Valero’s appeal asserts … that: “All of the public discussion about the Project has focused on the impacts of rail operations.” …The assertion that “[a]ll public discussion about the Project has focused on the impacts of rail operations”2 is inaccurate and misleading. Goodman and Rowan (2013) showed that the project could change the refinery’s crude slate.3 Fox (2013) showed this could cause significant impacts from refining operations.4 By 1 July 2013 at least eleven groups, including CBE and the refinery workers union United Steelworkers (Local 675), sought full disclosure and analysis of the changes in refinery oil feedstock and emissions that could result from the project.5 The EIR identified this potential for project-driven changes in its crude slate to cause impacts in the refinery as an “area of controversy.”6 Fox (2014),7 Pless (2014),8 Karras (2014),9 Fox (2016),10 Pless (2016)11 and others12 commented in detail on the EIR’s failure to evaluate these and other refining impacts of the proposed project. Valero is on record acknowledging this focus of independent public comment on refining impacts of the project, as shown by the company’s attempt, at the Planning Commission’s Public Hearing, to rebut comments regarding these refinery impacts of the project,13 in direct contradiction to its position on appeal.
HIGHLIGHTS
• Valero wants to bring trains carrying crude through Sacramento region to Benicia refinery
• Even without a catastrophe, oil trains pose a serious threat to public health and safety
• With clean energy and efficiency, California doesn’t need to take the risk
If approved, proposed new oil train terminals at refineries in California would turn our railways into crude oil superhighways. Mile-long oil trains would haul millions of gallons of toxic, explosive crude through downtown Sacramento and dozens of other California cities and towns. An estimated 5 million Californians live in the one-mile evacuation zone along oil train routes.
In Benicia, city officials are close to a final decision on the proposed Valero oil train terminal. It’s essential that City Council members, who hold a hearing on Tuesday, understand why oil trains are too dangerous for our communities. There is no sure way to protect public health while transporting crude oil by rail.
Valero wants to bring two 50-car trains carrying about 3 million gallons of oil to its Benicia refinery every day. The environmental review of the proposal cites the “potentially significant” hazard of a spill and fire.
In 2013, the oil train explosion in Lac Megantic, Quebec, demonstrated the danger. It killed 47 people, destroyed dozens of buildings and poisoned a local lake. Three years later, residents still live with fear and anxiety, and scientists have recorded an “unprecedented” spike of fish deformities.
But it doesn’t take a catastrophe for oil trains to pose a serious threat to public health and safety. They disrupt traffic, delay emergency response and bring more poisoned air and increased disease. That’s why six counties and 22 cities around Sacramento have already said no to these trains. But the safety of all Californians living in the blast zone lies in the hands of Benicia city officials who will decide whether to approve Valero’s permit.
On Feb. 11, after days of testimony from experts and community members, the city Planning Commission voted unanimously to deny the permit. Valero has appealed to the Benicia City Council, which will make the final decision.
Something similar is happening in San Luis Obispo County, where the county staff and the California Coastal Commission recommended that the county reject the Phillips 66 oil train terminal proposal. The county Planning Commission must decide soon, but the final decision will rest with county supervisors.
Last year, NextGen Climate, the Natural Resources Defense Council, ForestEthics and Communities for a Better Environment released a report on oil industry plans to ship dirty Canadian tar sands crude to West Coast refineries. The report found that heavy crude would increase carbon pollution by as much as 26 million metric tons – the equivalent of adding 5.5 million cars to the road.
The good news is that we don’t have to live with these oil risks barreling through town. We can make our communities safer by transitioning to clean energy. A recent report by the Union of Concerned Scientists revealed that improvements in fuel efficiency and energy technology could help us cut oil consumption in half by 2030.
There’s no place for extreme tar sands or Bakken crude in California’s emerging clean energy economy – and there’s no place in our communities for dangerous, unnecessary crude oil trains.
By Annie Notthoff, December 17, 2015 | Annie Notthoff is director of the Natural Resources Defense Council’s California advocacy program.
The spending and tax policy agreement Congress and the White House have reached to keep the government funded and running includes important wins for health and the environment.
But there’s good news to report, only because of the Herculean efforts of House Minority Leader Nancy Pelosi, D-San Francisco, Senate Minority Leader Harry Reid, D-Nev., and the White House, who worked tirelessly to block nearly all of the dozens and dozens of proposals Republican leaders were pushing.
Those proposals would have blocked action on climate, clean air, clean water, land preservation and wildlife protection and stripped key programs of needed resources. The Republican leaders’ proposals were the clearest expression yet of their “just say no” approach to environmental policy. They literally have no plan, except to block every movement forward on problems that threaten our health and our planet.
The worst aspect of the budget agreement is another clear indication of Republican leaders’ misplaced priorities — they exacted an end to the decades-long ban on sending U.S. crude oil overseas in this bill, in return for giving up on key elements of their antienvironment agenda.
Senate Majority Leader Mitch McConnell, R-Ky., made that give-away to the oil industry one of his top priorities. It will mean increased oil drilling in the U.S., with all the attendant dangers, with the benefits going to oil companies and overseas purchasers. That won’t help the American public, or the climate. It’s simply an undeserved gift to Big Oil.
In good news, the agreement extends tax credits for wind and solar energy for five years, which will give those industries long-sought certainty about their financing.
Wind and solar will continue to grow by leaps and bounds, helping domestic industry, reducing carbon pollution and making the U.S. less vulnerable to the ups and downs of fossil fuel prices.
Democratic leaders deserve all our thanks for what they were able to keep out of the budget deal. Gone are the vast majority of obstacles Republican leaders tried to throw in the way of environmental protection. Recall for a moment the 100 or more antienvironmental provisions Republican leaders tried to attach to these spending bills. Those included efforts to:
• Block the Environmental Protection Agency’s Clean Power Plan, which sets the first-ever limits on carbon pollution from power plants — our best available tool to combat dangerous climate change.
• Roll back the Obama Administration’s Clean Water Rule, which would restore protections for the potential drinking water supplies of 1 in 3 Americans.
• Repeal the EPA’s newly issued health standards to protect us from smog.
• Bar the Interior Department from protecting our streams from the pollution generated by mountaintop removal during coal mining.
• Strip Endangered Species Act protections for gray wolves, the greater sage grouse, elephants, the Sonoran Desert tortoise, and other threatened animals.
• Force approval of the proposed Keystone XL tar sands oil pipeline, which President Obama already has rejected.
There’s more work ahead to protect the environment, starting with eliminating the threat of oil drilling in the Arctic and off the Atlantic Coast.
But despite the efforts of Republican congressional leaders to hold the public hostage and bring us to the brink of another government shutdown, a budget deal has emerged that protects environmental progress.
Why cheap oil is the key to beating climate change
Keeping the price of a barrel of crude at $75 or less will devastate the profitability of fossil fuel extraction – as the shelving of three tar sands projects demonstrates
Most of the easily extracted oil deposits are long gone. What’s left are high-cost, high-risk long shots such as the Alberta tar sands, deep-water reservoirs off Brazil, and drilling the high Arctic. Companies hoping to profit from the last dregs of the petroleum age need to convince their investors to part with massive amounts of capital in hopes of competitive returns often decades down the road.
Billions have already fled the Alberta oil sands in the last year as the global price of oil collapsed from over $100 per barrel to below $40. Shell has just called a halt to its Carmon Creek project in Northern Alberta, writing off $2bn in booked assets and 418 million barrels of bitumen reserves. A barrel of bitumen will release about 480kg of carbon dioxide from extraction, refining, transport and combustion. This head office write-down means that 200m tonnes of carbon will not be released into the atmosphere.
Two other tar sands projects were also shelved this year with reserves of about 3bn barrels. If these investments stay dead the world will avoid another 1.6tn tonnes of dangerous carbon emissions. Together the cancellation of these three projects alone amount to the equivalent of taking more than 14m cars off the road for the next 25 years.
Its message to investors is simple: the world must limit additional emissions to below 900 gigatons to avoid potentially catastrophic climate consequences – and 40% of this future carbon budget – about 360 gigatons – is projected to come from the oil sector. Anything more than that must stay in the ground – the so-called unburnable carbon.
And what’s the price of oil that could save to world? Anything below $75 a barrel of Brent crude means that companies cannot profitably extract more than 360 gigatons of the world’s remaining reserves – no messy policy solutions required.
Just last year the price of Brent crude was about $110 a barrel, a price that would gainfully produce about 500 gigatons of carbon emissions by 2050. Now it is less than $50, which would only produce 180 gigatons over the same period. If prices stay where they are, the world will avoid some 320bn tonnes of carbon emissions by 2050 in precluded production from uneconomic oil fields.
To put this in perspective, that is 25 times larger than reductions the Kyoto protocol was supposed to achieve if it had worked (it didn’t), and 180 gigatons below the oil emissions limit scientists say we need to avoid a world with more than two degrees of warming. Economic turmoil aside, the global commodities market just served up massive progress on an issue in desperate need of some good news.
Carbon Tracker recently revised its calculations to include the turmoil in the oil market, but the basic correlation is the same: lower fossil fuel prices devastate the economics of future extraction.
Seen through this lens, a key measure of our success in controlling carbon emissions should be keeping commodity prices of fossil fuels low. And while the main driver of the current slump in prices is the current glut of supply, it’s important to realise that almost every policy intervention to avert climate disaster is directly or indirectly aimed at lowering the price or profitability of fossil fuels such as oil and coal.
Efficiency and conservation incentives reduce demand, as do vehicle emission standards and investing in public transit. Carbon pricing means that fossil fuel companies can no longer use the atmosphere as a free dumping ground for CO2, so also lowering profitability.
But doesn’t cheap gas mean that people just use more of it? Not really. While there is a weak economic link between declining prices and increasing consumption, key producers like Saudi Arabia are in fact fretting that slowing growth in Asian markets and already peaked demand in developed countries will lead to a long-term decline in the world’s appetite for oil.
I dearly hope that world leaders can somehow negotiate transformative change. But perhaps the best they can do is nudge economic indicators like crude prices in the right direction and get out of the way. The unstoppable forces of the global marketplace will hopefully do the rest.
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