Richmond is on the brink of a once-in-a-generation opportunity. After years of tireless organizing by local environmental justice organizations, a deeply supported ballot initiative, and bold leadership from council members and the City Attorney we secured a historic $550 million tax settlement from Chevron Corporation. This victory did not come easily. It was made possible by community members who demanded accountability and fought to bring Chevron to the negotiating table. Now, the most important question remains: how should this money be used?
I believe deeply that the answer must begin — and end — with a robust, inclusive community process.
By “community,” I mean everyone. Yes, the environmental justice groups whose work made this settlement possible. But also the residents who have lived for generations with the consequences of Chevron’s underinvestment in our city — the health impacts, the environmental burdens, and the economic neglect. These voices matter just as much in deciding what happens next.
Some have tried to minimize the significance of this settlement, suggesting that half a billion dollars is “no big deal.” I strongly disagree. The last major settlement Richmond received from Chevron was only a fraction of this amount, yet it allowed us to launch transformative initiatives like the Richmond Promise Program. If that smaller sum could create lasting impact, imagine what is possible now — if we act thoughtfully and strategically.
This is precisely why we cannot allow these funds to simply disappear into well-intentioned programs. We must be deliberate. We must be bold. And we must think beyond the next budget cycle.
The city will receive approximately $50 million per year for the first five years, and $60 million per year for the second five years — a ten-year stream of funding. Before a single vote is cast, we owe it to residents to openly discuss the smartest way to invest this money.
There are several possible strategies, each with real tradeoffs.
One option is to spend the full amount each year — filling gaps, funding long-desired programs, and addressing immediate needs.
Another approach would divide each year’s funds into set “buckets,” ensuring consistent investment in priority areas chosen by the community, staff and council.
Both strategies offer visibility and immediacy, but they also mean the money is gone after ten years.
A third strategy would take a longer view: using a significant portion of the funds to pay down more than $300 million in unfunded liabilities early. Doing so could save the city millions in interest payments and fundamentally change Richmond’s financial outlook for decades. While this approach would limit short-term spending, it would free future budgets from crushing debt — a rare and powerful move for any city.
A fourth option would be to invest the settlement funds themselves, using only the interest earned each year. We could use a bond to secure the funds needed for larger infrastructure projects to pay for major projects like rebuilding fire stations, repairing parks, and renovating community centers. With safe, conservative investments, this approach could create a growing, sustainable funding source well beyond the ten-year settlement window.
There may be other ideas as well. The point is not to choose one behind closed doors, but to hear directly from residents about which strategy they believe best serves Richmond’s future.
Equally important is the question of what we should invest in, regardless of the strategy chosen.
Environmental justice advocates have raised a crucial concern: Richmond must prepare for a global transition away from fossil fuels. History offers stark warnings. The collapse of the auto industry devastated Detroit. The decline of coal hollowed out entire regions. Chevron currently accounts for roughly 20% of Richmond’s tax base. If that drops suddenly, our city would be dangerously exposed.
Investing now to diversify our economy — attracting new industries, supporting local businesses, and reducing our dependence on a single corporation — is not alarmist. It is prudent, conservative planning.
At the same time, Richmond faces many immediate needs. Roads still require repair. Parks and community centers need investment. City departments are stretched thin, and staff need support to deliver the services residents deserve. These realities must also be part of the conversation.
That is why a transparent, well-structured community process is essential. Residents should have the opportunity to weigh the arguments, understand the tradeoffs, and help define both the strategy and the spending priorities. Council members should cast their votes informed by what the community truly wants — not after the fact.
What we should not do is allow this money to quietly flow into the general fund without a plan. That would squander a rare opportunity to create lasting, visible change.
This settlement is not just about ten years of funding. It is about what Richmond will look like for generations to come. If we take the time to listen, plan, and invest wisely, this moment can define our city’s future — in a way that truly reflects the will and needs of the people who call Richmond home.
Tuesday, January 27, 2026 I’m co-sponsoring Agenda Item P3 to hire a neutral third-party consultant to lead a community process on how the Chevron settlement funds should be used. This process would give residents the opportunity to share priorities, explore different strategies, and weigh in on what they believe will have the greatest long-term impact.
Join the conversation.
Tuesday, January 27, 2026 @ 5:00 PM
Community Services Building
440 Civic Center Plaza
Richmond, CA 94804