Long-awaited Valero crude-by-rail EIR delayed again

Repost from The Benicia Herald
[Editor: See also coverage in The Sacramento Bee  – RS]

Long-awaited Valero crude-by-rail EIR delayed again

June 9, 2014 by Donna Beth Weilenman

A draft of the city’s environmental impact report (EIR) for the Valero Crude-by-Rail use permit request was due to be released Tuesday, but a last-minute staff decision has delayed the report by a week, Benicia Principal Planner Amy Million said.

“City staff determined that additional information was needed to more completely address potential air quality impacts in the Draft EIR,” Million said late Monday. “As a result, the release of the document has been delayed by one week.”

When the report is released June 17, it will be available online from the city’s website, www.ci.benicia.ca.us, but viewers shouldn’t use the website’s search box to find it, Million said.

“The best way to find the most recent CBR (Crude-by-Rail) page is to go directly to the department,” she said. In this case, a viewer would look for Community Development under the “City Departments” bar.

This will give viewers options for “Planning” and “Current Projects,” where they will find a listing for “Valero Crude-by-Rail.”

“Unfortunately, the search box can pull up old versions of the Web page, so we are working on fixing that today,” Million said Monday.

Those who want copies of the document on disk may call Million at the Community Development Department, 707-476-4280. A limited supply of paper copies — 20 — also will be available at no cost, she said.

“Pursuant to the Benicia Municipal Code, the city will provide 20 copies on a first-come, first-served basis at no cost, available immediately,” she said.

After that, those wanting paper copies will have to pay, she said, but how much hasn’t been determined.

“I am still waiting for confirmation on the cost after that and the turnaround time,” she said. As of Monday, she said the number of pages of the document hadn’t been determined.

Paper copies, available for reading by the public, will be available at the Community Development Department at City Hall, 250 East L St., as well as in the Benicia Public Library, 250 East L St.

The city originally drafted a mitigated negative declaration as its response to requirements by the California Environmental Quality Act (CEQA).

But extensive public comment, both favoring and opposing the project, heard at several city meetings led the city to undertake the more extensive environmental report, which originally was expected before the end of last year.

The public will be given 45 days to read and comment on the document, Million said. State law requires a minimum of 45 days for the review, though it limits the maximum days to 60.

She said Monday, “Staff intends on releasing it for a 45-day review period. If the Planning Commission believes that a longer review period is needed because of articulated unusual circumstances, the Planning Commission may decide to extend the comment period.”

Benicians for a Safe and Healthy Community, organized to block the Valero project, has asked for a 90-day review period.

“As part of the process for any discretionary action, public comment is accepted until the final decision,” Million said late last year, though she said CEQA is “a concurrent but separate process and has specific guidelines for public input.”

Thoughts and opinions shared after CEQA comment periods have closed are incorporated into the record for the project, even though the comments aren’t considered “official,” she said. “This distinction is important for insuring consistency and diligent processing of development applications.”

Those interested may offer their comments before the Planning Commission July 12 at 7 p.m. at City Hall. But the commission won’t be voting on the project’s use permit that night.

As proposed in December 2012, Valero Benicia Refinery has asked permission to build the $30 million project of three railroad track extensions, each a quarter-mile long, so 70,000 barrels of crude oil could be brought in daily by rail instead of through pipelines or aboard ocean-going tanker ships.

Proponents, including Union Pacific Railroad, have said the project would be more environmentally friendly than tanker ships and pipelines.

Bill Day, Valero Energy’s director of corporate communications, has pointed out the project would reduce Valero’s shipments of foreign-source oil.

“It would allow the refinery to offset supplies of foreign crude brought in by ship with increasing supplies of North American crude oil,” Day said. North American crude has few transport alternatives other than by rail, he said.

While the refinery has only hinted at the source of the domestic crude, many expect that it’s the North Dakota Bakken fields, which has been producing up to a million barrels of a light, sweet crude.

However, while tar sands is too heavy and sour to be processed at the Benicia plant, the Bakken crude is too sweet and light to be processed alone.

At a public meeting in March, refinery officials explained that to meet the sulfur and gravity parameters of what the Benicia plant can refine, the oil arriving by train could be a blend of the two.

“Any viable crude we can safely refine, we will,” said Don Cuffel, Valero Benicia Refinery manager of the Environmental Engineer Group, though he added that the refinery’s permits won’t let it produce more emissions.

“Locomotives emit less than ships,” Cuffel said that night, explaining that on a per-barrel basis, emissions would decline during delivery.

Nor would refinery emissions themselves increase during processing, because the Bay Area Air Quality Management District restricts how much emissions the refinery can produce, he said.

Originally, opponents of the crude-by-rail proposal spoke out against the air polluting hazards of dealing with tar sands, anticipating the oil would be coming from Canada.

But several fiery incidents during the past year turned their focus to the greater volatility of the Bakken crude as well as federal standards for the tanker cars that carry the oil, since 60 percent of it travels by rail.

Nearly a year ago, a 72-car oil train carrying 2 million gallons of flammable crude was left unoccupied in Lac-Mégantic, Quebec. It came loose and began sliding downhill so fast that it derailed, caught fire and killed 47 in the small town.

The accident spilled 1.5 million gallons of crude and caused more than $1 billion in damages.

An oil train derailed in November 2013 and caught fire in Alabama; a month later another train erupted in flames after derailing in North Dakota. More tanker cars caught fire after a derailment in Virginia.

The U.S. Department of Transportation issued an emergency order requiring railroads that operate trains carrying large amounts of Bakken crude to tell State Emergency Response Commissions about those trains’ operations in their states.

DOT’s Federal Railroad Administration and Pipeline and Hazardous Materials Safety Administration both have urged shippers, particularly those selling Bakken crude, to use tank cars with “the highest level of integrity available in their fleets.”

State Sen. Lois Wolk, D-Davis, who represents Benicia, asked legislators Friday for their support for a proposal to strengthen the state railroad safety inspection force, especially where crude shipments go through heavily populated areas.

Rail shipments of crude oil in California like those proposed by Valero are slated to increase 25-fold in the next few years, according to the California Public Utilities Commission (PUC) and California Energy Commission, Wolk said.

“However, there has not been a corresponding increase in regulatory oversight capacity to address this significant increase in risk to California’s citizens,” Wolk said in a letter to members of the Legislature’s Budget Conference Committee.

That committee is scheduled to hear Gov. Jerry Brown’s budget proposal to add seven inspectors to the PUC’s railroad safety staff.

That’s not enough for Wolk, who said, “Additional oversight is needed to provide some assurance that these shipments are made safely and in compliance with federal and state regulations, as well as other known safety practices.”

Valero’s proposal “has elicited concern from public and elected officials regarding the safety risks of transporting crude oil through Benicia and other densely populated areas of Northern California,” Wolk said.

“An event such as Lac Mégantic could have catastrophic effects if it occurred in any populated area of California. Other concerns include the potential for increased commuter traffic.”

Fears about fiery crashes and pollution have led to marches and other protests on both sides of the Carquinez Strait by those who want to see the Valero project halted and shipments of crude by rail stopped or made safer as more oil-filled cars pass through the Bay Area.

Normally, railroads don’t own the cars used to carry various products. They’re owned or leased by the client.

However, BNSF Railroad is in the process of ordering thousands of tanker cars it says would exceed federal standards, and Valero officials have said they would be using the stronger cars as well.

Valero’s project is on refinery property, and normally wouldn’t need a use permit for construction and operation that fits what is allowed in the zoning district.

However, the cost of the project exceeds the $20 million threshold that triggers the use permit process, according to Charlie Knox, who at the time was Benicia’s director of community development.

Nor is Valero allowed to break the project into segments to avoid seeking the permit, Knox said.

The refinery is asking permission to build two offloading rail spurs, a parallel engine runaround track and a “wye,” or triangular connector track, on refinery property so it can receive the rail cars at the offloading tracks.

If the project is approved and built, the refinery could receive between 50 and 100 additional rail cars twice a day.

In addition to examining any impact to Sulphur Springs Creek, the draft report also is expected to address how the trains would impact Benicia Industrial Park traffic.

The project is being reviewed for the city by CSA, a Michigan firm, with Valero paying for the review, as well as Environmental Resources Management, a global company with offices in Sacramento and Walnut Creek.

Sen. Lois Wolk calls for stronger safety inspection regulations

Repost from The Vacaville Reporter
[Editor: See also coverage in The Daily Democrat, The Davis Vanguard.  – RS]

Wolk urges more regulation on rail crude oil shipments to Solano refinery

By Reporter Staff  |  06/09/2014

The battle over local crude oil rail shipments moved to Sacramento late last week as Senator Lois Wolk, D-Solano, called on legislators Friday to support a proposal to strengthen the state’s railroad safety inspection force.

Wolk is seeking the inspection upgrade in light of the growing volume of crude oil shipments through heavily populated areas of California and numerous crude oil rail accidents in recent years.

In a letter sent in advance of today’s scheduled release of a draft Environmental Impact Report on a proposal to transport crude oil through the heart of the Capitol Corridor to the Valero Refining Company in the city of Benicia, Wolk laments a lack of increased regulatory oversight for such shipments. Rail shipments of crude oil in California like those proposed by Valero are slated to increase 25-fold in the next few years, according to the California Public Utilities Commission (PUC) and California Energy Commission.

“However, there has not been a corresponding increase in regulatory oversight capacity to address this significant increase in risk to California’s citizens,” Wolk wrote in the letter to members of the Legislature’s Budget Conference Committee, scheduled to hear Governor Edmund G. Brown’s budget proposal to add seven inspectors to the PUC’s railroad safety staff. “Additional oversight is needed to provide some assurance that these shipments are made safely and in compliance with federal and state regulations, as well as other known safety practices.”

Several destructive crude oil rail accidents have taken place in the U.S. and Canada in recent years, including the July 2013 derailment of 72 tanker cars loaded with 2 million gallons of flammable crude oil in Lac-Mégantic, Canada, that resulted in 47 deaths, more than $1 billion in damages, and 1.5 million gallons of spilled crude oil, Wolk noted.

Valero’s proposal has elicited concern from public and elected officials regarding the safety risks of transporting crude oil through Benicia and other densely populated areas of Northern California. Other concerns include the potential for increased commuter traffic.

“An event such as Lac Mégantic could have catastrophic effects if it occurred in any populated area of California,” Wolk said.

The Valero proposal seeks to add three rail tracks and an off-loading track on Valero’s property to allow crude oil to be transported into the refinery. Currently, crude oil is delivered into Valero Benicia through pipeline and ships.

During a meeting in Benicia earlier this spring, company officials said that the railroad addition would make the refinery more competitive by allowing it to process more discounted North American crude oil. They insisted that the railroad traffic up to 100 tank cars per day would not affect the region’s air quality, and safety standards would be met.

“It would not increase crude delivery, just make it more flexible,” John Hill, vice president and general manager of the refinery, told citizens at the meeting.

Another point of contention was the type of crude oil that would be transported into Benicia by rail.

An opposition group, Benicians for a Safe and Healthy Community, said the project will allow the delivery of the highly flammable Bakken crude from North Dakota. Concerns also have been raised about the possible use of Canadian tar sands oil, regarded as more polluting than other crudes.

However, officials said there will be no change in the delivered type of crude. They said the refinery can, and will be able to, handle any blend of crude oil as long as it meets density and sulfur requirements for its facility. They did not disqualify Bakken crude as a possible part of a blend.

Times-Herald, Vallejo staff contributed to this report.

Shale Daily – Keystone XL less deadly than Crude by Rail

Repost from Natural Gas Intel’s Shale Daily
[Editor: Maybe the publisher of this story hopes to promote pipeline delivery of crude with a favorable comparison to crude delivery by rail.  We might prefer neither.  The article nicely lays out numbers on injuries and fatalities in the Class I rail freight industry over the last 10 years, suggesting in paragraph 2 that the numbers refer to petroleum by rail, then clarifiying in paragraph 5 that the stats cover injuries and fatalities connected to all Class I freight.   Interesting, but not very helpful unless you want to sell the Keystone XL.  For the State Department’s errata sheet, go here.  – RS]

State Department: More Deadly Rail Wrecks if Keystone XL Not Built

Charlie Passut  |  June 9, 2014

rail_crude_injuries_fatalities_20140609

The U.S. State Department has corrected several errors to its initial study examining the impact of the proposed Keystone XL pipeline, including a more than fourfold increase in the estimated number of deaths and injuries from rail accidents over a 10-year period without the pipeline.

In an errata sheet released Friday, the State Department said the Final Supplemental Environmental Impact Statement (FEIS) it issued in January had underestimated the number of injuries and fatalities that could occur with oil shipments via rail (see Shale Daily, Jan. 31).

“Subsequent to completion of the rail incident analysis, the department identified that the data obtained for the analysis from the Federal Railroad Administration [FRA] online safety data and statistics query system were incomplete due to an error in the search parameters used,” the State Department said. “As a result, the rail analysis was based on 40.6% of the 2002-2012 available incident data recorded on the FRA database. Therefore [several figures in the original FEIS] underreport the injury and fatality incident frequency…”

According to the State Department, the number of reported injuries increased from 700 to 2,947, and the fatalities increased from 92 to 434, after using a full annual incident dataset from FRA covering the 10-year period of 2002-2012. Using the updated statistics, the department increased its estimates for injuries from 49 to 189, and fatalities from six to 28.

“The rail incident analysis is based on nationwide statistics for Class I freight rail data obtained from the FRA database,” the State Department said. “Class I railroads are those with annual carrier operating revenues of $250 million or more, before adjustment for inflation. Because the dataset does not distinguish petroleum or crude oil rail transportation from that of other cargo, the statistics include all Class I rail freight.”

The State Department also clarified that 260 acres of land — not 190, as stated in the original FEIS — would be needed for aboveground facilities for the project, after including permanent access roads. The department also confirmed approximately 15,296 acres of land would be disturbed during the construction of Keystone XL, but clarified that the number would rise to 15,416 acres when rail sidings were included.

The U.S. Department of Transportation (DOT) has been investigating a series of train derailments involving rail cars containing crude oil from the Bakken Shale, and issued emergency orders on Bakken crude in February and May. Meanwhile, two DOT agencies –FRA and the Pipeline and Hazardous Materials Safety Administration — issued a safety advisory on rail cars in May.

Last July, an unattended freight train transporting Bakken crude rolled downhill, derailed and exploded in Lac-Megantic, Quebec, killing 42 people.

Six months later, a 90-car crude oil train loaded with Bakken crude heading to a refinery in Florida derailed in a rural area near Aliceville, AL. According to DOT, more than 20 cars derailed and at least 11 ignited, causing an explosion and fire. Although no one was injured in the incident, an undetermined amount of crude fouled a wetlands area, causing an estimated $3.9 million in damage.

On Dec. 30, 2013, a BNSF train carrying Bakken crude hit a grain train traveling in the opposite direction that had derailed earlier near Casselton, ND. The crash caused 21 cars carrying crude to derail, 18 of which subsequently ruptured and exploded. There were no injuries, but about 1,400 people were evacuated. Damage was estimated at $8 million.

The 1,700-mile Keystone XL pipeline requires State Department approval because it would cross an international border. TransCanada Corp. submitted a presidential permit application for the $7 billion project — designed to carry heavy crude from the Canadian oilsands from Morgan, MT, to Steele City, NE — in 2012.

Contra Costa County: Supervisors order recirculation of environmental report on Rodeo refinery project

Repost from The Contra Costa Times
[Editor: Note the 8th paragraph (emphasis added).  Back in January of this year, the BAAQMD itself has – according to this article – “weighed in … saying the environmental report should include calculations of toxic air contaminant emissions from the refinery and assess cumulative health risks of other refinery projects in the region“.  Surely then, this is also true for the Valero Benicia EIR.  Can the City’s consultant be charged with calculating cumulative emissions Bay-Area-wide as part of its EIR?  Or should the BAAQMD issue its own inclusive estimates DURING the proposal’s 45-day comment period?   – RS]

Contra Costa County: Supervisors order recirculation of environmental report on Rodeo refinery project

By Tom Lochner Contra Costa TimesPosted:   06/09/2014

MARTINEZ — Health impacts related to a propane and butane recovery project at the Phillips 66 petroleum refinery in Rodeo should be studied before moving ahead with approvals, according to county officials, but the refinery claims that delay could doom the project.

The board voted last week 5-0 to recirculate the project’s environmental impact report and continue the public hearing, which also includes consideration of two appeals of the project’s land use permit, to Sept. 23.

Conservation and Development Director Catherine Kutsuris noted that the EIR does not include a cumulative study of health impacts on the surrounding communities recommended under a 2011 revision of the guidelines of the Bay Area Air Quality Management District. The health study must be completed and submitted for public comment before the EIR can be certified, Kutsuris said.

The Phillips 66 Liquid Petroleum Gas Recovery Project calls for installing new equipment to recover and sell propane and butane instead of burning the fuel at the refinery or flaring off excesses. The refinery says the project will reduce pollution while creating well-paying jobs and generating taxes.

“The economic realities are, if we recirculate and we have another delay, we will be canceling this project,” Sam Parino, operations manager at Phillips 66 Rodeo, told the Contra Costa Board of Supervisors at the June 3 public hearing, although the company later softened its stance.

The project has suffered a string of recent setbacks after breezing through the early stages of the approval process, beginning with the endorsement of the Rodeo Municipal Advisory Council last summer, followed by county Planning Commission approval of a land use permit in November.

A packed January hearing on the EIR and appeals of the Planning Commission land use permit led to passionate testimony from both sides.

The Bay Area Air Quality Management District also weighed in at that time, saying the environmental report should include calculations of toxic air contaminant emissions from the refinery and assess cumulative health risks of other refinery projects in the region. There are pending projects at Chevron in Richmond, Shell in Martinez and Valero in Benicia. Also pending is an oil storage and transfer joint venture in Pittsburg by WesPac Energy and Oiltanking Holding Americas, with rail, marine and pipeline components.

Refinery spokesman Mark Hughes urged the board to order the health study without recirculating the EIR, saying it would be “tragic” if the refinery suffers economic loss and the community misses out on emission reductions and jobs promised as part of this project.

On Monday, Phillips 66 appeared to be backing down from its threat to scuttle the project.

“We will continue to pursue the land use permitting approvals of the LPG Recovery Project to ensure the long-term viability of the Rodeo refinery and the many jobs it provides,” Hughes said in an email. “We are confident that a revised EIR will ultimately help decision-makers and our community to better understand the benefits of the project and approve the application.”

Contact Tom Lochner at 510-262-2760. Follow him at Twitter.com/tomlochner.