The Newsom administration is focused on keeping fuel supply reliable while California transitions to cleaner energy. They’re collaborating with Valero to ensure the Benicia refinery continues operations. Siva Gunda, Vice Chair of the California Energy Commission, praised Valero for its teamwork in exploring options to maintain fuel availability in Northern California.
Operations at Valero’s Wilmington Refinery in Los Angeles remain steady, showing consistency in the state’s fuel supply.
Governor Newsom, backed by the Legislature, has made moves to bolster California’s in-state fuel production. Last year, he approved important legislation aimed at stabilizing fuel markets, reducing pollution, and saving money for Californians. One key law, SB 237, boosts crude oil production in Kern County, supporting domestic supply during the energy transition while prioritizing health and environmental safeguards.
In response to dramatic gas price hikes in 2023 and 2024, the Governor acted swiftly, calling special legislative sessions. New laws, SB X1-2 and AB X2-1, enhance transparency from refineries. They require companies to announce any planned closures at least a year ahead, addressing potential supply disruptions like those seen at the Valero facility.
These measures are crucial for consumers, as they help prevent surprising spikes in gas prices, making California’s market one of the most transparent in the country.
The Bigger Picture
It’s important to understand that refinery closures aren’t just a California issue; it’s happening worldwide as the industry shifts to larger facilities. According to a report from Wood Mackenzie, refining capacity is shrinking globally, moving towards megarefineries.
In California, the reforms are already showing positive effects. Retail gas prices have remained lower and more stable in 2025 compared to previous years, even with one refinery shutting down and others undergoing maintenance.
By balancing consumer protection with the transition to clean energy, California is setting an example of how reliability and sustainability can coexist. This approach illustrates a commitment to both environmental goals and economic stability, addressing the needs of residents while paving the way for a cleaner future.
For more on global refinery trends, check the detailed insights from Wood Mackenzie here.
