Pacific Institute – 654 13th Street – Oakland, CA 94612

FOR IMMEDIATE RELEASE: October 9, 2008
CONTACT: Nancy Ross, nross@pacinst.org  or 510.251.1600 x106 or cell phone: 510.725.2385
                  Courtney Smith, cesmith@pacinst.org or 510.251.1600 x112

                                      New Report Documents Chevron’s Contribution to City of Richmond Local Revenue

                                                Struggling City of Richmond Sees 10% of Revenue from Chevron
                                                  as Corporation Fights to Contribute Significantly Less

October 9, 2008 – RICHMOND, CALIF. – From roadways and streetlights to police, fire trucks, parks, and shelters, the resources and services that Richmond
residents look to in their community depend on public revenue. As Richmond’s largest industry, Chevron also relies on the city’s optimal location,
infrastructure, and public services to function, but how much it contributes to the community has been unclear. In the newly released chapter from its West
County Indicators Project, the Pacific Institute reports on “Richmond’s Tax Revenue from Chevron,” countering reports that one-third of the city’s revenue
comes from Chevron.

“The research released today, based on publicly available data, shows Chevron’s revenue contribution to Richmond is closer to 10% of the city’s total
revenues – and it also shows that these figures are not at all transparent; definitive figures are frustratingly hard for the community to come by,” said
Eli Moore, research associate in the Pacific Institute’s Community Strategies for Sustainability and Justice program. The City of Richmond’s total revenue
in fiscal year 2006/07 was $247 million, and the sum total of Chevron’s fees and payments amounted to $25 million.

What is clear is that the revenue figures will be significantly less if Chevron is successful in their lawsuit to renegotiate their property tax assessment
rates. Chevron is the third largest corporation in the United States, and it holds 13.4% of the city’s land. And despite 2007 revenue earnings of $210
billion and profits of $18.7 billion, Chevron initiated a court case challenging the property taxes it pays on these expansive holdings in Richmond.

“Shrinking public revenues prevent adequate maintenance and expansion of public services and infrastructure for the entire Richmond community,” said Moore.
“When a city has a $207-billion-grossing industry taking up nearly 14% of its land, the assumption would be that the contribution they put in is a solid
enough revenue stream to support adequate public services and infrastructure. But Richmond is a low-income city with a dire need for revenue – and a
multi-billion-dollar company whose contribution is difficult to quantify, and who is trying to pay less. The community needs to be able to fully assess
that.”

It is currently very difficult for the public to access full information on what Chevron’s revenue contribution to Richmond is in order to make informed
decisions about how its benefits balance its health and environmental costs. Having such accurate information is particularly critical at this time, when
the financial contributions of Chevron to Richmond and Contra Costa County are currently under scrutiny in the courts, on the November ballot, in a proposed
community benefits agreement, and in a confidential audit of the company’s utility users’ tax payments, raising the issue of whether the company is paying
enough.

Chevron has publicly stated goals of being “committed to contributing to the social and economic development of the Richmond community.” But despite its
outstanding profits, Chevron is fighting to contribute less: the City of Richmond faces potential losses of $7 million and Contra Costa school districts
losses of $24 million. The company’s local charitable donations are millions of dollars less than the revenue Chevron’s challenge would remove from the
city’s budget: between 2006 and 2008, when Chevron donated an average of $1.1 million in charitable contributions each year, it took action to reduce its
annual contributions to city revenue by an estimated $11.7 million.

The challenge of obtaining complete information on the corporation’s contributions to public revenue undermines well-informed decision making by the public.
The company has refused to disclose information on its utility use and utility user tax payments, forcing the City of Richmond to acquire this info through
an audit whose findings will be withheld from the public. The Pacific Institute estimates of the company’s total 2007 contributions of $25 million were
possible only after meeting with city staff, poring over the City Annual Financial Report, and digging up a key piece of information (the change in the
utility user tax payments following its modification of its UUT rate) from archived newspaper articles – and some data still had to be extrapolated to
generate annual averages and compile totals. Very few tax payers and voters, no matter how concerned, have the time and resources necessary to collect such
basic information given this lack of accessibility.

The research and figures made available through the Pacific Institute’s West County Indicators Project are tools for residents to advocate for community
needs. They are particularly valuable for residents interested in understanding or taking action around business contributions to city revenue, since many
of the statistics in the report are not readily available. Among the further resources for information and change put forward in the Indicators Report is
the City Annual Financial Report (CAFR) at www.ci.richmond.ca.us. Community members interested in advocating for improvements also can attend Richmond City
Council meetings on the 1st and 3rd Tuesday of every month at 1401 Marina Way South.

The most immediate way proposed to address the issue of revenue from Chevron is the “A Fair Share for Richmond” ballot measure in November. For information,
contact the Richmond Progressive Alliance at www.richmondprogressivealliance.net or call 510.595.4661.

The full “Richmond’s Tax Revenue From Chevron” chapter from the West County Indicators Project, with statistics and recommendations, is available free on
the Pacific Institute website at http://www.pacinst.org/reports/tax_revenue_chevron/.

Based in Oakland, California, the Pacific Institute is a nonpartisan research institute that works to create a healthier planet and sustainable communities.
Through interdisciplinary research and partnering with stakeholders, the Institute produces solutions that advance environmental protection, economic
development, and social equity – in California, nationally, and internationally.  http://www.pacinst.org