By Olivia Hart

California lawmakers are considering a financial rescue package to prevent Valero's Benicia refinery from closing next year, ABC7 Bay Area reported. The plant, which sits on the Carquinez Strait in Solano County, is one of the remaining gasoline and diesel suppliers in the Northern California market.

The report did not specify the size of the package under discussion. It also did not name the legislators leading the effort or set a timeline for legislative action.

The Benicia refinery has operated since 1969. Valero acquired it in 2000. The company notified California regulators in April 2025 of its intent to shut the plant, with operations expected to cease by April 2026.

Why does the closure matter?

Benicia is a major fuel supplier to the Bay Area. Refining capacity losses in California have drawn scrutiny from state officials because the region depends heavily on in-state production for gasoline and diesel.

California has already lost refining capacity in recent years. Phillips 66 announced the closure of its Los Angeles-area refinery in Carson and Wilmington, with shutdown planned for late 2025. Two major plant closures in quick succession would tighten supply in a state that imports some refined product.

The takeaway: state officials see refinery closures as a fuel-supply risk, not just a local jobs issue.

What could a bailout look like?

The ABC7 report described the legislative effort as a bailout but gave no figures. Options floated in prior state discussions of refining capacity have included financial incentives, regulatory relief, and loan support. None of those mechanisms has been confirmed for Benicia.

Valero has not commented publicly on whether it would accept state assistance to keep the plant open, according to the report.

The takeaway: without a number attached, the proposal remains at the discussion stage rather than a bill.

What is the watch item?

The April 2026 shutdown date is the anchor. Any legislative package would need to move through the California Legislature before Valero begins decommissioning, a process that typically starts months ahead of final closure.

Watch for a bill introduction in Sacramento, a statement from Valero's San Antonio headquarters, and any response from the California Energy Commission on supply impacts.