Critical California oil refinery hit with $3.25M fine from pollution agency even after announcing closure

A California oil refinery has been fined $3.25 million by the pollution board despite it shutting down operations in the anti-gas state.

The Bay Area Air Quality Management District announced Tuesday it was slapping Valero with the charges due to air quality concerns over the last few years.

The climate warriors claim there have been multiple operational and equipment-related incidents that the company has not been held accountable for.

It comes as yet another blow for oil giants in California that have contributed to skyrocketing gas prices and depleted fuel stockpiles.

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 “118 air quality violations that stem from multiple incidents and ongoing compliance issues at the Benicia refinery.”

He continued: “This penalty holds Valero accountable for air quality violations and makes clear that noncompliance has consequences.

“In 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.

“Strong enforcement and transparency are essential to protecting public health and ensuring lasting accountability.”

The announcement noted that Valero has since made the necessary improvement to “equipment and updates to monitoring and operational practices” 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 “provide public access to real-time and historical data that can be easily downloaded.”

The million dollar funds BAAQMD will collect will go towards “supporting local and regional projects that improve air quality and public health,” 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 state’s refining capacity.

In 2025, more than 61% of the state’s 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 California’s gasoline production capacity.

When it announced the closure, Phillips 66 pointed to declining gasoline demand, rising costs, and the challenges of operating under CA’s strict environmental and fuel regulations.

At one point, the Valero refinery was operating with roughly 400 employees. As the idling operations set in, there’s 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 Newsom’s 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.