El Segundo and Chevron Advance a 15-Year Community Benefit Agreement

The agreement more than doubles total contributions, bringing $425 million over 15 years to the City's General and Water Funds

EL SEGUNDO, Calif. - (Oct. 27, 2026) - The City of El Segundo and the Chevron El Segundo Refinery reached the framework for a $425 million Community Benefit Agreement. The proposed agreement more than doubles Chevron's total contribution to the City over 15 years.

"The Chevron Refinery is integral to El Segundo's story," said El Segundo Mayor Chris Pimentel. "This proposed agreement is the next chapter in that partnership. It delivers predictable cash flow for the City that will support capital improvements and City services, while creating a strong financial legacy for many years to come."

The agreement includes an immediate one-time donation of $5 million to the City, and $23 million per year for the first five years. The annual contribution will increase to $28 million per year in year six and will increase again to $33 million per year in year 11. In addition to the community benefit, Chevron will continue to pay their taxes under the City’s Tax Ordinance. In total, with the Community Benefit Agreement and anticipated taxes, the City would collect approximately $557 million over 15 years.

"The proposed agreement will provide significant, long-term stability to the City's General and Water Funds," said El Segundo City Manager Darrell George. "It will significantly reduce projected near-term budget deficits and provide important funding for capital projects and expanded services that will benefit the entire El Segundo community."

El Segundo City Council directed the City Attorney to draft the agreement at a special meeting on October 26. The agreement will be brought back to City Council for final approval at a future meeting before year end.

El Segundo's current agreement with Chevron will end on September 30, 2027. On February 6, 2024, the City Council established an Ad Hoc City Council Subcommittee to negotiate with Chevron. Mayor Pro Tem Baldino and Councilmember Giroux served on the subcommittee, assisted by City Manager George and Chief Financial Officer Paul Chung. 

“Chevron’s refinery and our employees have been part of the El Segundo community for more than 115 years," said Refinery Director Bryon Stock, adding, "Today’s action by the City Council builds on our longstanding relationship and reflects a collaborative, balanced outcome. The new proposed agreement essentially more than doubles Chevron’s contributions under the prior agreement with the City.” 

About the City of El Segundo: The City of El Segundo is a thriving coastal community in southwestern Los Angeles County. The City’s vibrant economy includes leaders in aerospace and defense, bioscience, information technology, energy, real estate, creative media, and toys. The City has seen tremendous growth and evolution over the past several years and is home to Mattel, the Los Angeles Times, the Los Angeles Air Force Base Space Systems Command, and the Los Angeles Chargers, Kings, Lakers, and Sparks.

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