Chevron to Pay Richmond City Council $550 Million in Settlement

Chevron Corp has settled with the Richmond City Council, agreeing to pay $550 million over the next 10 years. The city announced this agreement, which resulted in the withdrawal of a proposed ballot measure that sought to impose a new tax on Chevron’s Richmond refinery.

Background on the Proposed Tax:

The City of Richmond had planned to put forth a ballot measure asking voters to approve a tax on Chevron’s Richmond refinery, which processes around 250,000 barrels of crude oil daily.

The city argued that Chevron, which has operated in Richmond for over a century, should contribute more to the community through this tax.

As part of the settlement approved by the Richmond City Council on Wednesday, the city agreed to withdraw the proposed tax measure. In return, Chevron will pay the city $550 million annually from July 1, 2025, through June 30, 2035.

Statements from Chevron and the City:

The City of Richmond confirmed the settlement in a statement posted on its website. The settlement will remove the Refining Business License Tax measure from the ballot.

Chevron also commented on the agreement in an email to Reuters: “This agreement ensures Chevron Richmond can continue to provide Northern California with the affordable, reliable, and ever-cleaner energy the region’s economy needs.” The company highlighted that the settlement resolves litigation and fosters ongoing cooperation between Chevron and the city.