RICHMOND – The Richmond City Council is predicted to propose an oil refinery tax for a November ballot Tuesday night, an initiative that will goal the Chevron refinery.
If the tax on refinery licenses is put to a vote by the City Council and approved by voters, Chevron can be required to pay $1 per barrel of commodities refined in Richmond, generating estimated revenues of $60 million to $90 million per 12 months for the town. The measure, which environmental groups are calling the “Poluters Pay Initiative,” would require an easy majority vote to pass.
Representatives for Chevron – the town's largest taxpayer and employer – didn’t immediately reply to requests for comment, but company spokeswoman Caitlin Powell called the measure “a hasty proposal put forward by one-sided interests” in a press release to KQED.
In 2008, Richmond voters approved a tax on Chevron, often called Measure T. However, the difficulty was successfully challenged in court. As a part of an agreement, Chevron paid the town compensation in exchange for the town agreeing to cap the corporate's tax liability at $234.10, plus $46.80 per worker for the primary 25 employees and $40.10 for every additional worker.
The agreement also said any latest taxes imposed on Chevron before July 1, 2025, can be credited against the settlement amount paid by the corporate, based on a staff report detailing the proposal.
The latest measure, if approved, wouldn’t take effect until after July 1, 2025. Kerry Guerin, an attorney for Communities for a Better Environment, said the legal “fatal flaws” of Measure T have been remedied by the brand new measure. Specifically, it includes an apportionment mechanism to avoid double taxation and a uniform calculation formula for the quantity the corporate would pay tax on.
“We are only introducing this tax because we believe it will withstand any legal challenge,” Guerin said. “This measure is the result of years of research and we believe, in consultation with the city, that this is the best way forward.”
Communities for a Better Environment and Asian Pacific Environmental Network Action are the 2 essential groups behind the measure and, together 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, form the Poluters Pay Coalition, a press release said.
The coalition has planned a rally in support of the Poluters Pay Initiative at Richmond City Center Plaza at 5 p.m., just before Tuesday's council meeting. Dozens of community members, including teachers, parents, union members, emergency responders and medical personnel are expected to attend the rally and promote a measure they are saying will help fund improvements to the environment, city infrastructure and services, and establish latest programs.
According to state data, Richmond has certainly one of the best asthma rates within the state, and a report from the Bay Area Air Quality Management District says particulate matter from the Richmond refinery is linked to 5 to 11 premature deaths annually.
“This is an ongoing battle. That's not to say this ballot proposal and money is the solution to ending pollution, but we know our community deserves better,” said Sandy Saeteurn, a longtime activist with APEN Action. “The community here is so resilient. In my lifetime, we have fought back against the giant and held them accountable.”
For Saeteurn, who grew up near the refinery in Richmond, the fight against Chevron is personal. She said she often experienced health problems reminiscent of rashes and coughs after emergencies on the plant. In addition to funding programs to enhance community health and city services, the measure can be intended to assist develop a plan for a future without the plant, she said.
“We just hope and pray that the council votes unanimously for the measure,” Saeteurn said. “The community is ready for the fight.”
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