Chevron and Richmond strike $38M deal to avoid refinery tax battle
A long-running dispute between Chevron and the city of Richmond has ended in a settlement. The agreement stops a proposed tax on the company’s refinery and secures payments totalling $38 million over the next decade. Both sides have described the deal as a way to maintain stable energy supplies while supporting local funding.
Richmond had planned to ask voters to approve a tax on Chevron’s refinery, which processes 250,000 barrels of crude oil daily. City officials argued that the company, operating in the area for over a century, should contribute more to the community. The proposed measure aimed to increase local revenue but faced strong opposition from Chevron.
Under the 2024 settlement, Chevron will instead pay Richmond $4 million each year for ten years. The payments begin on July 1, 2025, and continue until June 30, 2035. In return, the city agreed to withdraw the tax proposal. Chevron stated that the deal allows it to keep providing Northern California with affordable and reliable energy. The company also highlighted the importance of avoiding financial uncertainty for both the refinery and local residents.
The settlement removes the threat of a new tax while guaranteeing Richmond a fixed annual payment. Chevron will contribute $38 million over the next decade without additional levies on its operations. The agreement ensures funding for the city while maintaining the refinery’s current production levels.
