The Richmond City Council voted unanimously in favor of a settlement with Chevron that will bring the city more than a half-billion dollars over the next ten years. At first, Chevron offered to pay 330 million over ten years. They later increased it to a half-billion, if the city dropped the measure.
The measure was first approved on June 18. It would have asked Richmond voters if the city should implement a one dollar barrel tax on all of the oil and other raw materials at Chevron’s refinery for the next 50 years.
According to a staff report from Wednesday’s meeting, the city’s finance director estimated about 60 to 90 million dollars in revenue, if this measure was passed.
Still, this move has faced some opposition. The city was already sued by a resident and a nonprofit over the language in the ballot proposal. Chevron also indicated that it would sue.
Multiple council members pointed to a similar ballot measure passed in 2017 by the City of Carson in Southern California, which is still being held up by the courts. According to a Richmond council member, the City of Carson hasn’t seen any of that money.
For now, Chevron plans to pay the city 50 million dollars each year for the next five years, and then 60 million dollars annually for five years after that. The money goes to Richmond’s general fund. Chevron has not made any statements on how the city should spend it. This agreement also won’t affect any other taxes that Chevron is already paying to the city.