Benicia City leaders are searching for solutions after Valero Refining Company announced plans to idle operations in April 2026. City Manager Mario Giuliani emphasized the urgency due to fast-approaching deadlines. The city is preparing for significant revenue loss, anticipating a $10 million deficit on a $16 million budget. Additionally, Gavin Newsom's law allowing penalties for oil companies for excess profits has yet to see any enforcement. California Energy Commission Vice Chair Siva Gunda proposed pausing penalties, advocating for strategies to phase out petroleum and protect stakeholders during the transition.
The city has been working diligently to find solutions to this depth of a loss. We have multiple task forces talking. We're trying to prepare for the huge revenue loss to the city, but overall still communicating and forming action plans.
The city is preparing to have a significant and seismic shift with losses. There is a potential of a $10 million loss on a $16 million budget.
Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers.
The California Energy Commission hasn't imposed a single penalty or determined what counts as an excessive profit since the law was signed.
#valero-refining-company #benicia #california-energy-commission #revenue-loss #oil-industry-transition
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