Tag Archives: California Public Utilities Commission (CPUC)

Sacramento Bee: California state and regional agencies challenge Benicia crude oil train plan

Repost from The Sacramento Bee
[Editor: to read the State’s letter and others mentioned in this article, check out Project Review.  – RS]

California officials challenge Benicia crude oil train plan

By Tony Bizjak, September 24, 2014

Brown administration officials say Benicia has underestimated the risk posed by oil trains planned to run through Sacramento and other parts of Northern California to the city’s Valero refinery, and is calling on the city to redo its safety analysis before allowing oil shipments to increase.

A letter sent to the city last week by the state’s Office of Spill Prevention and Response and the California Public Utilities Commission expresses concerns similar to those detailed in recent letters to Benicia from the Sacramento Area Council of Governments and the cities of Sacramento and Davis.

Sacramento regional leaders have accused Benicia of not adequately exploring the explosion and fire risks of a Valero Refining Co. plan to run two 50-car trains daily through downtown Roseville, Sacramento, West Sacramento, Davis and other cities to the Benicia refinery.

Julie Yamamoto, chief of the state spill prevention agency’s scientific branch and a member of the governor’s rail safety team, said state officials felt compelled to push for Benicia to do deeper study prior to project approval.

“We felt the risk analysis was sufficiently flawed and underestimates the risks,” Yamamoto said.

In its draft environmental impact report, issued earlier this summer, Benicia only analyzed oil spill possibilities on the rail line between Roseville and Benicia, even though the trains will travel from other states or even Canada. “That is a pretty big shortfall in not considering the rest of the track to the California border, and even beyond that,” Yamamoto said. State officials also have questions about how Benicia came up with the assertion that a derailed train might spill oil only once every 111 years, and therefore the risk was insignificant.

“The derailment rate looks to us to be low compared to national data,” Yamamoto said.

Benicia city officials declined to respond this week to the concerns raised by the state and local governments, but previously indicated that they limited their spill analysis to the Roseville-Benicia track section because they do not know yet which rail lines the Union Pacific Railroad may use east or north of Roseville to bring the oil into California.

State officials countered that there are only a handful of rail lines that could be used to bring the oil into the state, and all should be included in Benicia’s project risk analysis. The state noted that those rail lines pass through “high-hazard areas” where derailments are more common. In Northern California, those hazard sections are at Dunsmuir, the Feather River Canyon and near Colfax.

By issuing its letter, the state secures legal standing to sue Benicia if that city approves the project without redoing its risk studies. State officials this week declined to address the question of whether they would consider a lawsuit.

The letter from the state is one of hundreds Benicia officials said they received in the past few months in response to their initial environmental study. Benicia interim Community Development Director Dan Marks said the city and its consultants would review the comments and prepare responses to all of them, then bring those responses to the city Planning Commission for discussion at an as-yet undetermined date.

Under the Valero proposal, trains would carry about 1.4 million gallons of crude oil daily to the Benicia refinery from U.S. and possibly Canadian oil fields, where it would be turned into gasoline and diesel fuel. Valero officials have said they hope to win approval from the city of Benicia to build a crude oil transfer station at the refinery by early next year, allowing them to replace more costly marine oil shipments with cheaper oil.

Crude oil rail shipments have come under national scrutiny in the last year. Several spectacular explosions of crude oil trains, including one that killed 47 residents of a Canadian town last year, have prompted a push by federal officials and cities along rail lines for safety improvements.

SACOG and the cities of Sacramento and Davis have called on Benicia to require UP to give advance notice to local emergency responders, and to prohibit the railroad company from parking or storing loaded oil tank trains in urban areas. Local officials want the railroad to use train cars with electronically controlled brakes and rollover protection. Sacramento also has asked Benicia to limit Valero to shipping oil that has been stripped of highly volatile elements, including natural gas liquid.

Others in the Sacramento region, however, point out that rail safety is a federal issue, not one that cannot legally be dictated locally. In a joint letter, Stanley Cleveland and James Gallagher of the Sutter County Board of Supervisors said SACOG is overreaching, and a better approach would be to work with federal railroad regulators, as well as with Valero and UP, on safety issues.

The Union Pacific Railroad also has challenged the SACOG and Sacramento city perspectives, arguing that federal law pre-empts states and cities from imposing requirements on the railroads. “A state-by-state, or town-by-town approach in which different rules apply to the beginning, middle and end of a single rail journey, would not be effective,” UP officials said in a letter this month to SACOG.

State Sen. Ted Gaines, who represents much of Placer County and other rail areas, said the Valero project has his “full support.” Benicia’s analysis, he wrote, “affirms that this project is beneficial environmentally and economically and can be done safety given the prevention, preparedness and response measures in place by both Valero and Union Pacific Railroad.”

Among other commenters:

•  350 Sacramento, a local climate change group, warned that oil trains would cause an increase in carbon emissions and slow efforts to convert to renewable energies.

•  The Capitol Corridor passenger train authority, which would share tracks with the oil trains, voiced concern about the safety of passengers, crews and communities, saying the Benicia analysis doesn’t look at the impact crude oil trains would have on Capitol Corridor or Amtrak passenger trains.

• The Sacramento Metropolitan Air Quality Management District said Benicia could ask Valero to fund local mitigation programs to reduce polluting impacts of trains in the region.

•  UC Davis noted that the rail line passes through campus near the Mondavi Center and the UC Davis Conference Center, and called for additional training and equipment for Davis to deal with the possibility of a derailment and fire.

Read more here: http://www.mercedsunstar.com/2014/09/24/3866089_california-officials-challenge.html?rh=1#storylink=cpy

 

Law professor: 9 ways that STATES can help regulate railroad safety and transportation

Repost from LegalPlanet.org
[Editor:  Federal preemption under the Commerce Clause is NOT the last and only word on regulating crude oil trains.  Here are some suggestions for State regulation by Professor Jayni Foley Hein, executive director of UC Berkeley School of Law’s Center for Law, Energy & the Environment.  – RS]

Oil By Rail: Nine Things California Can Do to Increase Safety

While FRA Considers New Federal Regulations, States Can Ramp Up Prevention and Emergency Response
By Jayni Hein, June 24, 2014

At a joint Senate and Assembly hearing last week on oil by rail safety in California, some lawmakers expressed frustration at slow federal action, and asked what California can do to increase public safety. My testimony focused on federal preemption issues, defining areas where the state can regulate, and those where it is preempted by the Commerce Clause, Federal Railroad Safety Act (FRSA), or ICC Termination Act, or all three.

While the Department of Transportation (DOT) and Federal Railroad Administration (FRA) have primary authority over railroad safety and transportation, the California Public Utilities Commission (CPUC) shares authority with the federal government to enforce federal rail safety requirements and conduct inspections. And even with strong federal preemption provisions, there are actions that California and other states can take right now to increase public safety in light of the enormous growth of oil by rail.

Here are nine things the state can do:

1. Prioritize track and rail car inspection.

California has more than 5,000 miles of mainline railroad track. Inspection of track and rail cars is vital, as derailments are the most common type of train accident in the United States. A national analysis of freight train derailments from 2001 to 2010 on the Class I freight railroads’ mainline track found that broken track rails or track welds were the leading cause of derailments. Broken rail car wheels and track obstructions are also common causes of derailments. (Liu, et. al. 2012).

Governor Brown’s new budget includes funding to hire seven additional rail safety inspectors for the CPUC, paid for by rail industry assessments. The state should ensure that it has enough CPUC inspectors to accommodate the projected rise in oil by rail traffic each year. If seven new inspectors are needed right now; we will likely need many more by 2016, when oil by rail shipments are projected to increase as much as 25-fold, to 150 million barrels per year.

2. Obtain robust data on rail routing, rail car contents, and accident causes.

California agencies need more information from FRA and the railroads on routes, frequency, and rail car contents, as well as data on train derailments, their causes, and risk factors specific to crude by rail transit. The state should obtain this data from FRA – a recommendation echoed in the June 10, 2014 California Inter-Agency Working Group Report. The CPUC needs both national data and California-specific data in order to do its job.

3. Conduct an analysis of the risks that crude by rail poses to the state, including identification of high-risk areas of track, and propose specific measures to increase safety.

The legislature should consider requiring an annual report from the CPUC on the specific risks that crude by rail poses to the state, and measures that it can take to increase safety. Voluntary agreements with the railroads may also be an important outgrowth of this state-specific analysis that can inform where and how to direct limited state resources. As previewed above, this state analysis should be guided by the most recent data available from FRA and the railroads.

The legislature could also consider requiring information sharing among the relevant state agencies, including CPUC, Office of Emergency Services (OES), Office of Spill Prevention and Response (OSPR), California Environmental Protection Agency, and more.

4. Require state oil spill contingency plans for trains transporting oil into the state.

SB 1319 (Pavley) would require state oil spill contingency plans for trains transporting oil into the state. Such a state-mandated plan would provide an opportunity to secure better emergency response protection for the environment and public safety.

5. Get access to daily information on oil shipments into California, and ensure that state and local emergency personnel can access this information immediately in the event of an accident.

A recent DOT Emergency Order requires that each railroad operating trains containing more than 1 million gallons of Bakken crude oil, or approximately 35 tank cars, to provide states with weekly notice that includes estimated volumes of Bakken oil  transported per week and routing information.

The state should also have immediate access to real-time shipment information, assuming the technology exists to enable this. The state should also ensure that local emergency response personnel are well trained to deal with any crude by rail accident, and can readily identify the contents of any shipment. Training and information sharing with local emergency response personnel can be paid for by the industry, using a fee or assessment like the 6.5 cent/barrel fee on all oil imports recently approved by the state.

6. Advocate for more stringent federal safety regulations.

Legislative pronouncements, as well as the CPUC’s robust participation in the Rail Safety Advisory Committee (RSAC) are needed to secure better federal standards.

California joins others states such as New York in advocating for more stringent rail car design standards (phasing out DOT-111 cars, for example), mandatory placards on rail cars identifying Bakken crude oil,  expediting Positive Train Control, and requiring electronically-controlled pneumatic brakes on all crude oil trains. The state can also advocate for further federal analysis of possible routing changes, to avoid sensitive population and habitat areas.

7. Monitor compliance with new voluntary measures that the railroads agreed to implement this year.

As part of a February 2014 agreement with DOT, the Class I railroads will perform one additional internal-rail inspection each year than required by the FRA on routes over which trains carry 20 or more tank cars of crude oil, and will conduct at least two track geometry inspections over these routes. The  railroads also agreed to use end-of-train braking systems on all oil trains, and lower train speed in federally-designated “high-threat-urban-areas.”

The CPUC should monitor the railroads’ compliance with these voluntary measures. At the same time, CPUC and the state should advocate for making these voluntary measures mandatory, by issuing new or revised FRA regulations.

8. Consider issuing guidance to local permitting agencies on requirements for offloading facilities and oil refinery expansion.

There are currently at least five crude-by-rail refinery projects being pursued in California: one in Pittsburg, one in Benicia, two in Bakersfield, and one in Wilmington. There is a patchwork of local permitting agencies responsible for land use, air, water, and other local safety and environmental issues that may be relevant to offloading sites and refineries.

Local government and permitting agencies can deny land use and other permits for refineries and offloading facilities if they find safety risks or improper environmental mitigation under statutes like the California Environmental Quality Act (CEQA). But, local agency personnel may have varying levels of expertise in oil and rail issues and may apply permitting criteria inconsistently. As such, the state, through the Office or Planning and Research (OPR), should consider issuing guidance to local permitting agencies on necessary permits and requirements for offloading facility or refinery expansion.

9. Provide guidance on CEQA review and the public comment and participation process, especially relevant to environmental justice communities that may be located near offloading sites or refineries.

While rail accidents can happen anywhere, communities near offloading sites and refineries are especially vulnerable to oil by rail transport risks. The state can provide information and guidance to these communities on opportunities for engagement, comment and participation.

In addition, the state can encourage railroads, industry and refineries to work directly with potentially affected communities to disclose as much information as possible about shipments, safety measures, and how community members can participate in the process to make their communities safer.

KQED: California’s Not Ready for Influx of Oil Trains, Says Report

Repost from KQED Science, NPR/PBS

California’s Not Ready for Influx of Oil Trains, Says Report

Molly Samuel, KQED Science | June 12, 2014

Trains carrying oil can pose serious risks to public safety and the environment, and California isn’t prepared, according to a report released by state agencies this week.

Crude-by-rail is a growing concern, as an oil boom in North Dakota has meant increasing amounts of crude traveling to refineries by rail. A series of fiery derailments in the past year, including one that killed 47 people in a Quebec town, has focused attention on the need to prevent accidents and be prepared for emergency response.

‘Even though we haven’t had an accident, which is great, we want to be able to respond to it when there is an accident.’– Kelly Huston, Office of Emergency Services

The report warns that a derailment in California could kill people, destroy neighborhoods, damage water supplies and threaten natural areas.

“Even though we haven’t had an accident, which is great, we want to be able to respond to it when there is an accident,” said Kelly Huston, a deputy director at the Governor’s Office of Emergency Services (OES). “With the increase in the amount of crude oil on rail coming through California’s cities and counties, we believe there should be some increased training for first responders.”

The report was released by an inter-agency group that includes the OES, the state Department of Fish and Wildlife and the California Public Utilities Commission (CPUC), among others. It recommends boosting funding for emergency responder training, and for equipment to handle hazardous material accidents. It also supports an item in Governor Jerry Brown’s proposed budget that would provide more money to the Office of Oil Spill Prevention and Response, which has focused on marine oil spills in the past, but is now preparing for the possibility of inland spills.

It’s not all about accident response; there are also recommendations for prevention. Most rail regulation is up to the federal government; the CPUC helps enforce safety rules with its own rail inspectors. There are 52 of them, responsible for monitoring more than 5,400 miles of track in the state. “This staffing level is seriously inadequate,” the report says.

Paul King, deputy director for the rail safety at the CPUC, said the Governor’s budget aims to help. “To meet the volume of trains and the magnitude of the risk that [crude-by-rail] presents,” King said, “the Governor has put in his budget for extra staffing.”

There are other gaps the state cannot fill alone. As the CPUC pointed out in a report released last year, there is only one federal railroad bridge inspector for 11 Western states.

The report also raised the need for more information. As of last weekend, railroads that are transporting large shipments of Bakken, the volatile crude oil from North Dakota, must notify states. Huston of the OES said he got the first batch of documents Monday, but he said they’re of limited use and not timely enough. He said the OES is following up with BNSF and the federal Department of Transportation, the agency that issued the notification order.

Huston said he’d also like to see a map that the public could access, showing where the oil train shipments are headed. The railroads are resisting releasing information about crude shipments to the public.

Most of California’s oil comes either from within the state or overseas, and travels to refineries here by pipeline or ship. And that’s still the case. According the the California Energy Commission, only about one percent of California’s crude came by train in 2013. But trains carrying oil are becoming more frequent, and the CEC projects that by 2016, trains could be bringing in about 23 percent of California’s crude.