Tag Archives: Albany NY

Green Groups press New York state for $100 million Oil Spill Fund

Repost from the Press-Republican, Plattsburgh NY

Green Groups press for $100 million state Oil Spill Fund

Claim $40M proposed in state budget won’t cover cost of derailments

By Kim Smith Dedam, March 23, 2015

ELIZABETHTOWN — Environmental groups are pushing state lawmakers to bulk up the state’s Oil Spill Fund.

They see a need for $100 million set aside, not $40 million as is currently proposed in the executive and legislative budgets.

And they have asked Gov. Andrew Cuomo and legislators to leave the money within the purview of the State Comptroller’s Office and not move the fund to State Department of Environmental Conservation coffers.

“This is a backup fund, mainly because in other cases, where a spill has led to significant cleanup costs, some companies go out of business, including the company whose accident resulted in the explosion at Lac-Megantic in Quebec,” Adirondack Council spokesman John Sheehan said in an interview this week.

“At that point, there is little the state can do to get the money from the company other than to go to court.”

‘DOESN’T TAKE MUCH’

Total liabilities for the Lac-Mégantic, Quebec, rail disaster in July 2013 could easily reach $2.7 billion over the next decade, the coalition said in a news release.

The Adirondack Council joined forces with Environmental Advocates, the Sierra Club and Riverkeeper to press the Oil Spill Fund issue.

“Typically, the requirement for (accident) insurance has not been high enough to cover the cost of an accident that could take place as the result of an explosion,” Sheehan told the Press-Republican.

“And it doesn’t take much oil to contaminate thousands of gallons of water, especially when we’re talking about a drinking water supply for 188,000 people, which Lake Champlain is.”

The Canadian Pacific Railroad line runs the entire length of Lake Champlain’s western shore, and oil train trips have increased in recent months.

Many places where oil cars have spilled and exploded sustained permanent environmental damage, Sheehan said.

$60 MILLION MORE

The coalition is not trying to force funding contributions from oil transport companies or the railroads to bolster state Oil Spill Funds.

They do believe lawmakers in Albany are on the right track in looking to increase funding for next year.

“However, the $15 million increase to $40 million proposed by (Cuomo) and Assembly budgets could and should be increased.

“In today’s dollars, the $25 million fund created in 1977 would be a $96.4 million fund today,” the coalition said in a news release.

“Thus, we urge that the fund cap be increased to $100 million to bring it back to parity with the monetary protection it afforded nearly four decades ago.”

They also charge that the Oil Spill Fund should be indexed to keep pace with inflation.

10 WRECKS YEARLY

“Federal regulators have told us to expect at least 10 major derailments of crude oil trains a year. There have already been four in the last three weeks,” Kate Hudson, Riverkeeper’s Special Projects director, said in a news release.

“It’s no longer a matter of if, but when, a catastrophe will happen in a New York community. If we are without a robust spill fund, New York citizens could be left to shoulder the cost of the cleanup and damages, just as the citizens of Canada were a year and a half ago.”

SEPARATE ACCOUNTS

Environmental advocates also asked Albany to fund emergency response separately from oil spill response and environmental cleanup.

“We welcome proposed funding for emergency response equipment, supplies and training for state and local emergency services personnel,” the coalition said in a news release.

“We strongly support the Assembly’s proposed legislation, which would keep that funding separate from the account that pays for remediation costs, as well as the damages associated with loss of life and property damage and economic losses suffered by individuals and businesses in the event of a spill.”

If response and spill monies are kept in a joint account, they contend, emergency cleanup costs could deplete the response fund, leaving the state without resources to remediate a spill.

‘TREMENDOUS RISK’

Roger Downs, conservation director for the Sierra Club’s Atlantic Chapter, said New Yorkers assume “tremendous risk and little economic benefit” from the millions of gallons of explosive crude oil that “rumble through our cities and along our precious waterways every day.”

Inaction on the part of the federal government to adequately address the risks or improve oil-tank-car safety should not prevent state lawmakers from building the most robust spill fund possible, he said.

The joint call for heightened oil-spill resources came within a day of the release of reports from state inspections done at railroad yards in Albany and Buffalo.

State inspectors found 93 defects in tracks and crude oil cars, including seven critical safety defects that had to be fixed before cars could continue operation.

Inspections were done on tankers at a CSX rail yard in Buffalo and at the Canadian Pacific yard in Albany.

Environmentalists play ‘Whac-A-Mole’ to stall crude-by-rail projects

Repost from Environment & Energy Publishing (EEnews.net)

Environmentalists play ‘Whac-A-Mole’ to stall crude-by-rail projects

By Ellen M. Gilmer and Blake Sobczak, March 20, 2015
(Second of two stories. Read the first one here.) [Subscription required]

When an oil company’s expansion plans for Pacific Northwest crude by rail suffered a major setback last month, environmentalists spread the news just as quickly as they could Google “Skagit County Hearing Examiner.”

The little-known local office about an hour north of Seattle holds the keys to land use in the area, and environmental attorneys saw it as the best shot to stall a rail extension considered critical for the delivery of crude oil to a nearby Shell Oil Co. refinery, but potentially disastrous for nearby estuaries and communities.

The effort was successful: After environmental groups appealed a county-level permit for the rail project, Skagit County Hearing Examiner Wick Dufford sent the proposal back to the drawing board, ordering local officials to conduct an in-depth environmental impact statement to consider the broad effects of increased crude-by-rail throughout the county.

“The environmental review done in this case assumes that the whole big ball of federal, state and local regulations will somehow make the trains safe. And that if an accident happens, the response efforts described on paper will result in effective clean up, so that no significant adverse effects are experienced,” Dufford wrote. “There is no proven basis for such conclusions.”

The decision was an incremental but significant victory for environmental groups, sending a signal to industry that its increasing reliance on railed-in crude could face formidable hurdles.

Skagit County is just one piece of a larger plan to expand crude-by-rail across the country to better connect refineries and ports with prolific oil plays like North Dakota’s Bakken Shale. The use of rail to deliver crude oil has skyrocketed in recent years, rising from 9,500 tank cars of crude in 2008 to nearly 500,000 carloads in 2014, according to industry data. Projects in Washington and other refinery hubs aim to expand facilities and extend rail spurs to handle even more crude deliveries.

Shell spokesman Curtis Smith said the company is “confident that we can satisfy any remaining issues associated with the project” to add rail capacity to its Puget Sound Refinery in Skagit County.

“This project is critical to the refinery, the hundreds of employees and contractors who depend on Shell, and the regional economy,” he said. “We do not feel it should be held to a different standard than the crude-by-rail projects of the neighboring refineries that have been approved.”

Smith added that “we all share the top priority of safety.”

But the new reality of crude-by-rail traffic has environmentalists on edge. Oil train derailments in Illinois, West Virginia, North Dakota and other places have led to fires, spills and, in one case, lost lives. A 2013 crude-by-rail explosion in Lac-Mégantic, Quebec, killed 47 people, prompting regulators in the United States and Canada to review the inherently piecemeal rules governing crude-by-rail transportation.

The federal government has authority over certain details, such as standards for tank cars used to haul crude. But most expansion plans and related environmental concerns are left to local agencies situated along oil routes. The result is a hodgepodge of permitting decisions by local authorities following varying state laws, while a team of environmental lawyers challenges expansion projects one by one.

“It’s a little bit like Whac-A-Mole because there isn’t a big permitting scheme,” said Earthjustice attorney Kristen Boyles, who represented six environmental groups in the Skagit County appeal. “It makes it difficult and makes it frustrating for the public.”

State laws in play

So far, the Whac-A-Mole approach is working well for environmentalists.

After three oil refineries in Washington went unopposed in building facilities to receive rail shipments of crude oil, Boyles said environmentalists and community advocates began tracking local land-use agencies more closely.

Earthjustice and the Quinault Indian Nation successfully challenged two proposed crude projects in Grays Harbor County, southwest of Seattle, leading a review board to vacate permits and require additional environmental and public health studies. A third Grays Harbor project is also preparing a comprehensive environmental review.

The next project on environmentalists’ radar is in Vancouver, Wash., just across the Columbia River from Portland, Ore., where Savage Cos. and Tesoro Refining and Marketing Co. have proposed building a new terminal to transfer railed-in crude oil to marine tankers bound for West Coast refineries. The Sierra Club, ForestEthics and several other groups earlier this month moved to intervene in the state agency review process for the project, citing major threats to the Columbia River and public health.

The key to all of these challenges is Washington’s State Environmental Policy Act (SEPA). Similar to the National Environmental Policy Act, SEPA requires government agencies to conduct a broad environmental impact statement for any major actions that may significantly affect the environment.

For projects in Skagit County, Grays Harbor and now Vancouver, state and local officials considering challenges look to SEPA to determine how rigorous environmental review must be, based on whether projects are expected to have major impacts. To Dufford, the Skagit examiner, the answer is plain.

“Unquestionably, the potential magnitude and duration of environmental and human harm from oil train operations in Northwest Washington could be very great,” he wrote.

Down the coast in California, environmentalists have an even stronger tool: the California Environmental Quality Act. Considered the gold standard in state-level environmental protection laws, CEQA has already proved useful in halting a crude-by-rail expansion project in Sacramento.

In Kern County, a team of environmental attorneys is also relying on CEQA to appeal construction permits for the Bakersfield Crude Terminal, a project that would ultimately receive 200 tank cars of crude oil per day. The local air quality board labeled the construction permits as “ministerial,” bypassing CEQA review, which is required only for projects considered discretionary. A hearing is set for next month in Kern County Superior Court.

Earthjustice attorney Elizabeth Forsyth, who is representing environmental groups in the Bakersfield case, said the state environmental law has been powerful in slowing down the rapid rise of crude-by-rail operations.

“In California, we have CEQA, which is a strong tool,” she said. “You can’t hide from the law. You can’t site your project out in some town that you think won’t oppose you.”

Unified strategy?

Still, the one-at-a-time approach to opposing crude-by-rail growth is undoubtedly slow-going, and progress comes bit by bit.

Boyles noted that Earthjustice attorneys from Washington to New York frequently strategize to “unify” the issues and make broader advances. On tank cars, for example, environmental groups have come together to press the Department of Transportation to bolster safety rules.

“That at least is some place where you could get improvements that could affect every one of these proposals,” she said.

But for expansion projects, the effort must still be localized.

“You have this giant sudden growth of these sort of projects, and that’s the best we can do at this point to review each of them and comment,” said Forsyth, the California lawyer, who said the end goal is to empower local agencies to control whether proposals move forward and to mitigate the impacts when they do.

Though labor-intense, advocates say the approach has paid dividends. Projects that would have otherwise flown under the radar are now under rigorous review, and industry players no longer have the option of expanding facilities quietly and without public comment.

“If you hadn’t had these citizens challenging these projects,” Boyles said, “they’d be built already; they’d be operating already.”

The delays have set back refiners seeking to use rail to tap price-advantaged domestic crude — particularly in California.

“The West Coast is a very challenging environment,” noted Lane Riggs, executive vice president of refining operations at Valero Energy Corp., which has faced staunch environmentalist opposition at a proposed oil-by-rail terminal in Benicia.

Riggs said in a January conference call that “we’re still pretty optimistic we’ll get the permit” for the 70,000-barrels-per-day unloading terminal at its refinery there, although he added that “timing at this point is a little bit difficult.”

Facing pressure from concerned locals and the Natural Resources Defense Council, Benicia officials last month opted to require updates to the rail project’s draft environmental impact review, further delaying a project that was originally scheduled to come online in 2013.

A Phillips 66 crude-by-rail proposal in San Luis Obispo County, Calif., has encountered similar pushback. If approved, the project would add five 80-car oil trains per week to the region’s track network. The potential for more crude-by-rail shipments has drawn opposition from several local city councils and regional politicians, despite Phillips 66’s pledge to use only newer-model tank cars (EnergyWire, Jan. 27).

Some town leaders have also separately taken action against railroads bringing oil traffic through their neighborhoods, although federally pre-emptive laws leave cities vulnerable to legal challenges (EnergyWire, March 19).

‘Business as usual’

Local, often environmentalist-driven opposition is seen as “business as usual” within the refining industry, according to Charles Drevna, president of the American Fuel and Petrochemical Manufacturers.

“This is just another extension of the environmental playbook to try to obfuscate and delay,” said Drevna, whose trade group represents the largest U.S. refiners. “We’ve been dealing with that for years, and we’re going to continue to be dealing with it.”

While Drevna said he doesn’t see lawsuits “holding up any of the plans” for refiners to improve access to North American oil production, environmentalists chalk up each slowdown to a victory.

In New York, a plan to expand a key crude-by-rail conduit to East Coast refiners has been held in limbo for over a year at the Port of Albany, owing to an environmentalist lawsuit and closer public scrutiny.

The proposal by fuel logistics firm Global Partners LP would have added a boiler room to an existing facility to process heavier crude from Canada. But advocacy groups including Riverkeeper have challenged the company’s operating air permit, calling for more review by New York’s Department of Environmental Conservation (EnergyWire, Jan. 13, 2014).

“All of the actions we’ve taken with Earthjustice and others have really ground to a halt DEC’s repeated approvals of these minor modifications,” said Kate Hudson, watershed program director for Riverkeeper. “We have not seen tar sands. … The river has been spared that threat for a year-plus, at this point.

“We certainly have no regrets,” she said.

OPINION: Governor DOES have authority to stop crude by rail

Repost from The Albany Times Union
[Editor:  Has anyone researched similar legal authority in California?  Under what jurisdictional authority would Governor Brown have power to stop crude oil trains, regardless of federal preemption?  – RS]

State’s next gamble is oil trains

By Christopher Amato and Charlene Benton, March 19, 2015

Having won approval for legalized casino gambling in New York, Gov. Andrew Cuomo is now rolling the dice on oil trains. The string of oil train disasters over the last year and a half, including four derailments in the past month in West Virginia, Illinois and Ontario resulting in massive fires, explosions and air and water pollution, shows that transporting crude oil in unsafe rail cars poses a significant threat to New Yorkers’ lives and property and the state’s natural resources.

Indeed, the oil train report prepared at the governor’s direction by five state agencies and the scores of oil train safety violations detected by federal and state inspectors confirm the dangers of transporting oil in unsafe rail cars. Yet the governor refuses to use the state’s authority to end this hazardous practice. Instead, he claims — incorrectly — that only the federal government has the authority to protect New Yorkers from the dangers of oil trains.

The Environmental Conservation Law authorizes the commissioner of the Department of Environmental Conservation to order the immediate discontinuance of any condition or activity that he finds “presents an imminent danger to the health or welfare of the people of the state or results in or is likely to result in irreversible or irreparable damage to natural resources.”

In 1990, then-DEC Commissioner Tom Jorling ordered several companies to halt the transportation of oil and sludge in unsafe barges. In that case, a federal appeals court ruled that federal law did not prevent the commissioner from exercising his emergency authority.

In October 2014, we submitted a petition to DEC on behalf of a broad coalition of community and environmental organizations requesting that Commissioner Joe Martens use his authority to prohibit the receipt and storage of crude oil in unsafe rail cars at the Albany oil terminals operated by Global Cos. and Buckeye Partners. Recently, DEC rejected the petition in a two-page letter, claiming that only the federal government can act to protect New Yorkers.

If, as the federal appeals court has held, federal law does not prevent the DEC commissioner from ordering an emergency halt to the transport of oil and sludge in unsafe barges, why can’t the commissioner order a halt to the receipt and storage of crude oil in unsafe rail cars? Given the high stakes, isn’t this course of action at least worth trying?

The Cuomo administration has repeatedly claimed that New York is the most aggressive state in the nation taking action on the threats posed by the rail transportation of highly volatile crude oil. But a recent news story reported that dangerous oil train shipments in New York have expanded on Cuomo’s watch, while other states like Washington are blocking crude-by-rail projects or requiring a full environmental, health and safety review of such projects.

The U.S. Department of Transportation estimates that an average of 10 oil train derailments will occur each year for the next two decades, and predicts that a derailment in a populated area — such as Albany — could kill hundreds of people and result in billions of dollars in damages. It is time for the Cuomo administration to stop gambling that New York will escape the type of oil train catastrophe that has already occurred in Alabama, Virginia, North Dakota, West Virginia, Illinois, Ontario, New Brunswick, and Quebec. If the governor’s luck runs out, it may cost New Yorkers their lives.

Christopher Amato is an attorney at Earthjustice, a nonprofit environmental law firm. Charlene Benton is president of the Ezra Prentice Homes Tenants Association, which represents public housing tenants in Albany’s South End.

Buffalo’s Bomb Trains

Repost from ArtVoice, Buffalo, NY
[Editor: Professor Niman has written a thorough examination of crude-by-rail issues.  The local (Buffalo NY) perspective is no drawback.  This is an excellent reference article no matter where you are.  For example, if/when Benicia approves a permit for Valero’s proposed Crude By Rail project, everyone uprail from here can expect to be the new Buffalo.  – RS]

Buffalo’s Bomb Trains

By Michael I. Niman, February 26, 2015
With one third of Buffalo’s population living in a disaster evacuation zone, the local media’s silence is deafening.

They span over a mile long containing up to 140 tank cars and as much as 4.5 million gallons of some of the nastiest forms of crude oil on earth, pumped from “extreme” extraction operations in North America’s new oil boomtowns. They cross rivers and transverse open plains, wilderness forest and some of the most densely populated urban areas in the country. Occasionally, with alarmingly increasing frequency, they careen off into rivers, catch fire and explode, or both. When spilled in water, their heavy oil exterminates river ecosystems. When they blow up, they release the fires of hell, with one oil train accident in 2013 wiping out most of the town of Lac-Mégantic, Quebec, killing 47 people and gutting its downtown. That’s when folks started referring to these explosive steel snakes as “Bomb Trains.”

This is one of the dark sides of North America’s fossil energy boom—the backstory on cheap fuel. The uptick in oil production comes from using extreme means to recklessly drill oil, using carbon-intensive methods like fracking to extract environmentally dangerous low grade oils such as Bakken crude from Montana and North Dakota. This oil, pumped from the dolomite layer of the Bakken geological formation, which also underlies portions of the Canadian provinces of Saskatchewan and Manitoba, is more volatile than conventional oils, with a lower flashpoint for explosion. When rail cars started to blow in Lac-Mégantic, The National Post reported a blast radius of over one half mile.

The United States National Transportation Safety Board estimates that about 400,000 barrels a day of this oil make the trip to Atlantic Coast refineries, with 20 to 25 percent moving through the port of Albany. Much of this Albany-bound oil moves across New York utilizing rail lines passing though the hearts of Buffalo, Rochester, Syracuse and Utica. Oil from Canada crosses the Niagara river, entering the US both in Niagara Falls, and via Buffalo’s 142 year old International Railroad Bridge, as well as taking a northern route, dropping down from Quebec on tracks passing through the Adirondack Park, including about 100 miles of Lake Champlain watershed shoreline. Non Albany-bound oil, such as some shipments from Buford, North Dakota to Houston, Texas, also take an unlikely route through Buffalo.

Though much of this oil winds up moving through New York State, federal law limits the state’s authority to regulate it. While crude oil can be stabilized to make it less volatile in transit, whether or not it receives such treatment is up to the discretion of regulators in the state that produces it—not necessarily the states through whose cities it will roll. Most of the explosive Bakken crude coming our way originates in North Dakota, where the energy industry all but owns the legislature, fertilizing the state’s anti-regulatory zeitgeist with a healthy dose of cash. The end result is, whatever passes for a state government in North Dakota fails to meet even Texas’s modest safety standards for anti-explosive fuel stabilization.

The Association of American Railroads reports that, thanks to the Bakken and Tar Sands oil booms, the amount of oil moving across the country by train has increased 45 fold (4,500 percent) from 2008 through 2013, with the volume continuing to increase through 2014 and 2015. As a result, more oil spilled from oil trains in the U.S. in 2013 than in the preceding 37 years. The number of accidents increased in 2014, and seems to be steadily increasing this year, with oil trains derailing and blowing up last week in West Virginia and northern Ontario. The Associated Press reports that the U.S. Department of Transportation now predicts an average of ten derailment accidents a year involving crude oil or ethanol tank cars over the next twenty years, “causing more than $4 billion in damage and possibly killing hundreds of people if an accident happens in a densely populated part of the U.S.” It’s no longer a matter of “if” there will a catastrophic oil train derailment.

Both the New York State Office of Fire Prevention and Control, and the United States Department of Transportation recommend evacuating a one half mile perimeter around accidents involving railroad tanker cars carrying flammable liquids. Karen Edelstein, a researcher and the New York Program Director for the FracTracker Alliance, mapped oil train routes across the state, adding overlays for this evacuation zone, and for schools and hospitals. Her data shows that statewide, there are 502 public schools situated within potential evacuation zones. In Buffalo, about one third of the population live within one half mile of these bomb train routes, and 27 public schools and eight private schools lie within potential evacuation perimeters as well. This includes PS 42, which serves students with disabilities, and is located adjacent to the track. Sister’s Hospital and the Buffalo Zoo are well within this perimeter, which skirts the Buffalo State and Erie County Medical Center campuses. If we freak out when it snows, how well are we going to handle what appear to be atomic fireballs, should one of these trains blow up?

While the profits from this oil boom have been privatized, much of the cost associated with reckless extraction have been externalized, meaning dumped on the public. Aside from the obvious environmental costs that we and future generation will have to bear, are the less visible emergency preparation costs that every school, hospital and municipality within a half mile of bomb train routes must now cover. In Buffalo, this means 35 schools need to work with local emergency services providers to develop plans to quickly evacuate students not just from buildings, but from neighborhoods, all with a possible backdrop of explosions, sirens and billowing smoke.

While it’s not statistically likely that a train will explode in Buffalo or any other specific place, it is a certainty that trains will keep exploding with increasing frequency across the U.S. and Canada. This means that cash strapped municipalities across the continent will have to develop plans to address a catastrophe we know for certain will befall some of our communities.

Addressing this risk involves not just planning to respond to it, and maintaining an emergency response network capable of responding, but also working to prevent such a catastrophe. A report from the Cornell University Community and Regional Development Institute points out that this involves a multitude of responsibilities, such as monitoring surface rail crossings to prevent vehicle train collisions that can lead to a derailment. Such responsibility, the report notes, usually falls to local police forces that often lack the personnel to do this. Likewise, federal regulators lack the personnel to inspect the nation’s rail infrastructure, and state Departments of Transportation lack the resources to adequately inspect bridges crossing railroad tracks. All of these costs fall not on the oil or railroad industries, but on government agencies, with much of this work not being done due to budget constraints.

What little planning there is to deal with an oil train explosion is alarming to read. A three car fire requires, according to the New York State Office of Fire Prevention and Control , 80,000 gallons of water for laying down a fire retardant foam blanket and cooling adjacent rail cars. Hence, the state recommends, if there is “NO life hazard and more than 3 tank cars are involved in fire OFPC recommends LETTING THE FIRE BURN unless the foam and water supply required to control is available” [sic.]. The wording here is ominous, with the availability of the required foam and water not being the default expectation, but instead, simply a possibility. This language is there for a reason, however. The Auburn Citizen, in central New York, quotes Cayuga County Emergency Management Office Director Brian Dahl, who, in response to a question about his county’s ability to respond to an oil train fire, unequivocally states, “The amount of foam and water you would need, there’s just not enough in central New York.”

While oddly inferring that maybe you should put the fire out if you have adequate foam and water, even if there is no “life hazard,” the state’s instructions don’t mention what to do if there is a life hazard, but no foam or water. Also troubling is their inference that if more than three cars are on fire you should just give up. Last week’s fires in Ontario and West Virginia saw seven and fourteen cars ablaze respectively, with each fire burning for over 24 hours. In all caps, the state’s instructions warn responders,

“All resources must be available prior to beginning suppression.”

It doesn’t give any suggestions as to what to do if you can’t move the water to the fire, or have the foam necessary to smother a dragon. None of the suggested responses are tolerable should an oil train explode in an urban environment.

See FracTracker’s map of Buffalo’s evacuation zone: tinyurl.com/NYS-derailment-risks.

Dr. Michael I. Niman is a professor of journalism and media studies at SUNY Buffalo State. His previous columns are at artvoice.com, archived at www.mediastudy.com, and available globally through syndication.