All posts by Roger Straw

Editor, owner, publisher of The Benicia Independent

Safety deadline may exempt U.S. railroads from common carrier freight obligations

Repost from Reuters

Exclusive: Safety deadline may exempt U.S. railroads from freight obligations

By David Morgan, September 8, 2015
A freight locomotive rolls across an intersection in Fresno, California January 6, 2015. REUTERS/Robert Galbraith
A freight locomotive rolls across an intersection in Fresno, California January 6, 2015. REUTERS/Robert Galbraith

U.S. railroads may not be obligated under federal law to carry freight including crude oil and hazardous materials from Jan. 1 if they fail to meet a year-end deadline for implementing new train safety technology, according to a top federal regulator.

In a Sept. 3 letter to the Senate Commerce Committee, U.S. Surface Transportation Board Chairman Daniel Elliott says the common carrier obligation requiring freight railroads to honor reasonable requests for service from shippers “is not absolute, and railroads can suspend service for various reasons, including safety.”

The letter, reviewed by Reuters, presents the most tangible sign yet of what could lie ahead for rail carriers and their customers, if Congress fails to extend its Dec. 31 deadline for railroads to implement positive train control, or PTC.

The National Transportation Safety Board, which has been calling on railroads to adopt PTC since the late 1960s, says the technology would prevent major rail accidents such as the May 12 Amtrak derailment that killed eight people and injured more than 200 others.

The approaching deadline has prompted at least one major railroad company to look seriously at suspending service: billionaire investor Warren Buffett’s BNSF Railway Co (BRKa.N), the No. 2 freight railroad operator and the leading carrier in the $2.8 billion U.S. crude-by-rail market.

“BNSF confirmed that it will not meet the deadline and offered the possibility that neither passenger nor freight traffic would operate on BNSF lines,” Elliott said in the letter, which was addressed to the committee’s Republican chairman, Senator John Thune of South Dakota.

In a July 24 letter provided to Reuters by BNSF, railroad president and chief executive Carl Ice informed Elliott that BNSF is analyzing the possibility of a service shutdown and actively consulting with customers.

CSX Corp (CSX.N), the No. 3 U.S. freight handler, also told the board that it would not meet the PTC deadline but did not discuss possible decisions on whether to continue service, Elliott said.

A CSX spokeswoman said the company was working diligently to implement PTC but that a “seamless, safe operation is imperative to maintain the fluidity of the national rail network.”

Railroad officials in June raised the possibility of shutting down service as a way to avoid potential legal liabilities and fines for operating outside the law.

Elliott told Thune it was unclear whether railroads would be exempt from their obligation to provide freight service for cargo, including hazardous materials, under federal rules that say service cannot be denied simply because it is inconvenient or unprofitable for the carrier.

The Surface Transportation Board, a regulatory agency charged by Congress with resolving rail disputes over rates and service, had no immediate comment, nor did the Federal Railroad Administration, the main U.S. railroad regulator.

Up to now, the board has mainly handled common carrier obligation cases involving services that have complied with federal safety rules. “A carrier-initiated curtailment of service due to a failure to comply … would present a case of first impression,” Elliott wrote. “I cannot predict the outcome of such a case.”

PTC can avoid accidents by using a complex network of sensors and automated controls to slow or stop a train under dangerous conditions.

In 2008, Congress mandated that railroads implement the technology by the end of 2015. But only a small number of U.S. passenger, commuter and freight railroads will meet the deadline, according to an Obama administration report released last month. [ID: L1N11A275]. The report named BNSF as one of only three railroads that have provided regulators with a PTC implementation plan.

Railroad officials have complained about the cost and complexity of adopting PTC and have produced freight and commuter rail estimates showing full implementation could cost the industry nearly $13 billion.

A six-year transportation bill approved by the Senate last month would allow the Obama administration to extend the deadline for up to three years.

“The administration requested authority to extend the deadline for positive train control and the Senate subsequently advanced a bipartisan proposal to create accountability and set realistic deadlines,” said Frederick Hill, Republican spokesman for the Senate Commerce Committee.

“This provision in the surface transportation bill will address the concerns summarized in Chairman Elliott’s correspondence,” he added.

But the Senate measure is not expected to be taken up by the House of Representatives when lawmakers return from their summer break this week. Republican staff with the House Transportation Committee were not available for comment.

(Reporting by David Morgan; Editing by Nick Zieminski)

Fired regulator: Governor pushed to waive oil safeguards

Repost from the Associated Press

Fired regulator: Governor pushed to waive oil safeguards

By Ellen Knickmeyer, Sep 4, 3:32 PM EDT
AP Photo
FILE – In this Wednesday May 27, 2015 file photo, California Gov. Jerry Brown addresses the California State Association of Counties Legislative Conference in Sacramento, Calif. California’s top oil and gas regulators repeatedly warned Gov. Jerry Brown’s senior aides in 2011 that the governor’s orders to override key safeguards in granting oil industry permits would violate state and federal laws protecting the state’s groundwater from contamination, one of the former officials has testified. (AP Photo/Rich Pedroncelli, File)

SAN FRANCISCO (AP) — California’s top oil and gas regulators repeatedly warned Gov. Jerry Brown’s senior aides in 2011 that the governor’s orders to override key environmental safeguards in granting oil industry permits would violate state and federal laws protecting groundwater from contamination, one of the former officials has testified.

Brown fired the regulators on Nov. 3, 2011, one day after what the official says was a final order from the governor to bypass provisions of the federal Safe Drinking Water Act and grant permits for oilfield injection wells. Brown later boasted publicly that the dismissals led to a speed up of oilfield permitting.

In a newly filed court declaration, Derek Chernow, Brown’s former acting director of the state Department of Conservation, also alleged that former Gov. Gray Davis urged fellow Democrat Brown in a phone call to fire Chernow and Elena Miller, the state’s oil and gas supervisor.

Brown’s spokesman, Evan Westrup, labeled the allegations “baseless.”

“The expectation – clearly communicated – was and always has been full compliance with the Safe Drinking Water Act,” Westrup said Thursday.

This year, however, the state acknowledged that hundreds of the oilfield operations approved after the firings are now polluting the state’s federally protected underground supplies of water for drinking and irrigation.

The U.S. Environmental Protection Agency has given the state until 2017 to resolve what state officials conceded were more than 2,000 permits improperly given to oil companies to inject oilfield production fluid and waste into protected water aquifers. An earlier AP analysis of the permits found state records showed more than 40 percent of those were granted in the four years since Brown took office.

Chernow’s declaration, obtained by The Associated Press, was contained in an Aug. 21 court filing in a lawsuit brought by a group of Central Valley farmers who allege that oil production approved by Brown’s administration has contaminated their water wells. The lawsuit also cites at least $750,000 in contributions that oil companies made within months of the firings to Brown’s campaign for a state income tax increase.

Westrup denied the oil companies’ support for Brown’s tax-increase campaign was related to the firings, saying, “the governor’s focus is doing what’s best for California, and that’s what informs his decisions.”

Robert Stern, former general counsel of the state’s ethics agency and the architect of a 1970s state political reform act, said there was nothing illegal about Brown receiving the oil industry contributions for his tax campaign unless they were explicitly in return for firing the oil regulators.

Chernow’s statement describes for the first time the alleged back story of the controversial permit approvals. He declined to comment to the AP and Miller did not respond to interview requests.

Brown’s boasting about the firings to speed up permitting is at odds with his image as a leading proponent of renewable energy and reduced fossil fuel consumption. That reputation led to a recent meeting with Pope Francis to discuss climate change.

Westrup said an ongoing effort by Brown to reduce consumption of fossil fuels in the state by up to 50 percent and the oil industry’s fight against elements of Brown’s climate-change campaign shows “where the administration stands and what it’s fighting for.”

The firings occurred as the governor was scrambling to drum up energy sources, jobs and business and to win support for the ultimately successful statewide vote on tax increases to tackle state budget woes.

Today, with the state in the fourth year of drought and a state of emergency declared by Brown, protecting the adequacy and purity of water supplies for farms and cities is a paramount priority.

In the declaration in the farmers’ case, Chernow said he and Miller were under intense pressure from the oil industry as well as the Brown administration to relax permitting standards for injection wells that oil companies use to pump production fluid and waste underground.

Chernow testified he was in the office of John Laird, Brown’s secretary of Natural Resources, in early October 2011 when Laird took a call from Brown. Laird told Chernow that Brown said he had just received a call from Davis, then acting as legal counsel for Occidental Petroleum, the country’s fourth-biggest oil Company.

Brown said Davis and Occidental had demanded Brown fire Chernow and Miller over what Occidental complained was the slow pace of issuing drilling permits, according to Chernow.

Davis declined to comment Thursday.

A few weeks later, on Nov. 2, 2011, Chernow and Miller received a call from Brown’s energy adviser, Cliff Rechtschaffen, who urged the regulators to “immediately fast-track” approval of new oilfield permits, according to Chernow’s filing.

Miller replied that what Brown aides and the oil industry were pressing for “violated the Safe Drinking Water Act, and that the EPA agreed” with that conclusion, Chernow said. In response, according to Chernow, Rechtschaffen told them “this was an order from Governor Brown, and must be obeyed.”

Chernow and Miller were fired the following day.

Memos sent to Department of Conservation staff the next month – obtained through state public records laws by lawyers for the farmers – allegedly detail some ways state oilfield regulators were told they could now bypass some federally mandated environmental reviews and approve permits.

The state, under increasing pressure from the EPA, this year and last ordered the shutdown of 23 improperly permitted oilfield wells posing the most immediate threat to nearby water wells.

Current officials in the Department of Conservation said they believe the actual number of flawed permits granted under Brown is lower than the 46 percent the state records show, but they have not provided alternate figures.

The state improperly issued permits, they said, because of misunderstandings and poor record-keeping, rather than willful decisions by Brown’s administration.

The safeguards at issue in the alleged permitting dispute were a “very fundamental” part of the federal Safe Drinking Water Act’s protections against oilfield contamination, said David Albright, manager of the EPA’s California groundwater office, this week.

California “has a huge amount of work to do” to bring its regulation of oilfield injection wells into compliance with federal law, said Jared Blumenfeld, the regional EPA administrator in California. Blumenfeld cited a “sea change” over the past year in state compliance efforts, however.

Executives of Occidental and Aera Energy at the time thanked Brown for his involvement in the oilfield permitting process, as Occidental CEO Steven Chazren noted in a January 2012 call with financial analysts, two months after top regulators were fired.

That month, Occidental became the first major oil company to come out in support of the Brown’s tax measure and donated the first of $500,000 to Brown’s campaign for the tax referendum. A month later, Aera donated $250,000.

Margita Thompson, a spokeswoman at what is now the independent California spin-off of Occidental, California Resources Council, said that all the farmers’ allegations were “wholly without merit.” Cindy Pollard, spokeswoman for Aera, said the company often donates to revenue-raising state campaigns. “Aera’s contributions were not quid pro quo,” she said.

 

SB 350 – Bold Bill to Cut California Emissions Sets Off Fierce Battle

Repost from the New York Times
[Editor:  SB 350 passed in the California Senate and is up for a vote in the Assembly.  Please phone or write your Assembly member NOW to encourage a vote for this most important climate bill.  More info:  1) California Climate Leadership, 2) Earthjustice, 3) Natural Resources Defense Council and 4) Cool Davis (including a sample letter).   Find and contact your California legislators here.  – RS]

Bold Bill to Cut California Emissions Sets Off Fierce Battle

By Adam Nagourney, Sept. 4, 2015
Wednesday evening’s commuter rush on Interstate 110 in Los Angeles. Legislation in California’s long-term campaign against emissions calls for a 50 percent reduction in petroleum use by Jan. 1, 2030. Credit Monica Almeida/The New York Times

SACRAMENTO — With President Obama back from a trip to Alaska in which he portrayed the fight against climate change as an urgent international priority, California is showing how hard it can be — even in a state overwhelmingly controlled by Democrats — to get an ambitious carbon reduction bill passed.

The state has been at the forefront of global efforts to battle greenhouse gases, enacting mandates to force sharp reductions in emissions over the next 35 years. Its environmental record was applauded by Mr. Obama last week, and Pope Francis invited Gov. Jerry Brown to discuss the fight against global warming in the Vatican this summer.

But a centerpiece of California’s long-term campaign against emissions — legislation requiring a 50 percent reduction in petroleum use by Jan. 1, 2030 — has set off a fierce battle here, pitting not only a well-financed oil industry against environmentalists, but Democrat against Democrat. The bill easily passed the Senate, but is faltering in the Assembly because of opposition by moderate Democrats, many representing economically suffering districts in central California. A vote is expected early next week.

The legislation faces an onslaught by the Western States Petroleum Association and other oil industry advocates that, in ads and mailings, assert that a 50 percent cut in petroleum use could result in gas rationing and a ban on minivans.

“This law will limit how often we can drive our own cars,” a narrator in one ad says urgently, an assertion the bill’s sponsors say is groundless. The oil industry has tagged the bill “The California Gas Restriction Act of 2015.”

A defeat would be a setback for Mr. Brown — who has made a battle against global warming a centerpiece of his final years in public life — and for environmentalists who have looked to California to lead the emissions fight at time of strong skepticism about global warming in Washington. Mr. Obama urged California lawmakers to enact the bill in a recent speech in Las Vegas, signaling the importance he is attaching to the issue in his final years in office.

The environmental fight here comes on the eve of the United Nations climate change conference in Paris later this year. There, Mr. Brown and Kevin de León, the State Senate Democratic leader who led the fight for the bill in his chamber, are planning to outline for an international audience California’s campaign against greenhouse gases. On Wednesday, the Legislature passed and sent to Mr. Brown a measure requiring the state’s public pension funds to divest from coal companies.

“The rest of the world is watching very closely what is happening in California, and I think so far they see a success story,” Mr. de León said. “Our economy has grown — we are adding jobs, and we are reducing our carbon emissions. Therefore it is absolutely crucial that this measure passes because it will be a big blow to the rest of the states and the whole world if it doesn’t.”

California has mandated an 80 percent cut in emissions by 2050, using 1990 emissions levels as a baseline. The goal has been championed by Democrats like Mr. Brown and Republicans like former Gov. Arnold Schwarzenegger. This bill on petroleum, one of several the Legislature is voting on to put these limits in place, is intended to ensure that California meets this target.

The legislation, Senate Bill 350, leaves it to the state’s Air Resources Board to determine how the 50 percent mandate would be met; it does not mention gas rationing or banning minivans. It also includes no penalties in case the mandate is missed. Opponents, in defending the warnings about rationing, noted that the bill is short on specifics on how the reduction would be achieved; they said they see no other way the mandate could be met.

“I can’t figure out any other way to reach a 50 percent reduction in that frame without doing some pretty dramatic measures,” said Catherine Reheis-Boyd, the president of the Western States Petroleum Association. “If it isn’t gas rationing, what is it? I keep hearing what it isn’t.”

Mr. Brown, in an interview in his office here, said the oil industry was using fear tactics to try to derail the effort before the Legislature adjourns on Sept. 11, but said he was confident of eventual success.

“You’ve got the oil companies fighting Pope Francis,” Mr. Brown said. “Fighting the scientists of the world. Fighting the governor of California. They are engaged in literally a life-and-death struggle, and I have no doubt who is going to be the victor.”

He added: “It’s a shameless effort to maintain their revenue stream — regardless of what the impact is on everyone else. There is no rationing in the bill. Read it. None.”

The concerns have come not only from Republicans, but also from moderate Democrats who represent communities in central California. Many of these communities are struggling with high unemployment and slow economic growth.

“So much of our economy is driven by the use of petroleum,” said Assemblyman Henry T. Perea, a Democrat from the Central Valley and a leader of moderates in his house. “We don’t know what impacts S.B. 350 will have on it. We don’t know because we don’t know what the plan is. What does that look like? We haven’t heard that answer to that. And in the absence of information, you create your own.”

Kristin Olsen, the Assembly Republican leader, said her party was eager to find ways to curb harmful emissions. “My son has asthma — of course I want clean air,” she said. But she questioned why California had to be a leader in an effort that she argued had such significant economic costs.

“We want to be leaders,” she said, “but not when there are no followers. And at some point we have look at the fact that no one is following California’s lead. We are less than 1 percent of the world. At some point we should work on reasonable cost-effective measures to reduce greenhouse gas emissions to improve our air quality. But not at the cost of jobs.”

Ms. Boyd, of the petroleum association, said the bill’s sponsors had erred in trying to push the measure through without explaining how it might work. “We think there should be a lot more detail, and it should be articulated pretty clearly about how one thinks they are going to be about this superaggresive mandate,” she said.

Backers of the bill said reductions would be achieved by, among other things, bolstering the fuel efficiency of existing cars and increasing the number of electric cars on the roads, while pushing urban planning policies that help enable people to walk to their jobs and to shopping districts.

“We don’t have a choice — we have to make these changes,” said Tom Steyer, a billionaire hedge fund manager and environmental advocate who has been championing the bill. “In listening to these people talk about how there is going to be rationing, I’m like, stop making up stories and start telling us what will happen under your scenario.”

“We are in the process of changing how we use energy in the United States of America,” Mr. Steyer added. “The way this happens is, the private sector comes up with new ideas, and people either like them or not.”

Mr. de León, the leader of the State Senate Democrats, said that he was preparing amendments to his bill to try to ease concerns. One amendment would give the Legislature more of a say over the final recommendation by the Air Resources Board.

Mr. Brown said that even if this bill were to be defeated, enough other legislation was already in place that he was confident of long-term victory.

“This is not the whole battle,” Mr. Brown said. “This bill has become a lightning rod. It’s important. But California is way down the road in terms of the thrust and momentum that has been building up for over a decade.”

Benicia posts additional Reference Documents on Valero Crude-by-Rail RDEIR

By Roger Straw, Benicia Independent Editor

This morning, I discovered that the City of Benicia posted 90 new documents on its website sometime AFTER the official August 31 release of the Recirculated Draft Environmental Report (RDEIR).

The City’s new page, “Revised Draft EIR Reference Documents” contains a variety of supporting documents, some of which are familiar and others which contain interesting new information.

Those who are carefully reading and reviewing the RDEIR should not rely on previous downloads or announcements that do not show the Reference docs.

Here is the link to the new page:  http://www.ci.benicia.ca.us/index.asp?SEC={CA5CAF51-2ABC-4E34-A195-C894F062FED7}&Type=B_BASIC&persistdesign=none