In what officials are calling a "constructive development," California Governor Gavin Newsom today thanked Valero Energy Corporation for agreeing to stop making gasoline in the state and instead import it from elsewhere, a move the administration says will strengthen energy security by making the state more dependent on external sources.
The announcement follows Valero's decision to "idle" its Benicia refinery—not close it, officials stressed, using a word that means the same thing but sounds more temporary—and transition to importing refined petroleum products. Governor Newsom praised the company for "planning responsibly," a phrase that in this context means "leaving quietly and with sufficient notice."
Under the new arrangement, the refinery will continue producing gasoline through April 2026, after which it will continue supplying California's market by purchasing gasoline made elsewhere and shipping it in. State officials described this as "maintaining supply," which is technically accurate in the same way that a restaurant that stops cooking and starts ordering DoorDash is "maintaining its menu."
"We want to express our appreciation to Valero for continuing to work with us collaboratively," said CEC Vice Chair Siva Gunda, expressing gratitude to a company for agreeing to do less in California. The statement did not clarify what exactly the state was appreciating—the leaving, the manner of leaving, or the advance notice of leaving—but emphasized that all parties were working together very collaboratively on the process of Valero no longer being here.
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The Art of the Constructive Development
The press release framed the refinery's departure as part of California's "all-of-the-above energy strategy," a phrase that apparently now excludes above-ground refineries. The state's approach, officials explained, involves making less gasoline here while buying more from elsewhere, which they describe as "energy security."
"While others point fingers to spread fear and divide us, California is doing the actual work," Governor Newsom stated, describing the actual work as watching a refinery close and then buying imports. The statement emphasized that California is "collaborating with industry," which in this case means accepting industry's decision to leave.
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Setting the Record Straight on Things No One Said
Perhaps the most illuminating section of the press release was its "Setting the Record Straight" segment, which rebutted three myths with the enthusiasm of someone who had been waiting for someone—anyone—to spread them.
MYTH: Refinery closures are unique to California. FACT: This is happening everywhere, globally, which is why California passed California-specific emergency legislation to deal with it. The release did not explain why a global trend required state-specific emergency powers, but the question wasn't asked because the question wasn't anticipated because it would have been a good one.
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The state also debunked claims that its policies threaten military fuel supply, noting that "no credible concerns have been raised"—a defense that works better when someone has actually raised the concern rather than when you're preemptively denying something that sounds like it might be a concern but maybe isn't yet but could be so let's get ahead of it.
The Transparency Victory Lap
Much of the press release celebrated California's transparency requirements, specifically the law requiring refineries to provide advance notice before closing. Officials praised this as a policy success: they now know when refineries are leaving. What happens after they know remains less clear, but the knowing itself is the achievement.
"These reforms gave California early visibility into potential supply disruptions at Valero Benicia, allowing California to prepare and coordinate," the statement read. The preparation and coordination, it turns out, consists primarily of preparing statements about the coordination and coordinating on the statements about the preparation.
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The Statistics That Prove Something
The release concluded with statistics designed to demonstrate California's climate leadership: greenhouse gas emissions down 21% since 2000, GDP up 81% in the same period. Left unmentioned was the relationship between these two facts and the refinery closure, or whether "GDP up while making less" is the economic model they're proposing.
Officials also noted that California ran on 100% clean electricity "for part of the day almost every day last year," a phrasing that works harder than any phrase should have to. The state is now 33% of the way to its 2045 goal of 100% clean electricity, suggesting that the math of energy transition works differently than the math of refinery closures.
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The Path Forward
The Newsom administration and Valero have pledged to "continue working closely together to explore opportunities for continued refinery operations," a phrase that does a lot of heavy lifting given that the refinery's operations are, by the administration's own announcement, not continuing. The exploration, presumably, will continue until everyone forgets there was supposed to be a destination.
In the meantime, California has achieved what few thought possible: energy independence through dependence, supply security through importing, and transparency about a process that remains opaque. The refinery is idling—not closing, idling—and the state is winning. Don't ask what, exactly, it's winning. That's not the kind of question they prepared a myth-busting section for.
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