Photo above: The Valero Benicia Refinery in 2011, years before Valero idled it in 2026. Downtowngal, CC BY-SA 3.0, via Wikimedia Commons.
It means the refinery no longer makes fuel, but the site is not empty and its future is not settled. Valero finished idling every processing unit at its Benicia Refinery in April 2026, it is keeping its permits, and a redevelopment plan has been filed with the city but not approved, so buy based on what you can check today, not on what someone thinks the site will become.
Below is the timeline from official sources, the open questions, and the free tools that let you look up the address you care about.
What actually happened, and when?
The short version: announced in April 2025, finished in April 2026. Here are the dated steps, from the company, the city, the state and the air district.
- October 31, 2024. The Bay Area Air Quality Management District and the California Air Resources Board announced a penalty of nearly $82 million against Valero Refining Co. for violations at the Benicia refinery, the largest in the air district’s history. More than $64 million is set to go to local projects that reduce air pollution exposure near the refinery (BAAQMD news release, October 31, 2024).
- April 16, 2025. Valero announced it had notified the California Energy Commission of its intent to idle, restructure or cease refining in Benicia by the end of April 2026 (Valero news release, April 16, 2025). The City of Benicia put out its own release that day, noting Valero has owned the plant since 2000 and that it was built in 1968 and 1969 (City of Benicia press release, April 16, 2025).
- September 2025. The city released a study by HdL ECONSolutions on what the closure could cost city revenue (more on that below).
- January 6, 2026. The Governor’s office said the refinery would keep producing gasoline through April 2026, then keep importing gasoline into Northern California after it fully idled (Office of the Governor, January 6, 2026).
- First quarter 2026 to April 2026. Valero began idling processing units in phases, stopped running the fuel production units, and completed full idling of all processing units in April 2026 (Valero, Benicia Refinery page, and Valero Form 10-Q for the quarter ended June 30, 2026).
What is on the site right now?
An idled plant that is still permitted and still in use for fuel supply. Valero says it plans to keep all required operating permits and keep the facilities in an idled condition while it looks at redevelopment options, and to keep supplying Northern California customers through imports or other arrangements (Valero, Benicia Refinery page, checked September 24, 2026).
Valero’s own filing shows decommissioning spending has started: it reported settling about $170 million of the asset retirement obligation for its Benicia Refinery in the six months ended June 30, 2026 (Valero Form 10-Q for the quarter ended June 30, 2026, filed July 30, 2026, Note 2). We found no official date for how long the import and supply use will continue.
How does it affect the City of Benicia’s budget?
A lot, by the city’s own numbers. The study the city commissioned found:
- Valero was the city’s largest utility users tax payer, projected at $4.42 million in fiscal year 2025-2026.
- Valero parcels brought the city about $2.9 million a year in property tax, and the city could lose about $2.64 million of that if the plant’s equipment and buildings lose their assessed value.
- Valero paid about $2.7 to $3 million a year into the city’s Water Enterprise Fund.
- Total yearly losses could exceed $10.6 million, and the study says the timing is uncertain.
Source: HdL ECONSolutions for the City of Benicia, “Economic Impact of Valero Refinery Closure,” September 2025.
The city has also put two linked measures on the November 3, 2026 ballot. Measure Y would make Benicia a charter city, which the City Attorney says is legally necessary for Measure Z, a new city real property transfer tax. Measure Z exempts residential homes built before January 1, 2027 that sell for $2 million or less (City Attorney’s Impartial Analysis of Measure Z, August 11, 2026). We take no position on either measure. The full analyses and the arguments for and against are on the city’s elections page. Ask a tax professional how any tax change affects you.
What will be built on the refinery land?
A plan is on file, and nothing is approved. The city’s September 2025 study says Valero retained Signature Development Group, an Oakland developer, to study long-term reuse of the roughly 900-acre property.
The City of Benicia now lists “Refinery Redevelopment” among its current planning applications: approximately 900 acres, with approximately 3,500 homes, up to 600,000 square feet of commercial space, up to 3 million square feet of industrial space and approximately 150 acres of parks and open space (City of Benicia, Current Development page, checked September 24, 2026). Signature Development Group submitted preliminary plans to the city on May 15, 2026, and held developer open houses on August 3 and September 2, 2026 (City of Benicia, checked September 24, 2026).
As of September 24, 2026, no Planning Commission or City Council hearing on the plan has been held, and nothing has been approved. Until the city approves something, treat every site plan as a proposal that can change.
What is still unknown?
More than is known. As of September 24, 2026, we found no official answer to these:
- When the Planning Commission and City Council will hear the redevelopment plan, and what they will approve.
- How much cleanup the site will need, who oversees it, and how long it takes.
- How long the import and storage use continues.
- How much city revenue actually drops, and when.
- Whether air readings near the plant have changed since idling. We found no official summary comparing before and after.
Will home values in Benicia go up or down because of this?
We won’t guess, and you should be careful with anyone who does. We found no official study of how the idling changes Benicia home prices. When we price a home or help you write an offer, we use recent sales of similar homes nearby. Those sales already reflect what buyers are paying with the refinery idled.
How do I check a specific Benicia address?
Four free lookups. Run them before you commit, not after.
- Benicia’s Incident Notification System. The city started it in 2021 to send texts or emails about non-emergency events such as routine refinery flaring or drift smoke. Sign up on the city’s Notifications page (City of Benicia, checked September 24, 2026).
- AlertSolano. Emergency alerts for Benicia and the rest of Solano County go through AlertSolano. The city’s sirens are tested on the first Wednesday of each month at 11:00 a.m. (City of Benicia, Community Alert System page, checked September 24, 2026).
- Air district flare data. BAAQMD lists monthly flare reports for Valero Benicia, including 2026, for its Acid Gas, North and South flares (BAAQMD, Flare Data page, checked September 24, 2026). Read the months before and after April 2026.
- CalEnviroScreen 5.0. The state released it on July 1, 2026. It maps pollution burden by census tract, so you can compare the tract for your home with the tracts around it (CalEPA news release, July 1, 2026; OEHHA, checked September 24, 2026).
Valero also runs a fenceline air monitoring site, beniciarefineryairmonitors.org, which was online on September 24, 2026. It is company-run, so read it next to the air district’s data.
Then ask for the Natural Hazard Disclosure report and the seller’s disclosures, and read anything about odors, noise or nearby industrial use. For questions about your health, talk to your doctor or Solano County Public Health. We are real estate agents, and health is outside what we can advise on.
Questions people also ask
When did the Valero Benicia refinery close?
Valero says it began idling processing units in phases in the first quarter of 2026 and completed full idling of all processing units in April 2026, per its Benicia Refinery page and its Form 10-Q for the quarter ended June 30, 2026. The company announced the plan on April 16, 2025, after notifying the California Energy Commission.
Is Valero still using the Benicia site?
Yes. Valero says it plans to keep all required operating permits and expects to keep supplying Northern California customers through imports or other supply arrangements, per its Benicia Refinery page and its Form 10-Q for the quarter ended June 30, 2026. The refining units themselves are idled. We found no official end date for the supply use.
How much money does Benicia lose from the refinery closing?
A September 2025 study for the city by HdL ECONSolutions estimated yearly losses that could exceed $10.6 million, including $4.42 million in utility users tax and about $2.64 million in property tax. It also found Valero paid about $2.7 to $3 million a year into the city’s water fund. The study says the timing is uncertain.
What is going to be built on the Valero refinery site?
Nothing has been approved. The City of Benicia lists a Refinery Redevelopment application for about 900 acres, with approximately 3,500 homes, commercial and industrial space and about 150 acres of parks and open space. Signature Development Group submitted preliminary plans on May 15, 2026. No Planning Commission or City Council hearing had been held as of September 24, 2026.
Your next step
Send us the Benicia address you’re considering. We’ll pull recent nearby sales, the flare history and the disclosure documents so you can see it all in one place. Ask a Benicia agent on our team or call (510) 949-5525.
More on Benicia: Living in Benicia, CA · Benicia market update · What’s my home worth?
By Bill Davis, DRE #01880656, The Davis Team at eXp Realty, Benicia, CA. Updated September 24, 2026.
Sources
- Valero, Benicia Refinery: valero.com/about/locations/benicia-refinery (checked September 24, 2026)
- Valero Energy Corp., Form 10-Q for the quarter ended June 30, 2026, filed July 30, 2026, Note 2: sec.gov (checked September 24, 2026)
- Valero, “Valero Announces Notice to the California Energy Commission Regarding its Benicia, California, Refinery,” April 16, 2025: investorvalero.com
- City of Benicia, “Valero Benicia Refinery Announces Intent to Cease Operations in 2026,” April 16, 2025: ci.benicia.ca.us
- HdL ECONSolutions for the City of Benicia, “Economic Impact of Valero Refinery Closure,” September 2025: ci.benicia.ca.us
- Office of the Governor, statement on Valero’s Benicia refinery update, January 6, 2026: gov.ca.gov
- Bay Area Air Quality Management District, news release on the Valero penalty, October 31, 2024, and Flare Data: baaqmd.gov (checked September 24, 2026)
- City of Benicia, Current Development page (Refinery Redevelopment): ci.benicia.ca.us/currentdevelopment (checked September 24, 2026)
- City of Benicia, Notifications and Community Alert System pages: ci.benicia.ca.us (checked September 24, 2026)
- City of Benicia, City Attorney’s Impartial Analysis of Measure Z, August 11, 2026: ci.benicia.ca.us/elections
- CalEPA, news release on CalEnviroScreen 5.0, July 1, 2026, and OEHHA CalEnviroScreen page: calepa.ca.gov, oehha.ca.gov/calenviroscreen (checked September 24, 2026)