California legislators are in talks with Valero Energy to pay hundreds of millions of dollars to prevent the closure of its Benicia refinery near San Francisco.
Under such a deal, the state would pay Valero to continue operating its Benicia refinery, according to people familiar with the negotiations who asked not to be identified discussing private deliberations.
Between $80 million and $200 million of state funds would likely be earmarked for routine maintenance work, although the terms of the arrangement could be subject to change, the people said. Maintenance is one of the biggest operating costs for refiners and the expense of major overhauls typically performed every four or five years, can be a catalyst for closure.
More on this story at SiliconValley.com.
