California Considers Paying Valero to Continue Operating Refinery, Bloomberg Says, Citing Sources

--California lawmakers are weighing a deal with Valero Energy, under which the state would pay the oil refiner hundreds of millions of dollars to prevent the closure of a San Francisco-area fuel plant, Bloomberg reported, citing people familiar with the matter.

--Between $80 million and $200 million of state funds could be earmarked for refinery maintenance costs, allowing Valero to continue operating its Benicia refinery, which is currently slated to close by April, the people said, according to the report.

--Legislators discussed the deal as recently as this past weekend and have until late Tuesday to submit bills for consideration, absent a deadline extension, according to Bloomberg.

--Valero didn't respond to requests for comment, and neither California Governor Gavin Newsom's office nor representatives for state senate and assembly leaders responded to inquiries left outside of normal business hours, Bloomberg reported.

Full article at https://www.bloomberg.com/news/articles/2025-09-09/california-may-pay-valero-hundreds-of-millions-to-keep-sf-bay-area-refinery-open

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 09, 2025 12:34 ET (16:34 GMT)