BREAKING: City of Benicia letter to STB asserts local permitting authority

 By Roger Straw, 7/8/16, updated 4:30pm PDT

City of Benicia wants to retain local permitting authority

On July 7, the City of Benicia filed a letter with the Surface Transportation Board stating its views on Valero’s petition for a declarative judgement.  Download Benicia’s letter directly here.

(Click here for a complete listing of STB filings on Valero’s petition.)

A quick summary of Benicia’s 34-page letter can be obtained on the document’s contents page:

  • The first section is titled, “ICCTA does not preempt the Planning Commission’s denial of the Use Permit, expressly or as-applied in this case”
  • The closing section is titled, “If the Benicia City Council approved the Project, could the City impose conditions or mitigation measures on Valero to reduce the environmental and public safety impacts caused by Valero’s Project that are related to UPR’s rail operations?”

A Flood of STB filings on 7/8/16: Valero Refining Company Petition for Declaratory Order

Below you will find the record as of today’s deadline at the Surface Transportation Board (STB) for responses to Valero’s petition.  Click on the dates to go to the downloadable document. (Keep track of new postings here, then enter Case Title: “valero”.)

VERY important submissions:

    1. Safe Fuel and Energy Resources California (SAFER)
    2. Cities of Davis, Oakland and Berkeley, California, Sacramento Area Council Of Governments, and County Of Yolo, California
    3. Attorneys for Benicians For A Safe And Healthy Community, Center For Biological Diversity, Communities For A Better Environment, Natural Resources Defense Council, San Francisco Baykeeper, Sierra Club, AND STAND (currently not available on the STB website, downloadable here on the Benicia Independent).  Also available: a very large file of Exhibits accompanying the Benicians letter (and not yet posted at STB).
    4. California Attorney General Kamala Harris representing the People of the State of California (currently not available on the STB website, downloadable here on the Benicia Independent)
    5. Association Of Irritated Residents, Climate Solutions, Columbia Riverkeeper, Evergreen Islands, Friends Of The Columbia Gorge, Friends Of The Earth, Resources For Sustainable Communities, Friends Of The San Juans, Spokane Riverkeeper, And Washington Environmental Council
    6. City of Benicia
VALERO REFINING COMPANY- PETITION FOR DECLARATORY ORDER, Docket FD_36036_0
Date Docket # ID Filed For Type
7/8/2016 FD_36036_0 241071 Safe Fuel And Energy Resources California Reply
7/8/2016 FD_36036_0 241069 City Of Davis, California Reply
7/8/2016
[Broken link at STB]
FD_36036_0 241072 Benicians For A Safe And Healthy Community, Natural Resources Defense Council, San Francisco Baykeeper, And Stand Reply
7/8/2016
[Broken link at STB]
FD_36036_0 241070 People Of The State Of California Reply
7/8/2016 FD_36036_0 241074 Association Of Irritated Residents, Climate Solutions, Columbia Riverkeeper, Evergreen Islands, Friends Of The Columbia Gorge, Friends Of The Earth, Resources For Sustainable Communities, Friends Of The San Juans, Spokane Riverkeeper, And Washington Environmental Council. Comment
7/8/2016 FD_36036_0 241073 Association Of American Railroads Support Statement
7/7/2016 FD_36036_0 241063 Tesoro-Savage Petroleum Terminal Llc, D/B/A Vancouver Energy Support Statement
7/7/2016 FD_36036_0 241064 City Of Benicia Reply
7/7/2016 FD_36036_0 241062 Phillips 66 Company Support Statement
7/6/2016 FD_36036_0 241056 James Brian Mcdonald Reply
7/5/2016 FD_36036_0 241045 Canadian National Railway Company Support Statement
7/1/2016 FD_36036_0 241030 Csx Transportation Inc Support Statement
6/17/2016 FD_36036_0 240926 Union Pacific Railroad Company Reply
6/9/2016 FD_36036_0 240889 Safe Fuel And Energy Resources California Request For Extension Of Time
6/8/2016 FD_36036_0 240879 Valero Refining Company-California Reply
6/6/2016 FD_36036_0 240867 Benicians For A Safe And Health Community, Center For Biological Diversity, Communities For A Better Environment, Natural Resoucres Defense Council, San Francisco Baykeeper, Sierra Club, And Stand Request For Extension Of Time
5/31/2016 FD_36036_0 240835 Valero Refining Company-California Petition For Declaratory Order

NPR: Why Feds Chose Not To Investigate Oil Train Derailment In Columbia Gorge

Repost from OPB.org, Oregon Public Broadcasting
[Editor/Background: Here is the  June 9 letter Senators Wyden and Merkley sent to the NTSB. Here is the NTSB’s full 48-page response. (Or jump to page 1 of the NTSB letter below.)  – RS]

Why Feds Chose Not To Investigate Oil Train Derailment In Columbia Gorge

By Tony Schick OPB/EarthFix | July 7, 2016 4:45 p.m. | Updated: July 8, 2016 9:06 a.m.
A 16-car oil train derailment caused a fire and left a small oil sheen on the Columbia River.
A 16-car oil train derailment caused a fire and left a small oil sheen on the Columbia River. CONRAD WILSON

The National Transportation Safety Board has responded to letter from Oregon’s senators about why it did not investigate last month’s oil train derailment in the Columbia River Gorge, saying its limited staff likely would not have gleaned any new safety recommendations from examining the incident.

The federal agency provided a 50-page response to Oregon Sens. Ron Wyden and Jeff Merkley, saying it “recognizes the impact of this accident on your constituents and understands the concerns of those affected.”

The NTSB said it did not send a team to Mosier because the incident involved no injuries or fatalities and because early information gathered from Union Pacific Railroad, first responders and the Federal Railroad Administration “indicated that the circumstances of this accident did not pose any new significant safety issues.”

Specifically, federal investigators have seen tank cars rupture before when carrying flammable liquids. Their response to the Oregon senators included a list of 23 known incidents in North America involving crude oil, ethanol or other flammable liquids.

The NTSB opened an investigation into only nine of those and has not yet closed any, according to data relased in the response.

Wyden said he will be scrutinizing whether the agency needs to increase the size of its investigative staff.

“As I keep working to build support in Congress for my bill, I will also continue to look at ways to improve oil-by-rail safety,” Wyden said. “I find it very disturbing that the NTSB did not appear to have enough resources to send an investigative team to Oregon to more closely examine the Mosier accident.”


Read: NTSB Response to Wyden, Merkley

Page 1 of NTSB-Response-to-Merkley-Wyden-07-05-2016

Page 1 of NTSB-Response-to-Merkley-Wyden-07-05-2016

Contributed to DocumentCloud by Tony Schick of EarthFix

Emergency crews on June 4, 2016, found an oil sheen on the bank of the Columbia River near the site of an oil train derailment and spill in Mosier, Oregon, the day prior. AMELIA TEMPLETON

Oakland: New rail yard at port welcomes first train – 100 cars of animal feed

Repost from the East Bay Times
[Editor: Significant quote – The new rail yard “will be able to handle as many as 200 train cars at a time, Vuong said. It anticipates shipping mostly agricultural products, Bernardo said, adding, ‘We don’t ship coal.'”

Oakland port’s new rail yard likely to boost local economy

By Erin Baldassari, 07/07/2016, updated 07/08/16

OAKLAND — While public uproar over a proposal to export coal may have slowed down one redevelopment project at the former Oakland Army Base, another one has been quietly under construction.

And on Thursday, a 100-car train rolled in from the Midwest, carrying animal feed that was unloaded and repacked on-site for distribution overseas — the first of what the Port of Oakland hopes will be many such shipments at its new rail yard.

The roughly $258 million project, which is being developed in two phases, will ultimately house a warehousing and distribution center, offering commodity suppliers a more efficient way to sort and ship containerized goods, said port spokesman Robert Bernardo.

Workers with Capitol River Group, tenants of the Port of Oakland, use an NPK hard car unloader to loosen the DDG (distillers dried grain) from the train
Workers with Capitol River Group, tenants of the Port of Oakland, use an NPK hard car unloader to loosen the DDG (distillers dried grain) from the train car as they unload the feed into container trucks for transportation at the Outer Harbor Intermodal Terminal rail yard in Oakland, Calif., on Thursday, July 7, 2016. (Laura A. Oda/Bay Area News Group)

Once both phases are completed, which is expected in 2019, the facility will provide an estimated 4,000 jobs on-site, plus another 8,000 jobs from ancillary industries, not including construction jobs, he said. Currently, many of the large warehousing and distribution centers are located in the San Joaquin and Central valleys, Bernardo said.

“Those warehouses and distribution centers can be hundreds of miles from the port,” he said. “So, this allows us to move products much faster.”

The new rail yard also enables the port to handle more cargo without adding to the often-congested weekday traffic at the port as trucks wait to drop off and pick up containers at marine terminals, Bernardo said. The port recently added night hours to help eliminate some of that congestion, which was exacerbated when one of the port’s four terminal operators declared bankruptcy earlier this year.

Each “hopper” train car, which are used to transport loose bulk commodities, can carry 3½ times as much product as a single 40-foot truck container, Bernardo said. “It’s a lot more efficient,” he said of the train cars. “Not only are you reducing truck pollution, but at the same time, we’re increasing commerce for the region.”

Before the opening of the new rail yard — officially named the Outer Harbor Intermodal Terminal, or OHIT — the port could accommodate a train with only 17 cars, said Thanh Vuong, the port’s supervising engineer. The former yard was part of the Oakland Army Base and not the port, he said, and had limited capacity for lumber and small bulk cargo such as wallboard.

Now, OHIT will be able to handle as many as 200 train cars at a time, Vuong said. It anticipates shipping mostly agricultural products, Bernardo said, adding, “We don’t ship coal.”

The port is also anticipating that construction will begin later this year on a $90 million cold storage facility, Vuong said, allowing customers greater flexibility in shipping temperature-controlled products.

Bernardo said the expansion is part of a major transformation for the port and will help the agency attract cargo suppliers from outside California that might otherwise have shipped their products through other West Coast ports.

“We do want to bring more cargo through Oakland, and specifically, cargo that isn’t local to the region,” he said. “We’re working with our business partners and government funding partners to make that happen, and we’re also using the existing infrastructure to really develop the port and make us more competitive.”

BENICIA HERALD: City Council hears public comments on crude by rail

Repost from the Benicia Herald Online
[Editor: For Tuesday’s comments on Valero Crude By Rail by Marilyn Bardet and Planning Commissioner and City Council candidate Steve Young, skip down to the red bullet.  – RS]

Council hears about crude by rail, water infrastructure and EMS costs Tuesday

By Elizabeth Warnimont, July 7, 2016

BeniciaHerald_logoAt its regular meeting Tuesday, Benicia City Council had a busy meeting with lots of activity. First, the Council recognized the Parks and Community Services Department with a proclamation declaring July, 2016 as “Parks Make Life Better Month,” in conjunction with the statewide designation. Parks, Recreation and Cemetery Commission member Rich Payne accepted the proclamation from Mayor Elizabeth Patterson and the City Council.

The Council also confirmed Johanna Ely as Benicia’s sixth poet laureate. Ely spoke briefly about the activities and aims of the laureate program and read a selection of poetry including one titled, “Ode to the Library.”

The final item preceding the council’s consent calendar was a presentation by Assistant Public Works Director Christian Di Renzo on advanced metering infrastructure. Di Renzo provided an overview of the systems currently being considered by the city, outlined the benefits of acquiring a new, electronic metering system, and answered questions posed by the council and a member of the public.

Public comment

Marilyn Bardet
Marilyn Bardet

During the public comment period, Marilyn Bardet showed the council photos of both the aftermath of the recent Mosier, Ore. train derailment and explosion as well as some of the Union Pacific track and refuse currently visible in Benicia that she felt were of concern. One photo showed piles of black powder that Bardet referred to as coke dust that has spilled from hopper cars on railroad tracks near Bayshore Road in Benicia, and one showed warped track rail near the trestle towers, among other photos of concern. Bardet pointed out that the discarded railroad ties in one photo presented a fire hazard due to their creosote content.

Bardet suggested that these items be considered for remediation.

Benicia Planning Commissioner Steve Young, candidate for Benicia City Council
Benicia Planning Commissioner Steve Young, candidate for Benicia City Council

Benicia Planning Commissioner Steve Young also addressed the Council, as a resident, about the June 23 preliminary findings concerning the recent Oregon crude oil train derailment.

The Federal Railroad Administration report is titled, “Preliminary Factual Findings Report, Derailment of Union Pacific’s Unit Crude Oil Train Transporting Bakken Crude Oil for U.S. Oil, Mosier, Oregon.” Young read from the report’s executive summary. A complete copy of the report is available at the city of Benicia website at ci.benicia.ca.us.

The involved, Dot-111 tank cars, modified to 1232 standards, were equipped with full height head shields and metal jackets with insulation. These cars are commonly referred to as jacketed 1232s. During the derailment, a coupler struck one car, mechanically puncturing it. This puncture allowed crude oil to come in contact with an ignition source, leading to a fire that burned for approximately 14 hours.

The four cars involved in the fire were the punctured car and three additional tank cars, two that had their bottom outlet valves sheared off by the derailment and one car with the gasket melted out from under the manway cover.

The Valero proposal, Young pointed out, calls for the use of non-jacketed 1232 cars. These have no full-height head shields and no jackets with insulation. Another concern is the bottom release valves, a common source of ignition in derailment incidents. These valves shear off, causing a leak and then the subsequent fire. The more advanced tank cars have the valve located on top.

Young reminded the Council that Valero is proposing to buy or lease these tank cars. If safety is truly Valero’s first priority, he suggested, then the added expense of choosing safer cars would certainly seem to be worth any added expense. He asked that the Council consider these issues when it addresses the proposal again in September. He added that an even safer car, the Dot-117, will be required by federal law by the year 2020, and suggested that again, in the interest of safety, Valero might consider opting for that model.

SONET
The Council approved a resolution to accept a Memorandum of Understanding (MOU) with the Solano County Sheriff’s Office regarding the Benicia Police Department hiring of a full time Sheriff’s Office Narcotics Enforcement Team (SONET) officer, who would report to the SONET sergeant. The officer’s salary would be provided by the sheriff’s office. A resolution approving the MOU was approved by unanimous vote.

First responder fee overview
Benicia Fire Chief Jim Lydon presented the Council with a report on the option for the fire department to begin assessing fees for services provided by its Emergency Medical Services (EMS) team. The department would collect insurance coverage information from patients at the point of service and hand them a notice stating that they would be contacting their insurance companies on their behalf.

Chief Lydon emphasized that the department would utilize compassionate billing, which means that the insurance portion of any incurred costs would be considered payment in full, and that fees would only be assessed for services and not for transportation, which is currently provided by an outside ambulance company. He also noted that no patients would be billed directly from the fire department, regardless of their insurance coverage status.

Councilmember Tom Campbell expressed concern over the legality of the compassionate billing procedure and Chief Lydon agreed to investigate that topic further, though he noted that Bay Area cities already following that procedure have not yet encountered problems, to his knowledge.

The presentation was intended to be strictly informational. The fire department desired direction from council as to whether or not to pursue the idea, and council indicated that they should proceed.

PG&E exit fees
Councilmember Alan Schwartzman provided the Council with some information pertaining to a proposal to submit a letter to the California Public Utilities Commission (CPUC) regarding the Power Charge Indifference Adjustment (PCIA) fee, essentially an exit fee, charged by Pacific Gas & Electric to customers who have switched to Community Choice Aggregation (CCA) providers such as Marin Clean Energy (MCE).

Schwartzman, an MCE board member as it happens, began by reading from the staff report accompanying the City Council agenda, a complete copy of which is available by visiting the city of Benicia web site under Agendas and Minutes, or by calling the city at 746-4200. Schwartzman’s reading is paraphrased here:

MCE has requested that the city of Benicia submit a letter to the CPUC regarding the PCIA charge increase. The CPUC has consistently denied adequate public input to discuss the fee. Earlier this year, PG&E increased this fee by 95 percent. The proposed letter asks the CPUC to provide a venue for public input. The charge is assessed by PG&E on a per-kilowatt basis to cover power generation costs acquired prior to a customer’s change in service provider.

Schwartzman explained that PG&E procures energy based on anticipated need, so that when customers switch away from PG&E, the company is left with the cost burden of the energy it has already acquired, without corresponding reimbursement from customers.

The CPUC approved the increases at a public meeting, but without allowing CCAs access to the data they would need in order to effectively predict the amount of the fee, information which they would like to be able to pass along to their customers. All CCAs are currently working with the CPUC and Investor-Owned Utilities (IOUs), in order to inform customers how the PCIA fees are calculated and to remain cost competitive.

MCE is asking the city of Benicia to request that the CPUC allow a workshop for public input in order to fairly deal with the PCIA fee.

A motion to approve the submittal of the letter was approved by unanimous vote.

More information
A complete copy of the meeting agenda is available at the city of Benicia website at ci.benicia.ca.us or by calling the city at 746-4200. Minutes of the meeting are typically available about two weeks after the date of the meeting. The next City Council meeting will take place Tuesday, July 19 at Council Chambers, City Hall, 250 East L St., beginning at 7 p.m.

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