Category Archives: Benicia City Council

Valero Crude By Rail: What’s next in Benicia?

By Roger Straw, February 19, 2016

2015-06-21 RDS Guerneville indoors (edited, soft, noexit whiteout 350px bdr)Now that the Benicia Planning Commission has rejected Valero’s oil train proposal, most observers expect that Valero will appeal the decision to the City Council.  Valero has until February 29 to appeal.

Speculation is ripe in Benicia and beyond as to the probable outcome of a City Council appeal.  The Council is made up of only 5 members.  Longtime Benicians will offer best guesses as to a likely vote, but no one knows.

City Council members’ votes will come in the context of Planning Commission hearings in which those who spoke out thoughtfully and passionately against Valero’s project far outnumbered Valero supporters.  A unanimous and incredibly popular Planning Commission vote has brought out a great number of expressions of appreciation.  Thanks and congratulations have been pouring in to local opponents of the project and to the Commissioners themselves.  Of course, Council members are in no way bound to honor local opinion, but …

More context: if Valero appeals, the Council will consider the appeal in an election year. Two Council members and the Mayor are up for reelection, and all have announced they will run.  Odds are it will be pretty hard to run a successful campaign in Benicia if you have voted in favor of Valero’s dangerous and dirty crude oil trains.

A few have speculated that Valero might prefer to NOT appeal the Planning Commission decision.  Valero’s strategy might be to remove the controversial issue from electoral politics, and hope for a more favorable City Council election outcome in November that would seat a pro-Valero Council.  Valero could then make a new run at the Planning Commission in 2017.  This would of course require a whole new EIR costing Valero a lot of money.  But other factors, including the low price of oil in current markets and the surging regional and national opposition to crude by rail, could swing Valero in this direction.

We should know by February 29.  Meanwhile …

Many have raised questions about the City’s procedures if/when Valero appeals the decision to the City Council.

On Feb. 14, I wrote to Benicia Principle Planner Amy Million, City Clerk Lisa Wolfe and Planning Commission Chair Don Dean, asking the following questions. (Ms. Million’s Feb. 17 answers follow in italics.)

  1. During the CEQA review, you carefully logged our letters for the public record. Anticipating that Valero will appeal, residents will continue to be on alert, and will want to communicate with Council members. Should letters on the issue still be sent to you? Or maybe to the City Clerk?  Million: Letters regarding the project should still be sent to me for inclusion in the project file, etc.
  2. The vote on the FEIR was to NOT certify, but the Commission avoided using the language of remanding the document for further study and recirculation. Is the CEQA process done now, or does it continue – for the public record – during the preparation of findings, and after that, during a Council appeal? Million: If the Planning Commission decision is appealed to City Council, the Council will consider both the denial of the use permit and the decision to not certify the EIR based on the deficiencies identified by the Commission.
  3. Will you or the City Clerk continue to send notices on the process to those of us who signed up for email notification? I’d like to see the Commission findings as soon as they are finalized, and I would assume they will be posted to the Community Development’s CBR page. But beyond that, will updates be posted timely there, or maybe somewhere else?  Million: The Community Development Department will continue to maintain the CBR webpage. We will provide a copy of the resolution when it is available.

Fairfield Daily Republic: Valero faces deadline for filing appeal to Benicia council

Repost from the Fairfield Daily Republic

Valero faces deadline for filing appeal to Benicia council

By Kevin W. Green, February 17, 2016
The Valero refinery is shown in Benicia. The company has until Feb. 29 to appeal a decision by the Benicia Planning Commission to deny its crude by rail plan. (Steve Reczkowski/Daily Republic file)

FAIRFIELD — Valero faces a Feb. 29 deadline for filing an appeal after having its crude-by-rail project derailed last week by the Benicia Planning Commission.

The commission voted unanimously Thursday to deny the controversial project after holding a public hearing last week that involved meetings over four consecutive days.

Valero has until the end of the month to decide if it wants to appeal the decision to the Benicia City Council, according to Amy Million, principal planner. City staff had recommended approval of the project.

The company has not indicated what it will do.

“We are disappointed that the Planning Commission did not agree with the staff recommendation to certify the project EIR and approve the use permit,” Valero said in a prepared statement after the commission vote.

“At this point we will evaluate our options for appeal with our management,” the statement said.

The project, which was before the city for three years, would have allowed Valero to transport crude oil to its Benicia refinery on two 50-car freight trains daily on Union Pacific tracks that traverse Solano County – passing through Fairfield, Suisun City and Dixon.

The rail shipments would have replaced up to 70,000 barrels per day of crude oil currently transported to the refinery by ship, according to the plan. The Valero refinery would have continued to also receive crude by pipeline, the plan said.

The project sparked plenty of reaction, with much of the concern focused on a need for increased safety and possible mitigation measures.

The city received 20 letters from government agencies with substantive comments on the draft environmental document, 11 letters from organizations, four letters from planning commissioners and 135 letters from individuals, according to the final report. In addition, comments were received orally at three Planning Commission meetings.

Of the approximately 1,800 substantive comments received on the draft environmental document, about 550 discussed hazards, 260 focused on air quality and greenhouse gas emissions, 80 dealt with transportation, 60 discussed biological resources, 50 focused on hydrology and geology, and 40 discussed noise, the report said.

REUTERS: California planners reject Valero oil-by-rail project

Repost from Reuters – Markets

California planners reject Valero oil-by-rail project

By Kristen Hays, Feb 12, 2016 1:29pm EST

Feb 12 Valero Energy Corp’s proposed oil-by-rail project at its northern California refinery was quashed by local planners this week, the first such facility on the U.S. West Coast to end a years-long wait for permits with a rejection.

The Benicia Planning Commission late Thursday unanimously renounced Valero’s request to build the project at the conclusion of four consecutive public hearings dominated by scores of opponents.

Valero first proposed building the rail facility at its 145,000 barrels per day Benicia refinery to offload up to 70,000 bpd of inland U.S. and Canadian heavy crude three years ago.

Several other West Coast rail projects await such decisions by local or state governments. Those include Tesoro Corp’s proposed 360,000 bpd railport in Washington State – the largest in the nation – and Phillips 66’s newly-trimmed 25,000 bpd facility at its Santa Maria refinery in Arroyo Grande, California.

Others gave up with U.S. crude prices down more than 70 percent since mid-2014 on global oversupply. That decline squeezed discounts of inland U.S. crude to global crudes, eroding oil-by-rail’s profitability.

Global Partners LP last month laid off workers and said the company would drop crude handling at its ethanol terminal in Oregon in the fallout of the oil rout.

Valero can ask the Benicia City Council to override planners and approve a permit for the project. A spokeswoman said on Friday that the company would “evaluate our options for appeal.”

The staff for Benicia’s planners recommended approval.

When Valero first proposed the project, oil-by-rail was growing fast and U.S. and Canadian crudes were much cheaper than global crudes, even with added transportation costs of moving via train. Rail also gave West Coast refiners a way to tap those crudes as no major oil pipelines cross the Rocky Mountains.

Not anymore. Shipments originating on top U.S. railroads fell 23 percent by the third quarter last year from the peak of 1.02 million bpd in the third quarter of 2014, according to the American Association of Railroads.

The Tesoro project remains under review by a state council in Washington, which will hold hearings in June and July.

San Obispo County planners are expected to decide on the Phillips 66 project next month, the company said. Staff for those planners recommended rejecting the facility.

FORESTETHICS: Benicia Planning Commission unanimously DENIES Valero oil trains project

From an email by Ethan Buckner, ForestEthics

ForestEthics2From: Ethan Buckner
Sent: Friday, February 12, 2016 2:11 AM
Subject: BREAKING: Benicia Planning Commission unanimously DENIES Valero oil trains project

Extraordinary news tonight from Benicia, CA, where the town’s Planning Commission voted unanimously to deny a land use permit for a proposed oil trains project at the Valero Benicia Refinery.

The decision comes despite immense pressure from Valero, the City Staff & City Attorney who all recommended approval of the project on the basis that federal law preempted the city from even considering rail impacts in making their land use decision.

Tonight’s decision comes at the tail end of four straight nights of public hearings that have lasted past 11pm. Public comment during the hearings reflected the broad-based opposition to the oil trains project fostered by tireless grassroots organizing.

One highlight from tonight’s hearing was a statement from Donald Dean, the Planning Commission’s chair, to the City Attorney & contracted attorney (who happened to have a long history of defending high-profile oil & energy projects). He said, “I understand the preemption issue, on a theoretical legal level, but I can’t understand this on a human level.”

The decision will likely be appealed to the Benicia City Council, who could vote on the project as early as mid-March. Stay tuned for updates, because we have a big fight ahead of us.

Yard signThe lion’s share of credit here goes out to the incredible grassroots leadership of Benicians for a Safe & Healthy Community. These tireless, fierce, and deeply passionate leaders have been fighting Valero tooth and nail for over three years, and have done a tremendous job in a tough industry town to build a campaign to be reckoned with.

Hopefully this momentum carries us forward for a denial at the San Luis Obispo County Planning Commission later this month.

Onward together!
Ethan


Ethan Buckner
Extreme Oil Campaigner
ForestEthics