‘Historic settlement': Chevron to pay $550M to Richmond

RICHMOND, Calif. ( KRON ) – After a tax measure was shelved from the November ballot on Wednesday, Chevron settled its case with the City of Richmond by agreeing to pay the city over half a billion dollars within the next 10 years. Chevron union workers are dubbing the victory a “historic settlement.”

"Today I am celebrating, along with those who have fought hard to make polluters pay, for this joyous victory," said Yvette Williams-Barr, Senior Administrative Analyst for Community Services and IFPTE Local 21 member. "Big polluters will finally pay, and Richmond taxpayers will be able to receive the services they have been demanding for years."

The City of Richmond accepted the $550 million settlement from Chevron on Wednesday. The settlement comes after shelving the Polluters Pay Initiative– a measure with a 50-year refinery tax instead of the 10-year $550 million settlement offered by Chevron.

According to the Sunflower Alliance, a non-profit working for climate justice, the refinery released nearly 60,000 pounds of toxic chemicals into San Francisco Bay and San Pablo Bay in 2022, impacting local wildlife and communities that interact closely with those waters.

In 2023, the refinery produced an average of 25,000 pounds of hazardous waste each day. Sunflower Alliance said it's the single largest source of particulate matter in Richmond. The Bay Area Air Quality Management District BAAQMD connects the refinery's particulate matter emissions with 5.1 to 11.6 premature deaths in Richmond each year.

Sunflower Alliance says Chevron made $21.3 billion in profits last year. Advocates claim the Richmond refinery hasn't paid city taxes accordingly despite its profits.

"Rather than lose at the ballot box, Chevron offered up an unprecedented $550 million… We are disappointed that Richmond voters didn't get the opportunity to vote on a measure that would have held Richmond's largest polluter accountable for over a century of health and climate damages for the next 50 years, not just the next 10," the Asian Pacific Environmental Union said.

Chevron Richmond and the City of Richmond have reached an agreement that settles litigation and removes the Refining Business License Tax measure from the ballot. This agreement ensures Chevron Richmond can continue to provide Northern California with the affordable, reliable and ever-cleaner energy the region's economy needs.

A Chevron spokesperson told KRON4

On Aug. 2, Chevron announced it will be moving its headquarters from California to Texas , a move that was also replicated by Elon Musk's X.

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