Category Archives: Crude By Rail

Benicia 2014: Year in Review, Vallejo Times-Herald

Repost from the Vallejo Times-Herald

Benicia: Drought, budget keep city busy in 2014

By Tony Burchyns, 12/29/14

Benicia>>It was a busy year for Benicia as residents responded to drought and budget problems challenging their way of life.

Faced with the potential loss of 85 percent of their water supply, Benicians were forced to conserve and pay more for water from other sources.

Meanwhile, residents approved a sales tax measure to forestall further budget cuts. They also passed school district bond measure to fix aging classrooms.

The city also managed to adopt a mater plan for its long-awaited downtown waterfront park and complete a $3 million park-and-ride project funded by bridge tolls.

Here’s a look back at some of Benicia’s top stories of 2014:

• More so than any other Solano County city, Benicia was hit hard by the state’s ongoing severe drought. The city’s dicey water situation is related to the State Department of Water Resources’ decision in January to halt State Water Project deliveries to millions of residents. Normally, that’s where Benicia gets 85 percent of its water.

In response the shortage, the city cut its water use by more than 20 percent, exceeding the statewide average of 6.7 percent. In addition to implementing outdoor water restrictions, the City Council also approved a drought surcharge to pay for added costs, such as purchasing water from other communities to meet demand.

In the coming year, the city is expected to look for ways to increase the reliability of its water supply to avoid future shortages.

• Faced with ongoing budget problems, voters overwhelmingly passed a 1 cent sales tax to maintain city service levels. City officials argued the extra revenue — projected to reach $3.7 million annually — was needed to maintain “quality of life” services such as police and fire and parks and recreation. The city has trimmed 12 percent of its workforce since 2008 to make ends meet.

• In June, voters passed a $49.6 million Benicia Unified School District bond to fund facility improvement at several campuses. It is the first district improvement measure in 17 years, following three failed parcel tax attempts.

• The Valero Benicia Refinery’s proposed rail terminal project continued to fuel debate over crude-by-rail safety issues. If approved, the project would allow Valero to import up to 70,000 barrels of Bakken or Canadian tar sands oil daily by train.

In June, the city released the project’s environmental impact report, leading to packed public hearings over the summer. People as far away as Roseville attended to voice opposition or support for the project, which would increase oil train traffic through the Sacramento Valley.

The city also received letters from state and local officials — including State Attorney General Kamala Harris — criticizing the project safety analysis as inadequate. The city is in the process of responding to those and other comments.

Meanwhile, the project has sparked a debate on whether Mayor Elizabeth Patterson’s public statements about crude-by-rail issues would prevent Valero from getting a fair hearing. In October, Patterson — an outspoken advocate of tougher oil-train safety measures — revealed the city had advised her not to participate in any decisions on Valero’s pending permit. Patterson, however, has challenged that advice, defending her right to speak openly about public safety issues related to the transportation of crude oil by train.

• Following years of planning, the city adopted a waterfront park master plan in October. The Urban Waterfront Enhancement and Master Plan is meant to guide the development of a waterfront park along the Carquinez Strait between First Street and the marina. In the coming year, the city is expected to seek funding for design and engineering phases estimated to cost $6.7 million.

• Hoping to make life easier for bus riders, the city completed transit stop improvements on Military West between West K Street and Southampton Road.

The project followed the completion of similar improvements on Military West near City Park last year. The projects cost $3 million and were funded by bridge tolls.

Both stops are served by SolTrans Route 78, which links the Vallejo ferry terminal to BART in Contra Costa County.

• The city has also moved forward with joining Marin Clean Energy to give residents another option for power source. Benicians will be given a six-month opt out period to give a chance for them to stay with Pacific Gas and Electric. There will be a one-time fee for those who decide to opt out afterward. According to staff reports, The city could also receive between $40,000 to $80,000 annually as its solar power credits by utilizing the clean energy source. The current MCE rates are lower than those of PG&E’s, though both rates could fluctuate in the future.

Staff writer Irma Widjojo contributed to this article.

New California Law Gives Emergency Planners Oil By Rail Information

Repost from KPBS, San Diego
[Editor: Here is the PDF, Assembly Bill 380.  Here is history and documentation on AB 380. See also previous posts on BenIndy: Oil Train Bill heads to Governor and Oil train regulation passes in California Assembly.  – RS]

New Law Gives Emergency Planners Oil By Rail Information

Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac Megantic, Quebec, Canada, July 6, 2013. Credit: Associated Press
Smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac Megantic, Quebec, Canada, July 6, 2013. Credit: Associated Press

A new law that goes into effect Jan. 31 in California requires railroads to give more information to emergency planners about crude oil shipments.

Local and state emergency responders say they are given very little detail about the movement of trains carrying crude oil.

A 2013 Bakken crude oil train explosion that killed 47 people in Quebec raised awareness of the danger that poses.

Kelly Huston with the California Office of Emergency Services said with the predicted increase in the amount of imported crude oil, more information is needed.

“Being able to know what’s coming and then being able to prepare for it and take actions that may be needed whether it’s moving hazardous materials crews or whether it is, perhaps we know about an event that’s going on in a highly populated area and we would want to make sure the railroad is aware of that,” Huston said.

Under the new law, railroads will have to submit weekly schedules of trains, and the volumes of crude oil they carry. They would also have to set up a communications center for first responders and give local authorities access to emergency plans.

The California Energy Commission has estimated nearly a quarter of the oil imported into the state will be delivered by rail by 2016.

“It’s not only having the knowledge but also how we use that knowledge to both prevent an accident from occurring and then having adequate hazardous materials resources and first responder resources to respond in the event there is an accident,” Houston said.

Sacramento Bee: Crude oil train shipments on the rise in California

Repost from The Sacramento Bee
[Editor: Significant quotes: “…UP said new shipments into California from Canada started in late November, running through Idaho, Washington and Oregon…. The trains from Canada likely carry tar sands…. the trains from Canada appear to be traveling on the UP line that runs parallel to Interstate 5 through Northern California, which almost certainly takes them on one of several rail lines through Sacramento…. The new shipments are the first “unit” – or all-oil – trains to enter the Western U.S. from Canada, according to a report in Railway Age.  Crude from Canada has been coming into California sporadically and in smaller shipments for more than a year, Railway Age reported.”  See also Railway Age, UP begins Canada-to-California CBR service. – RS]

New crude oil trains from Canada arrive in California

By Tony Bizjak, 12/08/2014

In a sign that crude oil train shipments to California refineries are on the rise, Union Pacific railroad officials confirmed last week they are now transporting full trains of Canadian oil through Northern California on a route that likely cuts through central Sacramento.

State rail-safety inspectors shadowed the initial trains outside of Bakersfield and reported the mile-long trains were traveling at slow speeds, most likely out of caution, just days after a UP corn train derailed in the Feather River Canyon and spilled feed into the river.

The Canadian imports are the second set of all-oil trains now believed to be coming through the capital on a regular basis. A Bakken oil train comes through midtown Sacramento once or twice a week en route to Richmond in the Bay Area.

Several more oil trains may join them in the next year. Valero Refining Co. has applied for permission to run two 50-car oil trains a day through Sacramento to its plant in Benicia, and Phillips 66 has plans to run oil trains five days a week into its refinery in San Luis Obispo County, some from the north and some via southern routes.

State officials say the Canadian trains are heading to a newly opened transfer station outside Bakersfield, where the crude oil is expected to be piped to coastal refineries. The station, operated by Plains All American Pipeline, a Texas company, is the first of several crude-by-rail facilities planned for California in the next few years. Combined, they would give oil companies the ability to receive up to 22 percent of the state’s imported crude oil by rail instead of by marine shipment.

The increase nationally in train transport of North American crude has helped push international oil prices down dramatically in recent months. It also has raised concerns about the risk of derailments and oil spills. Sacramento officials have called on oil and rail companies and federal regulators to increase safety measures to protect against spills, including requiring stronger tank cars.

Citing safety issues of their own, rail companies have generally declined to disclose where and when rail shipments are happening. But in an email to The Sacramento Bee last week, UP said new shipments into California from Canada started in late November, running through Idaho, Washington and Oregon.

“We expect to run crude trains on this route moving forward,” UP’s Aaron Hunt wrote.

The trains from Canada likely carry tar sands, also called bitumen, which is considered less flammable than the Bakken oil from North Dakota. Bakken oil has been involved in a several major rail explosions in the last few years, including one that killed 47 people in a Canadian town. State safety officials say tar sands, viscous and heavy, are a threat to waterways because the material can sink, making spills hard to clean. A bitumen spill from a ruptured pipe forced closure of 35 miles of the Kalamazoo River in Michigan in 2010 and required $1 billion in cleanup costs over a three-year period.

The state recently called on railroads to provide plans that show that they have the wherewithal to clean oil spills on state waterways. Officials with the state Office of Spill Prevention and Response say tar sands may require particular equipment. “Businesses that transport heavy oils are required to have response resources necessary to address these types of spills,” state spokesman Steve Gonzalez said in an email. “Contractors must be able to locate, contain and clean up a spill that has sunk to the bottom of the water. Some of these responses include sonar, containment boom, dredges and pumps.”

Rail shippers point out that derailment numbers overall have been decreasing nationally for decades and that the industry now runs oil trains at slower speeds at times.

State Public Utilities Commission officials say they sent inspectors out near Bakersfield to monitor the first Canadian oil train, and another train headed to Bakersfield from the south, and noted that the trains were traveling slower than normal.

“The first run is a critical run. If anything goes wrong, we want to be there,” PUC rail safety chief Paul King said. “There might be compliance issues. We want to see how it interfaces with traffic, what speeds they decided to go.”

King said the trains from Canada appear to be traveling on the UP line that runs parallel to Interstate 5 through Northern California, which almost certainly takes them on one of several rail lines through Sacramento. Rail officials have declined to say which lines the oil trains use.

In May, the U.S. Department of Transportation required railroads to notify state officials of large shipments of Bakken oil. Many states ultimately made the information available through public records requests, against the wishes of the railroads. However, railroads are not required to report oil shipments from Canada or other non-Bakken domestic sources.

The new shipments are the first “unit” – or all-oil – trains to enter the Western U.S. from Canada, according to a report in Railway Age. Crude from Canada has been coming into California sporadically and in smaller shipments for more than a year, Railway Age reported.

New York Governor Cuomo bans fracking

Repost from The New York Times
[Editor: this week saw dramatic action on the part of two US governors.  See also Washington Gov. Inslee: Make big polluters pay for transportation projects.  – RS]

Citing Health Risks, Cuomo Bans Fracking in New York State

By Thomas Kaplandec, Dec. 17, 2014
Members of New Yorkers Against Fracking celebrated the governor’s decision outside his Manhattan office on Wednesday. Credit Chang W. Lee/The New York Times

Gov. Andrew M. Cuomo’s administration announced on Wednesday that it would ban hydraulic fracturing in New York State because of concerns over health risks, ending years of debate over a method of extracting natural gas.

Fracking, as it is known, was heavily promoted as a source of economic revival for depressed communities along New York’s border with Pennsylvania, and Mr. Cuomo had once been poised to embrace it.

Instead, the move to ban fracking left him acknowledging that, despite the intense focus he has given to solving deep economic troubles afflicting large areas upstate, the riddle remained largely unsolved. “I’ve never had anyone say to me, ‘I believe fracking is great,’ ” he said. “Not a single person in those communities. What I get is, ‘I have no alternative but fracking.’ ”

In a double blow to areas that had anticipated a resurgence led by fracking, a state panel on Wednesday backed plans for three new Las Vegas-style casinos, but none along the Pennsylvania border in the Southern Tier region. The panel, whose advice Mr. Cuomo said would quite likely be heeded, backed casino proposals in the Catskills, near Albany and between Syracuse and Rochester.

Gov. Andrew M. Cuomo listened to a presentation on fracking at a cabinet meeting in Albany on Wednesday. Credit Mike Groll/Associated Press

For Mr. Cuomo, a Democrat, the decision on fracking — which was immediately hailed by environmental and liberal groups — seemed likely to help repair his ties to his party’s left wing. It came after a surprisingly contentious re-election campaign in which Zephyr Teachout, a primary challenger who opposed fracking, won about a third of the vote.

The question of whether to allow fracking, which involves injecting large amounts of water, sand and chemicals deep underground at high pressures to release oil and natural gas from rock formations, has been one of the most divisive public policy debates in New York in years. Fracking is occurring in many states, and has boomed in places like Pennsylvania and Texas. Environmental advocates, alarmed by the growth of the practice, pointed to New York’s decision as the first ban by a state with significant natural-gas resources.

Mr. Cuomo, who has prided himself on taking swift and decisive action on other contentious issues like gun control, took the opposite approach on fracking. He repeatedly put off making a decision, most recently citing a continuing — and seemingly open-ended — study by state health officials.

On Wednesday, six weeks after Mr. Cuomo won a second term, the long-awaited health study finally materialized, its findings made public during a year-end cabinet meeting convened by the governor in Albany.

In a presentation at the cabinet meeting, the acting state health commissioner, Dr. Howard A. Zucker, said the examination had found “significant public health risks” associated with fracking.

Holding up copies of scientific studies to animate his arguments, Dr. Zucker listed concerns about water contamination and air pollution, and said there was insufficient scientific evidence to affirm the safety of fracking.

Dr. Zucker said his review boiled down to a simple question: Would he want his family to live in a community where fracking was taking place?

CLICK TO OPEN Document Health Department Report on Fracking in New York State The Cuomo administration decided to ban hydraulic fracturing after concluding that the method posed inestimable public-health risks.

His answer was no.

“We cannot afford to make a mistake,” he said. “The potential risks are too great. In fact, they are not even fully known.”

New York has had a de facto ban on fracking for over six years, predating Mr. Cuomo’s election. In 2012, he flirted with approving a limited program in several Southern Tier counties. But that same year, he bowed to entreaties from environmental advocates, stating instead that his administration would begin a new study on health risks.

Mr. Cuomo had focused much of his attention on trying to improve the economic climate upstate, and fracking appeared to offer a solution to struggling areas atop the Marcellus Shale, a gas-rich rock formation that extends across parts of several states, including New York, Ohio, Pennsylvania and West Virginia.

But there was also strong opposition from groups worried about the effects of fracking on the state’s water supply, as well as on tourism and the quality of life in small upstate communities.

As he traveled around the state, Mr. Cuomo was hounded by protesters opposed to fracking, who showed up at his events and pressed him to impose a statewide ban. Opponents were also aided by celebrities who drew attention to their cause.

Complicating matters, dozens of communities across New York have passed moratoriums and bans on fracking, and in June, the state’s highest court, the Court of Appeals, ruled that towns could use zoning ordinances to ban fracking.

The acting state health commissioner, Howard Zucker, speaking at the meeting. Credit Mike Groll/Associated Press

Local bans, on top of restrictions that the state had planned, put 63 percent of the Marcellus Shale off limits to drilling, said Joseph Martens, the state environmental conservation commissioner. “The economic benefits are clearly far lower than originally forecast,” he said.

On Wednesday, Mr. Cuomo seemed determined to portray both of the day’s major announcements — and their consequences for upstate New York — as decisions made by experts objectively weighing the facts, not by him.

At the cabinet meeting, he conspicuously stumbled on the name of the panel that made the casino recommendations, as if to signal his lack of involvement in its work. And he kept some distance from the fracking decision, saying he was deferring to his health and environmental conservation commissioners.

“I am not a scientist,” he said. “I’m not an environmental expert. I’m not a health expert. I’m a lawyer. I’m not a doctor. I’m not an environmentalist. I’m not a scientist. So let’s bring the emotion down, and let’s ask the qualified experts what their opinion is.”

Nevertheless, environmental groups cast the governor as a hero. Michael Brune, the executive director of the Sierra Club, said, “This move puts significant pressure on other governors to take similar measures to protect people who live in their states.”

Fracking supporters accused Mr. Cuomo of giving in to environmentalists’ efforts to stoke public fears.

Karen Moreau, the executive director of the New York State Petroleum Council, attributed the fracking ban to a decision by the governor “that he wants to align himself with the left.”

“Our citizens in the Southern Tier have had to watch their neighbors and friends across the border in Pennsylvania thriving economically,” she said. “It’s like they were a kid in a candy store window, looking through the window, and not able to touch that opportunity.”

Correction: December 17, 2014
Because of an editing error, an earlier version of this article incompletely described hydraulic fracturing. It is a method of extracting natural gas or oil, not just oil, from deep underground. The error was repeated in the summary.