City Council Secures $550 Million For General Fund
Today, the Richmond City Council voted unanimously to approve a $550 million settlement with Chevron, to be paid out over the next ten years. This funding is a significant win for our community, which has experienced a disproportionate share of pollution — directly leading to a higher risk of asthma, heart disease, cancer, and other chronic health conditions.
Special thanks are due to Communities for a Better Environment (CBE) Action and the Asian Pacific Environmental Network (APEN) Action. These organizations have worked tirelessly to ensure the Make Polluters Pay measure would pass in November — knocking on doors, making phone calls, and calling on elected officials to act.
“We look forward to working with the city to ensure that these funds are used both to meet immediate needs and to invest in a just transition that builds a future beyond oil for Richmond.” — Megan Zapanta, Richmond Organizing Director, Asian Pacific Environmental Network (APEN) and The Polluters Pay Coalition
What Our Elected Leaders Have To Say
“I say this is a historic moment because we...the community of Richmond has created a movement that will echo across the nation. What's happened here has demonstrated to the community, to the nation, to the world, that when we as people pull together, we can create change.” — Eduardo Martinez, Mayor, City of Richmond, CA
“This is an unprecedented victory for Richmond residents that will uplift us for decades to come…I am proud to have been part of the group that negotiated the terms of this historic settlement. We increased Chevron’s initial offer of $300 million to the final offer of $550 million — and ensured that all decisions about how the money spent will be made by the City Council alone.” — Claudia Jimenez, Vice Mayor, City of Richmond, CA
“I am absolutely proud of the decades of deep community organizing in Richmond to hold our biggest polluter accountable and to make polluters pay. I thank Communities for a Better Environment, the Asian Pacific Environmental Network and their sister organizations, CBE Action, APEN Action, and all the many academics and outside councils that researched and wrote the measure. We thank those who made phone calls, who knocked on doors, and more to build support for this ballot measure.” — Doria Robinson, Councilmember, City of Richmond, CA
“The EJ [environmental justice] groups spent years researching this and putting their time and energy and resources to get us to this point. Not only did community lawyers write the ballot measure, but they raised funds to have other lawyers review it. They also fundraised and began running a campaign. Many of us have seen some of the Make Polluters Pay ads that are already running. So it is their dedicated work that has brought us to this point today — it is also the work of the community.” — Gayle McLaughlin, Councilmember, City of Richmond, CA
What Does The Settlement Mean For Richmond?
The City of Richmond will instruct the County to remove the proposed business license tax on oil refining from the November 5, 2024 ballot. The tax would have required Chevron to pay $1 per barrel of oil refined within city limits over a period of 50 years. Based on the latest refinery production data, the general fund would have received $60-90 million annually.
During the August recess, Chevron approached the City Attorney and a Council Ad Hoc committee of Mayor Eduardo Martinez, Vice Mayor Claudia Jimenez, and Councilmember Doria Robinson with a request to negotiate. The city was originally offered a settlement of $300 million from Chevron, which was successfully negotiated up to $550 million.
The new agreement also frees Richmond from pending and future litigation. Today, August 14, 2024, is the deadline for the council to act to remove the item from the ballot.
How Will The Settlement Be Paid Out?
Under the settlement, fifty million dollars will be paid out annually for the first five years, followed by $60 million per year for the next five years. Chevron will not be allowed to take any public-facing credit for the expenditures.
However, many longtime community activists are urging for even more transparency, including establishing an oversight committee.
“I think it is important that Richmond has a break and focus on rebuilding with guaranteed additional resources. And I'm also committed to having an advisory board. I want community members to be a part of our budgeting process. And I'm also looking past, I'm looking towards the next 10 years after this settlement because we need long-term sustainability.” — Melvin Willis, Councilmember, City of Richmond, CA
More Financial Details
The City and its voters are still permitted to impose future taxes on Chevron during the 10-year payout term. However, Chevron is allowed to take a credit based on the payments it has made under today’s agreement on potential new taxes. This is a similar arrangement to the 2010 settlement agreement (Measure T) that expires in June 2025.
Chevron will continue to pay current taxes as well, including Contra Costa County property tax and the Measure U business license tax under its current rates.
Stay Informed and Engaged
In collaboration with The Polluters Pay Coalition, the RPA encourages you to continue supporting efforts to keep our biggest polluters accountable. We also want to acknowledge the coordinated efforts of frontline residents and organizers, environmental justice groups, organized labor, unions, healthcare workers, teachers, and educators over the past decade.
Let’s all continue working together to fund green, clean energy, accessible open spaces, and safe neighborhoods for all Richmond residents.
For more information contact RPA. We appreciate your continued support in making our city a healthier place to live.