Chevron Agrees to Pay California City $550 Million to Avoid Getting Hit With New Tax

Chevron will pay Richmond $550 million over 10 years, settling a dispute over a proposed refinery tax measure.

A Chevron gas station in Los Angeles, Calif., on May 22, 2023. Mario Tama/Getty Images

Chevron has agreed to pay the city of Richmond, California, $550 million over 10 years in a settlement under which the city will drop a November ballot measure that would have imposed a new tax on the company’s Richmond refinery.

The Richmond City Council voted 7–0 on Aug. 14 to approve the settlement agreement, under which Chevron will pay the city $50 million annually for five years starting in 2025, then $60 million a year until 2035.