A California oil refinery has been hit with a substantial $3.25 million fine by the Bay Area Air Quality Management District, despite its decision to cease operations in the state known for its stringent environmental policies.
The Air Quality Management District revealed on Tuesday that it imposed the fine on Valero due to ongoing concerns about air quality violations over recent years. The district highlighted multiple incidents related to the refinery’s operations and equipment that allegedly went unaddressed by the company.
This development adds to the challenges facing oil companies in California, which have been under scrutiny for contributing to rising gas prices and diminishing fuel reserves. The penalty against Valero can be interpreted as a decisive action by the state, coinciding with the refinery’s announcement to close its West Coast operations later this month.
Dr. Philip Fine, the executive officer of the Air District, stated that the fine was levied due to “118 air quality violations resulting from multiple incidents and persistent compliance issues at the Benicia refinery.” This move underscores California’s commitment to holding companies accountable for their environmental impact.
The attack on Valero may also be seen as a parting shot from the Democratic state after the refinery announced it will shutter operations on the West Coast this month.
Dr. Philip Fine, executive officer of the Air District, said Tuesday Valero was being targeted due to â118 air quality violations that stem from multiple incidents and ongoing compliance issues at the Benicia refinery.â
He continued: âThis penalty holds Valero accountable for air quality violations and makes clear that noncompliance has consequences.
âIn addition to the financial penalty, this action strengthens air monitoring and public access to essential data so the Benicia community can see what is happening at the refinery through the idling of operations.
âStrong enforcement and transparency are essential to protecting public health and ensuring lasting accountability.â
The announcement noted that Valero has since made the necessary improvement to âequipment and updates to monitoring and operational practicesâ in order to be in compliance with the air district.
In addition to the fine, the agency called on the company to be transparent with the community as the refinery goes idle.
One of the requests included that it âprovide public access to real-time and historical data that can be easily downloaded.â
The million dollar funds BAAQMD will collect will go towards âsupporting local and regional projects that improve air quality and public health,â it claimed.
Valero Energy Corp. announced its plans last spring to pull the plug on its 145,000-barrel-per-day refinery in the Bay Area by April, a move that has helped hobble the stateâs refining capacity.
In 2025, more than 61% of the stateâs crude oil came from foreign sources. At the same time, refinery shutdowns by Phillips 66 and the company have wiped out roughly 17% to 20% of Californiaâs gasoline production capacity.
When it announced the closure, Phillips 66 pointed to declining gasoline demand, rising costs, and the challenges of operating under CAâs strict environmental and fuel regulations.
At one point, the Valero refinery was operating with roughly 400 employees. As the idling operations set in, thereâs expected to be only 20 employees left at the facility, per the Benicia Independent.
The refinery closure comes as drivers in LA and across the state continue to contend with sky-high gas prices. As of Wednesday, the average price in the Golden State is $5.98 a gallon, according to AAA.
The situation in California is made worse by Gov. Gavin Newsomâs green agenda, which risks sending the price of a gallon above $8 per gallon, lawmakers and experts have warned.
The Post reached out to Valero and BAAQMD for further comment.
