Richmond City Council settles with Chevron to drop barrel tax ballot measure

The Richmond City Council voted unanimously in favor of a deal with Chevron that will bring the city more than half a billion dollars over the next ten years. At first, Chevron offered to pay 330 million over ten years. They later rose to half a billion if the city dropped the measure.

The measure was first approved on June 18. He would have asked Richmond voters whether the city should implement a $1-per-barrel tax on all oil and other raw materials from Chevron’s refinery for the next 50 years.

According to a staff report from Wednesday’s meeting, the city’s finance director estimated between $60 million and $90 million in revenue if the measure were to pass.

However, this move faced some opposition. The city has already been sued by a resident and a nonprofit over the language in the ballot proposal. Chevron has also indicated it will sue.

Several council members pointed to a similar ballot measure passed in 2017 by the Southern California city of Carson that is still being held up by the courts. According to a Richmond council member, the city of Carson has not seen any of that money.

For now, Chevron plans to pay the city $50 million each year for the next five years, and then $60 million annually for five years after that. The money goes to Richmond’s general fund. Chevron has not made any statement about how the city should spend it. This agreement also will not affect other taxes that Chevron already pays to the city.