As California navigates its energy transition, a collaborative effort between the Newsom administration and Valero is set to ensure stable fuel supplies. This partnership is an integral part of the state’s strategy to maintain affordability and reliability in fuel supply amidst the changing energy landscape.
“We 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,” said Siva Gunda, CEC Vice Chair. “The 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’s climate goals.”
No changes have been reported in the operations at Valero’s Wilmington Refinery in Los Angeles County.
Maintaining stability today while accelerating the clean energy future
California’s proactive planning and consumer protection, led by Governor Newsom and the Legislature, are key to strengthening in-state fuel supply and promoting cleaner energy. In a notable move last year, the Governor signed a significant legislative package aimed at stabilizing the petroleum market, reducing pollution, and saving billions for residents. This included SB 237, which enhances crude oil production in Kern County, thereby supporting California’s long-term energy strategy while maintaining rigorous health and environmental standards.
In response to gasoline price surges in 2023 and 2024, Governor Newsom convened special legislative sessions to address these challenges and shield Californians from future supply disruptions. The legislative outcomes, SB X1-2 (2023) and AB X2-1 (2024), introduced unprecedented transparency requirements for refineries, mandating advance notice of closures. Such measures have enabled the state to anticipate supply issues, as seen with Valero Benicia, ensuring stability in fuel availability.
Setting the record straight
MYTH:
Refinery idling or closures are unique to California
FACT:
This phenomenon is not exclusive to California. Globally, refineries are shutting down and consolidating into megarefineries. In response to this global trend, Governor Newsom’s legislative actions in 2023 and 2024, resulting in SB X1-2 and AB X2-1, provided the California Energy Commission (CEC) with necessary regulatory and transparency tools to maintain a stable fuel supply during this transition.
These measures have proven effective, as California has managed to avoid the severe gasoline price spikes of 2022 and 2023. In 2025, gasoline prices have remained lower and more stable, even with a southern California refinery closure and multiple others undergoing maintenance.
Original Story at www.gov.ca.gov