Category Archives: Tar sands crude

GRANT COOKE: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

Repost from the Benicia Herald

Grant Cooke: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

By Grant Cooke, September 22, 2016
P1010301

Grant Cooke

History, or at least precedence, was made Tuesday evening when the Benicia City Council denied Valero a land use permit to bring in volatile Bakken and Tar Sands crude oil from North Dakota and Canada by train.

In what appeared to observers to be a stunning change of heart, the council unanimously agreed with the Planning Commission’s earlier recommendation to reject Valero’s project permit.

With other Northern California cities —and San Luis Obispo—watching carefully, the council’s action set a precedent and reaffirmed a city’s right to regulate local land use and protect the health and safety of its citizens.

The decision may have marked the first significant rejection by a California small town of a fossil fuel company’s proposed major business expansion, and probably notes the diminishing power of the industry in local and state politics.

Interestingly enough, the most prominent rejection by a small town of an oil company’s intended expansion occurred in Denton, Texas. Denton, a quiet and prosperous suburb of Dallas, in the middle of America’s oil patch, banned fracking (a method of shale gas extraction that uses large amounts of water pumped at high pressure into channels drilled into rock to release gas) within the city limits in 2014.

Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy.

Despite the decision, and for years to come Benicia’s tax revenue will still be highly dependent on fossil fuel, and so the developments of the Green Industrial Revolution with its twin drivers of carbon emission reduction and non-carbon energy expansion will have enormous consequences. As the Green Industrial Revolution expands, it will lead to the decline of the fossil fuel industries and correspondingly to the reduction of Benicia’s tax base and carbon-dependent economy.

Here are some other recent events furthering this expansion, and while not local, all have a bearing on Benicia’s future.

The first event happened at the recent G20 meeting in Hangzhou, China. The G20 meeting, which occurs annually, brought together the world’s 20 major economies to discuss international problems and potential policies and solutions. Leaders from the U.S., the European Union, China, Japan and Russia among others, came together for the two-day summit. Next year’s meeting is in Germany.

Woodrow Clark, my writing/business partner, is a member of the B20, a G20 subgroup that focuses on international business and economic issues. As a member of the group that delivered a policy report at the Hangzhou meeting, Woody had a front row view of the historic G20 meeting. Among the policy discussions that the meeting generated, there were some remarkable initiatives. One was that Russia agreed to join the US and China, along with the EU in addressing climate change. I imagine that India will also commit to GHG reductions next year at the G20 meeting in Germany.

This is an expansion of the initial US/China agreement from December’s UN Climate Conference in Paris. It increases the pressure on the fossil fuel industry, which is already beset by plunging oil prices, corrupt and chaotic politics, and furthers the rapid development of non-carbon renewable energy. Its impact on Benicia is indirect, unlike a report from Japan’s Eneco Holdings, LTD, which was part of the G20 Executive Talk Series. (Here’s the link to the vertical edition http://g20executivetalkseries.com )

A second development was also part of the G20 meeting and featured the showcasing of a remarkable chemical breakthrough by Eneco Holdings, LTD, from Japan. The company has the potential to be one of Asia’s largest energy companies with their development of a nano-emulsion technology. It appears that the company has succeeded in making a “complete fusion” between water and oil through the ultra-miniaturization of components at the molecular level. In simple terms, they have succeeded, where all others have failed, in mixing water and oil into a combustible fuel. The result is a mixture that is 70 percent water and stable enough to be a used in internal combustion engines. Further, it is safe and environmentally friendly, emitting about half the carbon, nitrous oxide, and sulfur dioxide released in traditional internal combustion gasoline and diesel combustions. Additionally, when produced in large quantities it will be significantly cheaper than conventional gasoline and diesel.

Originally produced for the Japanese market, Eneco’s Plasma Fusion fuel is being tested and used in China and other parts of Asia. With clean emissions levels, it is ideal for the heavily polluted Asian megacities, and should rapidly grow into a viable alternative to conventional gasoline and diesel. Just imagine how healthy West Oakland’s port area would be without its diesel contaminates? Regardless, this emulsion fuel will be a transitional fuel to hydrogen powered vehicles.

The third development that will have a significant impact on the fossil fuel industries is the continual plunge in the price of solar panels. Last week at a meeting, a solar developer told me that panel prices are now the lowest they have ever been in California, plus they are functioning at their highest levels of efficiency.

Driven by the economic principle of Zero Cost Margins—once the equipment is paid for, the rest of the energy is free—solar and renewable energy are expanding at the rate of Moore’s Law, or doubling about every 18 months. Developing and developed nations are rapidly adopting renewable energy, mostly wind and solar, as a replacement for fossil fuels. In about 20 areas in the world, particularly in Asia, solar and renewable energy are less expensive than fossil fuel. Even Saudi Arabia and United Arab Emirates are developing large solar power generation sites.

Because of Russian aggression and threats of shutting off the natural gas supply, Europe has accelerated its transition from fossil fuel and atomic energy to wind and solar. Germany is a major user of solar energy despite the northern climate, and the United Kingdom is building the world’s biggest offshore wind farm called Hornsea off the Yorkshire coast. Hornsea will be the world’s first offshore wind farm to exceed 1 GW in capacity and will produce enough energy to power well over 1 million homes.

Closer to home, the United States’ Pacific coastline has enough wind and tidal resources to power most of the nation’s needs, and by adding solar to the mix, the U.S. could easily generate enough electricity for centuries to come. Roughly speaking, wind power costs about 2 to 4 cents per kilowatt hour and solar about 5 to 6 cents. PG&E charges around 22 to 24 cents per kilowatt hour, so it’s just a matter of time before on-site or distributive energy overtakes traditional energy delivery.

Further, the carbon industries and the large central utilities have flawed business models that are dependent on ever increasing growth and they cannot adapt to the lower prices available from renewable energy, or the increasing efficiency of vehicles and buildings. This is why Clark and I have written extensively on energy cost deflation and the shrinkage and decline of the carbon industries and the large central utilities.

Finally, we come to Sept. 8’s monumental signing by Gov. Jerry Brown of Senate Bill 32, the legislation that has catapulted California into a leadership role of the international efforts to slow global warming. SB 32 will force the state’s trillion-dollar economy, one of the biggest in the world, into a much smaller carbon footprint. In fact, the legislation requires the state to slash greenhouse gas emissions to 40 percent below 1990 levels by 2030, a much more ambitious target than the previous goal of hitting 1990 levels by 2020. Cutting emissions will affect nearly all aspects of our lives, accelerating the growth of renewable energy, prodding people into buying electric autos, and pushing developers into building denser communities connected to mass transit. (Details: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws-20160908-snap-story.html ).

One other key element to California’s pursuit of clean air and reduced greenhouse gases is the state’s cap-and-trade program. The program requires the state’s heavy polluters to buy carbon offsets, or credits, to release emissions into the atmosphere, creating an additional operating cost for the oil and utility industries.

SB 32 and the expansion of cap-and-trade will have dramatic impacts on the state’s fossil fuel industries. Likely many of us are driving our last conventional gasoline powered vehicle, with the next one probably powered by electricity or hydrogen. It’s not hard to predict that since the Bay Area’s refineries are the heaviest of the area’s polluters, that the combination of reduced revenue from shrinking demand and increased costs of production and operation will eventually lead to refinery closings.

The fossil fuel industries won’t give up easily, there’s trillions of dollars at stake. Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine. Which is why the U.S. and Canada are being besieged by the fossil fuel interests to ignore or eliminate environmental and safety protections that hamper production.

Which is why Valero pushed so hard to transport volatile Bakken crude by rail cars through the densely populated Sacramento corridor and cram the trains into Benicia and a refinery that is not designed or equipped to deal with them. The industries, the refineries and all connected to the fossil fuel era, know that the incredibly lucrative period when oil was king and black gold flowed from the sand is coming to an end.

Bringing this back to Benicia, we see a city that is dependent on Valero for tax revenue and its governing process glimpsing a new reality. Small cities like Benicia that have been so dependent on the fossil fuel industries for so much and for so long, struggle to change. Other cities like those in the deindustrialized Midwest that have suffered sudden collapses of their major companies and tax bases have had to reinvent their economic drivers or just blow away. But it’s hard for a city like Benicia with its apparent prosperity and ease of living to understand that its fossil fuel base is in decline and that the future is elsewhere.

Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.
Please share!

SAN FRANCISCO CHRONICLE: Benicia’s rejection of oil trains could reverberate across country

Repost from the San Francisco Chronicle

Benicia’s rejection of oil trains could reverberate across country

By Kurtis Alexander, 9/21/16 5:11pm
The Valero refinery is seen in the background behind signage for a railroad crossing on Wednesday, October 22, 2014 in Benicia, Calif. Photo: Lea Suzuki, The Chronicle

The Valero refinery is seen in the background behind signage for a railroad crossing on Wednesday, October 22, 2014 in Benicia, Calif. Photo: Lea Suzuki, The Chronicle

Benicia’s rejection of plans to bring trains filled with crude oil to Valero Corp.’s big refinery in the city was hailed Wednesday by critics of the country’s expanding oil-by-rail operations, who hope the flexing of local power will reverberate across the Bay Area and the nation.

Of particular interest to environmentalists and local opponents, who for years have argued that Valero’s proposal brought the danger of a catastrophic spill or fire, was a last-minute decision by U.S. officials that Benicia’s elected leaders — not the federal government — had the final say in the matter.

Word of that decision arrived just before the City Council, in a unanimous vote late Tuesday, dismissed Valero’s proposal for a new $70 million rail depot along the Carquinez Strait off Interstate 680. Valero had said the project would not only be safe but bring local jobs, tax revenue and lower gas prices.

“We’re pleased with the decision and the implications it will have across the country,” said Jackie Prange, a staff attorney for the Natural Resources Defense Council, one of several groups opposed to the project. “This issue is live in a number of sites across the country. This is definitely a decision that I think cities in other states will be looking to.”

As oil production has boomed across North America, so has the need to send crude via railroad. The uptick in tanker trains, though, has been accompanied by a spate of accidents in recent years, including a 2013 derailment in the Quebec town of Lac-Megantic in which a 72-car train exploded and killed more than 40 people.

The authority of communities to limit oil trains has been clouded by the assertion of some in the petroleum industry that local officials don’t have jurisdiction to get in the way. Companies like Valero have contended that railroad issues are matter of interstate commerce — and hence are the purview of the federal government.

Shortly before Tuesday’s meeting, however, Benicia officials received a letter from the U.S. Surface Transportation Board, which wrote that Valero, based in Texas, was not a railroad company and that the proposed rail terminal fell under city jurisdiction.

“It’s what I was waiting for to help me make my vote more defensible,” said Councilman Alan Schwartzman at the meeting.

Earlier this year, Valero had asked the Surface Transportation Board for “preemption” protection for the project after Benicia’s Planning Commission rejected the proposal. The plan proceeded to the City Council upon appeal.

The plan called for oil deliveries from up to two 50-car trains a day, many passing through several Northern California communities en route from the Bakken shale formation in North Dakota. Those trains would carry as many as 70,000 barrels of oil.

The company billed the project as a way to keep gasoline prices low in the absence of a major oil pipeline serving the West Coast. Crude is currently brought to the Bay Area mostly by boat or through smaller pipelines.

On Wednesday, Valero officials expressed frustration at the city’s decision.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the City Council members have chosen to reject the crude by rail project,” spokeswoman Lillian Riojas wrote in an email. “At this time we are considering our options moving forward.”

The vote directly hit the city’s pocketbook. Nearly 25 percent of Benicia’s budget comes from taxes on the oil giant, and the city coffers stood to grow with more crude. The refinery employs about 500 people, according to city records.

But the city’s environmental study showed that oil trains presented a hazard. The document concluded that an accident was possible on the nearly 70 miles of track between Roseville (Placer County) and the refinery, though the likelihood was only one event every 111 years.

The document also suggested that much of the crude coming to the Bay Area from North Dakota, as well as from tar sands in Canada, was more flammable than most.

Several cities in the Bay Area and Sacramento area joined environmental groups in calling for rejection of the project.

“The council’s vote is a tremendous victory for the community and communities all throughout California,” said Ethan Buckner of the opposition group Stand, who was among more than 100 people who turned out for the council’s verdict. “At a time when oil consumption in California is going down, projects like this are unnecessary.”

At least two other plans are in the works for oil delivery by rail elsewhere in the region — in Richmond and Pittsburg. A handful of other proposals have been put forth in other parts of California, including the expansion of a rail spur at a Phillips 66 refinery in San Luis Obispo County, which is scheduled to be heard by the county planning board Thursday.

Prange, with the Natural Resources Defense Council, said this week’s finding by the Surface Transportation Board gives cities the confidence to reject the proposed oil trains, if they wish to do so.

“It reaffirms the power of local government to protect their citizens from these dangerous projects,” she said.

U.S. oil deliveries by rail have grown quickly, from 20 million barrels in 2010 to 323 million in 2015, according to government estimates. In response, federal transportation officials have worked to improve the safety of oil-carrying cars with new regulations.

But over the past year, rail deliveries nationwide have slowed, in part because of the stricter rules as well as local opposition, falling crude prices and new pipelines.

Critics have complained that the tightened rules have fallen short, pointing to incidents like a June train derailment in Mosier, Ore., which spilled hundreds of thousands of gallons of crude into the Columbia River. Leaders in Oregon are discussing a statewide ban on crude trains.

Kurtis Alexander is a San Francisco Chronicle staff writer.
Please share!

IN MEMORIAM: Benicia’s Joel Fallon: Is Crude by Rail really do or die?

Is this really adios?

[Re-posting today in memory of Joel Fallon, who died on August 11, 2016 (obituary). Joel was Benicia’s first and most beloved Poet Laureate, an inspiration to all who knew him and a thoughtful, visionary activist. Originally reposted from The Benicia Herald and here on the Benicia Independent.]

April 25, 2014 by Joel Fallon

WHAT AM I MISSING HERE? Are Benicians just kittens in a burlap sack, down by the riverside, resigned to the inevitable?

Let’s see if I’ve got this right.

(a) We’re in earthquake country (see evidence of the Green Valley fault in terrain on the way to Cordelia);

(b) We’re next to fragile wetlands (for spectacular views, click Google Maps/Benicia, hybrid setting, find rail line and follow to Sacramento);

(c) We’re contiguous with an important commercial waterway;

(d) We host an outfit whose headquarters has fought attempts to safeguard our environment (see Valero Energy Corporation’s position and funding regarding Proposition 23);

(e) A local outfit, under direction from its far-off headquarters, plans to process a dangerous, toxic product;

(f) The outfit is served by a rail system with a recent history of tank car derailment;

(g) Parts of this railroad system (built by Central Pacific RR in 1877), running through marshland to the Carquinez Strait, repeatedly sank into unstable marshy terrain, requiring hundreds of thousands of tons of rock, gravel and other materials to stabilize it;

(h) Other parts of the antique rail infrastructure seem poorly maintained and may be unsafe, e.g., the Benicia-Martinez rail bridge, built between 1928 and 1930 for Southern Pacific RR to replace the train ferry to Port Costa;

(i) Old tank cars are a problem — an area newspaper reports that BNSF railway officials told federal regulators in March of concerns that older, less robust tank cars will end up transporting crude oil because of Canadian rail pricing policies;

(j) Emergency responders are unprepared to handle spills or fires in the event of derailment of cars headed to any of five Bay Area refineries. State Sen. Jerry Hill, D-San Mateo, after listening to testimony from emergency responders, said, “There is a potential for very serious problems and very disastrous problems.” Chief of the Contra Costa Fire District is quoted saying, “… with the sheer volume that will be coming in, we are going to see more accidents.” The 2007-08 Solano County Grand Jury, after investigating the county’s fire districts, reports a general need for more funding, heavy dependence on dedicated volunteers and the preponderance of old fire trucks, while noting the high cost of HAZMAT suits and problems with communications caused by incompatible equipment and radio frequencies.     

And yet, despite this unbelievably horrific backdrop, certain elements in town warn us to hush lest Valero be forced out of the competitive (i.e., tar sands crude) market, destroying its “desire to remain in Benicia.”

Clearly, Valero Benicia Refinery cannot be faulted for all of the foregoing. Good workers deserve good jobs; they should be able to tell their grandkids they helped, rather than harmed, the environment. Valero Benicia is just one of many links in a chain of factors that could lead to the disaster so many in this community fear.

Am I “agenda driven” as charged? Bet your raggedy backside I am. My agenda involves doing homework to find threats to my home, my town, my state and my nation, and advising others of my findings (just in case they might care). If you detect it, yell “GAS” to alert the rest of the platoon; then put on your mask, while you can still breathe.

For a glimmer of the scope of Big Oil’s operations from sea to shining sea and beyond, see the astounding number of outfits similar to Valero Energy Corp. in the U.S and Canada. Find ’em in Wikipedia (“independent oil companies — Americas”). Select a company to see its history of oil spills. Wonder why the Keystone XL pipeline is planned to extend to Texas? Check out which corporations own the pipeline and the benefits associated with Foreign Trade Zones (32 FTZ in Texas compared to 17 in California, and 15 in New York).

If folks look around a bit they may discover that Big Oil, like Big Coal and other corporate behemoths, extends powerful influence throughout the land of the free and the home of the brave. Many were hoodwinked by Operation Iraqi Liberation, in which Big Oil colluded with Big Government to achieve absolute power of life and death over us and our enemy — the one with phantom WMDs and a vast, very real amount of oil.

Is this really adios, Pilgrim? — or just “I double-dog dare you”? I don’t believe it’s Valero’s style to leave town. It’s not in the corporation’s best interests and shouldn’t be its preferred option.

What are those options? They include:

Option 1. Stay put, but back away from risky tar sands crude and focus on products involving minimum environmental risk. Backing away for good business reasons is not the same as “backing down.” CVS decided to stop selling cigarettes. The firm considered it “the right thing to do for the good of our customers and our company. The sale of tobacco products is inconsistent with our purpose — helping people on their path to better health.” Barrons online says, “We think that CVS — like anyone who quits smoking — is making a good long-term decision, even if it makes things rough short-term.” Others consider it a PR coup! CVS gained the respect of millions of customers for what is perceived as a moral and ethical decision. I shop CVS more often since they made that brilliant call; so do my friends.

Backing away from tar sands crude would take similar corporate guts; but the public would be pleased with the image of a moral, ethical, highly principled corporation — a Valero that gives a damn. Sales at Valero service stations might even increase.

Option 2. Continue to pursue tar sands crude; seeking high profitability despite increased environmental risk. The downside: prices at the pump are too high. Californians are already angry; they may avoid Valero service stations and products. I’ll urge my friends to do so. Word of mouth is powerful and spreads quickly. Contempt for an outfit that doesn’t respect its customers or our environment could lead to loss of sales in the country’s most populous state. Cesar Chavez showed us boycotts work. Most folks I know didn’t buy grapes.

Option 3. “Re-purpose” Valero’s operations in Benicia (and elsewhere) to enhance instead of degrade the environment while remaining profitable. Valero is an energy outfit. Turning to alternate sources of energy is ultimately inevitable. Valero should expand its vision and not limit itself to fossil fuels. Farmers in Ireland who grew only potatoes learned about diversification too late.

(a) Pursue wind farming if feasible and profitable. A recent Mother Earth News article about mountaintop removal coal mining in Appalachia cites a 2007 study that determined placing wind turbines on Coal River Mountain would provide power to 70,000 West Virginia homes while generating $1.7 million in local taxes each year. Better than ripping off the tops of mountains and dumping enormous amounts of debris into streams and rivers.

(b) Pursue solar energy if feasible and profitable. Produce solar products for sale and/or operate a solar power facility to resell power. See an article by Don Hofmann, president of RegenEn Solar LLC, looking at mountaintop removal mining and suggesting solar power instead. He recognizes there are challenges but is optimistic about lower-cost solar cells and technology in the future. He notes that the U.S. fossil fuel industry received $72 billion in subsidies from 2002 to 2006 and asks us to imagine that kind of money put into solar development.

(c) Pursue other approaches (geothermal, tidal, et al.) if appropriate and profitable.

Option 4. Determine feasibility of combining 3a, 3b and/or 3c. If appropriate and profitable, pursue the combination.

Option 1 would be the easiest and would be enthusiastically supported by most folks in Benicia, applauded by most Californians and recognized as a principled business decision.

Option 2 is the least desirable from an environmental standpoint. While profitability is high, it may incur the contempt and wrath of the public, possibly leading to damaging boycotts and a decline in profitability.

Option 3a thru 3c may seem starry-eyed, wild and outside the box. They would require imagination, foresight and courage. It can be done. CVS is showing the way and TESLA is succeeding with electrically powered cars. Examine pluses and minuses — Valero could take a quantum leap and be regarded as an industry trailblazer. Its reputation would be enhanced. Envious competitors might scoff and want Valero to take a pratfall but ultimately they would have to follow suit.

In conclusion the priority order of Valero’s options should be:

Option 1 — Most desirable (preferred)
Option 3/4 — Most “outside the box” (defer initially, but plan for the future)
Option 2 — Least desirable (avoid).

If Valero is really in the long-term energy game, it should choose Option 1 and start thinking seriously about Option 3. If, instead, its focus is on short term — high profits while risking irreparable harm to the environment — then Option 2 is their ticket.

If Valero wants to be recognized as rich, principled, brave and famous instead of rich, unscrupulous and infamous, then it should open door No. 3 as soon as possible.

Finally: I don’t believe it is “adios” for Valero Benicia Refinery. Unfortunately, I think Valero will not choose a clean path. They will probably press on with dirty tar sands crude. After that, “¿Quien sabe?”

I don’t intend to “go gentle into that good night.” Instead I prefer to “rage against the dying of the light.”

This whole thing could be like a colonoscopy, but a lot less fun.

Joel Fallon is a Benicia resident.


The Benicia Herald’s Poetry Corner was recently dedicated to Joel Fallon…

“For Joel Fallon” by Ronna Leon

Reposted from the Benicia Herald, Poetry Corner, August 19, 2016

You called them “dead Mother poems”
and scorned their cloying sentiment, easy forgiveness.
Your poem about your Mother named her Kali.
You hungered for life – anger, difficulty, competition, sex.
You insisted that wringing a tear from a stone
was superior to opening well oiled floodgates.

 

Now you are dead and my tears come unbidden
looking at the bookshelf, pulling a stubborn weed,
eating a pastry.
“Keep smiling” you’d instruct,
but I don’t want to brush these tears away,
each glistens with memory, swells with loss.
You are in them, like it or not.Ronna Leon was Benicia’s third poet laureate from 2010 to 2012


“Hope is the Thing with Feathers (Dedicated to Joel Fallon)” by Johanna Ely

Reposted from the Benicia Herald, Poetry Corner, August 19, 2016

“Hope is the thing with feathers
that perches in the soul
and sings the tune without the words
and never stops-at all”
-Emily Dickinson

 

If such a tiny bird,
perhaps left for dead,
or suffering from an injured wing,
its feathers matted and torn,
finds refuge in your broken heart,
then reach inside yourself
and touch this living thing called Hope,
gently bind its limp and useless wing
with Love’s tattered cloth,
and press it to your shattered heart
until it heals,
until this lovely creature sings again,
then let it fly,
and nest in someone else’s heart,
the stranger,
the neighbor,
the old friend,
the one who just like you,
needs to hear its song.
Johanna Ely is Benicia’s current poet laureate

“Joel’s Passing” by Mary Susan Gast

Reposted from the Benicia Herald, Poetry Corner, August 19, 2016

“So, I may have been wrong after all – this damn cancer may indeed be the death of me.”
-Joel Fallon, in an email of June 30, 2016

He died on the morning of August 11.
That night, meteor showers dazzled the skies:
The Perseids, at their peak.
No reason to doubt that Joel hitched a ride
On that celestial glory train,
Meeting up with all the other streaming luminaries,
Fireball to fireball.

Mary Susan Gast served as Conference Minister of the Northern California Conference United Church of Christ, now retired, and is a member of Benicia’s First Tuesday Poetry Group
Please share!