Joining Trend, NY Suspends Review of Oil Train Terminal Permit

Repost from Inside Climate News

Joining Trend, NY Suspends Review of Oil Train Terminal Permit

Another fight over energy infrastructure ramps up, as state regulators require company to address environmental justice, safety and climate change concerns.
By Zahra Hirji, September 23, 2016
New York regulators have suspended the application of a major oil-by-rail terminal project pending review of potential environmental, health and climate change impacts. Credit: STEEVE DUGUAY/AFP/Getty Images

New York environmental regulators have suspended their review of two proposals to renew and expand operations at a Port of Albany oil terminal until Global Partners LP addresses a laundry list of concerns over environmental, public health, safety and climate change.

Officials at the state Department of Environmental Conservation (DEC) told the company in a letter on Sept. 16 it has three months to provide plans for the following:

  • limiting the oil terminal’s odors and emissions from toxic pollutants, such as benzene
  • addressing high noise levels and safety risks associated with oil trains coming to the facility
  • reducing the terminal’s climate footprint, among other issues.

DEC also informed Global Partners that it is combining the company’s renewal and expansion proposals and treating it like an application for a new project. This dramatic step means even after the company provides the extra information requested by the state, the application will undergo a public comment period and be considered for a comprehensive environmental and climate impact review.

The full review process could take years.

Environmentalists, Albany residents and county officials celebrated the decision, having spent more than two years raising concerns about the oil terminal’s current and proposed operations and fighting it in court.

This case joins a national trend of green and grassroots activism helping to delay and cancel dozens of proposals for new and expanding fossil fuel infrastructure, from oil sands and natural gas pipelines to oil terminals and coal mines. Earlier this month, construction of part of the Dakota Access oil pipeline was halted by the Obama administration in North Dakota, following months of protests led by the Standing Rock Sioux tribe objecting to the project’s potential threat to its drinking water and sacred sites.

“What is so gratifying about the DEC letter is that it requires Global to address every single issue we have raised since 2014,” said Chris Amato, an Earthjustice lawyer who represents the tenants association for Ezra Prentice Homes, a low-income housing development located next to the rail yard associated with the oil terminal. According to Amato, the community “is really, really happy that at long last Global is going to have to…examine the impacts.”

Ezra Prentice Homes is among the communities in the south end of Albany at risk from air pollution and potential train fires. “They are literally at the fence line” of the train tracks, Amato said. “Twenty feet separate the closest homes from oil tankers on the track.”

People in Albany’s South End, which is largely African American, had repeatedly complained to state officials about bad odors wafting from the facilities, among other concerns, since 2012.

“This is a victory for the people of the Ezra Prentice Homes and for the people in the county who live in fear of oil trains every day,” Albany County Executive Daniel McCoy said in a statement.

In response to DEC’s recent letter, Global defended its record. “We disagree with the New York DEC’s decision and believe that we have fully complied with the required permit application process,” said Mark Horan of Rasky Baerlein Strategic Communications, which represents the company. “Global has always been particularly vigilant about the safety of our neighbors wherever we operate and we will continue to work with the Albany community on these issues.”

Global Partners filed a permit request to state officials in 2011 seeking to overhaul its operations to handle more oil. The facility went from handling more than 18 million gallons of oil that year to more than 460 million gallons in 2012, according to the DEC. The facility’s oil capacity peaked in 2014 at more than 1.1 billion gallons of oil, but it has since declined as the oil market has slumped.

The source of the oil and how it traveled to the facility also changed during that time. Initially, the oil coming in was refined; it arrived from barges that came up the Hudson River and was then trucked out regionally. The company began handling unrefined, more volatile (and potentially explosive) crude arriving on trains from North Dakota.

Global sought to expand its operations further in 2013, submitting a permit modification request to add seven boilers to the site. Boilers are critical equipment for handling and storing Canadian tar sands; the thick crude is so viscous it must be heated before it can be transferred from a train car to a storage tank.

The company’s initial expansion plan flew under the radar of Albany residents and the environmental community. Global’s 2013 proposals, however, were loudly protested. And regulators responded by installing a permanent air monitor near the Ezra Prentice community in 2015. According to officials, the air showed elevated levels of benzene. Regulators cited these findings in their recent letter.

“The DEC has monitored higher-than-expected benzene levels in the vicinity of the facility that may be attributable, in part, to the storage and processing of petroleum products at the Global facility,” regulators wrote. “Global must address what measures it intends to take to limit, to the maximum extent practicable, any benzene emissions attributable to the facility.”

DEC has identified Albany’s South End, which includes Ezra Prentice Homes,as an “environmental justice” community associated with Global’s operations. In 2013, the DEC updated its environmental justice policy to include more public participation requirements for projects with potential impacts on such communities. In the recent letter, DEC specifically orders Global to take these steps.

Another task for Global, identified by DEC, is to devise a plan to limit any climate impacts associated with the future handling of oil sands, a crude that generates especially high emissions during extraction and processing.

“New York is the most aggressive state in the nation in pursuing action to ensure the public and the environment are protected from risks associated with the federally regulated transport of crude oil,” DEC spokeswoman Erica Ringewald wrote in an email.

State officials are also conducting a more comprehensive review for the permit renewal application of Buckeye Partners, another energy companywith an Albany rail terminal.

U.S. Rep. Garamendi praises Benicia City Council for crude-by-rail vote

Repost from the Fairfield Daily Republic

Garamendi praises Benicia City Council for crude-by-rail vote

By Ryan McCarthy, September 23, 2016

FAIRFIELD — Rep. John Garamendi is praising the Benicia City Council for its unanimous vote rejecting a proposed crude oil by rail facility that Valero corporation would have operated and Garamendi said would have led to dangerous railcars traveling through Fairfield, Suisun City, Dixon and Davis.

“The action by the Benicia City Council is a clear signal that shipping oil by rail presents a serious safety problem that must be addressed before our communities are faced with increased oil shipments,” Garamendi, D-Walnut Grove, said Thursday in a news release. “The council did the right thing by forcing a pause on oil by rail through our communities.”

The congressman, who represents the 3rd District that includes Fairfield and Suisun City, authored the Bakken Crude Stabilization Act to reduce the volatility of oil transported by rail and make it safer to transport, the release said.

THE TRIBUNE, SAN LUIS OBISPO: Decision on Nipomo refinery’s oil-by-rail plan put off again

Repost from The Tribune, San Luis Obispo CA
[Editor:  Additional coverage: The Lompoc Record, “SLO County Planning Commission delays decision on oil trains, again”.  – RS]

Decision on Nipomo refinery’s oil-by-rail plan put off again

By Cynthia Lambert, September 22, 2016 6:55 PM
Phillips 66 hopes to extend a rail line to its Nipomo Mesa refinery, which would allow deliveries from three oil trains a week..
Phillips 66 hopes to extend a rail line to its Nipomo Mesa refinery, which would allow deliveries from three oil trains a week. Joe Johnston

After several more hours of public comment on a controversial oil-by-rail plan Thursday, San Luis Obispo County planning commissioners started to debate various conditions to approve the project, but they did not reach a decision.

Instead, the proposal by Phillips 66, which has been the subject of numerous Planning Commission meetings this year, will again be continued. It is scheduled to return Oct. 5.

In May, a move to deny the project failed on a 3-2 vote, with Commissioners Jim Harrison, Jim Irving and Don Campbell voting “no.” The commission directed planning staff to return with conditions for approving the proposal to allow the oil company to build a 1.3-mile spur that would connect to the main rail line so the Nipomo Mesa refinery can get crude oil by rail.

The proposal calls for deliveries from three trains per week. Each train would have three locomotives and 80 rail cars to haul about 2.2 million gallons of crude oil.

It’s expected that any decision by the commission will be appealed to the county Board of Supervisors.

“I’m concerned that if we were to deny the project today without establishing conditions of approval for a smaller project with fewer trains and specific hours of operation, that this would leave a wide-open project for the Board of Supervisors to consider next year,” Irving said.

In the afternoon, the commission started working its way through a 33-page document of 97 conditions for the project, asking questions and making minor changes and additions.

I’M INTERESTED IN SAFETY, IN RENEWABLE CLEAN ENERGY AND IN BEING A GOOD STEWARD OF OUR ENVIRONMENT. THIS PROJECT COMPROMISES ALL THREE OF THOSE INTERESTS.
Lisa Ritterbuck of Avila Beach

Commissioner Eric Meyer suggested the commission take a straw vote to see which way commissioners were leaning on the project.

Commissioner Ken Topping agreed, saying, “I think the public deserves to know where we stand individually.”

But Harrison pointed out that they had already taken one vote on the project in May.

Irving said his mind is not made up on the project, and he said he wants to look at it point by point and then make a decision.

“I know it drags it out more,” he said. “I know we are on our seventh hearing, but that’s the way I would like to proceed.”

The commission did not reach a consensus to take a straw vote.

Earlier this year, the Planning Commission held five days of hearings on the rail spur project that drew thousands of people from around the state, many opposing the project.

Phillips 66 has said oil production in California is dropping, and they need to bring crude oil by rail from other areas.

The refinery now receives crude oil by pipeline and by truck. The county found out about the trucking during the April 15 hearing on the project.

Planning staff has recommended a condition that would not allow any further trucking of crude oil on or off the refinery property with the approval of the rail spur project. Phillips 66 suggests that “trucking of coke (petroleum carbon) and sulfur from the refinery and delivery of feedstock, including crude oil, to the refinery shall be limited to an annual average maximum of 49 trucks per day.”

But the Planning Commission did not reach that condition — No. 33 out of the 97.

ONE WAY OR ANOTHER, THIS OIL IS GOING TO GET TO THE REFINERY. BUT IS HUNDREDS OF TRUCKS DRIVING DOWN THE HIGHWAY ANY SAFER THAN JUST A FEW TRAINS AND A SMALL RAIL TERMINAL?
Devin Miller of Arroyo Grande

Earlier in the day, public comment was opened to allow people to speak on the new conditions of approval.

About 90 people spoke, with all but four opposed to the project. Most of the speakers live in the county, including more than two dozen Nipomo residents who suggested additional conditions to deal with air pollution, light and odor problems.

Paul Stolpman suggested that Phillips 66 shouldn’t be allowed to operate the three locomotive engines on days when county air officials predict the area will violate air quality standards.

Lisa Ritterbuck, who lives on an organic farm near Avila Beach, said, “I’m interested in safety, in renewable clean energy and in being a good steward of our environment. This project compromises all three of those interests.”

The few supporters who spoke Thursday said there’s a need for the product the refinery is processing.

“One way or another, this oil is going to get to the refinery,” said Devin Miller of Arroyo Grande. “But is hundreds of trucks driving down the highway any safer than just a few trains and a small rail terminal?”

He added that the families of Phillips 66 employees also live in the community.

“Why would they endanger those people?” he asked.

Mike Brown, government affairs director for the Coalition of Labor Agriculture & Business of San Luis Obispo County, also reiterated his support.

“What you’re being asked to do is deny the project on all these potential uptrack incidents that have a very small overall statistical chance,” Brown said. “… You can’t make these decisions based on emotion.”

By the end of the hearing, the Planning Commission had reached condition No. 17 before adjourning at 5 p.m. Public comment will not be reopened at the October hearing.

SAN LUIS OBISPO: County planners continue Phillips 66 oil train proposal without decision

Repost from KSBY.com | San Luis Obispo and Santa Barbara Area News

County planners continue Phillips 66 oil train proposal without decision

By Matt Van Slyke, Posted: Sep 22, 2016

The San Luis Obispo County Planning Commission wrapped up another hearing Thursday on Phillip 66’s crude oil-by-rail plan without making a decision.

The project proposes allowing trains carrying a total of about 2.2 million gallons of crude oil to be delivered to the Santa Maria Refinery on the Nipomo Mesa.

Opponents say, if a train carrying crude derailed, it could be catastrophic. Supporters point to Phillips 66’s safety record and the jobs the rail extension would create.

The meeting was continued to October 5.