Category Archives: DEIR

Bloomberg News – Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

Repost from Bloomberg News

Valero Oil-by-Rail Plan Has ‘Unavoidable’ Air Impacts, City Says

By Lynn Doan Jun 17, 2014

Valero Energy Corp. (VLO)’s plan to unload as many as 70,000 barrels of oil a day from trains at its Benicia refinery will increase emissions across California in a “significant and unavoidable” way, a city report shows.

Valero has applied to build a rail-offloading rack at the plant northeast of San Francisco that would take oil from as many as 100 tanker cars a day. The San Antonio-based company delayed the project’s completion by a year to early 2015 as it awaits approval from the city.

“Project-related trains would generate locomotive emissions in the Bay Area Basin, the Sacramento Basin, and other locations in North America,” the city of Benicia said in an environmental assessment posted on its website today. “The city has no jurisdiction to impose any emission controls on the tanker car locomotives; therefore, there is no feasible mitigation available to reduce this significant impact to a less-than-significant level.”

Valero is proposing the rail spur as record volumes of oil are extracted from North American shale formations that the U.S. West Coast has little pipeline access to. California’s refiners are already bringing in the biggest-ever volumes of oil by rail as they seek to displace shrinking supplies of crude within the state and from Alaska.

A series of explosions and derailments of trains carrying crude, including one in Quebec that killed 47 people in July, touched off a flood of letters to the city of Benicia about Valero’s project and compelled the planning commission to put off a decision until an environmental study could be done.

New Rules

Regulators in both the U.S. and Canada are imposing new rules designed to improve the safety of trains carrying oil and a group of California agencies released a report June 10 recommending ways in which the state should respond.

Earlier this month, the city council in Vancouver, Washington, voted to oppose a proposal by Tesoro Corp. (TSO) and Savage Cos. to build a 360,000-barrel-a-day, rail-to-marine complex at the Port of Vancouver.

Valero’s Benicia project would probably result in a spill of more than 100 gallons once every 111 years, according to an analysis conducted as part of the city’s environmental report. The report was prepared by researchers at the University of Illinois’s Rail Transportation and Engineering Center in Urbana, Illinois.

California’s refiners received 557,315 barrels of oil by rail in April, the most ever for that month, state Energy Commission data show. Crude from Canada made up 45 percent of the state’s total rail receipts. Oil from North Dakota accounted for 22 percent.

’Challenged’ Market

Valero has described refining in the western U.S as “a challenged market” with margins close to break-even when all of the region’s plants are running normally. Profits from the 132,000-barrel-a-day Benicia refinery are particularly under pressure, Joe Gorder, the company’s president and chief executive officer, said in a presentation May 21.

The plant “produces a significant yield of gasoline, which, of course, we’ve seen the margins compressed on and demand not be the greatest on,” Gorder said at the UBS Global Oil and Gas Conference in Austin, Texas. Sourcing alternative crudes on the West Coast “would increase the economics out there for us substantially,” he said.

Spot California-grade diesel has traded about 3.5 cents a gallon above gasoline in Los Angeles this year and averaged an 8.75-cent premium in 2013, data compiled by Bloomberg show.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Charlotte Porter

Benicia Herald and Vallejo Times-Herald on release of Valero DEIR

[Editor: The local news media posted early announcements about the release of Valero’s Draft EIR.  See Benicia Herald and Vallejo Times-Herald stories below.  – RS]

From the Benicia Herald

DEIR for Valero project: ‘Significant’ impact to air quality

According to a summary provided by the city of Benicia for the just-released Draft Environmental Impact Report on the proposed Valero Crude-by-Rail project, “there would be a significant and unavoidable impact associated with air quality.” However, “The impacts associated with all other environmental issues would be reduced to below a level of significance with the incorporation of mitigation measures.”

The report can be downloaded by clicking here.

Stay tuned for a full report.


From the Vallejo Times-Herald

Benicia: Valero crude-by-rail draft environmental impact report released

Project would allow refinery to bring in 70,000 barrels per day by train

By Tony Burchyns  |  Posted:   06/17/2014 11:57:15 AM PDT

BENICIA>> City officials on Tuesday released the draft environmental impact report for the Benicia Valero Refinery’s proposed crude oil rail terminal.

If approved, the proposed project would allow the refinery to bring two 50-tanker car trains of crude oil in and out of Benicia every day, replacing crude shipments by boat.

Valero has said the project is necessary to remain competitive on the West Coast. Opponents, however, have raised concerns about the type of crude that could be coming in those tanker cars, such as highly flammable oil from the Bakken oil fields in North Dakota, or Canadian tars sands oil, regarded as more polluting than other crude.

The project would involve the installation of a rail car unloading rack, rail track spurs, pumps, pipeline and associated infrastructure at the refinery at 3400 East Second St. It would allow Valero to receive up to 70,000 barrels per day of crude oil by train.

Union Pacific Railroad would transport the North American-sourced crude using existing rail lines to Roseville, where the tanker cars would be assembled into train shipments to the refinery, according to city planners.

The draft environmental impact report will be circulated for a 45-day public comment period ending on Aug. 1, city officials said.

The Planning Commission is set to hold a public hearing to take comments on the report on July 10. There will be no final action taken at the meeting.

The report may be viewed at the Benicia Public Library, 150 East L St., the Community Development Department at City Hall, 250 East L St., or online at www.ci.benicia.ca.us.

The proposed project would allow the refinery at 3400 East Second St. to receive up to 70,000 barrels per day of crude oil by rail.

Valero Draft EIR now available for download

BREAKING NEWS …

Valero Draft Environmental Impact Report (DEIR) now available for download

June 17, 2014, 8:30am

The City of Benicia posted the downloadable version of the Valero Crude By Rail Draft EIR this morning.  The print and digital copies will be made available at the Benicia Planning Department later in the day.

The DEIR can also be downloaded here on The Benicia Independent.

Crude-oil trains through Davis: It’s time for action

Repost from The Davis Enterprise

Crude-oil trains through Davis: It’s time for action

By Lynne Nittler  | June 08, 2014
Tankers at Picnic DayW
Tank cars carrying crude oil roll through downtown Davis as paradegoers gather on Picnic Day in April. Richard McAdam/Courtesy photo

Davis-DEIR-Workshop_Learn-MoreI’m proud of our city. The Davis City Council took on crude-by-rail transport through our community, just as I have seen it tackle other difficult issues — with the willingness to look beneath the surface, find out what is important and then figure out what to do.

I’m sure the council members would have preferred shrugging off the crude-by-rail problem, leaving it for the federal government to handle, but we citizens pressed them, and to their credit, they became regional leaders.

The problem: The issue isn’t abstract for Davis. If two proposals are approved down-rail from us, we soon could be seeing 180 tank cars coming right through our town every day, carrying the highly volatile North Dakota Bakken crude oil in the older, unsafe DOT111 cars.

A proposed rail terminal at the Benicia Valero refinery would bring 70,000 barrels a day, which equals a train of 100 cars, and a proposed rail spur at the Phillips 66 Santa Maria refinery in San Luis Obispo County would bring another 80 cars per day through Davis on the Capitol Corridor route.

When a group of local citizens approached the Davis Natural Resources Commission in January with our concerns, we found a receptive audience. Those concerns are numerous: unsafe tank cars prone to rupture, uninspected rails, the nature of volatile crude oil and dirty tar sands, oil train exclusion from the right-to-know laws, substantially increased numbers of serious oil train accidents and spills, and skyrocketing projections for the number of oil trains entering California.

The commission elevated the citizen recommendations to the City Council.

City goals: The council listened, and noted that Spokane, Bellingham and Seattle, Washington, and, more recently, Berkeley and Richmond, had all passed resolutions protesting crude-by-rail transport through their cities. They assigned staff to prepare a report and later adopted broad goals including to:

* Actively participate in regional planning activities;

* Assure top-quality fire, police, emergency and other services to promote the health, safety and well-being of all residents and neighborhoods; and

* Create and maintain an environment that promotes safety and well-being.

Based on these goals, on Earth Day, April 22, the Davis City Council took a strong stand and adopted Resolution 14 opposing transportation of crude oil through the city of Davis and adjacent habitat, thus including the Yolo Causeway with its trestle tracks. It is well worth reading the whole document, posted at www.yolanoclimateaction.org or at www.cityofdavis.org under the City Council agenda for April 22. Other cities and counties in our region have requested copies of the Davis resolution as they prepare their own.

Leading the region: Meanwhile, Mike Webb, the staff member assigned to research crude-by-rail, along with City Attorney Harriet Steiner, contacted neighboring jurisdictions of Sacramento, West Sacramento, Dixon and Yolo and Solano counties to alert them also to the dangers. Together, our staff convinced the Sacramento Area Council of Governments to hold a meeting on oil trains on April 17, and that group put the item on the agenda for the next full SACOG meeting.

The jurisdictions divided up the various tasks, mostly focused on public safety, but also on siding storage and getting more information/assistance from Union Pacific, the California Public Utilities Commission and even the refineries. The SACOG representatives who attended the Capital-to-Capital meetings in Washington, D.C., last month took our regional concerns directly to our California elected officials, Reps. Doris Matsui and John Garamendi.

Additionally, our city is pursuing with Union Pacific a high-sensitivity rail situation in Davis where there is a curve and also crossover switches, both requiring an unusual —and dangerous — slower speed of 10 mph.

Comments: The next step is an opportunity for cities and organizations to study the draft environmental impact report for the Valero Project, which will be released Tuesday for public review. Written comments are admitted to the record, and the report authors must respond to each comment, although similar comments may be grouped together. Those who respond have 45 days, probably extended to 60 to 90 days, to submit written comments.

The city of Davis isn’t waiting for the EIR release; it is already planning its comments and inviting neighboring jurisdictions to join them. SACOG members are working together now. We citizens can be grateful that our city is speaking up on behalf of our safety.

The city manager of Lynchburg, Virginia, did not even know that trains of Bakken oil were passing through his town. On April 30, 17 cars derailed and the ensuing flames shot up eight stories high while three cars leaked 25,000 gallons of crude into the James River, a source of drinking water. Fortunately, Davis is taking proactive steps to avert such accidents.

A number of environmental groups such as the Natural Resources Defense Council, Sierra Club, Earth Justice, Oil Change International and others will be weighing in on the draft EIR as well, with sharply focused comments on safety, health, water and air contamination, and whatever other weaknesses or unmitigated concerns they find in the EIR.

Time for action! Democracy is, above all, about each of us voicing our concerns. Under the California Environmental Quality Act, the draft EIR provides every individual affected by a decision with a chance to be heard. Every comment letter becomes a part of the EIR document and receives a response in the final EIR.

Therefore, we have serious work to do to become informed about the impact of unit trains of crude oil passing through Davis and to read all or significant parts of the draft EIR document. The time we invest in expressing particular concerns could make a difference in terms of mitigations granted or possibly influence whether the Benicia Planning Commission, and ultimately the Benicia City Council, vote for or against the Valero rail project.

There is a helpful resources document posted for those who wish to read up on crude-by-rail transport at www.yolanoclimateaction.org

Yolano Climate Action will host a workshop on how to respond to a draft EIR, including an instructional PowerPoint presentation by Mike Webb plus tips and discussion on commentary topics for the Valero project DEIR, on Wednesday, June 18, from 7 to 9 p.m. in the Davis Community Church Fellowship Hall, 421 D St.

Watch The Enterprise for reminders, or check the calendars and articles at www.yolanoclimateaction.org and www.cooldavis.org, or contact me at lnittler@sbcglobal.net.

Looking ahead: The draft EIR for the Santa Maria rail spur project is expected to be released in July, offering a second chance to use newly honed skills!

— Lynne Nittler is a Davis resident and environmental activist.

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