Letter to the editor by Larnie Fox, Benicia
August 15, 2017
Phillips 66 Marine Terminal Permit Revision
Last night I attended a Bay Area Air Quality Management District (BAAQMD) presentation on Phillips 66’s plan to expand their marine terminal. It was sponsored by Solano County Supervisor, Monica Brown, and held in Benicia’s City Hall. Five or six BAAQMD staff members were present, as were many members of the community and members of community organizations. Monica Brown deserves our thanks for bringing this issue to light.
The BAAQMD made a short and somewhat vague presentation. It is now soliciting public input before preparing an environmental impact report. The project would allow Phillips 66 to double the amount of tankers coming through the Bay to their refinery in Rodeo, (4½ miles upwind of us in Benicia), but they couldn’t say what kind of crude the tankers would be carrying.
In the ensuing Q & A, it became clear to everyone present that the company plans to bring in crude from the Canadian tar sands – the BAAQMD staff members did not deny this. It also became apparent that taxpayers would bear much of the cost of any fires or spills.
Not all crude oils are alike. Tar sands crude is dirty, heavy, and corrosive. Because of its density, it will sink to the bottom of the Bay (and kill everything there) if it is spilled, making an effective cleanup nearly impossible. In order to ship it, it needs to be mixed with benzene and other volatile carcinogens prone to explosions and fires. It is dirty – releasing more toxins and carcinogens when processed than ordinary crude. It is considered a “sour” crude, which means it has a high sulfur content. This makes it more likely to corrode tanks, pipes, and oil tankers – leading to leaks and explosions.
I was very disappointed to see that BAAQMD staff were acting as apologists for big oil in our City Hall. Their mission is to protect our air, not to protect the profits of Phillips 66.
Most of the oil refined here will be shipped to Asia. The cost in terms of the environment and our health is not worth it. California now produces one-third of its electric power from wind and solar. Electric cars are becoming affordable; many homes have solar panels on them where they can charge their new electric cars. As we enter the age of clean fuels, we are free to move away from fossil fuels, and their associated environmental catastrophes.
I don’t aspire to be an activist. I am a working artist, and I would much rather be in my studio. Perhaps you don’t aspire to be an activist either, but what Phillips 66 is proposing is an unacceptable threat to all downwind of it and will contribute to climate change and environmental degradation. It requires a concerted effort to stop it, now.
In a finding that should resonate strongly for Canadian decision-makers charged with meeting the country’s climate targets, new research reveals that the carbon footprint of a litre of synthetic crude extracted from tar sands/oil sands bitumen is more than 23% greater than previously estimated.
The elevated figure, reported by InsideClimate News, is based on an assessment conducted by the U.S. State Department in the course of its consideration of a still-pending application by Calgary’s Enbridge Inc. to expand its Alberta Clipper pipeline to deliver synthetic tar sands/oil sands crude to Wisconsin. It updates an earlier finding produced by the same agency in 2014, during its consideration of TransCanada Corporation’s Keystone XL pipeline.
That assessment, ICN recalls, determined that “compared to other sources of oil that American refineries might use, the tar sands would be about 17% more polluting on average.” The calculation contributed to then-President Barack Obama’s decision to reject the Keystone XL proposal, a decision recently reversed by his pro-fossil successor.
A more recent review of Enbridge’s proposed line, however, produced “a gloomier picture of emissions.”
Employing “the most up-to-date studies and tools, including a model known as GREET, developed by the federal Argonne National Laboratory, which calls it the ‘gold standard’ for this kind of calculation,” the latest assay found that on a comprehensive “well-to-wheels” basis, “tar sands crude would have a carbon footprint of 632 kilograms per barrel, compared to an average U.S. refinery mix of 521 kilograms per barrel of carbon dioxide emissions. The difference is 111 kilograms per barrel—21 percent dirtier, not 17 percent.”
The four percentage-point difference in the new calculation means the full carbon footprint of tar sands/oil sands production, distribution, and use is 23.5% heavier than previously thought.
Grant Cooke: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia
By Grant Cooke, September 22, 2016
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.