Tag Archives: California Public Utilities Commission

California lawmakers assail Feds for timid handling of rail oil shipments

Repost from The Ames Tribune, Ames, Iowa
[Editor:  The 3-hour California Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail  can be viewed here.  – RS]

State lawmakers assail Feds for timid handling of rail oil shipments

By Timm Herdt, Ventura County Star, June 20, 2014

SACRAMENTO — State lawmakers, concerned about the safety risks associated with a sixfold increase in crude oil shipments by rail into California, hoped on Thursday to get an update on what the federal government is doing.

But a regional official of the Federal Railroad Administration who had been scheduled to testify before a joint committee hearing regarding crude oil rail transport was a last-minute no-show.

Sen. Fran Pavley, D-Agoura Hills, said she received a call on the eve of the hearing from a high-level federal administrator in Washington, D.C., informing her that no one from the agency would testify.

It will take coordination between the state and federal governments to protect California from a spike in accidents that has led to fiery derailments and oil spills elsewhere, Pavley noted.

“We don’t have that cooperation yet,” she said. “There are a lot of things they can do. They need to step up to the plate.”

Other lawmakers — who are mostly powerless to act because they are pre-empted by federal law — shared her view.

A point of contention is the belief of many state and local officials that information about upcoming shipments of carloads of highly flammable crude oil should be publicly available. But railroads, citing national security concerns, have released that information only to emergency-response agencies, which must agree not to publicly disclose it.

“We’ve seen what happens when they explode,” said Sen. Hannah-Beth Jackson, D-Santa Barbara, chairwoman of the Joint Legislative Committee on Emergency Management. “It sure seems like in California our hands are tied. There’s so little we can do.”

Jackson asserted that security concerns should dictate public disclosure.

“National security means the security of people who live in the nation,” she said.

Under pressure from state officials in Montana, it appears federal officials may have decided to relent on that issue.

The Associated Press reported Wednesday that the U.S. Department of Transportation has ordered railroads to give state officials specifics on oil-train routes, and Montana officials intend to publicly release that information next week.

Rail-oil shipments have skyrocketed across the United States and Canada in recent months because there are no pipelines from which to ship oil extracted from the Bakken shale fields in North Dakota.

In the last year, derailments have resulted in fiery explosions in three Canadian provinces and in Virginia, and there have been more rail accidents involving oil spills than over the previous 30 years combined.

In Northern California, the issue has become front-page news in recent weeks, as city officials in the East San Francisco Bay city of Benicia are considering a permit application from a Valero oil refinery that would enable the refinery to accept two, 50-car trains every day.

If that refinery expansion is approved, the trains would wind through a narrow mountain pass in the Feather River Valley, and then pass through the populated corridor from Sacramento to Benicia, passing within a quarter mile of 27 schools.

Similar scenarios could unfold elsewhere around the state, testified Gordon Schremp of the state Energy Commission. He said six refinery projects have been proposed to accommodate rail shipments — two in Bakersfield, and one each in Benicia, Pittsburg, Santa Maria and the Port of Stockton.

As those projects come on line, Schremp said the commission expects the percentage of oil coming into California by rail to increase from 1 percent today to 23 percent by 2016. Most imported oil now arrives in the state either via marine tankers or by pipeline from Alaska.

A report issued last week by the state’s Interagency Rail Safety Task Force lists thousands of miles of track it identifies as “areas of concern.”

The new state budget that Gov. Jerry Brown is expected to sign Friday includes a 6.5 cent per-barrel fee on refineries to fund an expansion of the state Office of Oil Spills and Prevention and also hire new rail, bridge and railcar inspectors at the state Public Utilities Commission.

State lawmakers, who are pre-empted from taking such steps as requiring trains to take specific routes and imposing state-based safety standards on tanker cars, agreed their primary focus needs to be on preparing emergency agencies to respond to rail accidents involving toxic materials such as crude oil.

“This is an unusually fast-growing development,” said Sen. Lois Wolk, D-Davis. “It’s really important to have emergency procedures in place.”

LA Times: Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail

Repost from The Los Angeles Times
[Editor:  The 3-hour California Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail  can be viewed here.  – RS]

California safety officials ill-prepared for increasing oil imports

By Patrick McGreevy  |  June 19, 2014
Oil by rail
A view of Union Pacific West Colton Yard Bloomington. California lawmakers considered a report that officials are not prepared to deal with increased oil imports by train. (Irfan Khan / Los Angeles Times)

California safety agencies are currently ill-prepared for a significant increase in transporting oil by rail through the state, but steps are being taken to catch up, experts told state lawmakers Thursday.

Oil imports by rail to California have grown from 70 tank cars in 2009 to nearly 9,500 tank cars in 2013, and they could increase to up to 230,000 carloads by 2016, according to the California Energy Commission.

The state needs to step in to address safety issues inadequately handled by the federal government, a California Interagency Rail Safety Group reported during a joint hearing of the Senate Natural Resources and Water Committee and the Assembly Natural Resources Committee.

“In sum, while the federal actions taken to date are significant, they do not go far enough to address the risks of increased oil by rail transport,” the group’s report concluded. “The state should press both the federal government and the railroad industry to take additional safety measures.”

The study group said trains transporting crude oil travel via the Feather River or Donner Pass to the San Francisco Bay Area, and via the Tehachapi Pass to Bakersfield and into Los Angeles.

The working group recommended the state strengthen its inspection and enforcement staff. There are only 52 positions to handle railroad operations and safety inspections, which the group’s study said is “seriously inadequate given current and projected numbers of oil shipments.”

The state budget approved Sunday by the Legislature allows for the hiring of seven additional rail inspectors for the California Public Utilities Commission, which should meet the need, said commission spokesman Paul King. He added that better tank cars and clear markings are needed to increase safety.

The working group also recommended more funding for local emergency responders, and better planning.

“Emergency responders currently lack basic, critical information needed to help plan for and respond to oil by rail incidents, including what resources railroads can provide in the event of an accident, and how they would respond to potential worst case scenarios,” the group found.

Lawmakers including Sen. Fran Pavley (D-Agoura Hills) and Assemblyman Wesley Chesbro (D-Arcata) said they have introduced bills to improve the ability to prevent and respond to rail accidents involving oil.

“It’s not acceptable for us to wait until something bad happens,” Pavley, chairwoman of the senate committee, said during the three-hour hearing at the Capitol. “Unless the locals have adequate resources to be prepared” and the state and federal officials cooperate, “we’re not going to be able to deal with it if a catastrophe strikes.”

She noted that a Federal Railroad Administration official declined to attend the hearing.

“We don’t have that cooperation yet,” she said.

California imposes 6.5-cent fee on oil companies for every barrel of crude that arrives by rail or pipeline

Repost from The Sacramento Bee
[Editor: Significant quote: “The resulting funds, estimated at $11 million in the first full year, will be allocated for oil spill prevention and preparation work, and for emergency cleanup costs. The efforts will be focused on spills that threaten waterways, and will allow officials to conduct response drills.”  Of course, we won’t need this fund if we simply STOP crude by rail and move toward clean energy.  – RS]

California to impose fee on crude oil rail shipments; funds to be used for spill prevention, cleanup

By Tony Bizjak, The Sacramento Bee  |  Jun. 16, 2014
A crude oil train operated by BNSF travels just outside the Feather River Canyon in the foothills into the Sacramento Valley. Jake Miille / Special to The Bee

California leaders have included several safety provisions in this year’s state budget with the aim of preventing toxic spills and fires as oil companies ship more crude oil on trains through cities and wildland areas.

Beginning in the coming fiscal year, the state will apply a 6.5-cent fee on oil companies for every barrel of crude that arrives in California on rail, or that is piped to refineries from inside the state. The resulting funds, estimated at $11 million in the first full year, will be allocated for oil spill prevention and preparation work, and for emergency cleanup costs. The efforts will be focused on spills that threaten waterways, and will allow officials to conduct response drills.

The budget also separately includes funds to hire seven more rail safety inspectors for the California Public Utilities Commission, PUC spokeswoman Terrie Prosper said.

The 6.5-cent shipping charge will be administered by the state Office of Spill Prevention and Response. “We consider this a great victory,” office administrator Tom Cullen said Monday. Until now, the office’s scope has been confined mainly to coastal areas. “We weren’t positioned in California to prepare for and respond to oil spills on the interior of the state.”

Cullen and others negotiated the shipping charge over the weekend with oil industry officials. The charge, an extension of an existing marine fee, may be the first of several steps California officials take in coming months to improve the state’s ability to minimize oil spills and handle them more effectively when they happen.

Tupper Hull, spokesman for the Western States Petroleum Association, said his organization will work with the state on the issue.

“The new revenues, the first place they should go, is to make sure local responders are adequately equipped,” Hull said. “We recognized from the beginning that this is a legitimate issue.”

The safety efforts have taken on urgency as oil companies reveal plans for hundreds of crude-by-rail shipments in California, including a proposal by the Valero Refining Co. to ship 100 crude oil tank cars a day through downtown Sacramento and downtown Davis to Benicia. Details of that plan are expected to be released by Benicia officials Tuesday.

Federal officials have warned that one of the crude oils being shipped into the state, from the Bakken region of North Dakota, appears to be more flammable than typical crude oils. Three recent train crashes and explosions, including one that killed 47 people in the Canadian city of Lac-Megantic last year, prompted federal transportation officials last month to require that railroads notify state emergency officials of large Bakken shipment times and routes.

Central to the state’s safety efforts will be keeping a closer watch on the tracks themselves. The state budget includes seven new rail inspector positions to help the California Public Utilities Commission fulfill its mandate to inspect every mile of rail in the state annually. PUC deputy director of rail safety programs Paul King said his agency has failed in that task some years because of lack of personnel.

With rail crude oil shipments on the rise, it’s critical that the state steps up now, King said. “The Bakken crude in particular is a big problem. This is a lot of volatile material coming in on routes where it hasn’t come in before.”

The state Senate on Monday passed a resolution urging the U.S. Department of Transportation and other federal agencies to write tougher standards for train tank cars and to “prioritize safety over cost effectiveness” in dealing with rail crude shipments. Federal officials have said they intend to improve design standards for rail cars hauling crude oil, but haven’t set a date.

Sens. Jerry Hill, D-San Mateo, and Lois Wolk, D-Davis, introduced a bill last week that would impose a second shipping fee on oil companies to be used to train and equip “first responders,” such as fire departments and hazardous materials crews, to deal with major spills and fires on railroad lines. The authors have not yet determined the fee amount.

“It’s not a matter of will (a spill) happen, it’s when,” Hill said. “We have to be prepared. We need to provide the resources for first responders to address the emergency.”

A recent state report found that 40 percent of local firefighters in the state are volunteers whose departments generally lack the training and equipment to deal with major hazardous materials spills.

Assemblyman Roger Dickinson, D-Sacramento, also has authored a bill requiring rail carriers to communicate more closely with state emergency officials about crude oil rail movements.

Read more here: http://www.sacbee.com/2014/06/16/6488137/california-to-impose-fee-on-crude.html#storylink=c