The Valero Refining Company informed Benicia officials with a Tuesday letter that it will soon be idling the refinery processing units at its facility.
This comes after Valero-California submitted notice to the California Energy Commission last year of its intent to idle, restructure, or cease refining operations at the Benicia Refinery, located at 3400 East 2nd St., by the end of April.
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The letter was sent to Benicia Mayor Steve Young, as well as President/Executive Director Workforce Development Board of Solano County, David Hubble, and Solano County Supervisor Mitch Mashburn.
The letter states that the idling of the refinery processing units will be permanent and is expected to impact the employment losses of 237 of the 348 employees at the facility. The 237 employees affected are expected to be separated from employment starting March 15 and concluding on July 1.
“The employees at the plant are not represented by a union and do not have bumping rights. We do not plan to coordinate services with the local workforce development board or any other entity,” Valero Vice President and General Manager Lauren Bird wrote in a letter to the officials mentioned above. “Local Workforce Development Boards and their partners help laid-off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career.”
Bird went on to write that the Workforce Development Board of Solano County can be reached by phone at (707) 648-4024 for the Vallejo office, at (707) 863-3500 for the Fairfield office, or by email at info@solanowdb.org.
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States, Canada, the United Kingdom, Ireland, and Latin America. It owns 15 petroleum refineries located in the United States, Canada, and the UK with a combined throughput capacity of approximately 3.2 million barrels per day.
The news came despite the efforts of legislators working around the clock during the summer to reverse the decision. Benicia City Manager Mario Giuliani told the Times-Herald in September that, “Benicia can now proceed with the closure of the refinery in April or possibly sooner.”
“State officials have been working feverishly to explore other options since April, but it seems with no new news in the last few days, that the clear option that would make Valero stay didn’t work in their best interests,” Giuliani said in September. “Certainly, as a city manager and longtime resident, I’m disappointed that a solution wasn’t made. This is not only going to impact Benicia, but California as well. It’s frustrating because the city was finally in a position to turn the corner.
“Now we’re going to have significant and seismic changes,” the city manager said.
Giuliani said that there is $60 million in the general fund budget and that it will now have to be reduced by $7.7 million by July.
“It’s a problem we’re going to have to solve, and it’s certainly difficult,” Giuliani said. “But while a difficult challenge, Benicia has been given the pen to be the author of the next chapters of the city’s history.”
Valero Headquarters in San Antonio, and has more than 9,900 employees, with approximately 400 at the Benicia venue. That refinery has a throughput capacity of 170,000 barrels per day, according to the company. According to a list from the California Energy Commission, Benicia has 8.94 percent of the state’s crude oil capacity.
“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Chairman, CEO, and President of Valero in September.
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