Labor and community groups call for expanded worker supports, safe staffing and local fiscal protections

California State Senate Environmental Quality Committee · February 18, 2026

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Summary

Labor and community witnesses told the committee that unplanned refinery closures create extended unemployment, unsafe understaffing during pre‑closure periods, and large local revenue losses; they recommended expanding displaced worker funds, tax‑stabilization mechanisms, safe‑staffing rules, and local planning supports.

Union and community witnesses told the Senate panel that refinery closures extend far beyond environmental cleanup: they reshape local economies, public services and household finances.

Josh Sonnenfeld (UC Berkeley Labor Center) summarized the Contra Costa Refinery Transition Partnership’s three‑year study and said the group anticipates steep reductions in local refining capacity and substantial job losses without policy interventions. He reported that one study of Marathon Martinez workers found 26% of laid‑off employees were still unemployed one year later and that wages among those rehired averaged 24% lower.

Julia Sebastian and Keith Dunn emphasized local fiscal consequences and safety risks. Sebastian noted the Benicia (Valero) closure would remove a significant portion of local general‑fund revenue and that schools and municipal services could face multi‑million‑dollar shortfalls. Both labor witnesses described chronic understaffing during pre‑closure periods, with proprietary workers pushed onto extended shifts; they argued safe‑staffing rules and worker voice in safety oversight are critical for both public safety and fuel reliability.

Recommended near‑term and legislative actions included: make the Displaced Oil and Gas Worker pilot program permanent and adequately funded; develop state tax‑stabilization or transition funds to buffer municipal budgets; require safe staffing minimums and procedures that preserve experienced proprietary workers during decommissioning; and ensure public sector coordination offices or just‑transition offices to steer local economic diversification.

The committee responded with interest in practical proposals and asked agencies and advocates to provide implementation details to inform potential bills this session.