Join Steve Young, the Mayor of Benicia, who discusses the community's anxiety over the Valero refinery closure, a major employer and taxpayer. Josh Sonnenfeld from the Blue Green Alliance sheds light on the balance between economic sustainability and environmental health. Severin Borenstein, a UC Berkeley professor, provides insights into the financial impacts and the need for a just transition for displaced workers. Together, they navigate the complex interplay of local jobs, pollution, and California's shift away from fossil fuels.
The potential closure of the Valero refinery could lead to significant economic losses for Benicia, impacting jobs and local businesses.
Concerns about environmental health and accountability have risen among residents, highlighting the need for protective measures amid the refinery's transition.
Deep dives
Economic Impact of Valero Refinery Closure
The announcement of the Valero refinery's potential closure by April 2026 has sparked significant concern regarding the economic repercussions for the city of Benicia. As the largest employer and taxpayer in the area, the refinery’s shutdown could lead to an immediate loss of approximately $10 to $12 million in the city’s general fund, creating a ripple effect that could severely affect local businesses and public services. Mayor Steve Young highlighted that many businesses in the region rely on Valero, indicating that the economic fallout could extend beyond just the direct loss of jobs, impacting local restaurants and shops as well. This predicament underscores the urgent need for the city to devise a strategic plan to manage these impending financial challenges while also supporting the affected workforce.
Environmental Concerns and Refinery History
The Valero refinery's history has been marked by environmental regulatory actions, most notably a significant fine for excessive hydrogen gas emissions that occurred over many years without detection. This incident has contributed to a decline in public trust towards the company, with community members expressing a desire for accountability and safer operations. There is a general acknowledgment that the closure of the refinery may align with California's broader transition away from fossil fuels but brings forth concerns regarding environmental degradation and health impacts associated with refinery operations. Local residents have been vocal about their experiences with pollution, indicating that the environmental aspects of refinery operations cannot be neglected amidst economic considerations.
Transition and Job Opportunities for Workers
As the refinery prepares for potential closure, there is a focus on ensuring that workers have viable options for transitioning into new roles within a shifting energy economy. Although refinery workers possess valuable skills that could be transferred to sectors like utilities or renewable energy, challenges remain regarding job availability and compensation levels. Previous refinery closures have shown that without adequate support systems in place, workers may face significant declines in their income and job security. Ensuring that a robust safety net and retraining opportunities are provided will be essential in facilitating a just transition for the workforce affected by the refinery's shutdown.
Community and Environmental Justice Concerns
The discussion surrounding the Valero refinery closure connects deeply with broader themes of environmental justice and community well-being. The potential for site decommissioning poses questions about how the land will be remediated and what safeguards will be in place to protect residents from previous pollution. There is a critical need for local voices to be considered in future redevelopment plans, ensuring that any new projects benefit the community rather than further contribute to environmental harm. The call for a just transition emphasizes the importance of balancing economic development, community health, and environmental stewardship, reflecting a growing need for accountability among industrial facilities operating in sensitive areas.
Last month, Oil Giant Valero announced it would “restructure, or cease operations” at its Benicia refinery by the end of April 2026, as California transitions away from fossil fuels. The news left city officials, workers and residents scrambling to figure out what to do next. Valero is the city’s largest employer and a significant taxpayer, but also a source of pollution. We talk about the possible closure and what it means for our region.
Guests:
Julie Small, criminal justice reporter, KQED
Severin Borenstein, professor at UC Berkeley's Haas School of Business and a faculty director of The Energy Institute at Haas
Josh Sonnenfeld, senior California strategist, BlueGreen Alliance
