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The Benicia refinery was a major Northern California asset with a crude oil capacity of approximately 170,000 barrels per day, processing sour crude oils into gasoline, diesel, jet fuel and asphalt, and supplying a significant portion of the region’s CARBOB (California Reformulated Gasoline) and jet fuel. The refinery received crude oil feedstocks via a marine dock and crude oil pipelines connected to a southern California crude oil delivery system. Most of the refinery's products were distributed via pipeline and truck rack into Northern California markets. Since Valero’s acquisition in 2000, the facility had been continually improved and upgraded.

Valero officially stopped fuel production and closed its Benicia Refinery by the end of April 2026, ending refining operations at the site after citing California's strict regulatory and enforcement environment:

• Timeline: Valero phased out processing units through early 2026 before completely halting fuel manufacturing by late April 2026. Part of the facility is being transitioned to store imported gasoline.
• Capacity Loss: The shutdown eliminated about 170,000 barrels per day of capacity, representing roughly 17% of California's total petroleum refining capacity.
• Local Impact: The closure affected roughly 400 direct employees and cost the city of Benicia nearly $8 million to $12 million annually in lost revenue and taxes.
• Reasoning: Valero pointed to high operating costs and stringent environmental rules as the main drivers for exiting refining operations at the plant.