|
PRESS RELEASE
For Immediate Release
August 8, 2024
RICHMOND SECURES $550 MILLION SETTLEMENT WITH CHEVRON
Richmond, CA — The City of Richmond has reached an agreement with Chevron Corporation, under which Chevron will pay the City of Richmond $550 million over the next 10 years. The payments will be $50 million annually for the first five years and $60 million annually for the remaining five years. In return, the City of Richmond will remove the proposed business license tax on oil refining from the November 5, 2024, ballot.
On June 18, 2024, the Richmond City Council voted unanimously to place a measure on the November 2024 ballot to require Chevron to pay $1 per barrel of oil refined in the City of Richmond for the 50-year life of the tax. The City’s Finance Director had estimated that the tax would raise $60 to $90 million per year, based on refinery production data in past years.
This agreement, which was negotiated by the City Attorney and a Council Ad Hoc committee of Mayor Eduardo Martinez, Vice-Mayor Claudia Jimenez, and Councilmember Doria Robinson, will achieve many of the purposes of the ballot measure and eliminate pending and threatened costly litigation by Chevron, allowing certainty to both the City and Chevron.
The payments from Chevron to the City will go to the general fund and can be allocated by a vote of the City Council. These funds can be used to improve vital city services such as improving public safety and emergency response, repairing streets and roads, increasing youth services, expanding library and recreation services, and toxic land cleanup.
Press Contact:
Tony Tamayo, Chief of Staff to Richmond Mayor Eduardo Martinez
tony_tamayo@ci.richmond.ca.us, 510-619-5205
##
| 
