Tag Archives: White House Office of Management and Budget

Why more pipelines won’t solve the problem of oil-train explosions

Repost from Grist

Why more pipelines won’t solve the problem of oil-train explosions

By Ben Adler on 6 Apr 2015
Shutterstock | Shutterstock
In the last few years, the grassroots environmental movement has energetically opposed constructing big new oil pipelines in North America. Their opposition is understandable, since, on a global level, fossil fuel infrastructure encourages fossil fuel consumption, contributing to climate change, and, on a local level, oil pipelines leak and explode. But conservatives have been delighted to argue that greens are endangering the public and being short-sighted. Oil that comes out of the ground has to get to market somehow, and currently a huge amount of it is being shipped on freight trains. The result? An epidemic of oil train derailments, causing spills and even deadly explosions.

Is it fair to blame activists for this? Should climate hawks throw in the towel and accept Keystone XL as the lesser evil?

No and no — and I’ll explain two key reasons why.

First: Much of the oil criss-crossing the U.S. on trains is coming from North Dakota and traveling out along east/west routes where there aren’t even any proposals for big new pipelines. You can’t blame activists for that. Keystone would connect the Alberta tar sands to refineries on the Gulf Coast, but wouldn’t do anything to help move North Dakota’s fracked bounty. Right now rail is the main option for that. “Keystone XL would enable tar-sands expansion projects, but is unlikely to reduce crude-by-rail,” says Anthony Swift, an attorney at the Natural Resources Defense Council. But don’t just take his word for it. Oil-loving, Keystone-supporting North Dakota Sen. Heidi Heitkamp (D) makes the same point: “I am not someone who has ever said that the Keystone pipeline will take crude off the rails. It won’t,” Heitkamp said in November. “Our markets are east and west and it would be extraordinarily difficult to build pipelines east and west.”

Second: Climate activists are supporting something that actually would go a long way toward solving the problem of dangerous oil trains: strict regulation of those trains.

In the long term, of course, climate hawks want to keep the oil in the soil, and they are pushing for structural changes — like an end to federal leases for oil drilling offshore and on federal land — that would reduce the amount of oil we produce in the U.S. But in the short term, they’re not just being unrealistic and saying “no” to all oil transport — they’re pushing to make that transport safer.

The Department of Transportation has the authority to impose rules on oil trains’ design and speed, which would reduce the risk of them leaking and exploding when they derail or crash. DOT made an initial proposal in July of last year and is expected to finalize it in May. Green groups have been disappointed by the proposal, though — both the weakness of the rules and the slowness of the timetable. If all goes according to plan, the rules would be implemented later this year, but their requirements would still take years to phase in.

Fortunately there’s now a stronger proposal that climate hawks can get behind: a new Senate bill that would impose stiffer requirements than those being proposed by the Obama administration. Sen. Maria Cantwell (D-Wash.) introduced the Crude-By-Rail Safety Act late last month, along with three Democratic cosponsors: Tammy Baldwin (Wis.), Patty Murray (Wash.), and Dianne Feinstein (Calif.). It got immediate backing from big green groups.

Here are four critical things that need to be done to make oil trains safer, three of which are included in Cantwell’s bill:

  1. Stop the transport of oil in an old model of rail car, called the DOT-111, that was designed back in the ‘60s. DOT-111s “have a number of manufacturing defects that make them much more likely to rupture in a derailment,” says Swift. So environmentalists want to get 111s off the rails immediately. That’s exactly what Cantwell’s Senate bill would do. DOT, in contrast, proposes to delay that transition. “DOT only slowly phases out 111s by 2017 and the rest of fleet by 2020, and we think the industry is pushing to move the phaseout to 2025,” says Devorah Ancel, an attorney at the Sierra Club. “It’s very concerning.”
  2. Require steel jackets around vulnerable rail cars that carry oil. DOT would require freight companies to transition to a newer, sturdier model of car called the CPC-1232, but even those cars aren’t sturdy enough — they have already been involved some fiery accidents, including one in West Virginia in February and one in Illinois in March. Cantwell’s bill would go further, requiring CPC-1232s to be jacketed, and then calling for “new tank car design standards that include 9/16th inch shells, thermal protection, pressure relief valves and electronically-controlled pneumatic brakes.”
  3. Clamp down on the amount of flammable gases permitted in the oil on train cars. Oil fracked in North Dakota’s Bakken shale carries more volatile gases with it than your average crude, making explosions more common. DOT’s proposed rules do nothing to curb that. Cantwell et al would limit the volatility of the oil being transported and increase fines for violations.
  4. Reduce train speeds. Currently, the speed limit for crude-by-rail is 50 mph, and that’s voluntary. DOT would make a speed limit mandatory, but would only lower it to 40 mph, and even that may only apply in “high threat urban areas” with more than 100,000 people. “The question of speed limits is crucial,” says Swift. “You need to dramatically reduce the speed at which these trains are moving.” Swift notes that CPC-1232s may puncture when going above 18 mph, but environmental groups stop short of explicitly calling for that speed limit. NRDC says, “Crude oil unit trains must adhere to speed limits that significantly reduce the possibility of an explosion in the event of a derailment.” That would presumably fall somewhere between 18 mph and 40 mph. Stricter speed limits is the one major needed reform that the Senate bill doesn’t address.

Cantwell’s bill also doesn’t compensate communities when accidents happen (the DOT proposal doesn’t either). But the bill’s sponsors intend to introduce future legislation to establish an oil spill liability trust fund paid for by fees from the companies moving crude oil. “Taxpayers should not be on the hook to bail out communities after a disaster caused by private companies,” said Cantwell.

It’s hard to imagine this bill passing both houses of an intensely pro-business, pro–fossil fuel Republican Congress. But Senate Democrats hope that by raising the issue they can build public awareness and support for stronger rules.

The bill could put pressure on the Obama administration to adopt the strongest possible version of its proposal. During the public comment period on DOT’s draft rules, the oil and rail industries argued for the weakest rules under consideration. Now the plans are being reviewed by the White House Office of Management and Budget, which tends to scale rules back in order to reduce their cost to business. Representatives from the oil and rail industries have been meeting with OMB to lobby for weaker rules.

Late last month, Chuck Schumer (N.Y.), who will take over as Senate Democratic leader after Harry Reid (Nev.) retires next year, announced that he and six colleagues — including Baldwin and Democratic Whip Dick Durbin (Ill.) — had sent a letter to OMB Director Shaun Donovan asking him to ensure “the rule is strong and comprehensive and that it is finalized as quickly as possible.” If nothing else, Schumer’s push and Cantwell’s bill will set up a countervailing force to the industry voices that the Obama administration is listening to.

The administration should protect public safety without being pushed by fellow Democrats — in this case, it has the power to do so without congressional approval. There is definitely a clear alternative to the false choice between pipelines and dangerous oil trains.

Benicia City Council to consider rail safety letter to Feds

Repost from The Benicia Herald
[Editor:  Original documents on the City of Benicia’s website:
      – Staff’s Agenda Report
      – Mayor Patterson’s draft letter of support
      – League of Cities letter requesting letters of support & sample letter]

City Council to mull rail safety missive

By Donna Beth Weilenman, April 2, 2015

Mayor Patterson seeks endorsement of letter calling for action to update federal policy on crude oil transport; no conflict seen with pending Valero request

Benicia, California

Mayor Elizabeth Patterson will ask the City Council on Tuesday to endorse a letter supporting the League of California Cities’ call for increased crude-by-rail safety measures.

Christopher McKenzie, the LCC’s executive director, already has sent a letter March 6 on behalf of its board of directors to U.S. Secretary of Transportation Anthony R. Foxx, asking that his department make LCC’s recommendations part of federal policy in governing rail safety.

“The continued increase in the transport of crude oil by rail, combined with recent rail rail accidents involving oil spills and resulting fires, have served to heighten concerns about rail safety among many of our member cities,” McKenzie wrote.

Rail safety, particularly in transport of crude oil from North Dakota’s Bakken fields, has become a growing concern nationwide and elsewhere.

The California Environmental Protection Agency has been presenting a series of forums on the matter, one of which took place March 26 in Crockett, a meeting attended by several Benicia residents who oppose delivery of oil by train.

In another development this week, WesPac Midstream has dropped the crude-by-rail component of its intent to transform a Pacific Gas and Electric tank farm into a regional oil storage site.

In explaining the move Project Manager Art Diefenbach cited uncertainties about prospective changes in regulations of oil shipping by rail, a series of protests and falling crude prices that have made shipping by train less attractive. Should the project be completed, oil would arrive either by ship or pipeline, which Pittsburg Mayor Pete Longmire suggested would make the operation safer and less controversial.

League-of-CA-Cities-LogoIn his letter, McKenzie cited incidents that prompted the LCC to express its own safety concerns and to offer recommendations that might reduce the potential for accidents.

“Specifically, two derailments accompanied by fires involving unit trains (100 or more tank cars) carrying crude oil in West Virginia and in Ontario, Canada, earlier this month have greatly increased public anxiety about what steps the relevant federal regulatory agencies are taking to improve rail safety and on what timetable,” he wrote.

He said the LCC wanted to make three points: First, that improvements that are required of participating industries should be mandates, not recommendations; second, that the mandates should have a hard deadline for implementation; and third, that the Department of Transportation should include the LCC’s recommendations in the final rule for Safe Transportation of Crude Oil and Flammable Materials.

McKenzie wrote that the LCC wants all federal agencies involved in regulating crude-by-rail shipments to require electronically controlled braking systems on trains carrying the sweeter crude from the North Dakota Bakken oil fields, and to set a sooner date for phasing out or retrofitting the older DOT-111 tanks.

More federal money should be directed toward training and equipment for first responders who are sent to hazardous materials accidents, he wrote, and how the funding is to be distributed needs to be defined. In addition, trains should have maximum speed limits in all areas.

His letter said the LCC wants the number of tank cars that trigger a California Energy Commission and State Emergency Response Commission report lowered to 20 from 33, which in turn would lower the trigger point from shipments of 1.1 million gallons or more to those of 690,000 gallons or more.

Priority routes for positive train control, a technology that incorporates geopositioning tracking to slow or halt trains automatically to reduce collisions, should be identified, McKenzie wrote, and parking and storage of tank cards need regulating, too.

He further wrote that railroads should be forced to comply with their Individual Voluntary Agreements with the US-DOT, because currently there is no requirement for them to do so. Those pacts involve reducing speed limits for oil trains that use older tank cars and travel through urban areas; determining the safest rail route; increased track inspection; adding enhanced braking systems; improving emergency response plans and training; increasing track inspections; and working with cities and communities to address their concerns about oil transport by train.

“The League of California Cities understands that this area of regulation is largely preempted by federal law,” McKenzie wrote. “That is why we are urging specific and timely action by the federal agencies charged with regulatory oversight in this area. We do not expect that derailments and accidents will cease altogether, but we anticipate that stricter safety standards will reduce their numbers over time.”

The LCC also has supplied member cities with a sample letter patterned after McKenzie’s message, to customize before sending to Foxx.

In a report to Benicia City Council, City Manager Brad Kilger wrote, “The League Executive Director has requested that cities send letters to the appropriate federal rail safety rulemaking authority requesting that these measures be implemented.”

Since the preparation of the letter template, he wrote, the LCC has learned that any decisions on improved safety regulations would be made in the Office of Management and Budget.

“The mayor is requesting that the city send a letter on behalf of the Benicia City Council,” Kilger wrote.

Consideration of the letter won’t conflict with future consideration of a request by Valero Benicia Refinery to extend Union Pacific Railroad tracks onto its property and make other modifications so it can substitute rail delivery for tanker ship delivery of crude oil, a highly contentious proposition that is currently undergoing environmental review.

“In that the city is currently processing the use permit and EIR (environmental Impact Report) for the Valero Crude-by-Rail Project, I asked the city attorney to determine whether sending a letter requesting rail safety improvements would in any way create a due process issue for the city,” Kilger wrote.

He said City Attorney Heather McLaughlin informed him there would be no conflict because the letter doesn’t take any position on the Valero project or the adequacy of the ongoing environmental review.

“The letter simply urges the adoption of more stringent federal standards for the transportation of crude by rail,” Kilger wrote.

If the Council agrees the letter should be sent to Foxx, it would be signed by Patterson as mayor, and copies would be sent to California’s two U.S. senators, Dianne Feinstein and Barbara Boxer, all members of California’s delegation in the U.S. House of Representatives, the Federal Railroad Administration, the National Transportation Safety Board, the Solano County Board of Supervisors, the Solano Transportation Authority, Kilger, McLaughlin and members of the Council.

The Council will meet at 7 p.m. Tuesday in the Council Chamber of City Hall, 250 East L St.

Federal data: Not many oil trains for Keystone XL to displace

Repost from McClatchyDC News

Federal data: Not many oil trains for Keystone XL to displace

By Curtis Tate, McClatchy Washington Bureau, April 2, 2015 
Congress Keystone
Miles of pipe ready to become part of the Keystone Pipeline are stacked in a field near Ripley, Okla, Feb. 1, 2012. SUE OGROCKI — AP

New data on crude oil shipments by rail released by the Department of Energy this week show that there are relatively few oil trains taking the path of the controversial proposed Keystone XL pipeline.

In its first monthly report on crude by rail, the U.S. Energy Information Administration shows that the bulk of oil shipments by rail are moving from North Dakota’s Bakken region to refineries in the mid-Atlantic and the Pacific Northwest.

Far less is moving from either Canada or the Midwest to the Gulf Coast, the location of 45 percent of U.S. refining capacity. Only about 5 percent of the crude oil moved by rail nationwide in January was bound for the Gulf Coast from either Canada or the Midwest.

A series of derailments has brought increased scrutiny to oil transportation by rail. Since the beginning of the year, four oil trains have derailed in the U.S. and Canada, leading to spills, fires and evacuations.

The White House Office of Management and Budget is reviewing new regulations intended to improve the safety of oil trains. They’re scheduled for publication next month.

Some supporters of the 1,700-mile Keystone project have claimed that it would reduce the need for rail shipments. The pipeline would have a projected capacity of 830,000 barrels a day, and would primarily move heavy crude oil from western Canada to the Gulf Coast.

The government’s new data confirms, however, that the primary flows of oil by rail are not to the Gulf Coast. Northeast refineries, concentrated in Delaware, Pennsylvania and New Jersey, have come to rely heavily on Bakken crude delivered by rail, and to a lesser extent, Canadian oil.

Oil trains have resulted in a 60 percent decline in oil imported to the East Coast from overseas countries, according to EIA.

Of the roughly 1 million barrels a day of oil that moved by rail in January, according to EIA, 914,000 barrels were from the Midwest petroleum-producing district that includes North Dakota, while another 130,000 barrels a day crossed the border from Canada.

In a report last month, the Energy Department projected that shipments of Canadian oil by rail could more than triple by 2016.

The mid-Atlantic region received 437,000 barrels a day from the Midwest district, and only 61,000 barrels from Canada. That’s roughly the equivalent of six or seven 100-car trains, each carrying about 3 million gallons.

Another 171,000 barrels a day from the Midwest, or about two to three 100-car trains, supplied West Coast refineries, mostly in Washington state.

The Gulf Coast region received only 107,000 barrels of oil a day from the Midwest and Canada combined. Another 107,000 barrels came from the Rocky Mountain petroleum-producing district, which includes the Niobrara region of Colorado and Wyoming.

Including oil that comes from west Texas or New Mexico, the equivalent of about three to four 100-car trains arrive at the Gulf Coast every day.

 

‘Get them off rails now,’ Four US Senators say of some oil tank cars

Repost from McClatchy News
[Editor:  Thank you to co-sponsors of Sen. Cantwell’s bill: Senators Patty Murray of Washington, Tammy Baldwin of Wisconsin and Dianne Feinstein of California, all Democrats.  See also: the Cantwell press release (including a video), and the text of the legislation.  – RS]

‘Get them off rails now,’ Sen. Cantwell says of some oil tank cars

By Curtis Tate, March 25, 2015
US NEWS RAILSAFETY 3 MCT
A DOT-111A tank car rolls past the Amtrak platform at Newark, Del., on July 28, 2013. CURTIS TATE — MCT

WASHINGTON — Sen. Maria Cantwell, D-Wash., introduced legislation on Wednesday that would immediately ban the least sturdy tank cars from carrying crude oil after a series of recent fiery train derailments.

The bill also would require the U.S. Department of Transportation to regulate the volatility of crude oil transported by rail, particularly oil extracted from shale formations in North Dakota’s Bakken region.

Cantwell’s bill follows four recent derailments in West Virginia, Illinois and Ontario that have drawn new scrutiny to the large volumes of oil moving by rail across North America.

The White House Office of Management and Budget is reviewing new regulations intended to address the safety concerns, but Cantwell told reporters Wednesday that the changes couldn’t wait.

“We know that we need to move on this legislation now,” she said. “Derailments keep happening, and we need to take responsibility to ensure that our communities are safer.”

Sens. Patty Murray of Washington, Tammy Baldwin of Wisconsin and Dianne Feinstein of California, all Democrats, are co-sponsoring Cantwell’s bill.

In addition to addressing tank cars and volatility, the legislation also would increase penalties for rail and energy companies that don’t meet federal safety requirements.

The bill would authorize funding to train emergency responders and require railroads to provide more information about oil shipments to state and local emergency officials. It also would require railroads to have comprehensive oil spill response plans.

The measure aims to remove from crude oil service the kinds of tank cars that have proved vulnerable to punctures and fire exposure in a series of derailments over the past two years.

Those include the older DOT-111 cars involved in a July 2013 derailment in Quebec that killed 47 people, as well as newer, industry-designed CPC-1232 cars involved in the most recent four derailments.

All lack thermal insulation and outer jackets to better protect the cars in derailments, and Cantwell’s bill would require tank cars carrying oil have those features.

“There are a bunch of tank cars that are unacceptable now,” she said. “So we’re saying get them off the rails, now.”

Cantwell noted that the rail industry asked the Transportation Department for an improved tank car design four years ago and that her bill would help give the industry some certainty.

“I’m willing to tell them right now: Here’s the standard that I think should be set,” she said.