DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-72,486

PREMCOR REFINING GROUP, INC.
A SUBSIDIARY OF VALERO ENERGY CORPORATION
VALERO DELAWARE CITY REFINERY
DELAWARE CITY, DELAWARE

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c)
or (f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f).
For the Department of Labor to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(i)(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm.

III. The third criterion requires that the increase in imports
or shift/acquisition must have contributed importantly to
the workers' separation or threat of separation. See
Sections 222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act,
19 U.S.C. §§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms "Supplier" and "Downstream Producer." For the Department
to issue a secondary worker certification under Section 222(c)
of the Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a
Downstream Producer, the following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

The investigation was initiated in response to a petition
filed on October 2, 2009, by the International Brotherhood of
Electrical Workers, Local 1230 on behalf of workers of Premcor
Refining Group, Inc., a subsidiary of Valero Energy
Corporation, Valero Delaware City Refinery, Delaware City,
Delaware. The workers produce refined gasoline and
distillates.
The petitioner alleged that the low cost of refining in
foreign countries contributed to worker separations at the
firm. The investigation included analysis of U.S. aggregate
import data, as well as data provided by a company official
and the firm's major declining customers.
With respect to Section 222(a) of the Act, the
investigation revealed that criterion II has not been met
because there have not been increased imports of articles like
or directly competitive with the refined gasoline and
distillates produced by the firm or a shift in production to a
foreign country by the firm.
With respect to Section 222(c) of the Act, the
investigation revealed that criterion II has not been met
because the firm is not a supplier or downstream producer to a
firm with a TAA-certified worker group.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because the workers' firm has not been identified in an
affirmative finding of injury by the International Trade
Commission.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Premcor Refining
Group, Inc., a subsidiary of Valero Energy Corporation, Valero
Delaware City Refinery, Delaware City, Delaware who produce
refined gasoline and distillates are denied eligibility to
apply for adjustment assistance under Section 223 of the Act, 19
U.S.C. § 2273.
Signed in Washington, D.C., this 20th day of July, 2010


/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Division of
Trade Adjustment Assistance