Valero shutters Benicia refinery, hundreds lose jobs, $82M fine cited amid environmental and regulatory pressures

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Are California’s regulations killing energy jobs faster than companies can adapt?

Valero is idling its Benicia refinery due to high operational costs, strict California regulations, and ongoing environmental violations, including a recent $82M fine and lawsuit settlement. This reflects a broader trend of refineries exiting the state amid regulatory pressures. The site will shift to importing fuel, with layoffs starting in March 2026.

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