Richmond’s recent $550 million deal with Chevron could serve as a model for environmentalists nationwide. According to Politico, the agreement stems from a long history of tension between the East Bay city and the oil giant, particularly after a major refinery fire in 2012.

Environmental justice groups, including Asian Pacific Environmental Network and Communities for a Better Environment, mobilized residents against Chevron’s presence in the California city. They pushed for accountability and extracted a $90 million community benefits agreement in 2014.

As awareness of climate impacts grew, activists began planning for a future without the refinery. In 2024, they proposed a ballot initiative to tax Chevron for every barrel refined in Richmond, potentially generating $90 million annually.

Chevron initially resisted, threatening to leave Richmond if the tax passed. However, private negotiations led to a compromise: Chevron agreed to pay $550 million over ten years in exchange for dropping the tax initiative.

While some activists felt the settlement fell short, others saw it as a victory. Ross Allen, a Chevron spokesperson, stated, “It’s not necessarily a win-win, because I don’t think anyone actually won through this process. But I do think it’s something both sides can probably live with.”

Related Story: Wired Wednesday: Chevron Corporate Exit Is Tip of the Iceberg in Newsom’s ...

Richmond’s Model Sparks National Interest

The Richmond model is now attracting attention from other communities seeking to tax polluting industries. However, replicating this success may be challenging, as it resulted from decades of organizing and Richmond’s unique political environment.

Robb Korinke, a political consultant, noted that this represents a “maturation of organizing tactics” in the environmental justice movement, shifting focus from global themes to local environmental concerns.

Read more at Politico.