<SEC-DOCUMENT>0001214659-23-006269.txt : 20230501
<SEC-HEADER>0001214659-23-006269.hdr.sgml : 20230501
<ACCEPTANCE-DATETIME>20230501120103
ACCESSION NUMBER:		0001214659-23-006269
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20230501
DATE AS OF CHANGE:		20230501
EFFECTIVENESS DATE:		20230501

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VALERO ENERGY CORP/TX
		CENTRAL INDEX KEY:			0001035002
		STANDARD INDUSTRIAL CLASSIFICATION:	PETROLEUM REFINING [2911]
		IRS NUMBER:				741828067
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13175
		FILM NUMBER:		23871616

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000
		BUSINESS PHONE:		2103454524

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SERVICE EMPLOYEES INTERNATIONAL UNION
		CENTRAL INDEX KEY:			0001076439
		IRS NUMBER:				360852885

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		1800 MASSACHUSETTS AVE NW
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20036
		BUSINESS PHONE:		202-730-7000

	MAIL ADDRESS:	
		STREET 1:		1800 MASSACHUSETTS AVE NW
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20036

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SERVICE EMPLOYEE INTERNATIONAL
		DATE OF NAME CHANGE:	19990107
</SEC-HEADER>
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<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>x51231px14a6g.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Notice of Exempt Solicitation</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF REGISTRANT:</B> Valero Energy Corporation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF PERSON RELYING ON EXEMPTION: </B>Service Employees International
Union Pension Plans Master Trust</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ADDRESS OF PERSON RELYING ON EXEMPTION:</B> 1800 Massachusetts Avenue,
NW</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, DC 20036</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Written materials are submitted pursuant to
Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. Submission is not required of this filer under the terms of the
Rule, but is made voluntarily in the interest of public disclosure and consideration of these important issues.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">May 1, 2023<BR>
<BR>
Dear Fellow Valero Shareholder,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At Valero Energy Corporation&rsquo;s (&ldquo;Valero&rsquo;s&rdquo;
or the &ldquo;Company&rsquo;s&rdquo;) annual shareholder meeting on May 9, 2023, shareholders can urge Valero to take meaningful action
on systemic racism. <B>Proposal #6</B> on Valero&rsquo;s proxy card, &ldquo;Stockholder proposal to oversee and issue an additional<SUP>1</SUP>
racial equity audit and report&rdquo; (the &ldquo;Proposal&rdquo;), asks Valero to analyze and report to shareholders on the full range
of racial impacts caused by the Company&rsquo;s business and operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Valero recently released a </FONT>&ldquo;Racial
Equity Assessment&rdquo; (the &ldquo;Assessment&rdquo;) and &ldquo;Audit of Valero&rsquo;s Environmental Justice Commitments and Actions&rdquo;
(the &ldquo;EJ Audit&rdquo;; together, the Assessment and EJ Audit are referred to as the &ldquo;Reports&rdquo;), which Valero claims
render the Proposal unnecessary<FONT STYLE="background-color: white">. But the Reports fall far short of the independent and comprehensive
audit sought by the Proposal, both in substance and process. </FONT>Accordingly, <B>we urge shareholders to vote FOR Proposal #6.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Proposal states:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><FONT STYLE="background-color: white"><B>RESOLVED</B>&nbsp;that
shareholders of Valero Energy Corporation (&ldquo;Valero&rdquo;) urge the Board of Directors to oversee an independent third-party racial
equity audit analyzing Valero&rsquo;s impacts on nonwhite stakeholders and communities of color and Valero&rsquo;s plans, if any, to mitigate
those impacts. Input from civil rights organizations, experts on environmental racism, and employees should be considered in determining
the specific matters to be analyzed. A report on the audit, prepared at reasonable cost and omitting confidential and proprietary information,
should be publicly disclosed on Valero&rsquo;s website.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Thus, the Proposal&rsquo;s key elements are that the requested racial
equity audit should:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Be conducted by an independent auditor;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> Valero&rsquo;s use of the word &ldquo;additional&rdquo;
to describe the Proposal&rsquo;s request is misleading because, as discussed below, the audit and report requested in the Proposal differs
meaningfully from the Assessment and EJ Audit undertaken by Valero.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Incorporate input from civil rights organizations, environmental racism experts,
and Company employees;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Identify and analyze Valero&rsquo;s impacts on nonwhite stakeholders and
communities of color.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Neither the Assessment nor the EJ Audit was conducted by a firm
that is independent from Valero</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Neither the Assessment nor the EJ Audit was conducted by an independent
firm or auditor, a key element of the Proposal. The Proposal requests that an independent party conduct the racial equity audit in order
to ensure that the auditor does not have any conflict of interest that could prevent it from conducting a robust investigation, even when
that investigation yields unflattering results for Valero, and so stakeholders feel comfortable sharing concerns about the Company without
fear of retaliation. An independent auditor also gives stakeholders assurance that the audit&rsquo;s results are presented fairly.<SUP>2</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Assessment was conducted by Nadira Clarke, a partner in the law
firm of Baker Botts LLP. Baker Botts is not independent from Valero, as the firm has represented Valero in debt<SUP>3</SUP> and equity<SUP>4</SUP>
offerings, transactions,<SUP>5</SUP> and litigation against the Environmental Protection Agency,<SUP>6</SUP> with engagements dating back
at least 10 years. A profile of Baker Botts notes that Ms. Clarke &ldquo;<FONT STYLE="color: #333333; background-color: white">is often
retained by oilfield services, refiners, manufacturing and chemical clients,&rdquo;<SUP>7</SUP> and her biography on Baker Botts&rsquo;
website says she is &ldquo;</FONT><FONT STYLE="color: #393939; background-color: white">sought after for her aggressive defense of corporations
and executives facing large-scale, multi-faceted governmental investigations&rdquo;<SUP>8</SUP>; this defense orientation </FONT><FONT STYLE="color: #333333; background-color: white">calls
into question her ability to be objective when assessing Valero. The importance of the oil and gas industry to Baker Botts is illustrated
by the <FONT STYLE="font-size: 10pt">fact that three of its seven North American offices are located in Texas.<SUP>9</SUP></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #333333">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #333333">&nbsp;<FONT STYLE="background-color: white">_____________________________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>2</SUP></FONT>
<U>See</U>, <U>e.g.</U>, https://www.sec.gov/news/statement/munter-20220608 (&ldquo;<FONT STYLE="background-color: white">The Commission
has long-recognized that audits by professional, objective, and skilled accountants that are independent of their audit clients contribute
to both investor protection and investor confidence in the financial statements.&rdquo;); https://public-inspection.federalregister.gov/2022-18898.pdf
(The requirement that employee benefit plans be subjected to an independent audit is &ldquo;</FONT>intended to protect the assets and
the financial integrity of employee benefit plans, and provide participants, beneficiaries, plan administrators, other plan fiduciaries,
and the Department with reliable information about an employee benefit plan and its financial soundness.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>3</SUP></FONT>
<U>See</U> https://www.bakerbotts.com/news/2021/12/baker-botts-represents-valero-energy-corporation-in-billion-dollar-senior-notes-offering;
https://www.bakerbotts.com/news/2022/02/baker-botts-represents-valero-energy-corporation-in-$650-million-senior-notes-offering; https://www.bakerbotts.com/news/2020/04/baker-botts-represents-valero-energy-corporation-in-senior-notes-offering;
https://www.bakerbotts.com/news/2020/09/baker-botts-represents-valero-energy-corporation-in-senior-notes-offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>4</SUP></FONT>
<U>See</U> <A HREF="https://www.sec.gov/Archives/edgar/data/1583103/000158310313000013/exh81-formofopinionofbaker.htm">https://www.sec.gov/Archives/edgar/data/1583103/000158310313000013/exh81-formofopinionofbaker.htm</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>5</SUP></FONT>
<U>See</U> https://www.valero.com/sites/default/files/valero-documents/VLO%20and%20VLP%20-%20Joint%20Press%20Release_Active_38764457_4.pdf;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>6</SUP></FONT>
https://www.epa.gov/sites/default/files/2017-12/documents/court_document_us_app_cadc_17-1259_12.12.2017_peition_for_review.pdf</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>7</SUP></FONT>
https://www.legal500.com/firms/50076-baker-botts-llp/52468-houston-usa/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>8</SUP></FONT>
https://www.bakerbotts.com/people/c/clarke-nadira</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #333333; background-color: white"><SUP>9</SUP></FONT>
https://www.bakerbotts.com/globalreach</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">We are not asking for
authority to vote your proxy and no proxy cards will be accepted. Please vote your proxy according to the instructions in Valero&rsquo;s
proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #333333"><FONT STYLE="background-color: white">Montrose Environmental
Group (&ldquo;Montrose&rdquo;), which conducted the EJ Audit,<SUP>10</SUP> also may not be independent from Valero. Montrose was a &ldquo;diamond
sponsor&rdquo; of a recent Valero charity fundraiser,<SUP>11</SUP> which suggests that it either does business or hopes to do business
with Valero. On its website, Montrose lists a variety of services it performs for oil and gas companies, including permitting, wastewater
consulting, and emissions testing.<SUP>12</SUP> The participation on a Montrose webinar by a representative from Valero<SUP>13</SUP> suggests
that there may be a relationship between the two firms. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #333333">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Assessment focuses on Valero&rsquo;s public positions and programs,
while a racial equity audit would evaluate the racial impacts of Valero&rsquo;s actual behavior</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The scope and approach of the Assessment differ from those of a racial
equity audit. The racial equity audit requested in the Proposal has a substantive goal. It seeks to identify, analyze and report on the
impacts of the Company&rsquo;s business. The Assessment, by contrast, asks &ldquo;whether current programs, policies, and recent reports
undertaken by the Company align with the factors that are considered in a racial equity audit.&rdquo;<SUP>14</SUP> In other words, the
Assessment has a process focus on whether the same subject matters are addressed, but does not aim to produce a substantive analysis of
how Valero&rsquo;s commitments and activities shape its impact on nonwhite stakeholders and communities of color.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Assessment&rsquo;s focus on Valero&rsquo;s public commitments or
positions, rather than actual company behavior, reflects this difference. The Assessment refers repeatedly to Valero&rsquo;s processes
and commitments without any analysis of the extent to which they are effective in bringing about the desired behavior. For example, the
Assessment states that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;[Valero&rsquo;s ESG Report] includes information beyond that disclosed
in the EEO-1 report relevant to the Company&rsquo;s prioritization of diversifying its workforce, efforts to develop a minority talent
pipeline, initiatives to recruit local talent through partnerships with local colleges serving refinery neighboring communities, and improved
female representation among the Company&rsquo;s executives, leaders, and engineers.&rdquo;<SUP>15</SUP></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Assessment does not evaluate the effectiveness of these
efforts. Instead, it presents static 2022 data on the racial composition of Valero&rsquo;s workforce, characterizing it as &ldquo;impressive&rdquo;
without providing context regarding the composition of the hiring pool, demographics by job classification, or changes over time.<SUP>16</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>10</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/_public-ej-audit-final-02152023.pdf</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>11</SUP> https://valerotexasopen.com/benefit-for-children/sponsors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>12</SUP> https://montrose-env.com/markets/oil-gas/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>13</SUP></FONT>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">https://montrose-env.com/content/webinar-best-practices-for-a-successful-method-325-fenceline-monitoringprogram/</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>14</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/2023.02.23-valero-racial-equity-assessment-letter.pdf,
at 1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/2023.02.23-valero-racial-equity-assessment-letter.pdf,
at 6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>16</SUP> <U>See</U> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/2023.02.23-valero-racial-equity-assessment-letter.pdf,
at 6-7.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">We are not asking for
authority to vote your proxy and no proxy cards will be accepted. Please vote your proxy according to the instructions in Valero&rsquo;s
proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;Valero ensures compliance with its processes for addressing racial
inequity and discrimination through several innovative means of reporting and addressing allegations of improper conduct.&rdquo;<SUP>17</SUP></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">No data or anecdotal evidence is presented on the effectiveness
of these processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">The Assessment contains a section on Valero&rsquo;s statements in support
of racial justice--such as &ldquo;We believe social equity and inclusion are integral parts of a healthy community, which is why we collaborate
with stakeholders to understand social, economic, and environmental factors of importance to each community.&rdquo; </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Assessment does not analyze the extent to which Valero
fulfills those commitments; in the example above, for instance, the views of stakeholders on whether Valero is an effective collaborator
could be, but are not, presented. Many of these positions are so vague&mdash;Valero&rsquo;s commitment to &ldquo;recogniz[ing] the dignity,
value and worth of all human beings around the world&rdquo; is one example--that one could not meaningfully measure Valero&rsquo;s adherence
to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Assessment&rsquo;s discussion of Valero&rsquo;s political spending
illustrates well the disparity between the racial equity audit requested in the Proposal and the Assessment Valero chose to undertake.
The Assessment notes that &ldquo;Valero is also one of the roughly 280 Fortune 500 companies to receive negative attention for making
political contributions to members of Congress who objected to certifying the results of the 2020 election. But Valero&rsquo;s political
activity appears to center around issues that affect its business and the energy industry. And the Company&rsquo;s lobbying efforts and
political contributions are consistent with other industry participants, including other Oil &amp; Gas companies and industry trade associations
and do not appear to be racially motivated.&rdquo;<SUP>18</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A racial equity audit would examine Valero&rsquo;s political activity
through a racial equity lens, asking, &ldquo;Even assuming Valero&rsquo;s subjective intention in its political activities is to elect
politicians and influence public policy in a way that benefits its business, do those activities have collateral negative consequences
for nonwhite stakeholders and communities of color?&rdquo; In other words, the racial equity audit analysis would focus on the effects
of Valero&rsquo;s actions, not the purported purity of its motivations, as is the case with the Assessment. Similarly, the excuse that
&ldquo;everyone else is doing it&quot; would not be relevant in a r<FONT STYLE="font-size: 10pt">acial equity audit focused on racialized
harms flowing from Valero&rsquo;s behavior.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>_____________________________</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/2023.02.23-valero-racial-equity-assessment-letter.pdf,
at 6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>18</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/2023.02.23-valero-racial-equity-assessment-letter.pdf,
at 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">We are not asking for
authority to vote your proxy and no proxy cards will be accepted. Please vote your proxy according to the instructions in Valero&rsquo;s
proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>There is no indication that civil rights organizations, experts
on environmental racism, or employees provided input on the scope of the Assessment or RJ Audit</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stakeholder input into the scope of a racial equity audit is crucial,
as companies have blind spots and may not be aware that their behavior in a particular domain has adverse racial impacts. For that reason,
the Proposal asked that civil rights organizations, experts on environmental racism, and employees be considered in determining the scope
of the requested racial equity audit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no indication that any of these stakeholders were consulted
on the scope of the Assessment or RJ Audit. Montrose touts its experience advising clients on environmental justice considerations, which
have been incorporated into some regulatory regimes,<SUP>19</SUP> but we believe it is a stretch to characterize the firm as an expert
on environmental racism. Neither Report mentions input from employees or civil rights organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The RJ Audit, in particular, focuses exclusively on Valero&rsquo;s
refinery operations. While those operations may indeed warrant examination, given their potential impacts, stakeholders might have identified
additional matters. For example, the RJ Audit does not assess whether Valero&rsquo;s health and safety policies and practices are effective
in protecting refinery workers, many of whom are non-white. The failure to consult with key experts and stakeholders undermines the confidence
shareholders and other stakeholders have in the value of the Reports&rsquo; conclusions, as limited as they are.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For the reasons discussed above, <B>we urge
you to vote FOR Proposal 6</B> on Valero&rsquo;s proxy card. If you have any questions, please c<FONT STYLE="font-size: 10pt">ontact Renaye
Manley via email at renaye.manley@seiu.org.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>19</SUP> https://s23.q4cdn.com/587626645/files/doc_downloads/2023/02/_public-ej-audit-final-02152023.pdf,
at 5-8.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">We are not asking for
authority to vote your proxy and no proxy cards will be accepted. Please vote your proxy according to the instructions in Valero&rsquo;s
proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

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