Chevron Agrees to pay $550 Million to City of Richmond

The Richmond City Council agreed to drop a ballot measure in exchange for $550 million over 10 years from Chevron.

The announcement came at the August 14 Richmond City Council Meeting where the City Council voted 7-0 to approve the settlement, as well as drop a proposed ballot measure.

According to the city attorney, over the past week, the city had negotiated with Chevron to pay $50 million for 5-years and $60 million for 5-years in exchange for Richmond to remove the item from the ballot. It would also eliminate pending lawsuits and future lawsuits and allow the city to have money coming in.

Back on June 18, Richmond approved a ballot measure that would impose a $1 per barrel tax on feedstock refined at Chevron’s Richmond refinery for 50 years—estimating $60-$90 million per year.

While Chevron offered to pay $300 million over 10-years originally, it increased its offer to $550 million if the city dropped the ballot measure.

Mayor Eduardo Martinez called it a “historic moment” and said the community has made it possible while being a fight that will continue.

“I say this is a historic moment because the community of Richmond has created a movement that will echo across the nation. What has happened here, has demonstrated to the community, to the nation, to the world, when we as people pull together, we can create change,” said Martinez. “By standing up to environmental justice as we have, other communities too can require their polluters do the right thing either by measure or negotiation. This is just the beginning.”

Councilmember Gayle McLaughlin said while she would support the settlement, she used her time to highlight the environmental groups who fought this for years and helped get Chevron to the table.

“Although the settlement is considerably less than what the ballot measure would have brought in, it is still a significant and meaningful amount of money. So, I thank everyone who contributed to getting us this far,” said McLaughlin and was glad there would be more services and resources to serve the community.

Councilmember Melvin Willis highlighted there was a lot of needs that needed to be addressed but couldn’t due to limited resources, or tied up in litigation, but this settlement will allow the city to be rebuilt with new resources.

Vice Mayor Claudia Jimenez said she believed this agreement is an example of what the community can do when organized. She called the agreement a “good one” but said there was still the issue of pollution and the “fight goes on” adding the city council will do everything in its power to continue to hold Chevron accountable for pollution and force them to meet air standards.

“The fight with Chevron will go on, probably until the day we stop refining fossil fuel and make a just transition to a green economy,” said Jimenez.

Councilmember Cesar Zepeda said the settlement funding should be used as promised in the ballot from just transition, fixing roads, parks, upgrading fire department, and continue to have a great Richmond.

“We have a really great opportunity to uplift Richmond,” stated Zepeda.

Councilmember Doria Robinson shared she was proud of the decades of deep community organizing to hold the biggest polluter accountable and make polluters pay.

“With all due respect to Chevron, I am actually happy we were able to figure something out together, but you would not have offered your fair share without their work. You just wouldn’t,” said Robinson. “You haven’t in a 100 years, and you wouldn’t have without that push so I thank those organizations.”

She also called on working on “Just Transition” now because they are already too late and climate change is happening now. She called on making investments now.

Councilmember Soheila Bana called it a “historic day and a great day” and to celebrate. It was also about Chevron acknowledge their responsibility and that the law was on Richmond’s side.

Dozens of people spoke during public comments, including Contra Costa County Board of Supervisor John Gioia, who is also a resident of Richmond.

“We are here today because of strong leadership in the community,” stated Gioia. “All of you back in June took the courageous and bold move to stand up for Richmond residents to get resources to improve the health of Richmond when you voted to placed this measure on the ballot, I am proud to support this measure… a good deal was negotiated for Richmond residents and worked to find common ground with Chevron on areas that would benefit the city.”

Gioia noted the previous council negotiated a 15-year deal for $150 million. This council negotiated a 10-year deal for $550 million. He called the deal a good deal for Richmond and will benefit the city and allow it to improve. He shared his support.

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