Phillips 66 refinery closure leaves california community questioning who will pay for environmental cleanup

For nearly a century, the Gonzalez family has called Wilmington, California home, watching their small community become surrounded by five oil refineries near the Port of Long Beach. When Morgan Gonzalez learned in October 2024 that the Phillips 66 refinery would shut down by year’s end, his emotions were complicated—relief mixed with uncertainty about what comes next.

The closure represents both hope and concern for Wilmington residents who have long battled respiratory problems they attribute to refinery emissions and heavy truck traffic. While the shutdown promises cleaner air, a critical question remains unanswered: who will pay for the extensive environmental cleanup that such facilities require?

This uncertainty highlights a broader industry problem identified in a new report calling for mandatory decommissioning plans. Unlike other energy infrastructure projects, oil refineries currently aren’t required to prepare detailed cleanup plans or set aside dedicated funds before they begin operations. This regulatory gap leaves communities like Wilmington vulnerable when companies close facilities, potentially walking away from expensive remediation costs.

The report recommends that refineries follow the same decommissioning requirements imposed on other energy projects—creating comprehensive cleanup plans and establishing financial reserves upfront. Such measures would ensure communities aren’t left with contaminated land and uncertain futures when companies decide to cease operations. As Phillips 66’s December deadline approaches, Wilmington residents continue waiting for answers about their community’s environmental future.