Richmond City Council Settles with Chevron for $500 Million
- Richmond City Council officially accepts $500 million settlement with Chevron.
- The settlement will bring the city more than $500 million over 10 years.
- This agreement resolves a long-standing dispute between the city and Chevron.
In a significant development just hours before a deadline to withdraw measures from the November ballot, the Richmond City Council has reached a settlement with Chevron, securing over $500 million for the city over the next decade. The council had previously approved a ballot proposal that sought voter approval for a $1 per barrel tax on feedstock refined at Chevron's local facility for a span of 50 years. Chevron's initial offer of $300 million was later increased to $550 million contingent upon the city dropping the ballot measure. Mayor Eduardo Martinez hailed the unanimous decision as a historic moment, emphasizing that the fight for environmental justice in Richmond is far from over. He stated, "The community of Richmond has created a movement that will echo across the nation," highlighting the power of collective action in demanding accountability from polluters. The settlement comes amid ongoing legal challenges, including a lawsuit from a local resident and a nonprofit regarding the ballot language, with Chevron also indicating potential legal action. Councilmember Doria Robinson expressed concerns about the financial motivations behind the settlement, referencing a similar tax measure in Carson, California, which has yet to yield any funds for the community. Despite these concerns, she acknowledged the pressing need for financial support in Richmond. Chevron's agreement stipulates annual payments of $50 million for the first five years, increasing to $60 million for the subsequent five years, marking a continuation of a similar deal established in 2010 that is set to expire next year.