Valero’s crude-by-rail project turned down in Benicia
By Matthew Adkins, 09/20/16, 9:54 PM PDT
BENICIA >> Environmentalists hoping to defeat Benicia’s crude-by-rail project scored a huge victory Tuesday night, handing Valero Refining Company a significant defeat in the process.
In a unanimous decision from Mayor Elizabeth Patterson and Benicia City Council, Valero’s application for a conditional use permit for a crude oil off-loading facility was denied.
Vicki Dennis, who moved to Benicia two years ago, was one of many present at City Hall and said she was “just delighted” with the decision.
“I’m so proud of this city,” Dennis said. “Our council people are very thoughtful. This process has been a long one, but I think they handled it in a wonderful way.”
The City of Benicia’s Planning Commission first began considering the issue in December 2012 when the refinery submitted an application seeking permission to build infrastructure to bring two 50-car trains a day carrying up to 70,000 barrels of North American crude oil into Benicia.
In March, the Planning Commission voted unanimously to deny the application and to not certify an accompanying environmental impact report. The decision was made against the recommendation of city staff who said the project’s involvement with rail-related issues made the decision a federal issue.
Valero representatives submitted an appeal looking to reverse the commission’s decision to deny their application, and the matter was postponed until Sept. 20.
As part of the appeal, Valero sought a declaratory order from the Surface Transportation Board on the issue of federal preemption in regards to the project.
During this time, many governmental agencies, private organizations and individuals publicly opposed the city council’s decision to transfer authority on the matter to the federal government.
At the city council meeting Tuesday, however, public comment on the topic was officially closed.
“We are eager to hear from you about any item that is not on the agenda,” Patterson said. “I know it’s a little difficult right now. We have an item on the agenda that I know a lot of you are interested in, but there is no public comment on that tonight.”
This drew a few hushed laughs from the crowd of approximately 150 people who had shown up to witness the landmark decision at Benicia City Hall.
Mayor Patterson’s warning didn’t stop a few concerned citizens from indirectly talking about the issue.
“I originally put in my request to speak before I knew you were not accepting public comments about Valero,” said one man. “If the council decides to change their mind and re-open public comment on the issue, I would be glad to come back up and speak.”
“Since I can’t talk about what the Surface Transportation Board has just done, I would urge the council to support the struggle against the Dakota Access pipeline,” said another man.
After public comment was closed, a brief recap of the project’s journey though Benicia’s civic system was put forth along with two resolution findings, one for approval and the other for denial,
The denial resolution highlighted specific issues that city council members had with Valero’s proposed project, including the unclear traffic impacts of having an unregulated shipment schedule, spill risks associated with shipping by rail and the project’s uncomfortable proximity to the city’s waterways.
Before making a judgement, Council members took turns voicing their concerns about health, safety and the project’s effect on the environment.
“When we first started considering this, there seemed to be little risk involved,” said Councilwoman Christina Strawbridge. “After four years, the community has endured numerous public hearings with hundreds of people speaking about the project. During this time, there have been 13 derailments around the country involving multiple carriers.
“The derailment in Oregon was a game-changer for me,” she continued. “Union Pacific was the same carrier and the railroad cars involved were the same ones Valero is offering. The strongest car didn’t withstand a puncture and crude oil came in contact with fire and burned for 13 hours. Union Pacific failed to maintain its track, resulting in its derailment. The railroad industry has not kept up with safety standards regarding the transportation of crude. I’m going to vote to deny the project in hopes that the community can begin to heal after such a divided process.”
After the council’s comments, Councilmember Tom Campbell put forward a motion to deny, and was seconded by Patterson.
A quick vote was taken and the motion to deny Valero’s presence in Benicia was decided.
Misao Brown, a retired teacher and environmental activist from Alameda, was thrilled with the council’s decision and was seen embracing her friends outside of Benicia City Hall.
“If there were any spills where we are in Benicia, it would be in the Bay and go all over the place,” she said. “Benicia is concerned about the greater good and it’s just wonderful. It was really hard sticking it out for so long, but they gave every chance to Valero. In the end, we’re really talking about life on earth. So, when the decision comes through like this under tremendous pressure, I’m really grateful to every member of the planning commission and city council.”
Grant Cooke: Benicia’s future is with Patterson, Young and the new economy
By Grant Cooke, August 17, 2016
If Valero’s crude-by-rail, or CBR, project goes through, it will do irreparable damage to Benicia. If the three councilmembers—Mark Hughes, Christina Strawbridge and Alan Schwartzman— continue their support for the project, they will do an extraordinary disservice to the city.
I respect those who work on behalf of local government; however, in this case, the legacies of three pro-Valero councilmembers will be that when Benicia needed them, they stood down. They just didn’t have the vision or the ability to do what is right and best for the city.
While the same can be said for numerous elected officials in other American small towns, particularly those dominated by a fossil fuel company, it’s a painful thing to witness. What makes Benicia’s situation more painful, is that the city is gifted with a bright and forward thinking mayor and is nestled on the edge of the most innovative and financially robust center in the world.
Yet, the pro-Valero majority on the council mirrors the city’s self-inflicted company town identity. This fossil fuel dependence holds the city back from partaking in the Bay Area’s knowledge-based economy and its prosperity.
The company town malignancy is intensified by a remarkable and insulating geography that creates the city’s beauty. The town has an idyllic and picturesque quality that is enhanced by a touch of eccentricity and bohemian romanticism left over from the halcyon days of the Gold Rush.
This combination allows for a complacency in the social milieu that is on the one hand charming, but on the other, remarkably short-sighted. In fact, it’s just plain dumb, since it allows for the tacit acceptance of the status quo and masks the reality that problems are coming and action needs to be taken.
For a half-century, Benicia has allowed the refinery to prosper, hardly inhibiting its use of the atmosphere as a garbage can. For most of this time, the refinery has been the largest source of tax revenue, exercising dominant economic and political influence. Which is a pity, since the rest of the Bay Area embarked on a scientific, technological and economic renaissance that is unparalleled in human history.
Now, the era of carbon generated wealth and dominance is in decline, particularly in densely populated areas where growing number of residents are pushing back, protective of their health and well-being. Carbon-generated wealth, usually from extraction industries, is being overtaken by knowledge-based wealth. High-tech workers are transforming the communities throughout the Bay Area. Cities like Richmond that were mired in the death grip of the fossil fuel industry, are now undergoing gentrification and renewal.
So where does that leave Benicia? If the pro-Valero councilmembers have their way and Valero’s CBR project is approved, then the city will continue to be dependent on the refinery and the fossil fuel industry.It’s clear from the evidence that crude-by-rail transportation is unsafe, unhealthy, and disruptive, but it won’t matter if the project is approved and the 50-car trains take over the Industrial Park, cutting off access and exit for most of the existing businesses. Once the trains loaded with toxic and volatile Bakken crude start to roll, there will be no “do overs,” and the city’s future will languish.
There is no doubt that the fossil fuel and oil industries are in decline. Oil prices are dropping as too much supply hits the market. Renewable energy is cheaper, more plentiful and when connected to smart grids far more flexible and cleaner. Vehicles are getting more efficient and transitioning to hybrid, electric, and hydrogen power. The fossil fuel era with its environmental destruction, social and political upheavals, and corrupt power politics is winding down.
So by approving CBR, Benicia will be locked into a decline—all the while the rest of the Bay Area flourishes as the new knowledge-based economy expands.
As an interesting aside, in the last three months, Valero, Inc. made $19.6 billion in gross revenue and $87.8 billion for all of 2015. As part of the company’s second-quarter earnings announcement, Joe Gorder, Valero’s CEO, said “We are also encouraged by ample supplies of medium and heavy sour crude oils in the market…”
So, if there is plenty of supply, and the refinery’s current crude delivery process is creating substantial profits, why does the refinery still want to ship explosive Bakkan crude by trains through towns that oppose it? And why do they claim it’s necessary to bring it to a loading area with a potential blast zone that includes an elementary school?
Admittedly, Valero’s CBR project is not simple. There are key issues at stake, including the tax revenues versus the city’s right and responsibility to protect the health and well-being of its residents. Many people are involved to various degrees in the decision. Unfortunately, the town’s residents can’t vote on the project, since the decision is solely in the hands of the city council.
The pro-Valero CBR faction has tried to diminish the importance of the decision by claiming the opposition is simply a ruckus stirred up by passionate environmentalists opposed to Big Oil. The intent is to frame the local election, and opposition to the project, as simply a one issue ballot. But the reality is far different. It’s not merely a CBR issue, or whether the refinery is good or not for the city, but a clear and simple question of what is to be Benicia’s future? Will the city – pushed by the three pro-Valero councilmembers – be locked into fossil fuel’s decline, or will it have the wherewithal to step into the 21st century and join the Bay Area’s booming knowledge-based economy?
If Benicia is going to survive as a chartered city, it has to go where the future beckons, which is to the new economy. If it dithers, the city will be passed over, as the new economy leapfrogs to Vallejo and other cities along the Interstate 80 corridor.
Three decades in, the scientific and technological Renaissance is just getting started, powered by a steamroller of venture capital. Silicon Valley is awash with cash and opportunity, and the Bay Area’s great universities and national laboratories are brimming with patents just waiting for implementation. High-tech and green tech startups and businesses are growing exponentially each year. Chinese and other foreign buyers are trolling Northern California for the newest inventions and technology.
The Green Industrial Revolution will continue to grow, pushing out along the region’s main transportation corridors. Eventually it will extent from Palo Alto to Sacramento. Just as Apple overcame Exxon, the new economy will push out the fossil fuel industry in the Bay Area. Within a couple of decades, the Bay Area refineries will lock their gates, unable to withstand the shifts in the energy markets and the expenses of offsetting carbon emissions.
What the fossil fuel industries in the Bay Area—and by extension those cities that have cast their lot with them—are not realizing is that there is a generational and workforce shift taking place. The older work force who had a high tolerance for the fossil fuel and heavy industrial manufacturing industries are being overtaken by a tsunami of high tech workers. These young folks are sophisticated, intelligent and extremely sensitive to health and recreation. (Just visit San Francisco’s marina green on the weekend). Their lifestyles are far different than the established group. High-tech workers live in denser neighborhoods, drive efficient autos and take public transportation. (Visit Emeryville, or the area around Pleasant Hill’s BART station.)
Above all, tech workers have enormous amounts of money that is rapidly changing the real estate market and the Bay Area’s lifestyle. As these workers mature, they will pressure politicians for the things they value, which is certainly not carbon emissions or refineries.
Rarely in life does time and circumstance allow us to decide our fate. The future is often veiled and clouded, and usually clarity only comes with necessity, too often calamity. This is true for individuals as well as cities. Cities, especially small company towns, rarely have the visionary leadership and the ability to break loose from the status quo, until like Stockton or Vallejo they implode.
Benicia’s fate is remarkably unambiguous; stick with the old fossil fuel industry and go down with its decline, or join the Bay Area’s Renaissance and prosper. Throughout the world, other cities have faced much harsher realities and have been successful in transitioning to a new economy. Melbourne, Copenhagen, Berlin and Bristol leap to mind. In each, change was driven by strong visionaries who understood that change was the best option and who had the leadership skills to pull the cities and their residents forward.
Does Benicia have similar visionary leadership? That is clearly central to November’s local election. There are two councilmembers up for re-election—Tom Campbell and Christina Strawbridge. Mayor Elizabeth Patterson is being challenged by Vice Mayor Mark Hughes. Three councilmembers – Strawbridge, Hughes and Alan Schwartzman who is not up for re-election – favor Valero and its CBR project.
Mayor Patterson has shown time and again that she understands the dilemma the city faces and why its future lies with the new economy. She clearly has the vision, talent and leadership required to move the city forward, and should be re-elected. Councilmember Campbell also understands that Benicia’s future prosperity can’t be dependent on Valero’s CRB project and he should continue.
Steve Young, a new challenger for a council position possess exceptional talent and leadership skills, and clearly understands that the city’s best interests are to reject Valero’s CBR. As a member of Benicia’s Planning Commission, he spent countless hours on the issue, painstakingly doing the research and leading the commission through the pros and cons as each member came to agree that the CBR project was not the town’s best option.
Patterson and Campbell were outvoted by the three other councilmembers, and the council failed to accept the Planning Commission’s recommendation, instead giving Valero the opportunity to reopen the issue with the Surface Transportation Board. Cluttering the decision was some questionable recommendations from the city staff, goofy advice from a consulting attorney, and bullying from Valero’s high-powered lawyer. In short, the whole process reeked of the misinformation and strong-armed tactics so common when an oil company puts pressure on small town politics.
Given his remarkable dedication to Benicia and the work required to bring the whole CBR permitting process into the public light, Steve Young has clearly shown that he has the intelligence, talent and leadership skills needed to help the city transition away from the past and embrace the future.
For Benicia, come the November election, Mayor Patterson and Tom Campbell should be re-elected. Steve Young should be the newly elected councilmember.
Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.
What Benicia can learn from the Oregon train derailment
By Steve Young, June 7, 2016
On Friday, June 3, a Union Pacific train carrying Bakken crude oil derailed in the town of Mosier, Ore. Fourteen rail cars came off the tracks, and four exploded over a 5 hour period.
There are several things that the City Council needs to keep in mind whenever they re-open discussion of the appeal of the Planning Commission’s unanimous decision to reject the Valero Crude-by-Rail project. Many of the assurances given to the public about the safety of transporting crude by rail have been called into question by this derailment.
The train cars that derailed and exploded are the upgraded CPC-1232 version promised to be used by Valero for this project.
The train derailed at a relatively slow speed as it passed through the small town of Mosier. Union Pacific trains carrying Bakken to Valero will travel at speeds up to 50 mph in most of Solano County.
The portion of track on which the train derailed had been inspected by Union Pacific three days before the derailment.
A Union Pacific spokesman, while apologizing for the derailment and fire, would not answer a reporter’s question as to whether the Bakken oil had been stabilized with the removal of volatile gases prior to shipment.
At the Planning Commission hearing, I tried repeatedly without success to get an answer from both UP and Valero as to whether they intended to de-gassify the Bakken oil prior to transport.
A major interstate, Interstate 84, was closed for 10 hours in both directions while first responders used river water to try and cool the tank cars to a point where foam could be used to try and put out the fire. It took more than 12 hours to stabilize the scene.
An oil sheen is in the river, despite the deployment of containment booms.
And finally, Oregon Public Broadcasting on June 4 had an exchange with the Fire Chief of Mosier, about how this experience changed his opinion about the safety of transporting crude by rail:
“Jim Appleton, the fire chief in Mosier, Ore., said in the past, he’s tried to reassure his town that the Union Pacific Railroad has a great safety record and that rail accidents are rare.
“He’s changed his mind.
“After a long night working with hazardous material teams and firefighters from across the Northwest to extinguish a fire that started when a train carrying Bakken crude derailed in his town, Appleton no longer believes shipping oil by rail is safe.
“’I hope that this becomes the death knell for this mode of shipping this cargo. I think it’s insane,’ he said. ’I’ve been very hesitant to take a side up to now, but with this incident, and with all due respect to the wonderful people that I’ve met at Union Pacific, shareholder value doesn’t outweigh the lives and happiness of our community.’”
When the City Council took up the appeal of the Planning Commission decision in April, Mayor Patterson and Councilmember Campbell stated their opposition to the project, while the other three councilmembers (Hughes, Schwartzman and Strawbridge) approved Valero’s request to delay a decision on this project until at least Sept. 20. There is still time for the citizens of Benicia to tell their elected officials how they feel about this project. I urge them to do so.
Steve Young, a member of the Benicia Planning Commission, is running for the Benicia City Council in November.
Valero delay tactic – unnecessary interference in local politics
Last night, March 15th, the first hearing of the Benicia City Council was held on Valero’s appeal of the unanimous vote of the planning commission to deny certification of the final EIR and the proposed Crude By Rail Project, a permit for which would allow construction of a rail terminal on Valero property that would serve to off-load two 50-car trains each day loaded with domestic shale oil and/or Canadian tar sands.
After the staff gave its usual synopsis of Valero’s proposal, the planning commission’s chair, Don Dean, gave an excellent overview of the commission’s work over three years of public review, summarizing the arduous process, first begun in 2013, when the public and commissioners questioned City staff’s recommendation to adopt a grossly flawed Initial Study /Mitigated Negative Declaration. The commission’s inquiry continued following the drafting of a full EIR in 2014, that was then followed by review of a Revised EIR in 2015 — all of which entailed long hours of public hearings and study of volumes of written comment letters from Benicia residents and comments and testimony provided by public agencies, environmental organizations and government representatives. (See benindy.wpengine.com/project-review/ for links to the public record.)
After Don Dean’s presentation, it was Valero’s turn to present their appeal. In all previous testimony, and in their official letter of appeal, which had been submitted to the City in the wake of the final planning commission hearing in February, Valero has asserted that under federal preemption, requirements of the California Environmental Quality Act (CEQA) would be superseded, hence that any impact evaluations or determinations regarding mitigations directly or indirectly involving rail would be considered irrelevant and unenforceable. In their appeal letter, Valero went so far as to describe the commission’s decisions for denial as representing an “abuse of discretionary powers”, insisting that commissioners had virtually ignored the full authority of federal preemption.
Thus, it was to be expected that Valero’s Don Cuffel would repeat “the Valero basics” about why the Project would be safe and economically beneficial, while pointing to what Valero considers the various errors of “the opposition”, including those representing opposing legal views presented in the course of public hearings.
But the twist came when attorney John Flynn took the podium and surprised the council, city staff and the public by announcing that Valero was now recommending “a delay” in the appeal process they’d initiated, to allow time for them to petition the federal Surface Transportation Board (STB) for the agency’s perspective on the scope of federal preemption law governing rail operations. They admitted the delay could take at least three months.
Under the dubious premise that delaying their appeal would benefit everybody, Valero argued that getting an opinion from the STB would “help” the City make the correct decision with regard to the limits of their jurisdictional authority imposed by preemption.
But what kind of ‘benefit’ would delaying the appeal process really represent, given that Valero claims that preemption essentially neuters our city council’s authority and obligation under CEQA to protect the health and safety of residents, and thus to uphold most important goals and policies of the Benicia General Plan?
Council members Mark Hughes, Christina Strawbridge, Alan Schwartzman and Tom Campbell, and Mayor Patterson, each questioned why Valero had not petitioned the STB previously, when either the Draft EIR or Revised EIR were being developed. Valero didn’t seem to have an answer.
But “politics” are in the air, and Valero Energy Corp, headquartered in San Antonio TX, is now gambling politically, apparently seeking to produce what could be considered a “pre-trial” test of their own legal opinion on preemption right at the time of our local elections. Interference in local politics in order to push permitting of their dangerous Crude By Rail Project is not acceptable and must be challenged!
Make no mistake: Valero hopes to bank on setting a precedent, right here in Benicia, that would affect municipalities of every size and stripe across California and the US seeking to protect their communities from the risks of dangerous oil trains plowing through their urban cores and rural landscapes.
Valero’s “recommendation for delay” is a bald political tactic:
• Delay is NOT necessary for the City Council to reach an informed decision on the Crude-By-Rail Project;
• Delay does NOT serve City staff or the public;
• Delay ONLY serves the financial and broad political interests of Valero Energy Corporation.
Please come to the April 4th council hearing to voice your concern:
• To support the authority and requirements of CEQA — for the public’s right to full disclosure of impacts, for enforceable mitigations and feasible project alternatives;
• To support our planning commission’s consensus judgment resulting in a unanimous vote to deny certification of the Final EIR and deny the project permit;
• To support the authority of our City to protect our community’s health and safety and uphold the Benicia General Plan;
• To deny Valero’s appeal and audacious corporate attempt to interfere in local politics for their own gain.