Richmond refinery tax could be withdrawn from November election in exchange for $550 million from Chevron – East Bay Times

RICHMOND — A tax measure targeting Chevron’s Richmond refinery could be pulled from the November ballot in exchange for a $550 million payment made over 10 years, sparing the city years of costly litigation.

A special City Council meeting was scheduled for Wednesday, the deadline to remove the tax measure from the ballot, to allow council members to weigh in on the proposed deal.

The ballot measure for the refinery, which would have cost Chevron between $60 million and $90 million annually, depending on the amount of feedstock processed by the plant, was set to appear on the ballot in November. He had the unanimous support of Richmond’s council members.

State data shows Richmond residents have some of the state’s highest rates of asthma, a disease linked to refinery particulate matter, along with bronchitis and other respiratory illnesses. Each year, between five and 11 people die prematurely in the city from emissions from Chevron, according to the Bay Area Air Quality Management District. The air district also estimates that health impacts from the refinery cost the area between $52 million and $118 million annually.

If the deal is approved, Chevron would pay $50 million annually to the general fund for the first five years, followed by $60 million annually in the final five. The city would retain the right to impose new taxes on Chevron and other businesses, but the settlement payments would be credited toward what the refinery would owe.

“Chevron and the city attorney, supported by an ad hoc committee of the City Council, negotiated a settlement agreement that would end the current lawsuit and the threat of new ones,” according to a staff report prepared by City Attorney Dave Aleshire.