Just hours before the deadline to withdraw the measures from the November ballot, the Richmond City Council on Wednesday formally accepted a settlement with Chevron that will pay the city more than $500 million over 10 years.

On 18 June, the Council adopted the Nomination would have asked voters whether the city should impose a tax of one dollar per barrel on commodities (oil or other raw materials used in industrial processes) processed at Chevron’s Richmond refinery for 50 years. A staff report for Wednesday’s meeting said the city’s finance director estimates that this would generate $60 million to $90 million per year for Richmond.

Chevron offered to pay $300 million over 10 years, increasing that amount to $550 million if the city dropped the ballot measure.

Shortly before the unanimous vote, Richmond Mayor Eduardo Martinez spoke of a historic moment and said the fight for Richmond’s environment is not over.

“The community of Richmond has started a movement that will resonate across the country,” Martinez said. “What happened here showed the community, the nation and the world that when we pull together as people, we can create change. And that other communities, by standing up for environmental justice like we have, can demand that their polluters do the right thing, whether through action or through negotiation.”

The city has already been sued by a local resident and a nonprofit over language in the ballot proposal, and Chevron also announced a lawsuit. More than one council member pointed to a similar ballot proposal from the Southern California city of Carson that taxed a local refinery in 2017 and is still being held up in the courts.

City Councilwoman Doria Robinson, who grew up in Richmond’s Iron Triangle neighborhood, said Carson hasn’t seen “a dime” of those taxpayer dollars.

“If we were to argue about the nature of air pollution, I would be there to the bitter end because it’s a matter of substance, but this has always been about money,” Robinson said. “It’s about people paying their fair share. I think this community needs half a billion dollars.”

Brian Hubinger, senior manager of public and government affairs at Chevron, told the council that the agreement had led to common ground.

“This agreement will allow Chevron Richmond to continue to provide jobs to thousands of Bay Area residents and remain focused on providing the affordable, reliable and increasingly clean energy this region needs every day, while also providing the city with much-needed additional funding to support the needs of our community,” Hubinger said.

Chevron will pay the city $50 million annually for the first five years and $60 million for the remaining five years. The money will go into Richmond’s general fund, and Chevron has agreed not to claim credit for the city’s use of the money. The agreement will not affect other taxes Chevron already pays to the city, including property taxes, the city’s Measure U business tax and a utility use tax.

The city and Chevron signed a similar, less-money contract in 2010 that expires next year.