Tag Archives: California Energy Commission

The Dangers of Crude Oil By Rail in California and the Nation: Official Evasions and Possible Solutions

Reposted from an email sent by the author, Dr. Paul W. Rea, PhD.  This article has also appeared in The Daily Censored.
[Editor – Highly recommended.  This is a comprehensive summary on the issues surrounding crude by rail to date.  – RS]

CAN’T YOU HEAR THE WHISTLE BLOWIN’?

The Dangers of Crude Oil By Rail in California and the Nation: Official Evasions and Possible Solutions

By Paul W. Rea, PhD

“Our regulators have got to figure out whether they’re working in the interest of the American people or the oil industry.”

—Tom Weisner, mayor of Aurora, Illinois who shudders when he hears trains hauling crude oil through his Chicago-area town.

Just a year ago, 63 tank cars exploded and a firestorm engulfed Lac Mégantic, Quebec. In the middle of the night, highly volatile crude oil exploded into boiling balls of fire. With a radius of one kilometer, the blast and firestorm incinerated much of the town.

Rae01

 

The remains of many among the 47 victims were never found. Today residues from crude oil and heavy metals have rendered areas Lac Mégantic uninhabitable.

Media Silence about Oil Trains

Mile-long freight trains are hardly quiet, but somehow a drastic increase in oil trains has, until very recently, gone largely unheard. Beyond a lack of media attention, the incremental, rather than sudden, increases in oil-train traffic have made them harder to notice. While some of us have been fighting the Keystone XL pipeline, we may not have noticed the surge coming down the track on a mega-pipeline on rails. In 2008, American railroads were running 9,000 tank cars; today the number has soared to 434,000 (https://www.aar.org/keyissues/Documents/Background-Papers/Crude%20oil%20by%20rail.pdf).

Few Americans are aware that, nationally, transport of crude oil by train has jumped 45-fold between 2008 and 2013, according to a recent Congressional Research Service report(http://time.com/2970282/a-year-after-a-deadly-disaster-fears-grow-about-the-danger-of-crude-oil-shipped-by-rail/).

Nor are many Californians aware that, since 2007, their state has experienced a surge in crude-oil trains of 400%; and in 2013, the trains shot up at the highest rate yet. The number will likely spike still higher this year and next. These sharp increases mean that railroads and refineries are both expanding, subjecting the public to additional risks. In 2011, a fire at the Chevron refinery in Richmond, California belched out a huge cloud of toxic black smoke, sending 15,000 residents to the hospital (http://www.sfgate.com/bayarea/article/Chevron-refinery-fire-a-close-call-3802470.php).

Even if no accident occurs, public health consequences follow the transport fossil fuels. These include increased air pollution (soot and particulate matter from diesel smoke and coal dust, toxic fumes from refineries). These pollutants affect public health—especially among lower-income people who cannot afford to live very far from railroads and refineries.

Fire Bombs on Rails

Increasingly, accidents are occurring. Twelve derailments have occurred in the past year—one a month.

Rae02

Some have sparked huge explosions and fires, such as one that happened in Casselton, N.D. in December of 2013. First note the size of the towering fireball relative to the rail cars below; then imagine the conflagration that would have occurred if all of them had been tankers full of Bakken crude.

So it’s not a matter of if, but of when, where, and just how disastrous the debacles will be. Diane Bailey, Senior Scientist for the National Resources Defense Council (NRDC), warns that given the archaic regulations, high speeds, and aging infrastructure, accidents are just waiting to happen; “so far we’ve been lucky.”

While these trains commonly pull 100 tank cars and run a mile long, they can include 150 cars and run a mile and a half long (http://earthjustice.org/news/press/2014/community-leaders-advocates-call-on-secretary-of-transportation-to-ban-use-of-hazardous-rail-cars?utm_source=crm&utm_content=button). And these trains often carry highly flammable crude of the sort that caught fire in Lac Mégantic. Here in California, oil-train accidents have jumped from 3 in 2011 to 25 in 2013, even outpacing the steep increases in the number of trains. Nationally, train wrecks have increased 14 fold in the past five years, at an even faster rate than the increase in rail traffic (NPR “Weekend Edition” 7.6.14). The fact that mile-long trains carry nothing but crude oil increases the chances that if there is a derailment, a huge amount of liquid fuel suddenly becomes available, often feeding a chain conflagration

Nationally as well as locally, government officials have called for better preparation of first responders to fight crude-oil fires. This is hardy the solution to the problem, which surely lies with prevention. Fire Chief Greg Cleveland of La Crosse, Wisconsin indicates that despite upgrades, his firefighters have neither the advanced training nor the specialized equipment to lay foam on boiling balls of fire (NPR “Weekend Edition” 7.6.14). Moreover, they may not be able to reach a wrecked train quickly, if at all. Tragic experience with intensely hot forest fires surely suggests the inability of first responders to control huge fireballs pouring out toxic smoke.

Reacting to a rash of train wrecks—particularly to a derailment, a fire, and an oil spill into the James River in May 2014—the U.S. Department of Transportation (DOT) issued a safety alert citing an “immanent hazard” to the public. This emergency order requires that shippers indicate to state and local officials the number of trains each week, their specific routes, and the contents of the tank cars. It also requires railroads to inform state emergency commissions about any large (one million gallons or more) shipments of oil.

Railroads have long resisted such calls from local officials and first responders to know the amount and contents of the cars; the Association of American Railroads said only that rail companies would “do all they can to comply with the DOT’s emergency order.” Not surprisingly, the railroads have done little to comply:

County Commissioner Caren Ray from San Luis Obispo complains that she has repeatedly requested information on arriving trains but does not receive it (http://www.energy.ca.gov/2014_energypolicy).

Defective Tank Cars

For many years the standard tank cars, known to the industry as DOT 111s,have proved prone to rupture when overloaded or involved in a wreck. Two thirds of the tank cars still in use today are older models that safety experts have found vulnerable to puncture. Nevertheless, the railroads still use them to transport increasing flammable “extreme” crude oil.

Rae03

In Canada, the 111s built before 2011 are supposed to be phased out by 2017; in the US, however, the DOT is talking about a phase out but has set no date for taking “legacy cars” off the rails. Catering to the carriers and the owners, it has merely called for shippers to use the safest cars in their fleets and for outmoded cars to be replaced “to the extent reasonably practicable.” These recommendations are pathetically weak. They guarantee that the most flammable crude will be carried in the most dangerous tank cars (http://www.nytimes.com/2014/05/08/business/us-orders-railroads-to-disclose-oil-shipments.html?_r=0).

And are the newer models significantly safer? The Canadian Transportation Safety Board found that the post-2011 design, though an improvement, is still not safe enough for the transport of hazardous liquids like crude oil. Except for a few reinforced areas, the steel is still only a half inch thick.

One might suspect that federal regulators are “asleep at the switch,” but their own statements suggest something even more unsettling: Peter Geolz, former managing director at the National Transportation Safety Board (NTSB), the agency that investigates crashes, has remarked that the agency may be reluctant to phase out the older DOT-111s out of fear of slowing the U.S. energy boom (http://topics.bloomberg.com/national-transportation-safety-board). In other words, the feds figured “we wouldn’t want to over-regulate railroads; that might slow the biggest oil bonanza in history.”

California Regulators Also “Recommend” Action

While federal agencies largely control railroad traffic, clearly state government has an obligation to protect both the citizens of California and the state’s environment. Not until last winter did Gov. Jerry Brown finally convene an Interagency Rail Safety Working Group to deal with the oil-train juggernaut.

But rather than asking how much oil trains can haul without posing unacceptable risks to health and safety—and then finding ways to limit their length and number—the Working Group simply recommended safety measures for trains and sought to improve emergency responses. The Group’s report, “Oil by Rail Safety in California,” made many recommendations for improved safety procedures but mandated few changes in regulations (http://www.sfgate.com/file/830/830-SCAN6267.PDF).

Even if implemented, small measures such as more frequent track inspections only chip away at the monolith; they do not begin to deal with the big problems stemming from the great length, unprecedented number, and highly flammable contents of today’s crude-oil trains.

At best, these overdue safety recommendations seem utterly inadequate to handle current risks, let alone those involved with still more oil trains that are increasingly, as never before, running through populated areas.

On their way to Bay Area terminals, oil trains run right through cities such as Sacramento, where they endanger the 250,000 residents living near the tracks. How could this degree of risk escape the attention of the state legislators and regulators who work in downtown Sacramento? By the summer of 2014, the residents of Sacramento, Davis, Roseville, Pittsburg, and Benicia were becoming increasingly fearful of ever-more-frequent oil trains. Protests erupted in Sacramento and elsewhere along the line (http://www.sacbee.com/2014/07/08/6541363/crude-oil-train-protests-planned.html).

Oil Trains To Rumble Down East Bay Urban Corridor

Railroads and refineries are now planning to run crude oil trains along the highly urbanized east side of San Francisco Bay. A proposed upgrade to the Phillips 66 refinery in Santa Maria, California (outside San Luis Obispo) would allow it to “crack” more Bakken crude arriving from North Dakota on trains passing through Richmond, Berkeley, Oakland, Hayward, Fremont, and San Jose. The Oakland City Council passed a resolution opposing any additional trains running through that densely populated city (http://www.reuters.com/article/2014/06/18/us-usa-crude-rail-oakland-idUSKBN0ET34620140618).

The Working Group’s Toothless Guidelines

Since the Rail Safety Working Group made recommendations, not regulations, it didn’t take the panel long to publish a report and hold a workshop. Both were intended to reassure the Californians (especially those living along the East Bay rail corridor) that state and local governments are preparing for the increased threats posed by the previous year’s spike in oil trains. The prevention of accidents received much less attention.

Held in Berkeley on June 22nd, a day-long California Energy Commission’s (CEC) Workshop was led by top state officials: Energy Commissioner Janea A. Scott, Chair Robert Weisenmiller, and Public Utilities Commission President Michael R. Peevey. Since this event required a full day from highly paid administrators, it cost taxpayers lots of money.

The Workshop was highly instructive not only about the dangers posed by oil trains but also about the attitudes of state and local officials toward them. The subscript was, “even though we’re not fully ready for accidents, we expect still more of these trains.” Moreover, presenters tended to assume that accidents were the only threat. Although arson, sabotage, terrorism, and especially earthquakes are always potential threats to infrastructure, officials made almost no mention of them.

Workshop Promotes Emergency Responses, Not Prevention of Emergencies  

Throughout the day, mounting dangers to public health and safety—not to mention to the environment—were repeatedly underestimated. Speakers typically welcomed the energy boom and found few problems with the vast increase in oil trains since 2007.

Discussion did not include possible scenarios such as that of an overloaded oil train derailing on an old trestle and starting a forest fire far from first responders or polluting highly sensitive waterways. The state’s worst “high-hazard areas” are both along tracks traversing the Sierras (http://www.energy.ca.gov/2014_energypolicy).

Yet with increasing frequency, oil trains are traversing antiquated iron bridges such as the 1000-foot Clio Trestle spanning the Feather River Canyon. That one was built in 1909, 105 years ago.

Rae04

Imagine a mile-long train of substandard tank cars groaning and clanking across an antique trestle over a river that provides a significant percentage of the drinking water needed by a drought-ridden state.

No Big Picture Is Presented

The CEC Workshop was much about normalizing the abnormal, about making mile-long trains carrying highly flammable crude seem not just acceptable, but even inevitable.

Rather than admit that the country is now awash in an oversupply of oil, both government and industry speakers left the impression that the crude coming into California would serve the needs of its residents and the region. Tom Umenhofer, Senior Environmental Advisor to the Western States Petroleum Association, asked the audience to believe that “crude by rail [is] needed to supply the Western US” (http://www.energy.ca.gov/2014_energypolicy).

Speakers failed to mention that the petroleum industry targeted these refineries because they are situated near deep-water ports—and that, once refined, much of the increasingly low-grade crude is already being exported to Japan, China, and India. The Chevron refinery in Richmond, the second largest in the state, is pushing to expand its capacity—but not for the production of California-grade gasoline, the demand for which has declined in recent years (San Francisco Chronicle 7.12.14).

America As a Colony, California as a Sacrifice Area

The stark reality is this: the oil industry is exposing the American people to health and safety hazards so it can profit by refining an oversupply of dirty crude for export. In an ironic reversal, the fossil fuel boom is making the USA into a colonial country, one that suffers the depletion of its resources and the degradation of its environment so it can export its fossil fuels. But “colonial” isn’t the right term, really; the country is not getting subdued or exploited by a colonial power—but by its own corporate giants and their lackeys in government. Ditto for Canada, which is supplying most of the crude coming to California. Odd as it sounds, both countries are plundering themselves and fueling climate chaos.

In doing so, they’re demanding that California bear the risks as they turn key coastal areas into a sacrifice zones. While most of the crude is just passing through on its way to Asia, for those who live along the way there’s no “just” about it.

Listening to state and corporate officials, one does not hear about the larger problems faced by the industry: fracking and acidification technologies have enabled it to tap the vast reserves of the Bakken Shale in North Dakota and the tar sands in Alberta, but with nowhere nearly enough pipelines to carry all this crude. Resistance to pipelines in Canada has put additional pressure on the only other alternative carrier, railroads.

Tank-car trains haul the oil to refineries, which are usually located near seaports; but the industry has encountered resistance to its search for additional ports up and down the West Coast through which it can export gas and oil. Climate change activist Bill McKibbon sees grassroots resistance as part of a global movement to halt the overconsumption of fossil fuels (http://www.rollingstone.com/politics/news/the-fossil-fuel-resistance-20130411).

At least the Canadians, who are ravaging their north country to extract heavy crude from the tar sands, are up front about why they’re doing this: the conservative government led by Steven Harper and the corporations involved both want the profits from exports.

The Governor, the Legislature,and Big Money

The accepting, often endorsing tone of officialdom at the CEC Workshop fits with the Brown’s administration’s stance on energy production. Much as it has supported fracking, the technology making possible the glut of crude, the administration has also avoided policies that could restrict incoming tanker trains, slow “the energy boom,” or otherwise reduce exports and corporate profits. Only recently—and surely belatedly—did the administration clamp down on the injection of fracking waste into the state’s aquifers (http://www.commondreams.org/headline/2014/07/19).

As we all know, it pays to “follow the money.” In 2012, Jerry Brown received $5,000,000 from Occidental Petroleum to help fund a favored referendum campaign. Brown has consistently supported hydraulic fracking, calling it “a fabulous opportunity,” one he had to balance against climate protection (Mark Hertsgaard, “How Green Is Brown?” The Nation July 7/14, 2014).

Sacramento is awash in both money and industry lobbyists pushing for more fossil fuels and less alternative energy. ALEC, the American Legislative Exchange Council, remains a major player, just as it is in other statehouses and governor’s mansions. Bankrolled by Koch Industries, Exxon, and Philip Morris, ALEC led successful attacks on clean energy in Ohio and Oklahoma—and now they’re promoting fossil fuels in other states, notably California (http://www.energyandpolicy.org/alec_s_attack_on_clean_energy).

It’s indisputable that Brown and other prominent Democrats are influenced by the vast profits made by fracking oil, shipping and refining it, and then exporting a significant amount from California’s ports, including Richmond and Long Beach. It’s also important to factor in that enviable wages are earned during an energy boom, and that labor unions also make large contributions to Democratic candidates.

Actions State Agencies Should Take

Even if the governor and the statehouse are compromised and unwilling to act, state agencies can get tough. They can require that any new rail-related projects—and there are many just in California—do not go forward until regulations are significantly strengthened, speed limits are lowered, upgrades are made to existing infrastructure, and dangerous tank cars are no longer used in California.

That said, Sacramento cannot solve all the problems; it’s the feds—the DOT and the NTSB—who hold most of the power to regulate railroads and apply the brakes on runaway trains. Getting them to serve the public may be difficult, however, as recent disclosures about the Canadian government reveal. Internal government memos show how the government of Prime Minister Harper is so fixated on getting oil to market cheaply that it has ignored safety warnings from its own experts. The Canadian feds are relying on risky trains since pipelines involve a public review process like the one that has stalled the Keystone XL project (http://www.greenpeace.org/canada/en/Blog/lac-megantic-one-year-later-what-has-been-don/blog/49833).

Though activists need to keep up the pressure on the feds, the public can’t wait for them to act; in the short term, both activists and regular citizens need to work with state officials, who are apt to be more responsive to sufficient public pressure. The precedent-setting victories of the “national fracking revolt” that surged up in the first half of 2014 provide a heartening example of how grassroots pressure can get results (http://earthjustice.org/blog/2014-july/small-town-fracking-victory-makes-waves-across-the-country?utm_source=crm&utm_content=button).

Challenging the Grand Illusions

State and federal officials in both countries tend to assume that environmental damage can somehow be mitigated or remediated. Both seem to forget the catastrophic oil spills that occurred in Prince William Sound, Alaska in 1989 and the Kalamazoo River in 2010. Yet how could they forget Deepwater Horizon, the BP spill in the Gulf of Mexico that surely challenged conventional ideas about restoring damaged ecosystems? Once large amounts of oil are released, it’s too late for remediation. Today, four years later, any Gulf shrimper can tell you that.

It’s high time to challenge the illusion of endless economic growth on a finite planet. Underlying the policies governing oil trains are the world’s addiction to fossil fuels and the denial, by government and industry alike, that this dependency can continue without destroying the ecosystems that support all life. The obsession with corporate profits is costing us far too much, and the costs can only rise.

At a time when the urgency for climate action is ascendant, when burning fossil fuels clearly exacerbates the earth’s problems, surely it’s irresponsible to focus on the most profitable methods to extract and transport gas and oil. With the survival of so many species now in question, wouldn’t it make sense to leave more oil in the ground and keep it off the rails?

Rather than accepting reality, gradually kicking the habit, and converting to more benign and sustainable energy sources, officials tend to grasp at short-term technological fixes to problems whose solution will require tough choices, clearer perception, and more enlightened values—including a reverence for life.

 Paul W. Rea, PhD, is a researcher, author and activist in Newark, California.

For Further Reading

http://us.wow.com/search?q=human+causes+of+global+warming+articles&s_chn=25&s_pt=aolsem&v_t=aolsem&s_cs=-2823176844128393677&s_it=rhr1_relsearch

http://us.wow.com/search?q=human+causes+of+global+warming+articles&s_chn=25&s_pt=aolsem&v_t=aolsem&s_cs=-2823176844128393677&s_it=rhr1_relsearch

http://www.foodandwaterwatch.org/water/fracking/fracking-action-center/

http://www.nrdc.org/

http://www.earthjustice.org/

—For updates on the Alberta Tar Sands: http://www.forestethics.org/

—For the routes of oil trains: http://www.blast-zone.org/

—Juhasz, Antonia. The Tyranny of Oil: the World’s Most Powerful Industry and What We Must Do To Stop It New York: HarperCollins 2008.

Region north of Sacramento sees 200-300 tank cars carrying crude oil on a given day

Repost from The Appeal-Democrat (Sutter & Yuba counties in California)

Tracking trouble: Recent accidents highlight the dangers of transporting flammables on trains – including crude oil through Marysville

June 29, 2014, by David Bitton

It might be scarier to know how much of anything is being hauled through the Yuba-Sutter region via railroad. But it might be for the best to know exactly how much crude oil is going through; and it might help to put it into perspective.

Crude oil has been on the minds of communities with rails running through them since the booming of oil exploration and drilling in North Dakota. There have been a few high-profile accidents involving trains pulling tankers full of the crude oil.

It is now public record that Burlington Northern Santa Fe tank cars carrying North Dakota Bakken crude oil pass through Marysville about once a week. The information was released this past week from the Governor’s Office of Emergency Services.

Railroad companies sought to to restrict such information to just emergency responders, citing security concerns, but the state, after some time, went ahead and released the information.

The transporting of crude oil from the Bakken Fields in North Dakota has come under greater scrutiny in the past year, with fears over the potential problems with the crude oil that is more volatile and flammable than oil from other regions.

There have been fiery derailments in North Dakota, Virginia, Alabama and Lac-Mégantic, Quebec, Canada, all involving Bakken crude oil.

The likelihood of a train derailment in Yuba-Sutter isn’t any greater or different than much of the rest of the country, area emergency responders agreed. But that doesn’t mean accidents don’t happen — they do. And due to those accidents, state and federal agencies are scrambling to tighten regulations.

Much of the concern comes from the ever-increasing quantity of crude oil entering the state by rail.

Crude oil heading to California refineries via rail has spiked in recent years from 498,000 barrels in 2010 to 6.3 million barrels in 2013, according to the California Energy Commission (a barrel contains 42 gallons of crude oil).

And by 2016, as much as 150 million barrels of crude oil, or 25 percent of total imports, could be coming into the state on rail, according to the California Energy Commission.

Less than 1 percent

Despite the increases, Aaron Hunt, director of corporate relations and media for Union Pacific, said crude oil entering California currently accounts for less than 1 percent of its business.

“Though we ship more grain, cement and timber than crude oil, Union Pacific has safely moved crude oil on behalf of our customers for decades,” Hunt said. “Seeking energy independence, U.S. companies have enthusiastically developed crude oil resources and rail has played a role in getting those resources to the right markets.”

Both Burlington Northern Santa Fe and Union Pacific move commodities through Yuba-Sutter ranging from fruits and vegetables to sulfuric acid, anhydrous ammonia, chlorine and crude oil.

U.P. does not currently move crude oil in California originating from the Bakken region, Hunt said. But the rail company does move crude from other areas through this region.

The quantity is hard to pin down as Union Pacific isn’t releasing figures, but Bill Fuller, chairman of the Region 3 local emergency planning commission, which includes 13 Northern California counties and falls under the Governor’s Office of Emergency Services, was told by the Union Pacific that as many as 200-300 tank cars carrying crude oil could be moving through Yuba-Sutter on a given day.

Well-traveled lines

Lt. Aaron Easton, deputy chief of the Marysville Police Department, said the two Union Pacific rail lines that pass through Marysville are well traveled.

“Amtrak’s passenger lines come through twice each day in the pre-dawn hours,” Easton said. “The cargo lines pass numerous times at all hours of the day and night,” he said. “Cargo includes large volumes of fuels, chemicals, and a variety of other potentially hazardous types of cargo.”

Last month, the U.S. Department of Transportation ordered the railroad carriers to notify the State Emergency Response Commission when a single train is transporting more than 1 million gallons of Bakken crude oil into their state.

Railroad companies including Union Pacific support more stringent standards for tank cars, which are used to transport flammable liquids, including crude oil.

Tank cars are owned or leased by the companies shipping products, not by the railroad companies.

The Association of America of Railroads has standards for tank cars that currently exceed the federal requirements and have been pressing the Department of Transportation to upgrade.

Existing tank cars would need to be retrofitted or phased out, Hunt said.

“The new standard requires a thicker, more puncture-resistant shell, jacket, and thermal protection,” Hunt said. “It also requires extra-protective head shields at both ends of the tank car and additional protection for top fittings.”

Y-S ready in case of emergency

The stories are scary and run the gamut.

In April, a fire erupted after more than a dozen tanker cars carrying Bakken crude oil derailed in Lynchburg, Va. No one was injured.

But last July, 47 people in Lac-Mégantic, Quebec, Canada, were killed when a train carrying Bakken crude oil derailed and erupted in flames that destroyed part of the downtown area.

Though a derailment and fire of that magnitude isn’t likely in Yuba-Sutter, emergency procedures are in place in case of a train derailment.

The Yuba-Sutter Hazmat Response Team, which was formed in 2012, is made up of six fire agencies — Marysville, Linda, Olivehurst, Wheatland, Yuba City and Sutter County.

Many of its members are hazardous materials technicians or specialists and have received training on rail car emergencies including leaks, spills and derailments.

“The concept was to pool the resources of local hazardous materials response teams for better protection of Yuba and Sutter Counties,” said Sutter County Fire Chief Dan Yager. “A large-scale incident involving any release of known or unknown substances would trigger the activation of this team.”

The six agencies agreed that their immediate course of action would be to determine the scope of the incident, call for mutual aid and help those in need.

“Our mission is to protect life, the environment and property, in that order,” Yager said.

If a large-scale evacuation is necessary, Yuba County Undersheriff Jerry Read said his department and the California Highway Patrol have worked together to create routes based on the scenario.

A unified command structure would be established with fire, law enforcement, county office of emergency services and railroad representatives working together, said Linda Fire Chief Richard Webb.

“Continued training and planning are the mechanisms we will continue to use in an effort to mitigate the risks associated with a derailment,” Webb said. “The projection is for Bakken crude oil shipments by rail to spike up dramatically over the next several years, which would increase the risk of a derailment possibilities.”

CAL Energy Commission workshop: ‘wake up call’ on crude by rail

Repost from The Contra Costa Times
[Editor: Significant quote for Benicia and others along the Union Pacific rail line: “Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.”  – RS]

California trying to catch up to dangers of crude oil shipped on railroads

By Doug Oakley, Oakland Tribune, 06/25/2014

BERKELEY — California agencies have very little authority to regulate a massive increase in crude oil shipments by rail, and only now are they realizing the magnitude of the potentially explosive situation, according to state officials speaking Wednesday at a workshop sponsored by the California Energy Commission.

“It’s a wake up call when you look at the projections,” said commission Chair Robert Weisenmiller. “We have to plan for the worst case.”

Only in the last month, thanks to an order by the U.S. Department of Transportation, have railroads begun to disclose to the state Office of Emergency Services shipments of 1million gallons or more of highly flammable Bakken crude oil. Before that happened May 7, nobody knew anything about the shipments or where they were going, Weisenmiller said.

The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial
The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial Canadian tar sands crude through rail delivery. (Kristopher Skinner/Bay Area News Group)

Crude oil rail shipments have increased 506 percent in 2013 to 6.3 million barrels, according to a report by the state Interagency Rail Safety Working Group released June 10. That number could increase to 150 million barrels of oil in 2016, it said. Petroleum spills on railroads in California increased from 98 in 2010 to 182 in 2013, according to the Office of Emergency Services.

In California, crude goes by rail to the cities of Richmond, Sacramento, Bakersfield, Carson, Long Beach and Vernon, according to the energy commission.

The only thing state and local governments can do to try and prevent a catastrophic disaster is to enforce federal rules and prepare local first responders, officials said. The regulatory effort falls on the California Public Utilities Commission President Michael Peevey.

“I’m not enthusiastic about having tens of thousands of tank cars running around California because accidents are inevitable,” Peevey said at the workshop. “There’s been a huge increase in volume and we have to step up our awareness and activities, in cooperation with the federal government, but the feds have the ultimate responsibility.”

The commission recently added seven rail safety inspectors who look at rail cars, railroad lines, bridges and shipping requirements, bringing the total to 59 inspectors statewide, which Peevey said was adequate for this year.

Peevey dismissed criticism that the PUC has been too easy on industry it is supposed to regulate, and assured the public it is up to the task.

“We’ve been pretty darn tough,” he said.

Weisenmiller said the state first needs to identify the areas most at risk for crashes and make sure the tracks are maintained. He acknowledged there is no way to prevent shipments from coming into the state, but the state can “get its act together and reach out to communities near rail lines and provide first responders with information and technical expertise,” so they can respond to an accident.

As the state tries to catch up and wrap its collective mind around the increased shipments, oil companies are attempting to add projects that would bring in more oil by rail.

Valero Refining Co. is planning on 100 cars per day to its Benicia facility by the first quarter of 2015; West Pac Energy is planning 70 cars per day to a facility in Pittsburg; Phillips 66 is planning a crude-by-rail project in Santa Maria that could bring shipments through the Bay Area; Alon USA is planning 200 cars a day in Bakersfield and Plains All American is planning for 200 cars a day in Bakersfield, according to the Oil by Rail Safety in California report.

Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.

But Burlington Northern Santa Fe Railway is bringing in nine full train loads of Bakken per month into California, said spokeswoman LaDonna DiCamillo. She did not know how many tank cars each train has or what the actual volume is.

Lawson Stark said that even though railroads are now required to report shipments of the highly flammable Bakken crude oil to the Office of Emergency Services, the information most likely will not be available to the public. A spokesman for the office did not immediately return phone calls.

California Energy Commission workshop on trends in sources of crude oil (Wed. 6/25/14)

Repost from California Energy Commission
[Editor: this 9am-5pm workshop will have a broad range of knowledgeable presenters.  Agenda here.  Sorry for short notice.  – RS]

Lead Commissioner Workshop on Trends in Sources of Crude Oil

Wednesday, June 25, 2014, 9:00 AM

The California Energy Commission Lead Commissioner on the Integrated Energy Policy Report will conduct a workshop to highlight changing trends in California’s sources of crude oil with emphasis on the potential growth of crude oil transport to California by rail, and the impacts of these trends on the transportation energy market and existing government policies. The discussions will focus on existing and possible new roles of federal, state, and local government to address market changes.

Commissioner Janea A. Scott, Chair Robert Weisenmiller, and Commissioner Karen Douglas will be in attendance. CPUC President Michael R. Peevey will also be in attendance. Commissioner Scott is the Lead Commissioner for the 2014 IEPR Update and the Lead Commissioner on Transportation. Other Commissioners of the California Energy Commission and the California Public Utilities Commission may attend and participate in the workshop. The workshop will be held:

June 25, 2014 9:00 AM
Berkeley City College Auditorium
2050 Center Street
Berkeley, California 94704
(Wheelchair Accessible)

Remote Access Available by Computer or Phone via WebEx
Presentations and audio from the meeting will be broadcast via our WebEx web meeting service. For additional details on how to participate via WebEx, please see the notice at: http://www.energy.ca.gov/2014_energypolicy/documents/#06252014

Computer Log on with a Direct Phone Number:
– Please go to https://energy.webex.com/ec/ and enter the unique meeting number 924 482 257
– When prompted, enter your information and the following meeting password meeting@9 . (Please note that password is case sensitive.)

For More Information:
http://www.energy.ca.gov/2014_energypolicy/documents/index.html#06252014

Agenda  (Go here for the detailed timed agenda.)
This workshop will address current and anticipated trends in petroleum, crude oil distribution logistics, safety requirements and oversight of crude oil by rail transport, and California policies and activities designed to diversify the mix of future transportation fuels. Staff will facilitate discussions on these topics from industry, government agency, and academic perspectives. Participants will be asked to present information and insights on crude oil trends, the need for changes in government oversight responsibilities and regulatory requirements, and the potential options to reduce the need for petroleum as a transportation fuel.

Background

California obtains crude oil from foreign imports, Alaska, and in-state production. Since 2003, crude oil production from Alaska and California has declined while foreign imports have increased to over 50 percent of the state’s supply. Imports from Alaska and foreign sources are delivered to California by marine vessel. However, California’s crude oil sources appear to be shifting to new supplies, spurred by hydraulic fracturing and other extraction technology advances in North Dakota and other states and development of Canadian oil sands. Shipments of these new resources by rail or by barge from the state of Washington are increasing and could represent over 25 percent of California’s crude oil within a few years, depending on the economics of the extraction, transport, and development and approval of receiving/storage terminals in California. The development of the Monterey shale formation in California, while offering significant production potential, has not progressed primarily because the complex geology of the formation makes it expensive to develop.

California’s gasoline demand is expected to decline from 14.6 billion gallons in 2013 to 12.7 billion gallons in 2020 as the result of improvements in corporate average fuel economy standards (CAFE), requiring automakers to achieve 35.5 miles per gallon in 2016 and 54.5 mpg by 2025. Diesel and jet fuel are expected to grow at a rate of 1 – 2 percent per year, spurred by increased freight movement and other factors. California’s net crude oil demand to produce refined petroleum products is expected to decline in this period. California refineries also produce petroleum products for Arizona and Nevada and may be exporting the refined products to international markets.

Federal and California laws, regulations, and incentives designed to reduce greenhouse gas emissions, reduce transportation demand, and increase the development and use of alternative fuels as a petroleum displacement have begun to show modest changes in the transportation energy market and could be poised for significant growth and displacement of petroleum fuels. The federal government provides the primary oversight of rail safety with additional roles by state agencies. California local governments review the environmental impacts of modifications and new construction of crude oil storage and delivery terminals under the California Environmental Quality Act regulations.

Public Comment

Oral Comments. The IEPR Lead Commissioner will accept oral comments during the

workshop. Comments may be limited to three minutes per speaker. Any comments will

become part of the public record in this proceeding.

Written Comments. Written comments should be submitted to the Dockets Unit by

July 10, 2014. Written comments will also be accepted at the workshop, however, the

Energy Commission may not have time to review them before the conclusion of the

workshop. All written comments will become part of the public record of this proceeding.

Additionally, written comments may be posted to the Energy Commission’s website for

this proceeding.

The Energy Commission encourages comments by e-mail. Please include your name

and any organization name. Comments should be in a downloadable, searchable format

such as Microsoft® Word (.doc) or Adobe® Acrobat® (.pdf). Please include the docket

number 14-IEP-1F and indicate Trends in Sources of Crude Oil in the subject line. Send

comments to docket@energy.ca.gov and copy the technical lead staff at

Gordon.Schremp@energy.ca.gov.

If you prefer, you may send a paper copy of your comments to:

California Energy Commission

Dockets Office, MS-4

Re: Docket No. 14-IEP-1F

1516 Ninth Street

Sacramento, CA 95814-5512

Public Adviser and Other Commission Contacts

The Energy Commission’s Public Adviser’s Office provides the public assistance in

participating in Energy Commission proceedings. If you want information on how to

participate in this forum, please contact Alana Mathews, Public Advisor, at

(916) 654-4489 or toll free at (800) 822-6228, or by e-mail at

PublicAdviser@energy.ca.gov.

If you have a disability and require assistance to participate, please contact Lou Quiroz

at LQuiroz@energy.ca.gov or (916) 654-5146 at least five days in advance.

Media inquiries should be sent to the Media and Public Communications Office at

(916) 654-4989, or by e-mail at mediaoffice@energy.ca.gov.

If you have questions on the technical subject matter of this meeting, please call Gordon

Schremp, Senior Fuels Specialist, at (916) 654-4887 or e-mail at

Gordon.Schremp@energy.ca.gov. For general questions regarding the IEPR

proceeding, please contact Lynette Green, IEPR project manager, at (916) 653-2728 or

by e-mail at Lynette.Green@energy.ca.gov.

The service list for the 2014 IEPR Update is handled electronically. Notices and

documents for this proceeding are posted to the Energy Commission website at

www.energy.ca.gov/2014_energypolicy/index.html. When new information is posted, an

e-mail will be sent to those on the energy policy e-mail list server. We encourage those

who are interested in receiving these notices to sign up for the list server through the

website at www.energy.ca.gov/listservers/index.html.

Remote Attendance

You may participate in this meeting through WebEx, the Energy Commission’s online

meeting service. Presentations will appear on your computer screen, and you may listen

to the audio via your computer or telephone. Please be aware that the meeting may be

recorded.

To join a meeting:

VIA COMPUTER: Go to

https://energy.webex.com/energy/onstage/g.php?d=924482257&t=a and enter the

unique meeting number: 924 482 257. When prompted, enter your information and the

following meeting password: meeting@9

The “Join Conference” menu will offer you a choice of audio connections:

1. To call into the meeting: Select “I will call in” and follow the on-screen directions.

2. International Attendees: Click on the “Global call-in number” link.

3. To have WebEx call you: Enter your phone number and click “Call Me.”

4. To listen over the computer: If you have a broadband connection, and a headset

or a computer microphone and speakers, you may use VolP (Internet audio) by

going to the Audio menu, clicking on “Use Computer Headset,” then “Call Using

Computer.”

VIA TELEPHONE ONLY (no visual presentation): Call 1-866-469-3239 (toll-free in the

U.S. and Canada). When prompted, enter the unique meeting number: 924 482 257.

International callers may select their number from

https://energy.webex.com/energy/globalcallin.php.

VIA MOBILE ACCESS: Access to WebEx meetings is now available from your mobile

device. To download an app, go to www.webex.com/overview/mobile-meetings.html.

If you have difficulty joining the meeting, please call the WebEx Technical Support

number at 1-866-229-3239

Availability of Documents

Documents, agenda and presentations for this meeting will be available online at

www.energy.ca.gov/2014_energypolicy/documents/index.html by June 20.

Date: June 16, 2014

JANEA A. SCOTT

Lead Commissioner

2014 Integrated Energy Policy Report Update

Mail Lists: energy policy, transportation, altfuels