongoing energy transition, reinforcing the state’s commitment to maintaining a stable, affordable fuel supply for Californians.

“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,” said Siva Gunda, CEC Vice Chair. “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.”

Operations at Valero’s Wilmington Refinery in Los Angeles County remain unchanged.

Maintaining stability today while accelerating the clean energy future

Thanks to Governor Newsom and the Legislature’s commitment to proactive planning and consumer protection, California is responsibly strengthening its in-state supply and accelerating the shift to cleaner energy. Last year, the Governor signed a historic package of bipartisan legislation to stabilize the petroleum fuels market, cut pollution, and save Californians billions. This package included SB 237 — legislation that increases crude oil production in Kern County, boosting domestic crude availability as California manages its long-term energy transition while maintaining strong health and environmental safeguards.

In 2023 and 2024, following severe gasoline price spikes, Governor Newsom took decisive action by calling special legislative sessions to confront price volatility head-on and protect Californians from supply shocks and disruptions. The resulting laws — SB X1-2 (2023) and AB X2-1 (2024) — strengthened California’s ability to plan ahead by requiring unprecedented transparency from refineries, including advance notice of planned refinery closures at least a year in advance. These reforms gave California early visibility into potential supply disruptions at Valero Benicia, allowing California to prepare and coordinate to maintain fuel supply stability. Together, these laws have created the most robust petroleum market transparency in the nation, protecting California consumers and supporting the state’s transition to a cleaner, more affordable energy future.  

California is proving that it can protect consumers, maintain reliable fuel markets, and lead the global clean-energy transition at the same time.

Setting the record straight

MYTH: Refinery idling or closures are unique to California

FACT: This trend is not unique to California. Refineries are closing globally, and refining capacity is consolidating in megarefineries. To manage this transition, Governor Newsom called two special legislative sessions in 2023 and 2024, resulting in SB X1-2 and AB X2-1. These laws granted the California Energy Commission (CEC) regulatory and data transparency tools to ensure a stable, affordable fuel supply during the state’s transition away from petroleum-based transportation. 

And these tools are working: California has avoided severe gasoline price spikes like the historic 2022 and 2023 spikes, and retail gasoline prices have been lower and more stable in 2025 than in previous years, even despite one southern California refinery closing in 2025 and multiple others experiencing overlapping outages for maintenance.