Governor Newsom Responds to Valero Benicia Refinery Update

The Newsom administration is actively collaborating with Valero regarding the Valero Benicia refinery. This partnership aims to maintain stable fuel supplies as California transitions to cleaner energy sources. Siva Gunda, Vice Chair of the California Energy Commission (CEC), expressed gratitude for Valero’s commitment to this process, emphasizing the importance of their ongoing collaboration.

California’s Commitment to Fuel Supply Stability

The state of California remains dedicated to ensuring a reliable, affordable fuel supply. The CEC, alongside state partners, is engaging with various market stakeholders to protect consumers while advancing energy transition efforts. Notably, operations at Valero’s Wilmington Refinery in Los Angeles County continue unaffected.

Legislative Support for Energy Transition

Governor Newsom has introduced significant measures to support California’s energy strategy. Last year, he sanctioned a bipartisan legislative package designed to stabilize the petroleum market, reduce emissions, and save residents substantial costs.

• SB 237: Legislation aimed at enhancing crude oil production in Kern County, increasing domestic supply.
• SB X1-2 (2023): Legislation that mandates refineries provide advance notifications of planned closures, ensuring better market transparency.
• AB X2-1 (2024): Follow-up legislation focused on price volatility and consumer protection.

These laws have allowed California to anticipate potential supply disruptions, particularly concerning Valero Benicia, thus facilitating better coordination for fuel stability.

Global Context and California’s Success

Despite global trends of refinery closures, California is successfully mitigating severe gasoline price fluctuations. The state has introduced robust transparency regulations, which empower the CEC to safeguard consumers during the transition from petroleum-based transportation.

Achievements in Fuel Price Stability

The reforms implemented by Governor Newsom have led to a reduction in gasoline price volatility since 2022. Retail gasoline prices in 2025 have shown greater stability, even amidst refinery closures and maintenance outages in Southern California.

Overall, California demonstrates that it is possible to protect consumers while leading the charge towards a cleaner energy future.