Tag Archives: Valero Benicia Refinery

Investor journal takes notice: Valero DEIR cites significant & unavoidable increase in emissions

Repost from Market News Call
[Editor: Market News call is “a daily market news monitor providing insight, briefs earnings and market news.”  I find it interesting and somewhat encouraging that investors are highly interested in Valero’s Crude By Rail Draft EIR.  – RS]

Just In: Valero Energy Corporation (NYSE:VLO)

By Michael Aragon • June 25, 2014

Valero Energy Corporation(NYSE:VLO)’s plan to unload as many as 70,000 barrels of oil a day from trains at its Benicia refinery will increase emissions across California in a “significant and unavoidable” way, a city report shows.

Valero has applied to build a rail-offloading rack at the plant northeast of San Francisco that would take oil from as many as 100 tanker cars a day. The San Antonio-based company delayed the project’s completion by a year to early 2015 as it awaits approval from the city.

“Project-related trains would generate locomotive emissions in the Bay Area Basin, the Sacramento Basin, and other locations in North America,” the city of Benicia said in an environmental assessment posted on its website today. “The city has no jurisdiction to impose any emission controls on the tanker car locomotives; therefore, there is no feasible mitigation available to reduce this significant impact to a less-than-significant level.”

Valero is proposing the rail spur as record volumes of oil are extracted from North American shale formations that the U.S. West Coast has little pipeline access to. California’s refiners are already bringing in the biggest-ever volumes of oil by rail as they seek to displace shrinking supplies of crude within the state and from Alaska.

Three Benicia Workshops on How to Read and Respond to a Draft EIR

BENICIA NEWS

In the next few days, there will be THREE opportunities to learn more about how to read and respond to a Draft EIR (Environmental Impact Report).

  1. Workshop on How to Respond to Valero’s Draft Environmental Impact Report  (DEIR), This Saturday, June 28, 1-4pm, Benicia Public Library –  Sponsored by Benicians For a Safe and Healthy Community.  Learn about the California Environmental Quality Act (CEQA), and the procedures governing review of Valero’s proposal, including how you can comment on the Draft Environmental Impact Report (DEIR).  Instruction, brainstorming, and organizing our responses.  Refreshments included!  Bring a friend.
  2. Next Monday, 6/30, 5:30pm, Ironworkers Hall, 3120 Bayshore Road, Benicia, sponsored by Valero.
  3. Also on Monday, 6/30, 7pm, City Hall Council Chambers, 250 East L Street, Benicia, sponsored by City of Benicia staff at the request of the Benicia Planning Commission.

NOTE: If you can’t make one of these workshops, you are still encouraged to make your views known.  Commenting on the DEIR can be as hard or easy as you make it.  If you have something to say to the City of Benicia now, please send an email today.   Send your comments to:

    • Amy Million, Principal Planner, Community Development Department, by email: amillion@ci.benicia.ca.usAND
    • Brad Kilger, City Manager, by email: bkilger@ci.benicia.ca.us
      Amy and Brad may also be contacted by delivery to 250 East L Street, Benicia, CA 94510, or by Fax: (707) 747-1637.
    • Benicia Planning Commissioners, send via email to Amy Million, requesting her to forward on to Planning Commissioners.

California lawmakers assail Feds for timid handling of rail oil shipments

Repost from The Ames Tribune, Ames, Iowa
[Editor:  The 3-hour California Joint Legislative Oversight Hearing on Transport of California Crude Oil by Rail  can be viewed here.  – RS]

State lawmakers assail Feds for timid handling of rail oil shipments

By Timm Herdt, Ventura County Star, June 20, 2014

SACRAMENTO — State lawmakers, concerned about the safety risks associated with a sixfold increase in crude oil shipments by rail into California, hoped on Thursday to get an update on what the federal government is doing.

But a regional official of the Federal Railroad Administration who had been scheduled to testify before a joint committee hearing regarding crude oil rail transport was a last-minute no-show.

Sen. Fran Pavley, D-Agoura Hills, said she received a call on the eve of the hearing from a high-level federal administrator in Washington, D.C., informing her that no one from the agency would testify.

It will take coordination between the state and federal governments to protect California from a spike in accidents that has led to fiery derailments and oil spills elsewhere, Pavley noted.

“We don’t have that cooperation yet,” she said. “There are a lot of things they can do. They need to step up to the plate.”

Other lawmakers — who are mostly powerless to act because they are pre-empted by federal law — shared her view.

A point of contention is the belief of many state and local officials that information about upcoming shipments of carloads of highly flammable crude oil should be publicly available. But railroads, citing national security concerns, have released that information only to emergency-response agencies, which must agree not to publicly disclose it.

“We’ve seen what happens when they explode,” said Sen. Hannah-Beth Jackson, D-Santa Barbara, chairwoman of the Joint Legislative Committee on Emergency Management. “It sure seems like in California our hands are tied. There’s so little we can do.”

Jackson asserted that security concerns should dictate public disclosure.

“National security means the security of people who live in the nation,” she said.

Under pressure from state officials in Montana, it appears federal officials may have decided to relent on that issue.

The Associated Press reported Wednesday that the U.S. Department of Transportation has ordered railroads to give state officials specifics on oil-train routes, and Montana officials intend to publicly release that information next week.

Rail-oil shipments have skyrocketed across the United States and Canada in recent months because there are no pipelines from which to ship oil extracted from the Bakken shale fields in North Dakota.

In the last year, derailments have resulted in fiery explosions in three Canadian provinces and in Virginia, and there have been more rail accidents involving oil spills than over the previous 30 years combined.

In Northern California, the issue has become front-page news in recent weeks, as city officials in the East San Francisco Bay city of Benicia are considering a permit application from a Valero oil refinery that would enable the refinery to accept two, 50-car trains every day.

If that refinery expansion is approved, the trains would wind through a narrow mountain pass in the Feather River Valley, and then pass through the populated corridor from Sacramento to Benicia, passing within a quarter mile of 27 schools.

Similar scenarios could unfold elsewhere around the state, testified Gordon Schremp of the state Energy Commission. He said six refinery projects have been proposed to accommodate rail shipments — two in Bakersfield, and one each in Benicia, Pittsburg, Santa Maria and the Port of Stockton.

As those projects come on line, Schremp said the commission expects the percentage of oil coming into California by rail to increase from 1 percent today to 23 percent by 2016. Most imported oil now arrives in the state either via marine tankers or by pipeline from Alaska.

A report issued last week by the state’s Interagency Rail Safety Task Force lists thousands of miles of track it identifies as “areas of concern.”

The new state budget that Gov. Jerry Brown is expected to sign Friday includes a 6.5 cent per-barrel fee on refineries to fund an expansion of the state Office of Oil Spills and Prevention and also hire new rail, bridge and railcar inspectors at the state Public Utilities Commission.

State lawmakers, who are pre-empted from taking such steps as requiring trains to take specific routes and imposing state-based safety standards on tanker cars, agreed their primary focus needs to be on preparing emergency agencies to respond to rail accidents involving toxic materials such as crude oil.

“This is an unusually fast-growing development,” said Sen. Lois Wolk, D-Davis. “It’s really important to have emergency procedures in place.”

Benicia DEIR downplays risks in marked contrast to NRDC assessment

Repost from AllGov California

This Is Where Deadly Crude Oil Trains May Be Rolling Through California

By Ken Broder, June 20, 2014
(graphic: Natural Resources Defense Council)

Although this country’s oil boom has been accompanied by an explosion of dangerous crude-carrying trains―literally and figuratively―a much-anticipated environmental impact report (Summary pdf) says the spill threat from Valero Refining Company’s proposal to run 100 tanker cars a day through Roseville and Sacramento to its Benicia refinery is negligible.

The draft EIR, written by Environmental Science Associates of San Francisco for the city of Benicia and released on Tuesday, singled out air pollution, “significant and unavoidable,” as the sole danger among 11 “environmental resource or issue areas.”

The next day, the Natural Resources Defense Council (NRDC) released seven maps detailing the rail routes through the “Crude Oil Train Derailment Risk Zones in California,” which stretches from the Bay Area to the Central/San Joaquin Valley and encompasses 4 million people.

The NRDC’s assessment of risk was markedly different than in the EIR. Noting that “California has seen a dramatic increase of crude by rail, from 45,000 barrels in 2009 to six million barrels in 2013” without any new safety measures or emergency response put in place, the NRDC report said the aging “soda cans on wheels” are not built to handle the particularly volatile crude being fracked out of the ground in America’s rejuvenated oil fields like those in North Dakota, and shipped to refiners.

Tracks would run within half a mile of 135,000 people in Sacramento and 25,000 people in Davis.

The NRDC wants old tanker cars removed from service, lower speeds for trains, rerouting through less-sensitive areas, disclosure of what kind of crude is being carried, more visible emergency preparedness, fees on shippers to pay for emergency response, high-risk designations for oil-trains and more comprehensive risk assessments.

The EIR was a bit more upbeat.

It concluded that oil spills between Roseville and Benicia would occur about once every 111 years. The project would have no impact on agriculture and forestry resources or mineral resources. It would also have less-than-significant impacts on aesthetics, population and housing, public services, recreation and utilities and service systems.

In other words, the assumption is there won’t be anything like the tragic accident in July 2013 in Lac-Mégantic, Quebec, where 72 tank cars of crude oil exploded, killing 47 people and destroying much of the town’s core. As Russell Gold and Betsy Morris explained in the Wall Street Journal, “Each tank car of crude holds the energy equivalent of 2 million sticks of dynamite or the fuel in a wide body jetliner.”

The Sacramento Bee said the risk assessment’s author, Christopher Barken, previously worked for the Association of American Railroads, the industry’s leading advocacy group in Washington, and does research supported by the railroad association.

Barken’s website at the University of Illinois, where he is a professor and executive director of the Railroad Engineering Program, says, “Our strong relationship with the rail industry means our research has an impact.”

In describing the twice-a-day snaking of 50-car trains through heavily populated areas, the report offered far more information than has generally been made available by rail companies to state and local governments, as well as disaster first-responders. But the EIR did acknowledge Benicia would not reveal seven Valero “trade secrets” (pdf) at the oil company’s request.

That “confidential business information” included the specific crude Valero would be shipping in by rail and the properties of crude it refined now or in the past. That lack of information would be complicating factors in accurately assessing pollution and risk.

California, like states and localities across the nation, are scrambling just to get a handle on how much crude-by-rail is coursing through their jurisdictions, much less assessing what regulations and safety measures need to be put in place. They are working blind.

A study by Politico analyzed 400 oil-train incidents nationally since 1971 and found a dramatic escalation the past five years. Property damage from 70 accidents through mid-May this year is already $10 million, triple the year before.

“It has become abundantly clear that there are a whole slew of freight rail safety measures that, while for many years have been moving through the gears of bureaucracy, must now be approved and implemented in haste,” Senator Chuck Schumer (D-New York) said.

They must. Because the trains are already rolling and Valero would like to get its California project finished by the end of the year. America is waiting.