09/03/2026
The Bay Area Air District has awarded $30 million in Catalyst grant funds to the City of Benicia as part of the Bay REPAIR program. Bay REPAIR, which stands for Reinvesting Penalties for Air Improvement and Resilience, directs a portion of penalties collected from air quality violations, including Valero’s October 2024 penalty, back into affected communities.
The City will use the funding to support new and existing projects that advance clean energy, expand mobility and active transportation options, improve air quality and public health, and support Benicia’s economic transition.
“This funding comes at a critical moment for Benicia as we prepare for a significant economic transition,” said City Manager Mario Giuliani. “Our responsibility now is to turn this investment into meaningful, lasting improvements for our community. We will approach that work thoughtfully and transparently, focusing these resources on projects that strengthen our infrastructure, improve quality of life, and help build a more resilient and sustainable future for Benicia.”
The award is especially impactful as Benicia begins to experience the economic and operational impacts of the closure of the Valero refinery. Mayor Steve Young, who represents Solano County on the Bay Area Air District Board of Directors, emphasized the importance of the Air District’s support during this transition.
“I am incredibly proud to serve on the Air District Board and represent Benicia during such a consequential time for our community,” said Mayor Young. “This $30 million award is an extraordinary investment in our city, and I am deeply grateful to my fellow Board members for recognizing both the challenges ahead and the importance of supporting Benicia through this transition. This funding will make a meaningful difference as we work together to build a strong and resilient future.”
This grant award represents a significant investment in Benicia and will help to secure a bright future for our community. However, it does not replace the approximately $7.7 million in annual City revenue lost because of the Valero refinery closure. The grant funds are restricted to specific eligible projects and will be invested over a five-year period. They cannot be used as a substitute for the ongoing revenue that previously supported City services and operations. The funding will help Benicia make important investments during this period of transition, but the City must continue addressing the long-term structural revenue loss created by the refinery closure.
