Valero Energy Corp. notified the California Energy Commission last week of its intention to make major changes to its Benicia refinery operations by next year, which may include closure. In addition to making fuel and other petroleum products, the facility also is a major supplier of liquid asphalt in Northern California.

The Governor's Office declined to comment, and referred calls to the California Energy Commission. When contacted by Asphalt Insider, the CEC released the following statement from Commission Vice Chair Siva Gunda: "The California Energy Commission (CEC) is committed to its efforts to collaborate with the industry and stakeholders so that the state continues to have a safe, reliable and affordable supply while transitioning away from fossil fuels. As required under Senate Bill X1-2, Valero Refining Company notified the CEC of its intent to idle, restructure or cease operations at its Benicia Refinery by the end of April 2026. This advance notification helps the state to continue to closely monitor the evolving conditions in the fuel supply market and proactively plan and take steps to support the transition in the state’s fuel supply. The CEC will continue to work in partnership with the industry and stakeholders to protect consumers during this transition."

The April 16 notification triggered a number of follow-up announcements as company employees, customers and others sought to process the news. Valero CEO Lane Riggs sent a notice to all employees stating, "This morning, Valero announced that its subsidiary, Valero Refining Company-California, has submitted notice to the California Energy Commission of its current intent to idle, restructure, or cease refining operations at the Benicia Refinery by the end of April 2026 and that it will record a financial impairment of the West Coast refining operations. This notice was not made lightly, and occurred only after pursuing other strategic alternatives.

"We understand this will impact our Benicia employees, business partners and community. We are committed to providing resources and support to our employees through this period. In the interim, our focus must be on maintaining safe and stable operations, and Valero is committed to providing the resources necessary to ensure this."

Later, with regard to the Benicia liquid asphalt operations specifically, Valero sent the following notice to its customers:

"As our organization continues to evaluate the path forward, Valero’s Asphalt team remains committed to meeting our existing commercial obligations. Our customers and business partners have been central to our operations in the California market, and we will strive to provide the reliable supply and outstanding customer service you expect from our team. In the coming days, our Asphalt team will reach out to address questions or concerns that may arise. As always, thank you for trusting us as your asphalt supplier, and we appreciate your patience as we make an effort to reach out to each of you."

Valero is a longtime member of CalAPA, and company representatives have served on the CalAPA Board of Directors and are members of the CalAPA "Hall of Fame."

California, once the nation's leading oil producer, has seen its oil production and refining capacity decline in recent decades. Regulators and elected officials, meanwhile, have taken an increasingly hostile posture toward the industry, contributing to higher costs for California consumers. Some high-profile announcements have cast a spotlight on this tension. Chevron, a California-based company since 1879, announced last year it was moving its headquarters to Texas, and Conoco Phillips recently announced it would shut down its Wilmington refinery by year's end. The announcements, taken together, portend more disruption ahead for state energy policy and the many ripple effects that extend to the asphalt pavement industry.

In an announcement that caught pretty much everyone in his department by surprise, not to mention the wider transportation community, Caltrans Director Tony Tavares announced that he would be stepping down next month. No replacement has been named.

Tavares, 58, a career civil servant who ascended to the top position in 2022, made the announcement in an internal e-mail to Caltrans employees sent on Sunday, April 13 at 5:26 p.m.

“After more than 35 years of service to the people of California, I write to you with a full heart and deep gratitude as I prepare to step away from my role as Director of Caltrans in early May 2025,” Tavares said in the note. “It has been the honor of a lifetime to serve this great state—and to lead an agency so rich in purpose, talent, and resilience.”

Tavares took over for former Caltrans Director Toks Omishakin, who was elevated to be the governor’s Transportation Secretary. Tavares made his mark on the department with a personable and collaborative style and placed a heavy emphasis on people, including safety, and also partnering with external stakeholders, including the asphalt industry.

“I really, truly appreciate the partnership and the collaboration that we have had with the asphalt pavement industry over the last few years,” Tavares told Asphalt Insider last week. “It’s improved and improved, and I hope to see that continue going forward. We work with each other on a daily basis, and it is important that we get things right together.”

Tavares set the tone for numerous initiatives at the Department, including the long-life asphalt pavement design strategy for which he accepted a “Pavement Pioneer” award for the department presented by the National Asphalt Pavement Association back in 2013. He also was a vocal proponent of other collaborative efforts that have borne fruit with improved specifications and numerous knowledge-sharing activities.

“I think the more collaboration we do, the better not only our projects will be, but the better the products that the asphalt industry can present to us will be,” Tavares added.

In his farewell note to Caltrans employees, Tavares said, “While it is never easy to say goodbye, I leave with confidence in the incredible team that will continue carrying our ‘People-First’ focus forward.”

Tavares became prominent in the asphalt industry when he was named head of Maintenance for the department, which oversees the Office of Asphalt Pavement. He later served as the regional director in District 7 (Los Angeles and Ventura Counties), and District 4 (San Francisco Bay Area). His official Caltrans biography is HERE.

It is widely believed that, following his departure from Caltrans, Tavares will re-emerge in another leadership capacity as other former Caltrans directors have done.

A previous Asphalt Insider article about Tavares can be found HERE.

As National Work Zone Safety Awareness week kicks off this week, Caltrans took time out to remember those who have lost their lives in the line of duty, including construction industry personnel working to build and improve the state highway system.

“We remain committed in honoring these fallen workers and their families while imploring travelers to drive safely on our roads, protecting highway workers and the public,” said Caltrans Director Tony Tavares at the event.

The 35^th annual Caltrans Worker Memorial event was held under gray skies on Thursday, April 17, in West Sacramento and featured a moving ceremony where the names of 194 Caltrans workers killed on the job, each affixed to an orange cone with a black ribbon, were placed in a diamond shape. A new cone was added to remember Alexander Rodish, a District 12 equipment operator, who was killed last year. Lisa Rodish, his sister, gave a heart-felt tribute to her brother. He was relatively new in the department, having joined in 2021. He was killed on July 22, 2024 while working on Interstate 5 in San Clemente.

As part of the ceremony, a special black cone in the center of the cone array represented all people killed while working on the state’s highway system, including private contractors, tow truck drivers, CHP officers and other emergency responders. Caltrans and construction industry representatives constantly review safety procedures, implement new policies, technologies and techniques, as part of a mutual commitment to eliminating injuries or deaths of all those who work on the highway, be they civil servants, contractors, motorists or others.

The event is timed to coincide with National Work Zone Safety Awareness Week, which is April 21-25. The month of April is also National Distracted Driving Awareness Month. Many work-zone crashes are the result of distracted or impaired drivers.

Previous Asphalt Insider coverage of this year’s Work Zone Awareness Week, including links to resources, is HERE.

Each week we highlight a word, acronym or other term commonly used in the asphalt pavement industry in California.

BINDER: Material used to stabilize or cement together loose soil or aggregates.

Each week we highlight a key point or best practice of interest to asphalt paving crews, inspectors and others working in the field. We welcome suggestions. More tips can be found in our "Asphalt Parking Lot Construction Checklist" HERE. Information on the CalAPA "Quality Paving Certificate" program is HERE.

RECORD RETENTION AFTER PROJECT COMPLETION: Take a final photograph or photographs

of the site for your records and retain all records from the project including: copies of all truck

delivery tickets and record of all the temperature recordings and compaction readings you took

during the project.

Each week we highlight a term that is specific to climate-change issues related to the asphalt pavement industry. This feature is intended to raise awareness of the asphalt industry's climate-change initiatives and the specialized terminology that goes with them. More information on "The Road Forward" asphalt industry climate initiative can be found HERE. A recent CalAPA magazine story on the topic is HERE.

VARIABLE FREQUENCY DRIVE: A type of motor drive.

"The truth is my light."



– Latin Proverb

We hope you enjoy CalAPA's Asphalt Insider newsletter. We are committed to providing you with the most up-to-date information on technical issues, regulation, news, analysis, people, events and trends in California that is of interest to the asphalt pavement industry and our various agency partners. To subscribe to the newsletter, click HERE. For comments, questions or to suggest a story idea, click HERE. We are committed to promptly notifying our readers of any errors in this publication. Please click on the comment link above to alert the editor of any errors or omissions.

Sincerely,

Russell W. Snyder, CAE

Executive Director

The California Asphalt Pavement Association (CalAPA)®