Canada oil sands have more emissions than those in US
By Kat Kerlin, UC Davis News Service, 06/25/15, 3:20 PM PDT
A photo of the Valero refinery taken at night in Benicia. Benicia’s Valero refinery is one of the Bay Area’s five refineries that have moved toward acquiring Canadian tar sands crude by rail. A new study by UC Davis has found oil from Canada causes more emissions than oil from the United States.
Gasoline and diesel fuel extracted and refined from Canadian oil sands will release about 20 percent more carbon into the atmosphere over its lifetime than fuel from conventional domestic crude sources, according to a study by the U.S. Department of Energy’s Argonne National Laboratory, UC Davis and Stanford University.
The research was funded by the Bioenergy Technologies Office and Vehicle Technologies Office within DOE’s Office of Energy Efficiency and Renewable Energy.
The researchers used a life-cycle, or “well-to-wheels,” approach, gathering publicly available data on 27 large Canadian oil sands production facilities. The study, published in the journal Environmental Science and Technology, found the additional carbon impact of Canadian oil sands was largely related to the energy required for extraction and refining.
“The level of detail provided in this study is unprecedented,” said co-author Sonia Yeh, a research scientist at the Institute of Transportation Studies at UCD, who helped lead research on emissions related to land disturbance. “It provides a strong scientific basis for understanding the total carbon emissions associated with using this resource, which allows us to move forward with informed discussions on technologies or policy options to reduce carbon emissions.”
Canadian oil sands are extracted using two processes, both of which are energy intensive. Oil close to the surface can be mined, but still must be heated to separate the oil from the sand. Deeper sources of oil are extracted on site, also called in situ extraction, requiring even more energy when steam is injected underground, heating the oil to the point it can be pumped to the surface. The extracted oil product, known as bitumen, can be moved to refineries in the United States or refined on site to upgraded synthetic crude.
On-site extraction tends to be more carbon intensive than surface mining, and producing refined synthetic crude generally requires more carbon emissions than producing bitumen. Depending on which methods are used, the carbon intensity of finished gasoline can vary from 8 percent to 24 percent higher than that from conventional U.S. crudes.
“This is important information about the greenhouse gas impact of this oil source,” said lead author and Argonne researcher Hao Cai. “Canadian oil sands accounted for about 9 percent of the total crude processed in U.S. refineries in 2013, but that percentage is projected to rise to 14 percent in 2020.”
Final decision on Tesoro’s Washington railport pushed to 2016
By Kristen Hays, June 26, 2015
HOUSTON – The latest delay in a detailed government review of Tesoro Corp’s proposed $210 million railport project in Washington state means a final decision will not happen until 2016, according to a state council’s published schedule.
The 360,000 barrels-per-day project would be the biggest in the United States, moving domestic and Canadian crude via rail to Washington’s Port of Vancouver, where it would be loaded onto vessels to supply West Coast refineries – mainly in California.
The company had hoped to start it up by late 2014, and then pushed it to this year as the project undergoes a lengthy state review.
Several other oil-by-rail projects, largely in California, are stalled amid opposition after multiple crude train crashes and derailments since mid-2013.
Tesoro said the company was disappointed in “yet another delay” and remains committed to the project.
Chief Executive Greg Goff told analysts last month that the delay to 2016 was likely as the project undergoes what he called a “painfully slow” review process.
The projected cost also has more than doubled to $210 million from its original $100 million as Tesoro upgraded the design, including seismic dock improvements.
Washington’s Energy Facility Site Evaluation Council (EFSEC)’s schedule, made public this week, says a draft environmental impact statement will be published in late November. The council had previously expected to release the draft report in late July.
State law then requires a month-long public comment period which can be lengthened.
EFSEC then will submit the final report to Gov. Jay Inslee, who has final say on whether it will be built. The new schedule, and the public comment session, pushes that submission to early 2016. Inslee will have up to two months to decide once he receives the report.
Most Washington refineries, including Tesoro’s 120,000 bpd plant in Anacortes, receive oil by rail. No major pipelines move oil west across the Rocky Mountains or the Cascades, so West Coast refineries turn to rail to tap North American crudes that cost less than imports.
(Reporting by Kristen Hays; Editing by Christian Plumb)
Repost from the Contra Costa Times [Editor: It takes the Air District over 3 years to “settle” with Valero for polluting our air? In the past City officials have asked that these kinds of fines be redirected to the communities where the violations occur. My understanding is that BAAQMD Executive Officer Jack Broadbent indicated he would consider it, but never took any action. Seems the Air District wants to continue to use the fines for their own operations: “The penalty money will be used to fund air district inspections and enforcement actions.” – RS]
Valero refinery in Benicia to pay $122,500 in air pollution penalties
By Denis Cuff, 06/25/2015 12:49:50 PM PDT
Valero Refinery, Benicia, California
BENICIA — The Valero oil refinery has agreed to pay $122,500 in civil penalties for air pollution violations during 2011, clean air regulators announced Thursday.
The settlement between Valero and the Bay Area Air Quality Management District covers 25 notices of violations, including one over odors at the refinery wastewater treatment plant.
Another 14 violations concerned excessive pollution detected by monitors at the Benicia plant, officials said.
“Violations of air quality regulations, no mater how minor, must be addressed and refineries held accountable,” Jack Broadbent, the air pollution district chief, said.
The penalty money will be used to fund air district inspections and enforcement actions.
The air district regulates stationary air pollution sources in the nine Bay Area counties.
Railroads use new oil shipment rule to fight transparency
By Curtis Tate, McClatchy Washington Bureau, 6/25/15
A CSX oil train moves east through Selkirk Yard near Albany, N.Y., on May 26, 2015. The Albany area has become a hub for crude by rail shipments as East Coast refineries have replaced imported oil with mid-continent sources. CSX and other railroads continue their push to keep routing and volume information about the shipments from the public. CURTIS TATE — McClatchy
WASHINGTON — Railroads may have found a new weapon in their fight to keep information about oil train shipments from the public: a federal rule that was supposed to increase transparency.
The U.S. Department of Transportation insists that its May 1 final rule on oil trains, which mostly addresses an outdated tank car design, does not support the railroads’ position, nor was it intended to leave anyone in the dark.
But in recent court filings in Maryland, two major oil haulers have cited the department’s new rule to justify their argument that no one except emergency responders should know what routes the trains use or how many travel through each state during a given week.
Those details have been publicly available in most states for a year, though some sided with the railroads and refused to release them. The periodic reports have helped state and local officials with risk assessments, emergency planning and firefighter training.
The department’s rule was expected to expand the existing disclosure requirements. In its 395-page rule, the department acknowledged an overwhelming volume of public comments supporting more transparency. But ultimately, it offered the opposite.
The final rule ends the existing disclosure requirements next March. Railroads no longer would be required to provide information to the states, leaving emergency responders to request details about oil train shipments on their own, and the public would be shut out entirely.
The switch floored those who submitted comments in favor of increased transparency.
“The justification was not consistent with the comments given,” said Denise Rucker Krepp, a former senior counsel for the House Homeland Security Committee and chief counsel for the U.S. Maritime administration. “They’re supposed to be the same.”
Facing push-back from Capitol Hill, Transportation Secretary Anthony Foxx assured lawmakers in a May 28 letter that “we fully support the public disclosure of this information to the extent allowed by applicable state, local and tribal laws.”
Foxx added that the department was not attempting to undermine transparency.
“That was certainly not the intent of the rule,” he wrote eight Senate Democrats.
But Foxx’s assurances differ sharply from the assertions of Norfolk Southern and CSX in court documents filed last month in Maryland. The documents are related to a case last summer when the railroads sued the state to block the release of oil train reports to McClatchy.
The final rule provides “clear and unequivocal guidance” that information about oil train routes and volumes are security- and commercially-sensitive, attorneys for the railroads wrote on May 5 to Judge Lawrence Fletcher-Hill of the Circuit Court for Baltimore City.
That classification would trigger an exemption from the state’s Public Information Act.
A trial is scheduled for August, though Fletcher-Hill could decide before then whether to dismiss the case in favor of the railroads or the state.
Both companies declined to comment on the case.
Last May, the Transportation Department issued an emergency order requiring railroads to notify states of large shipments of Bakken crude oil after a series of fiery derailments involving the light crude from shale formations in North Dakota. The worst of those derailments killed 47 people in Quebec in July 2013.
Railroads have insisted that the oil train details are sensitive from a security and business perspective and should be exempt from state open records laws. They attempted to shield the data from public view last year by asking states to sign nondisclosure agreements.
Some states initially agreed, but most declined. McClatchy sought oil train reports from 30 states through open records laws. All but half a dozen states released at least part of what McClatchy requested.
Last fall, two rail industry trade groups lobbied the Transportation Department to end the reporting requirement. In a notice published in the Federal Register in October, the department rebuffed the request.
“DOT finds no basis to conclude that the public disclosure of the information is detrimental to transportation safety,” the Federal Railroad Administration wrote, adding that the trade associations “do not document any actual harm that has occurred by the public release of the information.”
But when the department unveiled its final rule in May, the requirements more closely aligned with what the railroads sought.
“Under this approach,” the regulation states, “the transportation of crude oil by rail can . . . avoid the negative security and business implications of widespread public disclosure of routing and volume data.”
The Maryland Attorney General’s Office has cited the department’s October Federal Register notice to support its position that the state can release the oil train information.
But the final rule is the last word, attorneys for the railroads say. They wrote Fletcher-Hill on May 29 that the state “relies on non-final comments published by the Federal Railroad Administration” and “fails to acknowledge the highly persuasive guidance articulated in the final rule.”
Unlike other arguments put forth by the railroads and their trade groups that have swayed few state or federal officials – including speculative claims of terrorism, competitive harm and even insider trading – the final rule may prove more persuasive to a judge.
The eight Senate Democrats wrote to Foxx on May 6, the same day another oil train derailed and caught fire in North Dakota. It was the fifth such incident in North America this year. They asked the department to reconsider the rule.
“The onus for obtaining detailed crude-by-rail information should not be on the local jurisdiction,” they wrote, and they called on the department “to clarify that broader crude-by-rail information will remain accessible to the public.”
Apparently backing away from the final rule’s expiration date for the emergency order, Foxx replied that it would remain “in full force and effect until further notice” and that the department would be looking for ways to codify the disclosure requirement.
But Krepp said that’s exactly what everyone was expecting in the rule.
“If they wanted that,” she said, “they would have put that in the rule-making.”
Krepp said the department made its intentions clear in the final rule.
“They have the final rule now,” she said. “They have to live with it.”
