Category Archives: California Regulation

California Senate committee approves fracking moratorium – oil lobbyists spending millions

Repost from Daily Kos
[This from Judi Sullivan of Benicia, who attended the Appropriations Committee meeting: “This is a big victory.  The entire Senate vote is scheduled for this Tuesday, May 27.   All the senator’s offices, those listed HERE and the others not mentioned, along with the governor’s office have been contacted by phone.  According to the people I spoke with, they have been deluged with calls asking for support of This Bill.  Talked to real people each  time.  In addition to asking for a “yes” vote on sb 1132,  they were were open to hearing detailed comments about fracking concerns backed by research revealed in prior testimonies. All was respectfully received, even by those who represent  the fracking districts.  The more of us who voice our objections re: the  negative impacts of fracking to our government officials, the stronger our opposition can be felt.  The public’s grassroots effort is definitely gaining power. Hurray!”]

Senate Appropriations Committee Approves Fracking Moratorium Bill

By Dan Bacher  |  May 23, 2014

In spite of the millions spent by Big Oil on lobbying in Sacramento every year, the California Senate Appropriations Committee today voted 4 to 2 to approve a bill, SB 1132, to place a moratorium on fracking (hydraulic fracturing) in the state.

SB 1132, authored by Senators Holly Mitchell and Mark Leno, now moves to a vote on the Senate floor. Senators Gaines and Walters voted against the bill while Senators De León, Padilla, Hill and Steinberg voted to advance the bill to the floor.

The bill moved forward the same week that the U.S. Energy Administration reduced its previous estimate of recoverable oil in California by 96 percent.

“The cost-benefit analysis of fracking in California has just changed drastically,” said Senator Mitchell in a statement. “The costs to people, homes and the environment remain unacceptably high, but we now also know that the projected economic benefits are only a small fraction of what the oil industry has been touting.”

“The latest report from the U.S. Energy Information Administration reduces prior estimates of oil potential by 96%. Why put so many at risk for so little?” Mitchell asked.

“There’s no ocean of black gold that fracking is going to release tomorrow, leaving California awash in profits and jobs. We have the time, the need and, in SB 1132, the mandate to halt fracking while we determine if and how it can be done safely in California,” she said.(http://sd26.senate.ca.gov/…)

David Turnbull of Oil Change International pointed out that those who voted against the legislation received big campaign contributions from Big Oil. (http://priceofoil.org/…)

“As usual, those voting against safeguarding the public interest and in favor of Big Oil’s wishes have received far more in Big Oil political contributions than those voting in favor of climate and community safety and against dangerous oil extraction processes,” said Turnbull.

The numbers, according to the organization’s Dirty Energy Money database, tell the story:

On average, Senators voting against the moratorium have received nearly 3 times as much in Big Oil contributions than those voting for.

The two Senators voting against the moratorium have received over $110k in Big Oil money combined (Sen. Walters = $82k, Sen. Gaines = $29k).

“As the vote comes to the California Senate floor in the coming days, you can be sure the oil industry will put the pressure on. The question is whether the members of the California Senate will listen to the people, who recent polls show resoundingly support a moratorium on fracking, or the Big Oil benefactors lining their campaign coffer,” said Turnbull.

“And, of course, Governor Brown could also step in any time now and enact a ban on fracking in the State…but so far he appears to be listening to his Big Oil friends as well,” noted Turnbull.

A previous analysis by Oil Change International showed that the 2 Senators voting against the passage of the fracking moratorium by the Senate Environmental Quality Committee in April received 16 times as much in fossil fuel contributions, on average, than those Senators in support of the bill.

The Western States Petroleum Association (WSPA) that is leading the campaign to frack California spends more money every year on lobbying in Sacramento than any other corporate group. Catherine Reheis-Boyd, the former Chair of the Marine Life Protection Act (MLPA) Blue Ribbon Task Force to create alleged “marine protected areas” in Southern California, is the President of the Association.

In her latest statement on the Western States Petroleum Association blog, Reheis-Boyd claims, “The U.S. Energy Information Administration’s (EIA), revision does not change the estimate of the amount of oil present. It only changes their estimate of how much of that oil can be produced given the current state of technology in California.” (http://www.wspa.org/…)

She used the new estimate as an opportunity to promote new “research and exploration,” which you can bet would be subsidized by taxpayers’ dollars.

“This change in the estimate of recoverable oil indicates the need to continue to invest in research and exploration in this area to adapt technologies that have proved successful at producing oil from shale resources elsewhere to California’s unique geology,” she claimed. “We have a great deal of confidence that the skill, experience and innovative spirit possessed by the men and women of the petroleum industry will ultimately solve this puzzle and improve production rates from the Monterey Shale.”

Reheis-Boyd’s organization spent a total of $5,331,493 in 2009, $4,013,813 in 2010, $4,273,664 in 2011, $5,698,917 in 2012 and $4,670,010 in 2013 on lobbying at the State Capitol – and spent $1,456,785 in just the first 3 months of 2014. (http://www.truth-out.org/…) You can bet that a good chunk of this money spent so far this year was spent on trying to stop Senate Bill 1132.

A report released on April 1, 2014 by the ACCE Institute and Common Cause also reveals that Big Oil’s combined spending on lobbying and political campaigns in Sacramento amounts to a stunning $266.9 million over the past 15 years. (http://www.counterpunch.org/…)

However, the oil industry’s money, power and enormous influence over state officials doesn’t change the fact that the Energy Information Administration’s estimate for technically recoverable oil in the Monterey Shale has been reduced from 13.7 billion barrels of oil to just 0.6 billion barrels of oil.

As Turnbull said so well, “With reports showing the bonanza that Big Oil wants Californians believe is largely a fantasy, and two-thirds of Californians supporting a stop to fracking in the state, Big Oil is on its heels. It’s time the people’s voice was heard over rustle of Big Oil dollar.”

Senate Bill 1132 Background:

SB 1132 requires the California Natural Resources Agency to facilitate an “independent scientific study” on well stimulation treatments (fracking and acidizing) and their hazards and risks to natural resources and public, occupational, and environmental health and safety by January 1, 2015.

The legislation would also:

      • require the Division of Oil, Gas, and Geothermal Resources (DOGGR) to adopt rules and regulations for well stimulation treatments by January 1, 2015, in consultation with the Department of Toxic Substances Control (DTSC), the California Air Resources Board (CARB), the State Water Resources Control Board (SWRCB), CalRecycle, and any local air and regional water quality control boards;
      • require DOGGR to complete a statewide environmental impact report (EIR) by July 1, 2015 ;
      • allow operators to continue well stimulation practices while DOGGR completes its regulations, providing that the well owner complies with interim requirements.

If fracking is not banned, groundwater and surface supplies will be polluted with numerous toxic chemicals, including methanol, benzene, naphthalene and trimethylbenzene.  According to the Center for Biological Diversity, evidence is mounting throughout the country that these chemicals are making their way into aquifers and drinking water.

Human health, endangered Central Valley salmon, steelhead and other fish populations and many wildlife species will be imperiled by increasing water pollution in California, as well as by the increasing use of water for fracking that is badly needed for people, farms and fish during the current drought.

Letter: Moratorium on fracking in California

Repost from The Los Angeles Times, PolitiCal
[Editor: Note that Benicians For a Safe and Healthy Community is among the more than 100 environmental and community groups signing on to this letter.  – RS]

Groups pressure Legislature to back California fracking moratorium

Patrick McGreevy  |  May 22, 2014

More than 100 environmental and community groups Thursday sent a letter to the California Legislature urging lawmakers to support a moratorium on the oil-production method of hydraulic fracturing, or fracking, in California.

Led by the national progressive group CREDO, the coalition is supporting SB 1132 by state Sen. Holly Mitchell (D-Los Angeles), which is pending in the Senate and would halt fracking to allow more studies to determine whether the method poses health hazards.

“This bill presents lawmakers with a clear-cut choice that will show whether they are on the side of oil industry lobbyists or Californians concerned about public health and safety,” said Zack Malitz, the campaign manager for CREDO. “It’s clear from the broad support across California that residents know a moratorium is the right path to protect our communities from the well-documented dangers of fracking.”

Groups that signed on to the letter include the Burbank Green Alliance, the California League of United Latin  American  Citizens, the California  League  of  Conservation  Voters, the Center  for  Biological  Diversity, and the Center on Race, Poverty & the Environment.

“Given  these  techniques’  long-term  consequence  and  known  harmful  impacts  elsewhere,  it  is  entirely  appropriate  for  California  to  impose  a  moratorium  on  fracking,  acidizing  and  all  well stimulation  while  the  state  reviews  the  current  and  future  effects  here,” the letter said.

Meanwhile, a new statewide poll found that 68% of Californians support a fracking moratorium until the practice can be studied more, and that a majority would be more likely to vote for a legislator who voted in favor of such a measure.

“This poll shows that most Californians have heard about fracking, and they don’t want it to create the same problems here that it has caused in other states,” said Kathryn Phillips, director of Sierra Club California. The group commissioned the poll from the firm Fairbank, Maslin, Maullin, Metz & Associates.

Two California Senate bills: Oil and Gas Well Stimulation Bill (anti-fracking/acidizing), and Oil Spill Prevention Response

Exclusive to The Benicia Independent
[Editor: Thanks to Benician Judi Sullivan for her monitoring of California Senate hearings and for this report.   – RS]

Report on Anti-Fracking Bill in California Senate

By Judi Sullivan  |  May 19, 2014

SB 1132, The Oil and Gas Well Stimulation Bill (Anti fracking/acidizing), was put before it’s third committee today, the Appropriations Committee, and placed in the Suspense File.  This is where all bills may be held if they are considered to have an annual cost of more than $150,000. Because of this stipulation, there was no official vote on the Bill.  It is now under fiscal analysis to be reconsidered on Friday during the Suspense File Hearing, during which time no testimony is presented by the bill’s author nor by witnesses. A vote will then be taken and if the bill passes, it will go in front of the entire Senate.

The committee room, which was much larger than previous ones used for the first two hearings, was once again a packed house with supporters of the bill from all over the state.  One woman who spoke said she took a nine hour Amtrak Train from L.A. just to be there to  testify against fracking.  ALL of the public testimonies given were in support of the bill. The Western States Petroleum Association, (WSPA), which is the biggest, wealthiest and most powerful corporate lobby in Sacramento, was the official testifying opponent.

In the course of conversation at the hearing,  it was revealed that Conservative Republican Senator Ted Gaines, who appears to be against SB 1132,  may become a new supporter of “No Crude by Rail.”  He lives in Roseville, and has recently become seriously concerned about the  transportation risks of that commodity.  Roseville is a major hub of Crude by Rail’s route.

Senator Pavley, (supported by Senators Wolk and Lara) presented SB 1319, promoting “Oil Spill Prevention Response,” seeking regulations for Marine, Pipeline and Crude by Rail Transports to be under one regulation which would include having local governments informed of  what is being transported through their areas at any given time.

According to her findings, Governor Brown is forming a new staff of 38 people to deal with the concerns of this Bill.

After the hearing sessions, some of the anti-fracking supporters rallied with posters and chanting in front of The California History Museum on “O” St. where Governor Brown was speaking at a Conference concerning Climate Change.

——  Later ——

Just got a request suggesting calling  these Senators to try and gain their support, asking them to vote yes on SB 1132:

Senator Kevin De Leon (916) 651-4022
Senator Ricardo Lara (916) 651-4033
Senator Ed Hernandez (916) 651-4024
Senator Cathleen Galliano (916) 651-4005
Senator Ben Hueso (916) 651-4040
Senator Lou Correa (916) 651-4034
Senator Carol Liu (916) 651-4025
Senator Richard Roth (916) 651-4031
Senator Norma Torres (916-652-4032

If SB 1132 passes the Senate vote,  the four committee hearing process will start all over again in the Assembly.  If it passes there,  then Governor Brown will have his vote.  I  have talked with Senator  Mitchell’s and Senator Leno’s staff, the main co-sponsors of this bill, and both recommend calling Governor Brown’s office right now to demonstrate public support  on this crucial issue. Writing to him is also an option.

Brown has the power to pass or veto the bill.  I feel it would be wise to call him.  His phone number is (916) 445-2841.  As we know, he has received substantial donations from Big Oil.

Maine emergency officials: new fed rules don’t apply to some crude oil trains

Repost from The Bangor Daily News
[Quote: “Railroads that transport crude or refined oil into the state are required to pay a monthly 3-cent per barrel fee into the state oil spill cleanup fund.”     Editor: Seems to me that California – and each county along the rails, and the City of Benicia and other refinery towns – should seriously consider adopting such a fee.  – RS]

New US rail safety rules will not apply to all trains carrying explosive

By Marina Villeneuve, Maine Center for Public Interest Reporting
May 15, 2014

AUGUSTA, Maine — Just as the state has revealed that crude oil shipments by rail have resumed along the state’s rail lines, Maine emergency officials say new federal rules about shipping hazardous materials such as crude by rail don’t go far enough.

For example, the new rules do not apply to trains carrying less than a million gallons of crude or other material, yet such trains can cause explosions such as the recent one in Lynchburg, Virginia.

On Wednesday, officials at the Department of Environmental Protection said they have official reports of trains carrying crude resuming in March, after a four-month lull while crude was shipped by other means, mostly by sea or pipeline.

According to last Wednesday’s federal order on rail safety, carriers must tell state emergency response commissions the routes on which they will transport at least a million gallons of crude oil from the Bakken shale region of North Dakota. Carriers also must estimate how many trains will travel, per week, through each county.

“It doesn’t help us with a mixed train, if it’s a train with other hazardous materials on it or if there’s a train that doesn’t meet that million gallon threshold of 35 cars,” said Bruce Fitzgerald, Maine Emergency Management Agency director. He called the order “a start.”

Each state has such commissions as part of the 1986 Emergency Planning and Community Right-To-Know Act, which requires federal, state and local emergency-planning and industry reports on how hazardous chemicals are stored, used and released. Fitzgerald heads Maine’s commission, which began in 1987.

Since a crude-oil train disaster left 47 people dead in a Quebec village last July, trains carrying the crude oil have derailed and ignited in Virginia, North Dakota, Alabama and in the Canadian provinces of Alberta and New Brunswick.

The order, said Fitzgerald and other officials charged with coordinating emergency response in Maine, fails to answer practical questions about railroad accidents involving hazardous materials, such as who will provide the needed equipment and manpower.

Though it encourages railroads to invest in training and resources for first responders such as firefighters, “there’s no requirement there,” said Mark Hyland, the emergency agency’s director of operations and response.

Robert Gardner, technological hazards coordinator for MEMA, said that by not addressing such issues, this burden remains with state, county and local officials. Safety officials’ best guess at what types of, and how much, hazardous materials are coming through Maine is reading the placard on a stopped train that indicates what it’s carrying.

“If a facility stores a certain amount of chemicals … we’d find out on annual reports if it’s in Maine,” said Gardner. “If a rail car or tractor-trailer is going to Quebec from Massachusetts or from New Brunswick to New York, and they’re not stopping in Maine, we have no idea what those products are. Do they add to the problems that exist already? Or are they different chemicals that we don’t normally see in Maine?”

Gardner noted that when a train operated by Canadian National Railway derailed 16 miles from Maine’s border in Plaster Rock, New Brunswick, this January, five tank cars carrying crude oil and four carrying propane derailed and generated a four-day long fire and huge clouds of orange smoke.

“Trains carrying a smaller quantity wouldn’t fall under this executive order,” he said. A tank car typically carries 30,000 gallons of crude oil.

In March, Pan Am Railways carried 15,545 barrels — or 652,890 gallons — of crude oil into Maine, according to Department of Environmental Protection records. This is down from 385,566 barrels — or 16.2 million gallons — last March, and 70,484 barrels — 3 million gallons — reported last October, the last time Pan Am Railways reported carrying crude into Maine.

Railroads that transport crude or refined oil into the state are required to pay a monthly 3-cent per barrel fee into the state oil spill cleanup fund.

In March 2013, 13 tank cars operated by Pan Am Railways derailed and spilled about one gallon of crude oil near the Penobscot River in Mattawamkeag.

The federal emergency order states that “a pattern of releases and fires involving petroleum crude oil shipments originating from the Bakken and being transported by rail constitute an imminent hazard” as defined under federal code.

Chemicals that come through Maine include sulfuric acid and nitrous acid, according to Gardner.

Hyland said more notification of hazardous materials shipped by rail and better communications with railroads would help Maine emergency response officials better prepare for accidents.

“The communications part is something we’ve had a hard time with,” he said.

On Feb. 7, Fitzgerald sent a letter to Pan Am Railways asking for a list of the top 25 most hazardous materials it shipped through Maine in 2013.

In an email to the Maine Center for Public Interest Reporting, Fitzgerald said he spoke with a Pan Am Railways representative last week.

“They are reluctant to share information with us due to Freedom of Access laws in Maine,” said Fitzgerald, forwarding an August 2013 letter from the Department of Environmental Protection to Pan Am Railways. The letter addresses the company’s request to keep its oil transport records confidential for “security and competition” concerns.

“Our next step is to meet with the railroad in person to discuss our options for how they will share information with MEMA so that we can inform first responders,” said Fitzgerald, who said he hopes to have the meeting scheduled as soon as possible.

Cynthia Scarano, executive vice president at Pan Am Railways — one of the two railroads that have transported crude oil into Maine — did not respond to a request for comment.

Last August, the Association of American Railroads encouraged railroads to provide such information to emergency response agencies upon request, with the condition that officials do not share the list with the public.

Hyland said two emergency drills held in Lincoln this month and in Aroostook County last fall, where railroads helped supply tank cars and locomotives, are examples of “the kind of collaboration we want, training and exercises.”

Pan Am Railways helped provide equipment at the drill in Lincoln, and New Brunswick Southern Railway, Eastern Maine Railway and Maine Northern Railway took part in the Aroostook County drill.

“We want to continue to work with the railroad and be collaborative with them, instead of it being another regulation or a requirement that’s put on them,” said Fitzgerald, adding that if not for the federal government’s order, “we wouldn’t be getting this information.”

The Department of Transportation also issued an advisory urging oil shippers to use tank cars with the “highest level of integrity available” to transport Bakken crude.

MEMA officials said they support phasing out the tank cars most often used to transport crude oil. The cars, known as DOT-111s, have faced criticism since the 1990s for being too prone to puncture.

Peter Nielsen, Maine Municipal Association president, has come out strongly against the federal advisory, saying it sidesteps “20 years of investigations and fact-finding about the rail cars.

“We can follow our Canadian counterparts in banning unsafe DOT-111 tank cars and others known for years to be unsafe in crash situations,” Nielsen said in a press release. “That we lag our Canadian counterparts is embarrassing. Previous [U.S. and Canadian] efforts were made to move forward in concert in improving rail safety, but the U.S.’ weak-kneed measures to date will allow unsafe, rolling stock to remain in service.”

Nielsen wrote to the White House on Monday urging the ban of unsafe tank cars.

Retrofitting the existing 300,000 DOT-111 tank cars in use could cost up to $1 billion and take years, according to industry estimates.

“It’s time for a thorough review of the U.S. tank car fleet that moves flammable liquids, particularly considering the recent increase in crude oil traffic,” Edward Hamberger, the Association of American Railroads president and CEO said last November, calling for the shippers and rolling-stock leasing companies who own the tank cars to phase out and retrofit their fleets.

Irving Oil Ltd. announced in February that by the end of last month, it would convert its fleet to meet U.S. federal standards for tank cars built after October of 2011.

Since last fall, lawmakers and safety advocates have been urging the federal agency responsible for setting such standards to pass new and higher standards. On April 30, the Pipeline and Hazardous Materials Safety Administration filed a notice of proposed rule-making, the next step in the often drawn-out process.

This story is part of the Center’s series “Lessons From Lac-Megantic.” The Maine Center for Public Interest Reporting is a nonpartisan, nonprofit news service based in Hallowell. Email: pinetreewatchdog@gmail.com. Web: pinetreewatchdog.org.