Chevron tax could be heading to Richmond ballot this November

RICHMOND — The Richmond City Council on Tuesday evening is expected to place a tax on oil refining businesses on the November ballot, an initiative that would target the Chevron Refinery.

If placed on the ballot by council and approved by voters, the refining business license tax would charge Chevron $1 per barrel of raw materials refined in Richmond, bringing an estimated $60 million to $90 million a year in revenue to the city. The measure, which environmental groups are calling the Polluters Pay Initiative, would need a simple majority of votes to pass.

Representatives with Chevron — the city’s largest taxpayer and employer — did not immediately respond to requests for comment but company spokesperson Caitlin Powell called the measure “a hasty proposal, brought forward by one-sided interests,” in a statement to KQED.

In 2008, Richmond voters approved a tax on Chevron, known as Measure T, but the matter was successfully challenged in court. As part of an agreement, Chevron paid the city a settlement in exchange for the city agreeing to limit the company’s tax obligation to $234.10, plus $46.80 per employee for the first 25 employees and $40.10 for every employee thereafter.

The agreement also stated that any new tax imposed on Chevron before July 1, 2025 would be credited against the settlement amount paid by the company, according to a staff report detailing the proposal.

The new measure, if approved, wouldn’t take effect until after July 1, 2025. Kerry Guerin, an attorney with Communities for a Better Environment, said legal “fatal flaws” of Measure T have been remedied in the new measure. Specifically, it includes an apportionment mechanism to prevent double taxation and a single calculation formula for the amount the company would be taxed.

“We’re only bringing this tax forward because we believe it will survive any legal challenge brought,” Guerin said. “This measure is the result of years of research and we, in coordination with the city, share the view that this is the best way forward.”

Communities for a Better Environment and the Asian Pacific Environmental Network Action are the two main groups behind the measure forming the Polluters Pay Coalition, along with SEIU Local 1021, Richmond Firefighters Local 188, United Teachers of Richmond, Alliance for Californians for Community Empowerment, Urban Tilth and the Richmond Shoreline Alliance, according to a press release.

The coalition has planned a 5 p.m. rally in support of the Polluters Pay Initiative in the Richmond City Center Plaza, just ahead of Tuesday’s council meeting. Dozens of community members, including teachers, parents, union members, emergency response staff and medical professionals are expect to attend the rally and advocate for a measure they say will help fund improvements to the environment, city infrastructure and services, and establish new programs.

Richmond has some of the highest rates of asthma in the state, according to state data, and particulate matter from the refinery is linked to five to 11 premature deaths in Richmond annually, according to a Bay Area Air Quality Management District report.

“This is an ongoing battle. This is not to say this ballot measure and money will be the solution to end pollution but we know our community deserves better,” said Sandy Saeteurn, a longtime advocate with APEN Action. “The community here is so resilient. In my lifetime, we’ve beaten back the giant, we’ve held them accountable.”

For Saeteurn, who grew up near the Richmond refinery, the fight against Chevron is personal. She said she has often found herself experiencing health concerns like rashes and coughs following emergencies at the plant. Beyond funding programs aimed at improving community health and city services, she said the measure is also meant to help develop a plan for a future without the plant.

“We’re just hoping and praying the council votes unanimously to support the measure,” Saeteurn said. “The community is ready for the fight.”