San Diego City Wire

Senate Minority Leader Brian W. Jones (R-San Diego) has expressed concern about the potential impacts following the announcement from Valero Energy Corporation regarding the Benicia refinery. Jones attributes the decision to what he describes as the radical energy policies of Governor Newsom and Sacramento Democrats, warning of rising gas prices, possible fuel shortages, job losses, and increasing costs.

"Valero intends to shut down its Benicia refinery thanks to Newsom and radical Democrats' extreme regulations and hostile business climate," said Jones. "They’re attacking the very energy suppliers we rely on, despite the consequences we’re already seeing: lost jobs, higher costs for businesses, and rising prices on everyday goods."

Jones emphasized that California families, who are already facing the highest gas prices in the nation, will be paying more.

Valero is considering idling, restructuring, or ceasing operations at its Benicia refinery by April 2026. This aligns with a noted trend of energy companies leaving California, citing regulatory challenges and high costs. Last year, Phillips 66 closed a Los Angeles refinery, and Chevron announced its headquarters' move to Houston, citing a friendlier business environment.

California's policies, driven by the California Air Resources Board (CARB) and certain state mandates, have been criticized for their effect on the energy sector. The Phillips 66 closure affected 600 employees and 300 contract workers, while Chevron's relocation led to 600 job losses in California. Benicia officials anticipate significant impacts on their community following Valero's announcement.

A study by Michael Mische from the USC Marshall School of Business claims that California's fuel issues stem largely from its own regulatory policies and economic decisions.

"The damage doesn’t stop at the pump," stated Jones. He noted the broader impacts on various sectors, including grocery and goods deliveries and public service vehicles.

Jones had previously warned of rising gas prices, suggesting that the effects of current energy policies are already manifesting.