Bakken Crude, Cleanup funding, Crude By Rail, Derailment, Environmental Impacts, Explosion, Federal Regulation (U.S.), Fire, Hazmat notification, High threat urban areas, Oil spill, Public Health, Rail Safety, Tank car retirement, Tank car retrofit, Tar sands crude, Train speed, Water contamination

Riverkeeper sues U.S. DOT over oil train safety rules

Repost from The Times Union, State College, PA
[Editor: Note that this is a new filing, closely following the filing of May 14 by a coalition of environmental groups.  – RS]

Riverkeeper sues U.S. DOT over oil train safety rules

By Brian Nearing, May 18, 2015

The Hudson River environmental advocacy group Riverkeeper is challenging new U.S. Department of Transportation crude-by-rail standards in federal court, saying that they fail to protect the public and the environment from proven threats, according to a statement issued Monday.

The release states: Riverkeeper filed its lawsuit in the 2nd Circuit Court of Appeals in New York City on May 15, a little more than a week after the DOT issued a final tank car and railroad operation rule which had been the subject of scrutiny and controversy since its proposal in 2014. The suit closely follows another filed in the 9th Circuit Court of Appeals by a coalition of conservation and citizen groups that includes Earthjustice, Waterkeeper Alliance, ForestEthics and the Sierra Club.

The Hudson River and the Greater New York/New Jersey region, a thoroughfare for up to 25 percent of all crude shipments originating in the Bakken shale oil region, faces a daily risk of spills and explosions that could devastate communities, local economies, drinking water security, and the environment.

“These seriously flawed standards all but guarantee that there will be more explosive derailments, leaving people and the environment at grave risk,” Riverkeeper President Paul Gallay said. “The shortcomings are numerous, including an inadequate speed limit, unprotective tank car design, and time line that would allow these dangerous tank cars 10 more years on the rails. The DOT completely fails to recognize that we’re in the middle of a crisis – we don’t need bureaucratic half measures that are years away from implementation, we need common-sense protections today.”

Just this month, tank cars laden with crude oil derailed and exploded in Heimdal, North Dakota. Under the new DOT standards, the same type of cars that exploded in that disaster could stay in service hauling volatile crude oil for another five to eight years, or even indefinitely if they are used for tar sands.

Over the past several years, a series of fiery derailments, toxic spills, and explosions involving volatile crude and ethanol rail transport has caused billions in damages across North America. Crude-by-rail accidents threaten irreversible damage to waterways, many of which, like the Hudson River, serve as the source of drinking water for tens of thousands of people. This year alone,six oil-by-rail shipments have caught fire and exploded in North America. In July 2013, a derailment in Lac-Mégantic, Quebec, killed 47 people. The total liabilities for that rail disaster could easily reach $2.7 billion over the next decade.

Here are some of the ways the new safety standards fail to protect people and the environment:

• Hazardous cars carrying volatile crude oil can remain in service for up to 10 years.

• The rule rolls back public notification requirements, leaving communities and first responders in the dark about explosive crude oil tank cars rumbling through their towns.

• While new tank cars will require thicker shells to mitigate punctures and leaks, retrofit tank cars will be allowed to stay in use with a less protective design standard.

• Speed limits have been restricted only for “high threat urban areas,” but only two areas in New York have received that designation, Buffalo and New York City.

• The “high threat” category relates to cities seen as vulnerable to terrorist attacks by the Department of Homeland Security. It is unrelated to actual risks posed by crude-by-rail.

Big Oil, Fossil fuel divestment, Fossil fuels, International Monetary Fund (IMF), Oil industry lobby, Oil industry subsidies

Fossil fuels subsidized by $10m a minute, says IMF

Repost from The Guardian
[Editor:  See additional coverage in the Wall Street Journal, “IMF Estimates Trillions in Hidden Fossil-Fuel Costs” … and in Salon, “Big Oil’s astronomical hand-out: Fossil fuels receive $5.3 trillion in global subsidies each year.”  – RS]

Fossil fuels subsidised by $10m a minute, says IMF

By Damian Carrington, 18 May 2015 09.30 EDT

‘Shocking’ revelation finds $5.3tn subsidy estimate for 2015 is greater than the total health spending of all the world’s governments

Fossil fuel companies are benefitting from global subsidies of $5.3tn (£3.4tn) a year, equivalent to $10m a minute every day, according to a startling new estimate by the International Monetary Fund.

The IMF calls the revelation “shocking” and says the figure is an “extremely robust” estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the world’s governments.

The vast sum is largely due to polluters not paying the costs imposed on governments by the burning of coal, oil and gas. These include the harm caused to local populations by air pollution as well as to people across the globe affected by the floods, droughts and storms being driven by climate change.

Nicholas Stern, an eminent climate economist at the London School of Economics, said: “This very important analysis shatters the myth that fossil fuels are cheap by showing just how huge their real costs are. There is no justification for these enormous subsidies for fossil fuels, which distort markets and damages economies, particularly in poorer countries.”

Lord Stern said that even the IMF’s vast subsidy figure was a significant underestimate: “A more complete estimate of the costs due to climate change would show the implicit subsidies for fossil fuels are much bigger even than this report suggests.”

The IMF, one of the world’s most respected financial institutions, said that ending subsidies for fossil fuels would cut global carbon emissions by 20%. That would be a giant step towards taming global warming, an issue on which the world has made little progress to date.

Ending the subsidies would also slash the number of premature deaths from outdoor air pollution by 50% – about 1.6 million lives a year.

Furthermore, the IMF said the resources freed by ending fossil fuel subsidies could be an economic “game-changer” for many countries, by driving economic growth and poverty reduction through greater investment in infrastructure, health and education and also by cutting taxes that restrict growth.

Another consequence would be that the need for subsidies for renewable energy – a relatively tiny $120bn a year – would also disappear, if fossil fuel prices reflected the full cost of their impacts.

“These [fossil fuel subsidy] estimates are shocking,” said Vitor Gaspar, the IMF’s head of fiscal affairs and former finance minister of Portugal. “Energy prices remain woefully below levels that reflect their true costs.”

David Coady, the IMF official in charge of the report, said: “When the [$5.3tn] number came out at first, we thought we had better double check this!” But the broad picture of huge global subsidies was “extremely robust”, he said. “It is the true cost associated with fossil fuel subsidies.”

The IMF estimate of $5.3tn in fossil fuel subsidies represents 6.5% of global GDP. Just over half the figure is the money governments are forced to spend treating the victims of air pollution and the income lost because of ill health and premature deaths. The figure is higher than a 2013 IMF estimate because new data from the World Health Organisation shows the harm caused by air pollution to be much higher than thought.

Coal is the dirtiest fuel in terms of both local air pollution and climate-warming carbon emissions and is therefore the greatest beneficiary of the subsidies, with just over half the total. Oil, heavily used in transport, gets about a third of the subsidy and gas the rest.

The biggest single source of air pollution is coal-fired power stations and China, with its large population and heavy reliance on coal power, provides $2.3tn of the annual subsidies. The next biggest fossil fuel subsidies are in the US ($700bn), Russia ($335bn), India ($277bn) and Japan ($157bn), with the European Union collectively allowing $330bn in subsidies to fossil fuels.

The costs resulting from the climate change driven by fossil fuel emissions account for subsidies of $1.27tn a year, about a quarter, of the IMF’s total. The IMF calculated this cost using an official US government estimate of $42 a tonne of CO2 (in 2015 dollars), a price “very likely to underestimate” the true cost, according to the UN’s Intergovernmental Panel on Climate Change.

The direct subsidising of fuel for consumers, by government discounts on diesel and other fuels, account for just 6% of the IMF’s total. Other local factors, such as reduced sales taxes on fossil fuels and the cost of traffic congestion and accidents, make up the rest. The IMF says traffic costs are included because increased fuel prices would be the most direct way to reduce them.

Christiana Figueres, the UN’s climate change chief charged with delivering a deal to tackle global warming at a crunch summit in December, said: “The IMF provides five trillion reasons for acting on fossil fuel subsidies. Protecting the poor and the vulnerable is crucial to the phasing down of these subsidies, but the multiple economic, social and environmental benefits are long and legion.”

Barack Obama and the G20 nations called for an end to fossil fuel subsidies in 2009, but little progress had been made until oil prices fell in 2014. In April, the president of the World Bank, Jim Yong Kim, told the Guardian that it was crazy that governments were still driving the use of coal, oil and gas by providing subsidies. “We need to get rid of fossil fuel subsidies now,” he said.

Reform of the subsidies would increase energy costs but Kim and the IMF both noted that existing fossil fuel subsidies overwhelmingly go to the rich, with the wealthiest 20% of people getting six times as much as the poorest 20% in low and middle-income countries. Gaspar said that with oil and coal prices currently low, there was a “golden opportunity” to phase out subsidies and use the increased tax revenues to reduce poverty through investment and to provide better targeted support.

Subsidy reforms are beginning in dozens of countries including Egypt, Indonesia, Mexico, Morocco and Thailand. In India, subsidies for diesel ended in October 2014. “People said it would not be possible to do that,” noted Coady. Coal use has also begun to fall in China for the first time this century.

On renewable energy, Coady said: “If we get the pricing of fossil fuels right, the argument for subsidies for renewable energy will disappear. Renewable energy would all of a sudden become a much more attractive option.

Shelagh Whitley, a subsidies expert at the Overseas Development Institute, said: “The IMF report is yet another reminder that governments around the world are propping up a century-old energy model. Compounding the issue, our research shows that many of the energy subsidies highlighted by the IMF go toward finding new reserves of oil, gas and coal, which we know must be left in the ground if we are to avoid catastrophic, irreversible climate change.”

Developing the international cooperation needed to tackle climate change has proved challenging but a key message from the IMF’s work, according to Gaspar, is that each nation will directly benefit from tackling its own fossil fuel subsidies. “The icing on the cake is that the benefits from subsidy reform – for example, from reduced pollution – would overwhelmingly accrue to local populations,” he said.

“By acting local, and in their own best interest, [nations] can contribute significantly to the solution of a global challenge,” said Gaspar. “The path forward is clear: act local, solve global.”

Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Explosion, Fire, Oil spill, Worst case scenario

Railroads Required to Plan for a Worst-Case Oil Train Spill in Washington State

Repost from Emergency Management

Railroads Required to Plan for a Worst-Case Oil Train Spill in Washington State

A new law requires railroads to plan for the “largest foreseeable spill in adverse weather conditions.”
Samantha Wohlfeil, The Bellingham Herald | May 17, 2015

(TNS) — Under a new state law signed by Gov. Jay Inslee on Thursday, May 14, large railroads will be required to plan with the state for “worst-case spills” from crude oil unit trains, but exactly what that worst-case scenario looks like is not yet clear.

The law requires railroads to plan for the “largest foreseeable spill in adverse weather conditions,” but doesn’t define “largest foreseeable spill.”

In April, BNSF railway employees told Washington emergency responders that the company currently considers 150,000 gallons of crude oil – enough to fill five rail tank cars – its worst-case scenario when planning for spills into waterways. Crude oil trains usually carry about 100 rail tank cars.

“We’ve already seen worse than that though, haven’t we?” asked Roger Christensen, Bellingham’s interim emergency manager, when asked about using that amount for worst-case planning. “It seems like a low number … I hate to respond without knowing where they’re coming from. It doesn’t seem like a worst-case scenario to me.”

The amount is lower than what has been spilled and partially burned off in several high-profile crude oil train derailments in the last three years:

    • Mount Carbon, West Virginia, Feb. 16, 2015: More than 362,000 gallons spilled in a CSX train derailment and fire.
    • Casselton, North Dakota, Dec. 30, 2013: Roughly 475,000 gallons spilled from a BNSF train that derailed and caught fire.
    • Aliceville, Alabama, Nov. 8, 2013: About 749,000 gallons spilled into a swampy area from a Genesee & Wyoming train after a derailment and fire.
    • Lac-Megantic, Quebec, July 5, 2013: Roughly 1.6 million gallons spilled from a Montreal, Maine & Atlantic train in a derailment that killed 47 people.

“Water spills require special equipment such as boom and skimmers. The worst case release is used to make sure we have enough of this special equipment,” BNSF spokesman Gus Melonas wrote in an email to The Bellingham Herald. “For land spills we use vacuum trucks and heavy equipment to dig up the contaminant. Both of which are readily available in most areas.”

Melonas said in an interview that the 150,000-gallon number was based on studying historical derailments in the industry.

When asked if the company uses other amounts to plan for spills like the fiery derailments outlined above, Melonas replied, “We consider all scenarios when developing our emergency response plans with utilizing resources of local, regional and nationwide experts and equipment to safely and efficiently mitigate any hazardous materials incident including crude oil.”

“Until we have further regulatory clarity from the U.S. Department of Transportation on how the agency will require railroads to calculate ‘worst-case discharges’ to waterways, BNSF is considering using 150,000 gallons,” Melonas wrote. “BNSF is open to discussing the justification of this quantity with Federal or State environmental agencies.”

BNSF would not outline what its worst-case scenarios are for other situations, or say whether the company would adjust its scenario based on the new state law.

 Planning for the Worst

The new law tasks the state Department of Ecology with crafting the worst-case scenario for railroad contingency plans in a process that could take a year or longer, and will include input from the railroads and the public, said Linda Pilkey-Jarvis, preparedness section manager for Ecology.

“Preparedness regulations are all about planning for a potential worst-case spill,” Pilkey-Jarvis said. “It (all starts) with defining a worst-case spill volume, then that drives the whole rest of your plan.”

The volume helps planners decide which equipment needs to be staged where, and how many people need to be trained members of a spill management team, she said.

“In (Washington) state the Legislature has defined the standard of what a worst-case spill volume should be, and in general it’s a pretty high bar,” Pilkey-Jarvis said.

Washington state requires marine ships that transport oil to plan for a spill of the entire cargo, including whatever fuel is aboard to operate the vessel.

Planning for that type of all-in worst case creates pushback from the industry, which sometimes says, “That could never happen,” Pilkey-Jarvis said.

“Well, that doesn’t matter from a planning perspective if you think that could happen or not,” she said. “From a planning perspective, we’re defining everything as a worst case.”

The Federal Emergency Management Agency (FEMA) recently ran through a worst-case crude oil train derailment scenario in Jersey City, New Jersey. The exercise took emergency planners through an imagined scenario that could potentially kill or injure more than 1,000 people, and displace even more from their homes near the incident.

The scenario started with five of 90 tank cars derailing and spilling roughly 100,000 gallons of crude oil, which caught on fire. The blaze heats up other tanks, which rupture and spill more oil. The scenario outlined 225,000 gallons being consumed by flames, with the other 225,000 left on the ground, for a total 450,000-gallon spill.

“This is consistent with other real world events, such as the Galena, (Illinois) tank car derailment,” FEMA spokeswoman Susan Hendrick wrote in an email to The Bellingham Herald. “Complex and progressive scenarios allow communities to prepare for a range of consequences they may be faced with, including the size, scope and severity of an incident.”

In Bellingham, planners have not yet decided what the worst-case scenario might look like, Christensen said.

However, planners have calculated that throughout the city, 27,000 Bellingham residents – about a third of the population – live within the half-mile evacuation zone of the railroad tracks, he said.

Whatcom County and Bellingham planners work with BNSF, BP Cherry Point and Phillips 66 refineries, and other involved partners, to plan for different emergencies in the county.

Last fall, planners ran through a tabletop discussion of what resources might be available if 60,000 gallons of crude oil spilled from a train near Squalicum Harbor, Christensen said.

“It was a tabletop so we never got to the point of actually ‘deploying’ resources, but we did get a handle on that there is a significant amount of resources in our community,” he said. “We’re much more prepared than a lot of them, because of industrial partnerships. They might be the reason the hazard is coming through … but at least in Whatcom County we do have the industrial partners that bring resources to the table as well.”

Whatcom County Fire District 7 Chief Gary Russell said he’s not worried about knowing BNSF’s worst-case scenario, as it doesn’t change how his firefighters would respond to a derailment. His district covers nine miles of mostly rural BNSF track, and includes the two Whatcom County refineries.

“If it was one tank car on fire, we’d address it the same if it was five, we’d just probably not have the ability to deal with it,” Russell said. “In a derailment out here, you’d be protecting the area while it eliminated its fuel source.

“We treat every day like it’s an all-risk hazard. It doesn’t matter if it’s a freight train or a passenger train, with a greater loss of life,” he continued. “I worry about the product I don’t know anything about that’s in a tank car. … I’d rather have oil going up and down the rails than I would acids, sulfurs, chlorine and other hazardous commodities, because they can harm people faster than oil.”

Different Reporting Requirements

Unlike stationary facilities that have hazardous materials or chemicals on hand, railroads are exempt from nearly all requirements of the Emergency Planning and Community Right-to-Know Act (EPCRA).

After a disastrous release of toxic gas at a Union Carbide pesticide plant in Bhopal, India, that killed thousands of people in 1984, the U.S. Congress passed EPCRA to try to prevent similar accidents.

While businesses such as certain gas stations, water treatment plants, and fish processors need to report what hazardous chemicals are on their properties to state and local officials, and to make that information available to the public, railroads do not. The act “does not apply to the transportation, including the storage incident to such transportation” of chemicals otherwise included in the act.

Railroads do need to submit their worst-case discharge calculations and plans to the U.S. Department of Transportation, but they are not available to the public.

“It’s un-American to withhold these documents from the public,” said Fred Millar, an independent rail consultant who worked for environmental groups that helped pass right-to-know rules in the 1980s and ’90s. “For the first 20 years or so, the railroads said to us, ‘No law forces us to give you this information, we consider it confidential.’ After 9/11, they said ‘We won’t give you the information because of terrorism, you know.’

“Keeping it secret is a little like elephants tiptoeing through the tulips,” he said.

Pipeline companies are required to submit their oil spill response plans to the DOT’s Pipeline and Hazardous Materials Safety Administration. They are published online, but the worst-case scenario numbers are redacted from the reports.

Last year, DOT required railroads to notify emergency response agencies of shipments of 1 million gallons or more of Bakken crude oil through their states, but the introduction of new regulations on May 1 ended that requirement.

Now, railroads will share that information directly with emergency responders, but it will be exempt from public records laws and the Freedom of Information Act, the way that other hazardous materials such as chlorine and anhydrous ammonia are currently protected.

The new Washington state oil safety law requires seven days’ advance notice from the facilities that receive crude oil, such as refineries, before trains are scheduled to come through the state. That information is supposed to be given to the state, which will make it available to emergency responders immediately, and will aggregate the numbers quarterly for release to the public.

McClatchy reporter Curtis Tate contributed to this report.

Blast zone, Crude By Rail, Derailment, Evacuation, Explosion, Federal Regulation (U.S.), Fire

NYU Institute for Policy Integrity: New oil train safety rules spell delay, leaving citizens at risk

Repost from The Hill

New oil train safety rules spell delay, leaving citizens at risk

By Jayni Hein, contributor, May 18, 2015, 10:00 am

Chicago, Philadelphia and Sacramento, Calif.: These are just a few of the cities within the “blast zones” of mile-long trains carrying flammable crude oil across the country. Twenty-five million Americans live in these vulnerable areas; yet it will be years until dangerous tank cars are retrofitted or retired from the rails, based on the U.S. Department of Transportation’s new safety standards.

The standards, released on May 1, cover railcars that carry the nation’s growing supply of volatile crude oil produced in the Bakken region of the northern United States and the Canadian tar sands. While the new rules mark incremental progress, they give residents little reason to rest easy. And more implementation delays could be coming — the American Petroleum Institute filed a petition in federal court on Monday challenging the new rules, and other legal challenges may be on the horizon.

When it comes to oil train derailments, it’s no longer a question of “if,” but “when.” Driven by growth in the production of oil in the U.S. and Canada, there has been a staggering increase in rail transportation of crude oil over the past five years, with a corresponding spike in the number of accidents — many causing explosions, oil spills and fatalities. The latest incident happened earlier this month, when a train carrying Bakken crude oil derailed and caught fire in central North Dakota, forcing the evacuation of a small town.

In 2008, only 9,500 tank car loads of crude were transported by rail in the United States. By 2013, that number rose to 400,000. In 2013, more oil spilled from U.S. trains than in the previous four decades combined. In addition to putting citizens directly at risk, these trains pass over important sources of drinking water — such as the Sacramento River in drought-stricken California — and share track with commuter rail in many urban areas, including Philadelphia.

The Department of Transportation initiated a rule-making last year to update railcar design standards, speed limits and routing requirements for trains carrying 20 carloads or more of flammable crude oil. The agency’s final rule maintains some of the positive aspects of its proposed rule: new electronically controlled pneumatic brake requirements, lower speed limits for older tank cars moving through “high-threat urban areas,” and new routing analysis requirements.

But, in other ways, the final rule represents a step backwards from the Department of Transportation’s initial proposal. And more fundamentally, the rule puts a Band-Aid on a chronic condition caused by booming fossil fuel production, ongoing reliance on oil and aging transportation infrastructure.

First, the final rule exempts many trains that would have been made safer under the initial proposal. Originally, any train carrying 20 or more cars with flammable oil or ethanol was defined as a “high-hazard flammable train” subject to these standards. The final rule applies only to trains carrying at least 35 tank cars of flammable oil or ethanol, or 20 cars of flammable liquid in a continuous block. This final definition, then, encompasses fewer trains.

Second, the rule suffers from a lengthy, five- to eight-year retrofit or phaseout of DOT-111 and CPC-1232 railcars that have been known to puncture upon derailment for many years. These are the same cars that were involved in the Lac Mégantic, Quebec tragedy in July 2013 that killed 47 people and in the five major accidents in 2015 (thus far) in West Virginia, Illinois, North Dakota and two locations in Ontario. The protracted phaseout means many additional years of dangerous tank cars sharing track with commuter rail, traveling through dense population centers, and crossing water bodies and other sensitive environmental habitats. The delay is especially striking, as National Transportation Safety Board reports dating back to 1991 detail the high failure and puncture rates of DOT-111 tank cars. However, the agency determined that a quicker phaseout of DOT-111 cars would cause negative effects by temporarily shifting oil transportation from rail to trucks, increasing hazardous air pollution and traffic-related fatalities.

Finally, while the rule imposes 40-mph speed limits for non-retrofitted trains traveling through “high threat urban areas,” only a few dozen cities around the nation have been so designated, leaving many towns, cities and drinking-water sources highly vulnerable.

In the next year, the Department of Transportation should prioritize additional measures, like increasing railcar and track inspections, lowering speed limits in additional urban areas, sharing risk reduction “best practices” among the railroads and potentially tightening design standards for retrofitted cars to align with the standards for new cars.

The department should also coordinate closely with the states to modernize communication systems, improve spill prevention and response planning, ensure that states are empowered to train and fund additional rail inspectors, and collaborate to identify high-priority infrastructure needs, such as bridge and track improvements.

Ideally, these safety improvements should be made as part of an “all of the above” strategy to reduce our reliance on fossil fuels while ensuring that domestic production and transportation are as safe as possible in the near-term. The new rail safety rules are a necessary first step on what looks to be a long, uncertain journey.

Hein is the policy director at the Institute for Policy Integrity, focusing on climate change, energy and transportation issues.

For safe and healthy communities…