A fire at the Valero refinery in Benicia lead to a shelter-in-place and comes soon after the company said it intends to close or "restructure" the facility.
BENICIA, Calif. - The Valero Refinery on Monday morning was on fire in Benicia, according to the fire department.
The fire was reported at about 8:45 a.m. and was under control about an hour later, firefighters said.
Bill Wachob came outside to film all the black smoke billowing for miles.
"Everything was blowing across the straits," he said.
Health concerns over smoke
What we know:
Contra Costa Health spokeswoman Brittany Goldman said the agency is aware of the fire and sending a HazMat team to Martinez to monitor for potential impacts.
And a Cal-OSHA investigator was sent out to assess what happened and if any workers were injured.
In a statement on Monday, Valero said company emergency crews responded and they will watch the air quality for safety issues.
"The safety of our workers and community is our priority and we are coordinating with state and local authorities," the company wrote.
Refinery's future in doubt
What they're saying:
Last month, Valero announced its refinery would stop operating by next April.
The company has submitted notice to the California Energy Commission stating it plans to "idle, restructure, or cease" refining operations at the Bay Area facility. Valero has owned and operated the refinery since 2000 and is one of the largest employers in Benicia and Solano County.
It is a move that city officials say would deliver a significant blow to the local economy.
Valero did not get back to KTVU's inquiry about how bad the fire damage was or how long the refinery might be down.
Will gas prices spike?
"If all of these things come to pass, the impact on gas supply - and therefore gas prices - is going to be significant," Benicia Mayor Steve Young told KTVU. "I do believe that it's going to happen, and that we need to plan accordingly. It's going to have a big impact on the community, and not in a positive way."
Young said the refinery has contributed up to $12 million to Benicia.
"If we actually lost all of the refinery output of Valero for a significant amount of time suddenly, that would be a real shock to the system. So, we would probably see some significant price increases," said Professor Severin Borenstein, a world-renowned energy economist of UC Berkeley’s Energy Institute at Hass Graduate School of Business.
Two of the Bay Area's five refineries have switched over to making renewable diesel fuel, leaving just three gasoline producers.
With a huge Phillips 66 gasoline refinery in Southern California closing at year's end, "That would be losing nearly 20% of the gasoline production in the state," said Borenstein.
The Valero team did not lay out exact plans for other refineries in California, saying only that the company is evaluating "strategic alternatives" for those operations.
More than 400 employees at the refinery could be seeking new employment after the closure.
The company said in a statement that the decision follows years of regulatory pressure, significant fines for air quality violations, and a recent lawsuit settlement related to environmental concerns.
In October, Valero was fined nearly $82 million by the Bay Area Air Quality Management District - the largest penalty ever issued by the agency. The fine stemmed from a history of toxic chemical releases and other violations dating back to 2003. A 2019 inspection found the company failed to report toxic emissions from the facility’s hydrogen system.
Valero Refinery on fire. May 5, 2025
Valero Refinery on fire. May 5, 2025