All posts by Roger Straw

Editor, owner, publisher of The Benicia Independent

Benicia: Not exactly a smart, green city

Repost from the Benicia Herald

Grant Cooke: Benicia: Not exactly a smart, green city

By Grant Cooke, August 28, 2015
P1010301
Grant Cooke is a long-time Benicia resident and owner of Sustainable Energy Associates. He is also co-author of “The Green Industrial Revolution: Energy, Engineering and Economics.” His new book, “Smart Green Cities” will be published in 2016.

THOMAS HOBBES, THE GREAT 16TH-CENTURY British political philosopher, wrote in “Leviathan” that humans living without legitimate government would eventually dissolve into a “state of nature.” This state of nature was brutish with violent chaos, evil discord and civil war. Legitimate government, Hobbes believed, had a “social contract” to wield power and authority.

Hobbes’ vision that governmental power be used for the moral good evolved into our current view that government, particularly on the local level, has a responsibility and obligation to protect and maintain the safety of its citizens. Which brings us to present-day Benicia and the return of the Valero Crude-by-Rail Project as we anticipate the Recirculated Draft Environmental Impact Report (RDEIR).

Under Hobbes’ social contract, it is the obligation of local government to maintain public safety. Anything that presents a known risk of explosion or other significant health risk is not something that city government should tolerate. To willingly allow a project that presents a public danger to move forward is ridiculous. And to argue that the Crude-by-Rail Project (CBR) is safe is equally ridiculous. A quick Internet search reveals numerous examples of trains carrying Bakken crude derailing or exploding.

The fossil fuel industry has a clear record of putting profits above safety. We have ample local examples, from the Chevron fire in Richmond to the San Bruno natural gas explosion. With tens of thousands of oil cars carrying volatile crude into the Bay Area, one or more explosions is all but guaranteed to occur. We all know it’s just a role of the dice whether the explosion happens in Benicia or another town along the line.

The conversation will probably build with the release Monday of the RDEIR. No doubt, the discussion will be as heated as ever. Regardless, let’s put some broad strokes on the situation, as there are several factors to consider:

  • Firstly, the CBR is an effort by Valero to increase its business and, therefore, its profits. Unfortunately, for that to happen the city must risk its residents’ health and well-being. This is not in your interest.
  • Valero, an oil company, benefits from the CBR; the city doesn’t. The idea that Valero, or any for-profit fossil fuel company, is a “Good Neighbor” to Benicia is silly and naïve.
  • Benicia’s future, and the city’s future tax base, can no longer be dependent on heavy-carbon industries. The current tax revenue from the refinery is not sustainable, or even desirable.
  • The decline in costs for renewable energy will create an energy price deflation that will make oil non-competitive. Ali Al-Naimi, Saudis Arabia’s oil minister, told a climate conference in Paris in June that the world’s largest crude exporter will eventually sell solar power instead of crude. He also renewed the kingdom’s commitment to current levels of production, putting more pressure on U.S. oil producers and refiners.
  • Besides the global switch to renewable energy, our local refineries will be under growing pressure from regional air quality regulators to clean up their emissions. And as the international effort to make large emitters pay for their carbon releases grows, carbon taxes or offsets will cut into refinery profits.
  • Within a decade or so, Valero and most Bay Area refineries will be shuttered. We need to begin discussions with Valero about what happens when they shut down. How will the refinery pay for the site cleanup and residual hazardous waste?
  • Even as the tax stream from Valero declines, Benicia, like most California cities, is also facing exponentially rising retiree benefit costs. The revenue decline cannot be made up with increased resident taxes (as the base gets older, it is harder to raise taxes) — so Benicia will be forced to cut services.
  • Also likely: Benicia’s municipal services and government will merge with Vallejo’s or go to a regional model. The era of small, local government is ending for numerous reasons. Small city governments can’t achieve the cost efficiencies or employee productivity needed to keep pace with rising costs and retiree benefit obligations. Large organizations can make better use of technology and smart systems to improve productivity and increase efficiency.
  • Small city governments don’t have the resources needed to deal with the future’s looming problems. Valero’s CBR clearly shows how ineffective small cities like Benicia are in dealing with problems that overlap. The same is true as small cities are forced to confront the future’s critical problems of mitigating climate change, wealth inequality (poverty, homelessness, gang violence and terrorism), and restraining agglomeration and urban sprawl. For example, Benicia city government’s ongoing struggles to convert to a new information technology package. Or the City Council’s inability to address even simple environmental issues like eliminating the use of plastic bags, promoting renewable energy or endorsing a pro-environmental or sustainability position. If a city government can’t agree that reducing the number of plastic bags clogging up our landfills is a good thing, how can it promote community respect for the environment — or more complicated values like decency, tolerance or a respect for others?

* * *

FOR MANY REASONS, BENICIA IS AT A CROSSROADS, and its future is worrisome. As a city, we need to come to grips with the reality that the fossil fuel/carbon era is ending, and we have to turn to a pro-environmental, knowledge-based and sustainable economy.

For the past several months, I’ve been researching the world’s smart and green cities. Despite the heroic efforts of Benicia’s Community Sustainability Commission, I’m sad to say that my lovely hometown is neither.

I was reminded of this the other evening at a friend’s house that overlooked our bay. The view was beautiful, with the silvery-gray straits glowing in the declining sunlight. But when I looked closer, I saw trash along the waterline, and the water showed traces of oil and pollution in the shallows.

It was so much different than Copenhagen’s harbor. Did you know that the citizens of Copenhagen had the wherewithal a few years ago to clean centuries of pollution and trash out of their harbor? And that every summer, four major swimming areas along that city’s waterfront attract thousands of Danes and other Europeans to bask in the northern sun and swim in the harbor’s clean waters?

Can you imagine going for a swim in Benicia’s harbor?

Copenhagen’s clean harbor points to the sharp contrast in attitudes about the environment held by Europeans and Americans. After decades of neglect, Europe has come around and now takes pride in cleaning up its environment. Most European nations, reflecting the will of their citizens, are mindful of waste and diligently work to reduce carbon emissions. Hamburg, for example, is deeply worried that global warming will raise sea levels and create havoc with their harbor and lowlands. The city has carved out several green zones, added trees to absorb carbon and reduced auto traffic. In Scotland, over 40 percent of the country’s domestic energy use is supplied by renewable energy. Germany is striving for 100-percent renewable energy by mid-century.

But Benicia — a city that sits on the water — doesn’t seem to give a flip about potential flooding from warming seas, or the steady degradation of its remarkably beautiful environment. The lack of concern underscores the general sense shared by far too many Americans — particularly those involved in the carbon industries — who view our environment and atmosphere as one large garbage can.

Grant Cooke is a long-time Benicia resident and owner of Sustainable Energy Associates. He is also co-author of “The Green Industrial Revolution: Energy, Engineering and Economics.” His new book, “Smart Green Cities” will be published in 2016.

Benicia publishes Notice of Availability & Public Hearings on Valero Crude by Rail

By Roger Straw, Editor, Sunday, August 30, 2015

An official notice appeared in the Benicia Herald today regarding the proposed Valero Crude By Rail project.  The newspaper notice details plans to release and recirculate the Revised Draft Environmental Impact Report and to hold hearings on the new report.

The City of Benicia arranged for the Benicia Herald to publish this in its Sunday 8/30/15 edition, but it is not yet available online.  I am providing a scanned version is available here .  (UPDATE: See the City’s  online version here.)

SIGNIFICANT HIGHLIGHTS FROM THE TEXT

  • In response to requests made in comments on the DEIR,  the City is issuing this RDEIR to consider potential Impacts that could occur uprail of Roseville, California (i.e., between a crude oil train’s point of origin and the California State border, and from the border to Roseville)  AND  to supplement the DEIR’s evaluation of the potential consequences of upsets or accidents involving crude oil trains based on new information that has become available since the DEIR was published .  In order to allow the public and interested agencies the opportunity to review this information, the City has elected to recirculate  certain portions  of the DEIR.
  • SUMMARY OF SIGNIFICANT IMPACTS ON THE ENVIRONMENT:  …The environmental analysis conducted to date indicates that  there would be a significant and unavoidable impact associated with air quality and greenhouse gas emissions, hazards and hazardous materials, and biological resources .  The impacts associated with all other environmental issues either would be less than significant or would be reduced to a less-than-significant level with the incorporation of mitigation measures.
  • AVAILABILITY AND PUBLIC REVIEW PERIOD:  … 45-day public review period beginning on Monday, August 31, 2015 and ending at 5:00 p.m. on Thursday, October 15, 2015 .
  • Because the proposed revisions to the DEIR affect only portions of the analysis, the City is recirculating only those affected portions for public review. Pursuant to CEQA Guidelines Section 15088.5(f)(2),  anyone wishing to submit comments on the RDEIR should limit those comments to the revised portions shown In Chapter 2 of the RDEIR  (Revisions to the Draft Environmental Impact Report).
  • PUBLIC HEARINGS:  …  The City of Benicia Planning Commission will hold a formal public hearing to receive comments on the RDEIR on September 29, 2015. In anticipation of the number of speakers, additional Planning Commission meetings to receive comments on the RDEIR are scheduled for September 30, October 1, and October 8, 2015 .  These additional meetings will only be held as necessary to hear public comment.  All meetings will begin at 6:30 p.m. in the City Council Chambers, Benicia City Hall , located at 250 East L Street, Benicia, CA 94510.  Comments on the RDEIR may be provided at the public hearing or may be submitted in writing, no later than 5:00 p.m., on Thursday, October 15, 2015.
  • All written comments should be provided to:

Amy Million, Principal Planner
Community Development Department
250 East L Street, Benicia, CA 94510
amillion@.benicia.ca.us
(707) 747-1637 (fax)
NOTE: The comment period on the DEIR ended on September 15, 2014 and the City Is in receipt of comments previously submitted so  there is no need to resubmit comments previously provided .

SF CHRONICLE EDITORIAL: California should lead way, again, on climate

Repost from the San Francisco Chronicle, Sunday Editorial

California should lead way, again, on climate

San Francisco Chronicle, August 28, 2015 5:53pm

By any clean-and-green measure, California zooms past the rest of the nation, requiring cleaner fuels, more alternative energy and cars that use less gas. As these policies have taken root, the state economy has strengthened, creating more jobs in a forward-looking marketplace.

The connection should be clear. California is not only plotting a new energy course, but it’s also prospering. The state law that set emission goals nearly a decade ago hasn’t harmed livelihoods or sent business fleeing.

This experience should teach Sacramento an important lesson as lawmakers face a decision on doing more about climate change. The state Legislature is on the verge of approving a sweeping measure, SB350, that would cut gas and diesel use by half, boost renewable sources of electricity from a third to 50 percent, and double energy efficiency in buildings, all within 15 years. A second measure, SB32, would widen a state cap-and-trade program that cuts other sources of emissions blamed for rising global temperatures.

These targets will put California far beyond President Obama’s plans to curb pollution from power plants and boost solar, wind and biofuels in the nation’s mix of energy sources. But SB350, which has passed the state Senate, could falter in the Assembly where more moderate, business-friendly Democrats hold power.

The forces are building to block the bill, sponsored by Senate President Pro Tem Kevin de León, a Los Angeles Democrat. The oil industry, a steady source of campaign funds, is putting pressure on Assembly Democrats to stop the bill or water it down. These foes predict gas rationing, extra fees and arbitrary directives from state bureaucrats if the law kicks in.

Walking away from the bill would be a mistake, a step backward that will deny California cleaner air, greener energy and an opportunity to lead a timid nation on an essential issue. Wavering lawmakers should consider a recent poll showing that two-thirds of the state believes a deepening drought is linked to climate change and supports Gov. Jerry Brown’s directives that match up with SB350.

Along with California’s welcoming politics on the topic, there is direct experience to consider. Tech breakthroughs ranging from cleaner-burning engines to cheaper solar panels are helping this state move forward. Growing numbers of high-mileage cars, including electric and hybrid models, are expected to provide nearly half of the gas savings needed to hit the 50 percent drop by 2030.

There are reasons to be cautious. Energy improvements often come with steep startup costs such as solar panels on the roof or the purchase of a gas-thrifty car. Low-income residents will need a break in tapping technology available only to well-off consumers. State regulators should be flexible in designing new programs to advance conservation.

But California has shown it can adapt and thrive as it heads in this direction. Climate change is a provable and genuine threat to the state’s future. It’s time to adopt genuine changes that guide the state in the right direction and serve as a model for the rest of the country.

How far should California go?
A sweeping bill would change the way residents drive, live and work. Here are the major ingredients of SB350, which has passed the state Senate and is up for a vote in the Assembly:

On the road: Cut petroleum use in half by 2030. Tailpipe emissions are a top source of carbon dioxide, the main factor behind climate change. Oil companies are lobbying heavily against the limit, saying it will bring angry lines at gas pumps in a car-crazy state. Higher-mileage cars including electric and hybrids will be key in making this directive work.

On the grid: Half of the state’s electricity would come from renewables, up from a one-third level in five years. Utilities have qualms but are not actively opposed.

In the home: Doubling the efficiency in buildings to conserve heating and cooling costs. No major opposition.

Does zero Bakken crude for Irving Oil indicate a trend?

Repost from Railway Age
[Reference:  see the 8/20/15 Wall Street Journal article, Canada’s Largest Refinery Shifts from Bakken Shale Oil to Brent Crudes.  – RS]

Does zero Bakken crude for Irving Oil indicate a trend?

By  William C. Vantuono, Editor-in-Chief, August 28, 2015
Irving Oil Ltd. Saint John, N.B. refinery
Irving Oil Ltd. Saint John, N.B. refinery

Irving Oil Ltd., operator of Canada’s largest crude oil refinery, has stopped importing crude oil sourced from the Bakken shale formation in North Dakota and shipped by rail in favor of cheaper crudes from such producers as OPEC, “reflecting a shift in crude costs affecting East Coast refiners during a global slump in oil prices,” the Wall Street Journal recently reported.

The 320,000-barrel-a-day refinery in Saint John, N.B., one of the biggest by volume in North America, had been receiving 100,000 barrels a day by rail, a high reached two years ago that was only temporarily affected by the Lac Mégantic disaster. (The Montreal, Maine & Atlantic crude oil train that derailed on July 6, 2013, claiming 47 lives, was bound for the refinery). Today, CBR shipments the refinery are zero, a move “that reflects shifting economics in the energy industry even as the price of oil—including Bakken crude—has slumped to six-year lows,” said the WSJ. “About 90% of the crude oil Irving currently buys is shipped by sea from such producers as Saudi Arabia and those in western Africa, with the remainder coming by rail from such western Canadian oil-sands operators as Syncrude Canada Ltd. and Royal Dutch Shell PLC. A year ago, Bakken crude made up about 25% of Irving’s feedstock and in 2013 it supplied nearly one-third of its procurement volume, or about 100,000 barrels a day. ‘The Bakken price has gone up’ relative to other crudes when CBR costs are factored in,’ [an Irving Oil executive] said.”

“A once-yawning gap, between the cost of oil produced in North America and overseas crudes priced at the Brent global benchmark, has narrowed since 2013,” the WSJ noted. “Refiners on North America’s east coast can now import crude shipped by sea for less than the cost of shipping it by rail from shale oil producers in North Dakota and elsewhere in the U.S.”

Production of U.S. shale oil, especially that from the Bakken, led to CBR shipments increasing exponentially due to a lack of pipelines. CBR is more expensive than by shipping by pipeline and even by ship, and fewer refiners are willing to pay a premium for CBR. <p< Whether Irving Oil’s decision to abandon Bakken crude for a single refinery reflects a broader trend that will affect CBR movements remains to be seen. Two other refiners have followed suit, but the situation may not be permanent.

“Refiners PBF Energy Inc. and Phillips 66 both said they increased procurement of overseas crudes at the expense of CBR in the second quarter, though they signaled it is unclear if that will continue throughout the rest of the year,” the WSJ reported. “‘Our ability to source sovereign waterborne crudes was far more economic to the East Coast facilities, and that’s what we did,’ PBF Energy CEO Tom Nimbley said in late July. Phillips 66 CEO and Chairman Greg Garland told investors last month, ‘We actually set [crude-by-rail] cars on the siding. We brought imported crudes in the system.’ But, he added, ‘I’d say given where our expectations are for the third quarter, I’d say cars are coming off the sidings, and we’re going to import less crude.’”

CBR traffic has dropped substantially compared to last year, “reflecting both the worsening economics of CBR and better pipeline access to refineries on the Gulf of Mexico,” the WSJ noted. According to Association of American Railroads figures, U.S. Class I railroads originated 111,068 carloads of crude oil in the second quarter of 2015, down 2,201 carloads from the first quarter and some 21,000 fewer carloads than the peak in 2014’s third quarter.