Until California curbs its oil refineries, it won’t meet its climate goals (Benicia & others are heroes)

Repost from the Los Angeles Times
[Editor: Significant quote, Benicia in final paragraph – “In the absence of action at the state level, it has fallen to localities to prevent refineries from at least increasing crude oil imports to their facilities. Over the last decade elected officials in half-a-dozen communities from Benicia to San Luis Obispo County have blocked refinery infrastructure projects that would allow more crude oil imports. They’re the real heroes of California’s climate saga — too bad they won’t be the ones in the spotlight at the summit.”  – RS]

Until California curbs its oil refineries, it won’t meet its climate goals

By Jacques Leslie, Sep 11, 2018 | 4:15 AM
Until California curbs its oil refineries, it won't meet its climate goals
The Phillips 66 refinery in the Wilmington neighborhood of Los Angeles. (Rick Loomis / Los Angeles Times)

While Gov. Jerry Brown and other California leaders bask under an international spotlight at this week’s Global Climate Action Summit in San Francisco, there is one highly relevant topic they’re not likely to bring up: oil refineries.

That’s because refineries are crucially absent from California’s climate change strategy. The state has justifiably gotten credit for addressing climate change issues that the nation won’t — promoting renewable energy, cap-and-trade greenhouse gas emission limits, and electric vehicles — but it has backed off from challenging refineries, the centerpieces of California’s oil supply infrastructure.

Concentrated in Los Angeles’ South Bay and the San Francisco Bay Area, the state’s 17 refineries comprise the largest oil processing center in western North America. Unless emissions from those refineries are curbed, the state has no chance of meeting its long-range climate change goals.

Greg Karras, a senior scientist at Huntington Park-based Communities for a Better Environment, calculates that without restraints on refineries, even if emission reductions from all other sources hit their targets, oil sector pollution through 2050 would cause the state to exceed its overall climate goals by roughly 40%.

“Refineries have been largely exempted from the state’s cap and trade program, which charges fees for emissions.”

That’s primarily because refineries have been largely exempted from the state’s cap and trade program, which charges fees for emissions. Last year, the legislature extended the program for another decade, from 2020 to 2030, but only after bowing to the oil industry’s wishes. To win a needed two-thirds majority, cap and trade supporters exempted the industry from fees for all but a tenth of refinery emissions through 2030. The legislation also prohibited regional air districts from imposing their own limits on refinery carbon dioxide emissions, a severe blow to communities suffering from pollution from nearby operations. Instead of curbing refineries, these provisions gave them a decade-long free pass.

To make matters worse, the oil that is being processed is bound to get dirtier, resulting in a higher rate of greenhouse gas emissions throughout the fuel-production chain. Oil used by the state’s refineries already contains the highest intensity of greenhouse gas pollutants of any refining region in the country. As drillers pump the dregs from the state’s nearly spent fields, that intensity is increasing.

With California oil extraction in decline, its refineries will want to import more crude oil from other states and nations. That could include tapping the Canadian tar sands, notorious for its off-the-charts, climate-busting pollutants. Completion of the stalled Trans Mountain pipeline expansion in Canada would facilitate what Greenpeace calls a “tanker superhighway” from Vancouver to California ports. California refineries have tried to win approval for rail terminals and ports that would receive tar sands oil but have so far been blocked by local governments.

The refineries’ contributions to greenhouse gas emissions don’t end with their own production, of course. When the fuel they produce is used, it’s one of the primary contributors to climate change. As California shifts to renewable energy and electric vehicles, less refined fuel will be consumed here and more will be exported to other states and nations.

As a result, the state could become, in Karras’ words, “the gas station of the Pacific Rim.” And as exports grow to countries like India with lax environmental standards, refineries won’t even need to meet California’s more stringent regulations on fuel composition; instead, they will export more pollution.

The main reason state leaders have done little to limit oil supply is obvious: The oil industry remains a formidable adversary, wielding its financial and lobbying might to head off restraints. For virtually all Republican state legislators and a substantial number of Democrats, oil supply is too hot a topic to touch, Karras told me.

Meanwhile, state policy calls for greenhouse gas emissions to drop by 80% of 1990 levels by 2050. Given the oil industry’s cap and trade refinery exemptions in place through 2030, the only way to achieve that level is to place drastic limits on refineries as soon as those exemptions expire, which is unlikely to happen. A more realistic approach would remove the oil industry’s exemptions and impose cuts of 5% a year on refinery emissions immediately — an urgent task that state leaders have shown no interest in carrying out.

In the absence of action at the state level, it has fallen to localities to prevent refineries from at least increasing crude oil imports to their facilities. Over the last decade elected officials in half-a-dozen communities from Benicia to San Luis Obispo County have blocked refinery infrastructure projects that would allow more crude oil imports. They’re the real heroes of California’s climate saga — too bad they won’t be the ones in the spotlight at the summit.

Jacques Leslie is contributing writer to Opinion.

Get a yard sign for Kari Birdseye for Benicia City Council!

Repost from BirdseyeForBenicia.com
[Editor: Kari Birdseye on our Benicia City Council is the best way to assure environmental awareness and constructive dialog in a progressive Benicia atmosphere.  Please help Kari win by taking action today!  – RS]

GET YOUR YARD SIGN HERE!

AUGUST 31, 2018

It’s time for yard signs!

Order yours today – go to How Can I Help, fill in your info and check off “Place a campaign sign in my yard”.  Someone will stop by with your sign.

Let everyone know – Birdseye For Benicia!

Angry activists plan to crash Jerry Brown’s SF climate summit

Repost from the San Francisco Chronicle

Angry activists plan to crash Jerry Brown’s SF climate summit

Matier & Ross, Sep. 9, 2018 6 a.m.
Activist groups have put up a billboard in San Francisco near the Bay Bridge intended to push Gov. Jerry Brown to limit oil and gas drilling in California. Photo: Liz Hafalia / The Chronicle

Well-financed and well-organized eco-activists are planning to put the squeeze on Gov. Jerry Brown during his big San Francisco climate change conference this week — and mass demonstrations and civil disobedience are on the agenda.

The Global Climate Action Summit at Moscone Center is expected to draw 4,500 delegates from around the world, everyone from former Vice President Al Gore and former Secretary of State John Kerry to ’70s punk rocker Patti Smith.

Brown convened the three-day summit, and the star-studded lineup is seen as a testimonial to his crusade to keep California at the forefront of the fight against climate change. But a large coalition of activist groups says that while Brown has pushed for global greenhouse gas reductions, he has done little to curb polluting oil and gas drilling in his own state.

Annie Leonard, executive director of Greenpeace USA, predicted a “a loud, diverse and impressive turnout” of activists, who have been “talking, planning and having training in nonviolent civil disobedience” for months.

The termed-out governor “has done some fabulous things as far as addressing the use of fossil fuel,” Leonard said. But “we are at risk of enshrining the model that you can be perceived as a climate leader even as you permit new oil and gas drilling wells.”

Just to make sure their message gets national attention, the progressive group Consumer Watchdog bought airtime on CNN and MSNBC for a 30-second spot featuring a 9-year-old girl calling out the governor as “cruel and heartless” for allowing kids to live near polluting oil and gas rigs.

The group has also put up a billboard in downtown San Francisco near the approach to the Bay Bridge, featuring the same African American girl near an oil derrick with the tagline, “Jerry Brown’s Climate Legacy.”

“We have tried everything, and if children can’t break through to the governor, then the world should know that he doesn’t care about young children who are having health problems living in the shadow of oil wells,” said Jamie Court, president of Consumer Watchdog.

Activists point to 20,000 new oil and gas exploration permits issued on Brown’s watch, including 238 for offshore state waters. Thousands of other state and federal offshore leases that predate Brown’s administration remain on the books.

Consumer Watchdog and other groups also point out that Brown has taken $9.8 million in fossil fuel industry money for his various campaigns, causes and initiatives since he began running for governor in 2009.

In contrast, they note that other top California Democrats, including Lt. Gov. Gavin Newsom and Sens. Dianne Feinstein and Kamala Harris, have pulled the plug on such donations.

About 800 environmental groups, including Friends of the Earth, Californians Against Fracking, Breast Cancer Action and Physicians for Social Responsibility Los Angeles, have signed on in support of the “Brown’s Last Chance” website campaign. It calls on the governor to commit the state to a policy of “no new fossil fuels and … real action on climate change and healthier communities.”

Greenpeace’s Leonard laid out the activists’ three key demands of Brown:

•Hit the brakes on new oil and gas drilling permits.

•Impose a half-mile buffer zone between oil rigs and schools and residences.

•Lay out a long-term plan to end fossil fuel production in the state.

Brown spokesman Evan Westrup said his boss is doing what he can to reduce California’s use of fossil fuels, but that “charting a real path forward requires much more than slogans and PR campaigns.”

He pointed to Brown’s commitment to invest billions in zero-emission vehicles and infrastructure, produce half of California’s energy from renewable sources by 2030 and strengthen the state’s oversight of oil and gas production.

“Clearly the world needs to curb its use of oil, and the phaseout is already under way in California,” Westrup said. He noted that oil production in the state has dropped 56 percent over the past three decades.

“There’s a reason the White House and fossil fuel companies fight California on almost a daily basis,” Westrup said. “No jurisdiction in the Western Hemisphere is doing more on climate.”

Leonard says Brown has been willing to talk. The two had a 2½-hour sit-down in April to go over their differences, but she said that “there are no answers he gave us that will satisfy us.”

“This is his moment to be a history-making, climate change transformative leader,” Leonard said. “We are ready to protest him or celebrate him — it’s up to him.”

San Francisco police say they have been meeting with people organizing protests against Brown and will be ready for anything that happens inside or outside the convention hall.

Several cops, meanwhile, have volunteered to work at the conference on “10-B” overtime shifts — meaning their OT will be covered by the summit’s sponsors, which include Facebook, Google and former New York Mayor Michael Bloomberg’s philanthropic foundation.

“San Francisco is no stranger to demonstrations,” said Officer Grace Gatpandan, a police spokeswoman. “We hope it’s nonviolent and peaceful, and we are going to facilitate people’s First Amendment rights to say what they want and to have the platform.”

But just to be safe, Gatpandan said, the department has canceled all days off during the Wednesday-through-Friday gathering.

Canadian railways sign deal for more tar-sands crude by rail

Repost from Reuters
[Quote: “Increased crude shipping by rail…would represent progress in moving more Canadian oil to U.S. refineries.” ]

Cenovus inks deal to move more crude on Canadian National Railway -source

by Julie Gordon, Rod Nickel, September 7, 2018 / 11:18 AM

VANCOUVER/WINNIPEG (Reuters) – Cenovus Energy Inc (CVE.TO), a major Canadian oil producer, has signed a deal to move more crude with the Canadian National Railway Co (CNR.TO), a source with direct knowledge of the matter told Reuters.

Rail cars including crude tankers are seen at the Canadian Nationals (CN) Thornton Railroad Yards in Surrey, British Columbia, Canada, June 21, 2012. REUTERS/Andy Clark/File Photo

The deal is one of many being quietly signed that, along with the expedited deliveries of new locomotives, will help boost Canada’s crude-by-rail shipments 50 percent by year end, a government consultant told Reuters separately.

The source said the Cenovus-CN deal was inked days before a Canadian court last week overturned the approval of the Trans Mountain oil pipeline expansion.

Shipper commitments put CN and smaller rival Canadian Pacific Railway Ltd (CP.TO) in position to collectively move more than 300,000 barrels per day by December, said Greg Stringham, a consultant who mediated talks among oil producers and railways for the Alberta government this year.

Stringham did not directly address the Cenovus deal, but said new crude-by-rail “contracts are being signed. Not all of those been disclosed yet, but it is continuing.”

Oil train cars are stopped in their tracks as smoke from a fire rises at the Port Metro Vancouver, British Columbia, Canada, March 4, 2015. REUTERS/Ben Nelms/File Photo

The railways, burned a few years ago when booming demand for crude-by-rail vanished as oil prices fell and pipeline space opened, are now seeking rich multi-year, take-or-pay deals from producers.The 300,000 bpd would be 50 percent higher than June’s record 200,000 bpd and double 150,000 bpd achieved in December 2017. It is expected to further increase in 2019 as locomotive orders start to catch up with demand.

The two railways and Cenovus declined to comment. The source declined to be identified as the deal is not public.

Cenovus CEO Alex Pourbaix said in July that he was considering a multi-year commitment to move 50,000 to 60,000 bpd by rail.

Cenovus shares rebounded to trade up as much as 0.86 percent soon after the news. Earlier in the day, they had fallen 6.4 percent after Goldman Sachs downgraded the stock to sell.

CN shares were down 0.5 percent.

SAFETY CONCERNS

Increased crude shipping by rail, while still far short of Western Canada’s rail-loading capacity of nearly 1 million bpd, would represent progress in moving more Canadian oil to U.S. refineries. It remains a tiny fraction of the total 3.3 million bpd on average exported, mostly to the U.S., in 2017.

But as crude shipments increase, so do safety concerns. In 2013, a runaway train carrying crude exploded in the Quebec town of Lac Megantic killing 47 people. In June, some 230,000 gallons of crude spilled into an Iowa river after a train derailed.

The head of Canada’s transportation regulator said last month that stronger tank cars for transporting flammable liquids should be required sooner than a 2025 deadline.

Enbridge Inc’s (ENB.TO) oversubscribed Mainline pipeline rations space each month as oil producers expand production, driving a bigger discount in Western Canada’s heavy crude compared to the North American benchmark CLc1.

The increased crude by rail volumes could not happen without new locomotives that the railways are placing into service faster than before.

“Probably the biggest constraint that was identified was the lack of locomotives being available,” said Stringham, adding that the railways went to their suppliers and were able to cut delivery times from 24 months down to nine to 12 months. CN said on Wednesday that it had ordered an extra 60 locomotives from General Electric Co (GE.N), adding to a previous deal for 200 locomotives over three years. The original order will now be completed in two years, and the additional 60 are due in 2020, CN spokesman Patrick Waldron said. Those locomotives will be used for energy transport, along with intermodal, coal and agricultural products. Western Canada’s crude inventories reached 36.3 million barrels for the week ending Aug. 31, a record level since Genscape began monitoring in 2010 as oil production expands faster than transport capacity, analyst Dylan White said.

Reporting by Julie Gordon in Vancouver, Rod Nickel in Winnipeg; additional reporting by Allison Lampert in Montreal; Editing by Denny Thomas and David Gregorio