Washington governor nixes Vancouver oil train terminal
Updated Jan 29, 5:30 PM; Posted Jan 29, 5:28 PM
By Ted Sickinger, The Oregonian/OregonLive
Washington’s governor on Monday put a presumed end to a proposed oil-by-rail export terminal at the Port of Vancouver, notifying state regulators that he agreed with their unanimous decision to reject the controversial project.
The state’s Energy Facility Site Evaluation Council voted in November to recommend that Gov. Jay Inslee deny the Tesoro-Savage proposal. In a letter announcing his decision, Inslee said he found ample support in the record for the council’s decision that the project was wrong for the proposed site, including risks posed by a large earthquake, an oil spill or an explosion or fire at the facility.
Inslee said the facility posed potentially catastrophic risks to the public and there was no way to mitigate the impacts that that an oil spill would have on water quality, wetlands, fish and wildlife.
“The Council found that emergency responders are unlikely to be able to successfully respond to a major incident at the facility,” Inslee wrote.
Vancouver Energy, a joint venture of the Tesoro Corp, now known as Andeavor, and Savage Co.s, has 30 days to appeal the governor’s decision in Thurston County Superior Court. A spokesman for Savage said the company would have a statement, but had not issued one yet.
The companies had proposed spending $210 million on a terminal at Port of Vancouver to transfer 360,000 barrels a day of Bakken crude from trains onto marine vessels for shipment to West Coast refineries. Supporters pointed to the jobs and property taxes that would be generated by the facility.
Dan Serres, conservation director for the advocacy group Columbia Riverkeeper, said the proposal attracted unprecedented opposition from a cross-section of businesses, environmental groups and citizens. And while the company could appeal the decision, Serres said they’d be doing so without a lease as the Port of Vancouver has already signaled its intent to seek other options as of March 31.
“The idea of putting five loaded oil trains a day down the Columbia River Gorge was irresponsible, and after Mosier, that became clear,” said Serres, referring to the fiery derailment of an oil train near the town of Mosier in June 2016. “We’re just overjoyed to see them go away. This one’s over.”
Washington Agency Votes to Reject Vancouver Energy’s Massive Oil-by-Rail Terminal
By Justin Mikulka • Wednesday, November 29, 2017 – 10:29
In another major blow to the West Coast oil-by-rail industry, a Washington state agency voted unanimously to recommend Governor Jay Inslee reject the Vancouver Energy oil terminal. Proposed for construction in Vancouver, Washington, along the Columbia River, it would be the largest oil-by-rail facility in the country.
Washington State’s Energy Facility Site Evaluation Council (EFSEC) has been reviewing the project since 2013 — reportedly the longest review period ever for the council. However, its November 28 meeting and vote on the final recommendation for the Tesoro Savage–backed project only took 10 minutes.
“Given the reality of climate change, there is simply no reason to build new fossil fuel infrastructure, especially for the export of extreme oil,” said Matt Krogh of activist group Stand, one of many groups opposing the Vancouver Energy project. “The entire reason behind this proposal was to move crude oil from the middle of North America to overseas markets. Simply put, this oil is not for us — and the proposal would leave every single community along the rail lines with all of the risk and none of the reward.”
Proposed by Tesoro Savage Petroleum Terminal LLC (also known as Vancouver Energy), the facility is designed to handle 360,000 barrels of oil per day. Expectations are that the facility would receive both the highly volatile light Bakken oil as well as Canadian tar sands oil, with much of it traveling through the Columbia River Gorge. In 2016 an oil train derailed and caught fire in Mosier, Oregon, with some of the oil ending up in the Columbia River, which has already been suffering major declines of its once-historic salmon populations.
Despite lower oil prices, U.S. imports of Canadian tar sands oil reached record levels in 2017 and are currently at 3.3 million barrels per day. More of that oil has been moving by rail recently, and as overall tar sands production continues to rise, industry observers predict large potential increases in shipping more of it by rail over the next several years.
Rich Kruger, CEO of tar sands producer Imperial (the Canadian affiliate of ExxonMobil), recently commented on how rail was becoming more attractive as a way to get oil to America.
“Rail is increasingly competitive,” Kruger told Bloomberg. “There are times when we look at the pipeline alternative, [but] the variable cost aspect of rail is a more attractive means for us to get to the mid-Western or Gulf coast markets.”
West Coast Oil-by-Rail Plans
Should Washington Governor Inslee, who has 60 days to make a final decision, follow the recommendation to reject the Vancouver Energy oil terminal, it would throw a major wrench in oil industry plans for Canadian tar sands and Bakken oil in the West. As DeSmog reported in June, oil-by-rail remains part of the industry’s long-term plans to get oil to West Coast refineries.
Earlier this year the Washington Supreme Court voted unanimously to deny an oil-by-rail project in Grays Harbor because that project lacked a comprehensive environmental review that considered the Ocean Resources Management Act.
Growing awareness of the risks of oil train terminals has led many communities where they are proposed to back away from such projects.
Local Election Was Proxy Vote on Vancouver Oil Terminal
Because Vancouver Energy’s proposed oil-by-rail facility is sited in the Port of Vancouver, a recent electoral race for one of the port commission’s three seats became a proxy fight over the oil terminal.
The race was between Don Orange, owner of a local auto repair shop and opponent of the oil-by-rail project, and Kris Greene, an insurance agent who was backed by large amounts of money from oil and rail corporations. Oregon Public Broadcasting reported Greene raised “nearly $600,000, with 87 percent coming from Vancouver Energy and backers of the project” and also received support from a PAC, funded in part by rail company BNSF and Tesoro, which spent $160,000.
However, Orange also raised close to $400,000, with considerable support coming from the Washington Conservation Voters Action Fund.
Orange thought there was little question why so much money was pouring into a local election for a seat on a commission that pays around $10,000 a year.
“This is a choice of what our economy should look like,” said Orange. “It is a choice of having a vibrant small business economy or becoming a big oil town.”
The election’s results showed how the majority of the community felt about the oil-by-rail project: despite being outspent by Greene, Orange won over 64 percent of the vote.
Current port commissioner Eric LaBrant was shocked by the results, saying, “I’ve never seen anything like this in local politics … This election shows where the community wants to go and what kind of business the community wants to have there at the port.”
Still, the final decision on the oil terminal lies with the governor, and even then, the door remains open for either side to take legal action.
Clear the air about safety – Industrial Safety is a Community Concern
Two Bay Area counties are home to oil refineries, but only one has an industrial safety ordinance directed at preventing accidents that could harm workers and pollute the air — Contra Costa County. Solano County has no ordinance, but Benicia, where Valero operates a refinery, is beginning a conversation on adopting a city safety ordinance.
The push for the city ordinance comes at a time when the state recently has adopted its own industrial safety ordinance modeled on the Contra Costa County ordinance. The regional air quality board also unanimously adopted on Nov. 15 the strictest regulation in the nation to limit emissions of cancer-causing toxic air contaminants. Solano County officials say they are studying the new state regulations but question the need for another layer of governmental oversight.
The goal, said Benicia Mayor Elizabeth Patterson, who called the Nov. 14 community meeting along with a coalition of environmental and community groups, “is to get a seat at the table.”
Air quality is always a concern in a refinery town, but a May 5 incident at Valero that sent huge plumes of black smoke and flames soaring into the sky reignited community worries. The flaring resulted in shelter-in-place and evacuation orders and raised the price of gasoline. It was later determined the refinery had released 80,000 pounds of toxic sulfur dioxide — a huge amount, experts said.
Two investigations (one by the state, one by the county) found Valero not at fault, but the county’s findings were never forwarded to the city and only revealed through a public records act request. The regional air board is still investigating.
Valero is suing PG&E over a power failure that preceded the refinery losing control of its process.
An industrial safety ordinance would bring Benicia — and surrounding communities — into the know and give residents directly affected some say.
An ordinance also would require Valero to pay fees to the city, or Solano County if the Board of Supervisors adopts an ordinance, to contract for the engineering expertise needed to oversee prevention programs, audits and inspections. Unsurprisingly, Valero is against the idea.
Contra Costa County adopted its industrial safety ordinance in December 1998 after a series of incidents, and just days before four men were killed and a fifth seriously burned in a gruesome refinery accident. Richmond soon after adopted its own ordinance. Contra Costa’s ordinance is held up by the U.S. Chemical Safety Board as a model. The record shows the number of refinery and chemical facility incidents has diminished since adoption.
Industrial safety is a public concern. The public deserves to be in the know.