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Receive a presentation from Workforce Development Board of Solano County on the local response to recent business closures and dislocated workers
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Published Notice Required? Yes _ _ No _ _
Public Hearing Required? Yes _ _ No _ _
DEPARTMENTAL RECOMMENDATION:
The Workforce Development Board (WDB) of Solano County recommends that the Board of Supervisors Receive a presentation from Workforce Development Board of Solano County (WDB) on the local response to recent business closures and dislocated workers.
SUMMARY:
Over the past several months, Solano County has experienced a series of significant business closures and operational wind-downs that have and will continue to impact our local workforce. These include the planned closures at Valero’s Benicia oil refinery, which employs more than 350 workers; the Anheuser-Busch brewery closure in Fairfield affecting more than 230 workers; and the abrupt closure of Mare Island Dry Dock in Vallejo, resulting in more than 80 layoffs due to the loss of a major government contract. These closures come alongside other layoff notices from employers such as CVS in Fairfield and the Vallejo City School District.
The cumulative effect of these closures is broad and significant. Beyond the immediate job losses, the secondary impact on local businesses and service providers throughout Solano County is substantial. Many businesses rely on ongoing contracts and economic activity generated by the employers listed above, meaning the ripple effects extend well beyond the closures of Valero, Budweiser and Mare Island Dry Dock. In addition to dislocated workers and impacts to other businesses, these closures reduce community tax bases and consumer spending capacity, further impacting the local economy.
To better quantify the situation, the WDB prepared an impact scenario analysis outlining projected job displacements and related industries affected. As a result of this analysis, the Workforce Development Board has proactively prioritized services and budget needs to meet the current and future demands of the workforce.
FINANCIAL IMPACT:
There is no financial impact to receiving the presentation. The WDB is making budget adjustments and requesting grant funds as described below in an effort to meet the needs of dislocated workers. There is no impact to the General Fund.
DISCUSSION:
In response to these impactful closures, the WDB has taken or initiated the following actions:
Rapid Response, Business and Career Services
The WDB has initiated and deployed Rapid Response teams in coordination with the Employment Development Department (EDD) and local partners to provide immediate outreach to affected workers. Service support included on-site engagements with dislocated workers at Mare Island Dry Dock on January 7, 2026, and four separate sessions for workers of all shifts at the Fairfield Budweiser plant on January 8 and January 9, 2026. These engagement sessions provided dislocated workers with information on how to apply for unemployment insurance, no-cost training opportunities, reemployment assistance, community resources, job readiness assistance, education opportunities at Solano Community College, and career fairs at the Fairfield Adult School on January 22, 2026, and the NorCal Career Fair at Solano Community College on April 2, 2026 (upcoming). These sessions were well attended and included extensive time for further questions and answers.
In anticipation of the Valero Oil Refinery closure, the WDB partnered with the Solano-Napa Small Business Development Center and Benicia Chamber of Commerce on November 18, 2025, and provided an information session titled “From Setback to Comeback: Solutions for Small Businesses Navigating Workforce Change After the Refinery Closure” for the Benicia Industrial Park Association (BIPA). The presentation was hosted by Valero at its corporate office in Benicia and was attended by representatives from more than 30 small businesses, as well as Benicia city officials and stakeholders. After the publication of the official WARN on January 13, 2026, which noted employee layoffs will take place March 15 - July 1, 2026, the WDB continues to communicate with Valero leadership, and Rapid Response session dates are currently being scheduled.
Reverse Career Fairs and Job Matching Events
To accelerate re-employment opportunities, the WDB has organized “reverse” career fairs where local employers can recruit directly from dislocated workers. A closed-to-the-public, dedicated career fair is scheduled onsite at the Fairfield Budweiser facility on January 29, 2026, from 6-8am and 2-4pm with at least nine hiring businesses committed to attending, including Solano County Human Resources.
Grant Funding and Budget Adjustments
To better align workforce resources with the surge in dislocation needs, the WDB is realigning funds from WIOA Adult funds to WIOA Dislocated Worker funds, as advised by EDD. This realignment will bolster career services, training support, and employer engagement activities targeted specifically at dislocated workers.
Additionally, the WDB has applied for and is actively pursuing supplemental additional assistance funding, including:
• An additional assistance grant to support workers and businesses impacted by the Valero oil refinery closure. This proposed two-year grant requests approximately $2.5 million to support training and supportive services for impacted refinery workers and other workers impacted by the closure, as well as $500,000 to support layoff aversion for other impacted businesses. The grant request is with state officials for review and approval. If approved, the grant will be incrementally funded with state oversite, with full funding dependent upon achieving performance metrics.
• A subrecipient grant from the Workforce Development Board of Contra Costa County for $199,000 to provide training and supplemental services for 12 oil refinery dislocated workers. Grant approval is anticipated for March 2026.
• An additional assistance grant aimed at supporting dislocated workers from both the Budweiser and Mare Island Dry Dock closures. This two-year grant requests $255,000 to support dislocated worker training and supportive services, and $155,000 to support layoff aversion for other impacted businesses. The grant request is with EDD for review and approval. If approved, the grant will be incrementally funded with state oversite, with full funding dependent upon achieving performance metrics.
Alignment of K-14 Career and Technical Education (CTE) with Local Industry
The WDB is partnering with the Solano County Office of Education to host the “Inaugural 2026 Launching Futures” to align K-14 Career Technical Education with local industry. This initiative will bring together city/county officials and industry leaders to collaborate with educators planning for School Year 2028/29 CTE offerings. The intent is to strengthen and expand the local talent pipeline for career pathways into advanced manufacturing, maritime, healthcare, public safety and security, and construction career pathways. This initiative will be an annual proactive collaborative, with a long-term strategy to develop local talent and attract sustainable business investment to Solano County.
Moving Forward
The WDB remains committed to serving Solano County through this period of transition. Our multi-faceted approach, spanning immediate rapid response, re-employment services, strategic funds allocation, strategically aligned K-14 local talent development, and policy engagement, is designed to address both the short-term needs of dislocated workers and the long-term economic health of our community.
ALTERNATIVES:
The Board may choose not to receive the presentation, however, there is no cost associated with the presentation and the topic informs the Board of potential impacts to county residents and businesses.
OTHER AGENCY INVOLVEMENT:
The County Administrator’s Office has been in consultation with the WDB.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION