Under Valero\u2019s updated plan, the Benicia refinery will continue producing gasoline through April 2026, and then continue importing gasoline into Northern California beyond April once the refinery fully idles\u2014a strategy that will help maintain steady supply and stable prices as discussions continue on a path forward for the refinery.<\/p>\n<\/div>\n<\/div>\n
While others point fingers to spread fear and divide us, California is doing the actual work\u2014collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs. We\u2019re in ongoing discussions with Valero to evaluate options for continued operations at the\u00a0Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.<\/p>\n
Governor Gavin Newsom<\/small><\/p>\n<\/div>\n<\/div>\n 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\u2019s ongoing energy transition, reinforcing the state\u2019s commitment to maintaining a stable, affordable fuel supply for Californians.<\/p>\n \u201cWe 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,\u201d\u00a0said Siva Gunda, CEC Vice Chair<\/strong>. \u201cThe 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\u2019s climate goals.\u201d<\/p>\n Operations at Valero\u2019s Wilmington Refinery in Los Angeles County remain unchanged.<\/p>\n Thanks to Governor Newsom and the Legislature\u2019s 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\u00a0signed<\/a>\u00a0a historic package of bipartisan legislation to stabilize the petroleum fuels market, cut pollution, and save Californians billions. This package included SB 237 \u2014 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.<\/p>\n 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 \u2014 SB X1-2 (2023) and AB X2-1 (2024) \u2014 strengthened California\u2019s 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\u2019s transition to a cleaner, more affordable energy future.<\/p>\n California is proving that it can protect consumers, maintain reliable fuel markets, and lead the global clean-energy transition at the same time.<\/p>\n MYTH:<\/strong>\u00a0Refinery idling or closures are unique to California<\/p>\n FACT:\u00a0<\/strong>This trend is not unique to California. Refineries are\u00a0closing globally<\/a>, 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\u2019s transition away from petroleum-based transportation.<\/p>\n 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.<\/p>\n<\/div>\n<\/div>\n MYTH:<\/strong>\u00a0California\u2019s energy policies threaten military fuel supply and readiness<\/p>\n FACT:\u00a0<\/strong>Claims that California\u2019s energy policies threaten military fuel supply or readiness are not grounded in fact. The CEC has engaged directly with defense-related fuel customers throughout refinery transitions, and no credible concerns have been raised about future military fuel procurement. Reliable alternatives \u2014 including imports \u2014 remain available, ensuring continued access to necessary fuels.<\/p>\n MYTH:\u00a0<\/strong>California\u2019s clean energy transition weakens energy security and makes the state less reliable<\/p>\n FACT:<\/strong>\u00a0California\u2019s transition is strengthening energy security by expanding in-state energy production. We are building record levels of clean, in-state power. In the third quarter of 2025, Californians purchased 124,755 zero-emission vehicles, the\u00a0highest quarterly sales share ever reported<\/a>\u00a0in California. California\u2019s fuel supply is also becoming more secure and less oil-dependent \u2014 nearly 65% of all diesel used for transportation in the state is now renewable diesel, according to the\u00a0U.S. Energy Information Administration<\/a>.\u00a0By expanding EV manufacturing, charging infrastructure, and homegrown renewable energy, California is reducing dependence on foreign crude and strengthening energy security by generating electricity here in America.<\/p>\n Pollution is down and the economy is up. Greenhouse gas emissions in California are down\u00a021% since 2000<\/a>\u00a0\u2014 even as the state\u2019s GDP increased 81% in that same time period, all while becoming the world\u2019s fourth largest economy.<\/p>\n California also continues to set clean energy records. In 2023, the state was powered by\u00a0two-thirds clean energy<\/a>, the largest economy in the world to achieve this level. California has also run on 100% clean electricity for part of the day\u00a0almost every day last year<\/a>.<\/p>\nMaintaining stability today while accelerating the clean energy future<\/h2>\n
Setting the record straight<\/h2>\n
![\"\"](\"https:\/\/www.gov.ca.gov\/wp-content\/uploads\/2026\/01\/chart.png\" "\\"\\"")
<\/span><\/div>\nCalifornia\u2019s climate leadership<\/h2>\n