Tag Archives: California regulation

Davis City Council finds Valero crude-by-rail impact report lacking

Repost from The Davis Enterprise
[Editor: Breaking news … DAVIS, CA – On Tuesday evening, 9/2/14, the Davis City Council approved the letter as written (but with minor editorial changes) and directed staff to submit it to the City of Benicia for the record.  The DRAFT letter can be seen here.  – RS]

City Council finds Valero crude-by-rail impact report lacking

By Elizabeth Case, September 3, 2014

The Davis City Council has released a draft of the letter it plans to send to the city of Benicia in response to the Valero crude-by-rail project’s draft environmental impact report.

The project would build out the Valero refinery’s capacity to unload oil from rail cars, increasing shipments to about 70,000 barrels of oil a day in two, 50-car-long shipments, likely from Roseville to Benicia along the Capitol Corridor rail line. That line passes right through downtown Davis.

Draft environmental impact reports are required for projects that could have significant impacts on their surroundings. Notably, this report found the risk of an accident — a derailment and spill — to be an insignificant risk, while the additional trains would have a significant air quality impact.

The City Council will meet at 6:30 p.m. Tuesday in the Community Chambers at City Hall to vote on the language contained in the letter. The letter, as it stands, argues that the assessment is both misleading and incomplete, and focuses on a few main concerns:

* The report’s failure to address a May emergency order and an August notice from the U.S. Department of Transportation. The former requires railroads transporting more than 35 cars, or 1 million gallons, of North Dakota’s Bakken crude oil in a single shipment to notify state emergency response commissions. The latter includes a report about improving vehicle-to-vehicle communication.

* A request that Benicia mandate the use of the newer 1232 tank cars. These have thicker shells and other improvements over “legacy” — DOT 111 — cars, which have been involved in most of past decade’s oil-by-rail accidents.

However, 1232 cars were involved in at least one derailment in Lynchburg, Va., in April. Benicia cannot legally require Valero or Union Pacific to use a specific type of car, since railroads fall under federal jurisdiction.

Valero spokesperson Chris Howe has previously confirmed that the company would use only the 1232 cars to transport oil.

* A lack of information on where and how Valero might store the crude oil, if it isn’t used right away. Specifically, Davis is concerned that the siding between Interstate 80 and Second Street in Davis could, and might already, be used for the storage of crude oil.

In addition to the above concerns, the Davis City Council requests an investigation into the current conditions of the railroad line from Roseville to Benicia.

The letter also alleges that the EIR fails to account for fire or explosions in its assessment of damage caused by release of hazardous materials, that it fails to take a magnitude of such a spill into account, and that it does not assess all the possible routes for the crude oil to be shipped to the Valero refinery.

The letter also requests that advance notice of shipments be made to city of Davis and Yolo County authorities — information oil companies have been tight-lipped about, citing terrorism concerns.

If Valero is importing Bakken crude at amounts specified in the transportation department’s order, it will have to inform the state commission. Assembly Bill 380, which was approved Friday, would require flow data and other information to be submitted about a company’s top 25 hazardous materials, including oil from the Bakkens, though it would continue to keep the information out of the public realm.

Davis’ comments draw strongly from those already filed by the Sacramento Area Council of Governments and Yolo County.

Davis City Council member Lucas Frerichs, who also sits on SACOG’s Rail Ad Hoc Committee, said the council understands the need for oil imports, but doesn’t believe the environmental assessment adequately assesses potential dangers.

“It’s going to come in by rail, we just need to make sure it’s done safely,” Frerichs said. “(But the report) absolutely needs to be adjusted in order to protect the safety of citizens up and down the rail corridor.”

The council passed a unanimous resolution in April opposing oil by rail until safety issues, like better warning signs about speed changes, have been addressed.

“Our read of it — even if the risk is only once in every 111 years, if there was a catastrophic explosion, especially in our downtown, it would obviously have a great impact on our community, on lives on our property,” said Mike Webb, the city’s community development and sustainability director and author of the letter.

“Even if that was only once in 111 years, that’s once too much.’

If the Benicia Planning Commission acknowledges the concerns voiced by Davis, it would require a reissue and recirculation of the EIR, delaying the project. Representatives for the commission could not be reached before deadline.

“It would slow the process down, but I don’t think that would necessarily be a bad thing,” Webb said,” because we’re asking for more information and disclosure about what the project is.”

Interested parties have until Sept. 15 to submit a comment on the EIR before the Benicia Planning Commission begins its review.

Bill Moyers & Company: America’s Exploding Oil Train Problem

Repost from Bill Moyers & Company

America’s Exploding Oil Train Problem

by John Light, September 2, 2014
FILE - In this July 16, 2013, file photo, railroad oil tankers are lined up at the Port of Albany, in Albany, N.Y. While the federal government has ordered railroads to give states details about shipments of volatile crude oil from North Dakota's Bakken shale region, New York officials haven't decided whether to share that information with the public. (AP Photo/Mike Groll, File)
In this July 16, 2013, photo, railroad oil tankers are lined up at the Port of Albany, in Albany, NY. (AP Photo/Mike Groll, File)

If you reside in the US, there’s around an eight percent chance that you live in an oil train’s blast zone. And there’s a fight going on at the state and federal levels, between monied interests and regulatory agencies, over efforts to ensure that these trains — which have shown a tendency to burst into flames — will be relatively safe.

The increased use of hydraulic fracturing — fracking — has made oil that was previously inaccessible available to drillers. The crude then has to make its way to refineries, and while the boom in pipeline projects has received quite a bit of attention, roughly 60 percent of it travels by rail.

On Friday, California legislators passed a bill that would require railroads to tell emergency officials when oil trains filled with explosive Bakken crude — oil from a particularly productive region in western North Dakota — would pass through the state. The law reflects growing concern, across America, about the dangers of these trains moving through dense communities, including Sacramento, California’s capital.

Oil tanker cars move along a web of routes that crisscross the United States. In 2013, about 400,000 cars made the journey, a 4,000 percent increase over the previous five years. The boost in oil cars has been so great that less lucrative industries are having trouble finding rail transport for their products. In March, General Mills announced that it had lost 62 days of production on such favorites as Cheerios because the trains that had shipped agricultural products were being leased by the fossil fuel industry.

Most oil reaches its destination without any problems, but as production has skyrocketed, the railroads have become increasingly taxed. Those who live near railways have noticed the uptick, with trains rumbling through towns much more frequently, and at much higher speeds.

Last July, a tanker train filled with North Dakota crude derailed in the middle of the night in Lac-Mégantic, a small Canadian town near the border with Maine; the resulting inferno killed 47 people. Since then, derailments in Casselton, North Dakota, and Lynchburg, Virginia, have led to evacuations. The Lac-Mégantic disaster spurred protests from fire chiefs and town officials who said that they were ill-equipped to deal with a possible derailment.

In the year since, officials have moved to formalize several safety measures. This July, the Obama administration proposed a plan that involves banning certain older tank cars, using better breaks on car, restricting speeds and possibly rerouting trains.

That first point, phasing out old tank cars, is a key area of contention. For the most part, the opposition isn’t coming from the railroads; it’s the oil companies that lease the tank cars that are fighting the new regulations. As Bloomberg Businessweek’s Matthew Philips explained earlier this summer:

It’s helpful to understand the three industries with something at stake here: railroads, energy companies, and tank-car manufacturers. The railroads own the tracks but not the tank cars or the oil that’s inside. The oil often belongs to big energy companies such as refiners or even trading firms that profit from buying it near the source—say, in North Dakota—and selling it elsewhere. These energy companies tend to lease the tank cars from large manufacturing companies or big lenders such as General Electric (GE) and CIT Group (CIT).

Although it is never their oil on board, the railroads usually end up in the headlines when something goes wrong. That’s why they have been eager for a rule to make energy companies use stronger tank cars. Meanwhile, the oil industry has been busy issuing studies trying to prove that the oil coming out of North Dakota is safe enough to travel in the existing tank cars. The energy lobby also thinks railroads need to do a better job of keeping the trains on the tracks. Tank-car manufacturers, meanwhile, simply want some clarity around what kind of cars they need to build.

Canada, following the Lac-Mégantic disaster, announced plans to phase out one older tank car that has been linked to several accidents over the next three years; the Obama administration proposal would do it in two.

But the oil industry doesn’t want that. Leading the charge is the American Petroleum Institute, an organization that, so far in 2014, has spent $4 million lobbying regulators and Congress. They’ve pushed back against labeling Bakken crude as more hazardous than other crude oil, even though many studies have found that it is.

Environmental groups blame this lobbying effort for several weaknesses in the proposed rules. For one, they would only apply to trains that have 20 or more carloads of Bakken crude. “If the rule is approved as drafted, it would still be legal to transport around 570,000 gallons (the equivalent of the fuel carried by seven Boeing 747s) of volatile Bakken crude in a train composed of 19 unsafe, [aging] tank cars—and none of the other aspects of the new rules, including routing, notification, train speed, and more would apply,” wrote Eric de Place of the sustainability think-tank Sightline Institute, who also criticized the proposal for not immediately banning older tankers.

And even if the regulations were to be put in place despite the API’s attempts to weaken them, there’s the distinct possibility that regulators will fall short. The government has often taken a hands-off approach in determining what gets shipped, and how — and in enforcing existing rules requiring that officials in the cities it passes through be informed that potentially hazardous shipments are coming. In These Times reported that government inspections to make sure railroads are properly labeling the product they are shipping (the Bakken crude was improperly labeled in the Lac-Mégantic disaster) are supposed to be unannounced, but are sometimes pre-arranged. Meanwhile, railroads are cutting back on the number of crew members manning trains, a move that some workers feel will lead to less safe travel.

“No one would permit an airliner to fly with just one pilot, even though they can fly themselves,” wrote John Previsich, the president of the Sheet Metal, Air, Rail and Transportation union’s transportation devision. “Trains, which cannot operate themselves, should be no different.”

John Light blogs and works on multimedia projects for Moyers & Company. Before joining the Moyers team, he was a public radio producer. His work has been supported by grants from The Nation Institute Investigative Fund and the Alfred I. duPont-Columbia Awards, among others. A New Jersey native, John studied history and film at Oberlin College and holds a master’s degree in journalism from Columbia University

Oil train regulation passes in California Assembly

Repost from Reuters
[Editor: The bill is AB380.  For text, analysis and votes on the bill, see leginfo.ca.gov.  – RS]

Oil train regulation passes in California

By Jennifer Chaussee, Aug 29, 2014

(Reuters) – California lawmakers on Friday passed legislation requiring railroad companies to tell emergency officials when crude oil trains will chug through the state.

The bill would require railroads to notify the state’s Office of Emergency Services when trains carrying crude oil from Canada and North Dakota are headed to refineries in the most populous U.S. state.

It passed its final vote in the Assembly 61-1, with strong bipartisan support within the state legislature in Sacramento. The bill now goes to Democratic Governor Jerry Brown for his signature.

“We have a spotlight on this issue because of the seriousness of the risk to public safety that it presents,” said the bill’s author, Democratic Assemblyman Roger Dickinson, whose district encompasses parts of Sacramento along the trains’ route.

The legislation follows a disastrous oil train derailment in Canada that killed 47 people and spilled 1.6 million gallons of crude last year.

Worried that a similar spill could happen in California, firefighters and other safety officials have urged state lawmakers to increase safety regulations on oil trains and improve communication between railroads and first responders about when oil shipments are coming through.

President Barack Obama proposed new safety requirements last month that could lower speed limits for trains carrying oil and increase safety standards for oil tank cars.

The volume of oil shipped by train through California has increased dramatically in recent years, public safety experts told a legislative committee at a hearing in June.

The influx has been propelled by increased production in Western Canada and North Dakota without an accompanying boost in pipeline capacity.

Oil and rail industry representatives told lawmakers that they had already done much to improve safety. BNSF Railway lobbyist Juan Acosta testified that the company had agreed to slow its oil trains to 40 mph and increase inspections of its tracks.

Railroads are not currently required to proactively share their oil train schedules with first responders.

(additional reporting by Aaron Mendelson in Sacramento; Editing by Sharon Bernstein and Simon Cameron-Moore)

Big oil: influence peddling in California and the Bay Area

Repost from Air Hugger
[Editor:  Global Community Monitor‘s excellent blog, Air Hugger, has been around since early 2010.  Tamhas Griffith’s piece is a thorough exploration of the oil industry’s influence over local, regional and California government officials.  See especially his expose on the behavior of Jack Broadbent, Chief Air Pollution Control Officer of the Bay Area Air Quality Management District.  – RS]

Influence

By Tamhas Griffith, August 14, 2014

Recently I have been spending more time in city and county meetings where the topic is theoretically how local government will regulate the activity of a local refinery – which is actually a multi-national multi-billion dollar entity with a local franchise.  Somehow during these meetings the regulation of health and safety of the community always seems to take a back seat to jobs and money.

We all know  one thing that these big oil companies have is a lot of MONEY. For example, the 2013 profits for the BIG 5 oil companies, you know, BP, Chevron, Conoco Phillips, ExxonMobil, and Shell­­­­­­ – were $93.3 billion last year! That’s $177 G’s  per minute.

Admittedly, Big Oil companies do have some expenses. But where they are spending this money Top 5 oil co graphmay surprise you.

Over the past 15 years, Big Oil spent $123.6 million to lobby Sacramento and $143.3 million on California political candidates and campaigns. I wouldn’t know from experience but I’d bet you can make a lot of friends with that much money dropping out of your pockets, year after year.

These friends might attach more importance to Big Oil’s concerns about over-regulation than they would to a resident who might not have the funds to contribute to anyone’s campaign fund.

A recent report by the Alliance of Californians for Community Empowerment Institute (ACCE) and Common Cause, “Big Oil Floods the Capitol: How California’s Oil Companies Funnel Funds into the Legislature,” speaks to the extreme power of the Oil and Gas Lobby, as well as the Western States Petroleum Association (WSPA) in Sacramento.

Dan Bacher, California Central Valley reporter for IndyBay, in his review of the report, noted that the

“fact that the oil industry is the largest corporate lobby in California, one that dominates environmental politics like no other industry“ makes California “much closer to Louisiana and Florida in its domination by corporate interests.”

Another way oil companies grease the wheels of influence is through their charitable giving in local oil and gas lobbycommunities. Where I live in Martinez, the yellow Shell refinery logo is on virtually all city events including our local Earth Day celebration located at the historic home of iconic environmentalist John Muir.  In Richmond, Chevron ladles out millions of dollars to local social services nonprofits working with low-income Richmond residents while simultaneously polluting their community.

These kinds of donations seem  to  reduce  short term costs for the local government, but there is a very real long term cost as well.

And one of the most insidious dynamics is that city budgets are structurally reliant on tax revenue from refineries.   According to the Contra Costa Times, “tens of millions in Chevron tax revenue bolster the [Richmond] city budget, providing police and other services that similarly sized cities in Contra Costa County can only dream about.”

It certainly seems like Big Oil has a stranglehold on California politics and regulatory agencies. Recently, the Bay Area Air Quality Management District (BAAQMD) came out in favor of Chevron’s expansion project.  After being advised by members of the Stationary Source committee that the appropriate behavior would be to merely answer questions at the Richmond meetings, BAAQMD Chief Air Pollution Control Officer, Jack Broadbent, chose to sign up as a speaker at both Richmond public meetings. He spoke in favor of the Chevron project and formally stated that there was no scientifically feasible way to mitigate condensable particulate matter for the Chevron project. This kind of emission from refineries is composed of carcinogenic particles about 1 micron in width that can lodge deep down in your lungs – see reference below.

microns

Prior to the two Richmond meetings, it had been clearly spelled out for the BAAQMD Stationary Source committee by multiple experts (with Broadbent present) that there was a mitigation technique (SCAQMD FEA Rule 1105.1) that would lessen pollution in Richmond by some 56 tons of the worst stuff you can breathe per year. And it has been mitigated since 2003 in the South Coast Air Quality Management District. So, choosing not to mitigate the really dangerous stuff pouring out of Chevron, like cancer-causing condensable particulate matter, is an impossible conclusion to reach by the authority charged with air quality control. Especially when you know otherwise. This is a 56 ton stain on the BAAQMD board and staff. And 56 tons of micron sized particles are unnecessarily heading for the lungs of the men, women, children, and animals that live or work in Richmond over the next year.

Is anyone at these BAAQMD meetings pushing for cleaner air except the community rights advocates?  What influence removes the teeth from the bill, waters down the regulation at the last minute, and causes people to lose their most basic moral compass?  A healthy community and environment should always be the priority.  And nothing should influence you to believe otherwise.

-Tom Griffith, Martinez Environmental Group, August 14, 2014.