Category Archives: Crude By Rail

BENICIA HERALD: Council denies Valero Crude-By Rail Project

Repost from the Benicia Herald
[Editor:  See also the Benicia Herald’s “Community, environmental groups react to crude-by-rail decision.”  – RS]

Council denies Valero Crude-By Rail Project

By Donna Beth Weilenman (Martinez News Gazette), September 22, 2016
Valero Crude-By-Rail proponents and opponents fill Benicia City Hall Tuesday to hear the City Council’s decision on the project. (Photo by Donna Beth Weilenman/Martinez News Gazette)

Benicia City Council has unanimously denied a use permit for the controversial Valero Crude-By-Rail project, citing a federal board decision as well as a June 3 derailment that spilled 42,000 gallons of crude oil and caused a fire that burned 14 hours.

But the matter didn’t end Tuesday with the vote. The Council has asked its legal staff to rephrase its findings in a document the panel will see for approval Oct. 4. Valero Benicia Refinery will have 30 days after that to decide how to proceed.

Valero had appealed to the Council a Feb. 11 Planning Commission decision to deny both an environmental report on the project as well as the use permit the refinery had sought.

After several meetings, several members of the Council said they needed answers to their questions, some posed by constituents, before they were ready to vote.

Meanwhile, Valero sought a declaratory order from the federal Surface Transportation Board, and the Council agreed to wait until Tuesday to give the Board time to respond.

At 2 p.m. Tuesday, city staff learned the federal board denied the refinery’s request and instead issued guidelines. While Benicia has little say in the governance of railroads, the board concluded the Planning Commission decision “does not attempt to regulate transportation by a ‘railroad carrier.’”

Because Valero isn’t a rail carrier and its employees, rather than those from UP, would be offloading the crude into the refinery, the board said the Planning Commission’s decision had not tried to regulate the railroad.

“If the offloading facility were eventually to be constructed but the EIR or land use permit or both, including mitigation conditions unreasonably interfering with UP’s future operations to the facility, any attempt to enforce such mitigation measures would be preempted,” the Board’s decision said.

Scott Lichtig, California’s deputy attorney general, expressed a similar opinion in his April 14 letter.

“Because the project applicant Valero is not a rail carrier and not acting pursuant to STB authorization, ICCTA (Interstate Commerce Commission Termination Act) simply has no application to Valero and its proposed refinery upgrades,” he wrote.

Councilmember Christina Strawbridge, who said she had been doing her own “homework” about the matter and who had been carefully weighing both sides, said it was a derailment in late spring that made her reject the refinery’s application. Later, the other councilmembers joined her in voting against the refinery’s project.

The Council decision is the latest step in the project that proposed extending Union Pacific Railroad track into Valero Benicia Refinery land so than up to 70,000 barrels of oil could be brought in daily by train rather than by tanker ships.

The refinery, which produces about 10 percent of the gasoline consumed in California, originally applied for the use permit in late 2012. It not only proposed the rail extension, but also replacing and moving tank farm dikes and a concrete berm and moving underground infrastructure. The project also called for new roadwork.

A mitigated negative declaration was written and circulated between May 30 and July 30, 2013, but the city decided that document wasn’t thorough enough to meet California Environmental Quality Act requirements for such a project and ordered a draft Environmental Impact Report (DEIR) instead. That document was circulated between June 17 and Sept. 15, 2014.

After hearings and public comments, that report was revised and circulated Aug. 31 to Oct. 30, 2015, and a final environmental report was given public airing this year at Benicia Planning Commission meetings Feb. 8-11.

During that time, those who opposed the project citing environmental concerns staged protests, including walks to the five Bay Area refineries on both sides of the Carquinez Strait.

They argued that a derailment could damage Suisun Marsh, sensitive lands, such as Sulphur Springs Creek, the marshland between Benicia Industrial Park and the Carquinez Strait near Valero’s property and small and large towns next to tracks uprail from Benicia.

Detractors also insisted that the project would affect Benicia Industrial Park traffic, particularly on Park Road and ramps on Interstate-680.

They cited nearly two dozen train derailments, in particular the July 6, 2013, Lac-Megantic tragedy in which a runaway unattended Montreal, Maine and Atlantic (MMA) Railway train loaded with Bakken Formation sweet crude oil overturned in the small Quebec city.

During the derailment, the fuel caught fire and exploded, killing 47 and destroying 30 buildings.

Union Pacific and Valero representatives stressed UP’s safety record. UP spokespersons said the railroad has stronger safety practices that, among other things, requires employees to remain with an idling train. The refinery promised it would use improved, reinforced rail cars to carry its crude blend.

Refinery emergency personnel trained with Benicia municipal emergency responders to learn about the rail cars’ configuration.

Supporters reminded the Council that Valero employs about 500, and backs community projects. In addition, its projects mean jobs, not only at the refinery but for contracted industrial workers.

They also worried that denial of the project might cause the company to close the refinery, which could harm Benicia’s economy. Valero sales and utility user taxes represents more than 20 percent of Benicia’s General Fund.

Train and refinery spokespersons kept reminding the Council that because railroad operations are part of interstate commerce, they are under federal regulation, not local control.

Then a train, traveling below the area’s speed limit, derailed June 3 near the Oregon-Washington border. Although the Union Pacific locomotive was pulling the improved oil cars, the accident spilled 42,000 gallons of crude rail and ignited a fire that lasted 14 days. That began raising new questions about the safety of the reinforced tank cars and Union Pacific’s track inspection methods.

Federal investigators said Union Pacific was to blame, since it didn’t find broken bolts along the track, although a UP spokesperson, Justin Jacobs, had said the railroad’s May 31 inspection had detected no broken or damaged bolts.

During the long consideration of the divisive issue, Councilmembers themselves found themselves under fire. In previous months, Mayor Elizabeth Patterson, who sent emails about her personal findings about related matters, had her “e-alerts” and her objectivity questioned.

Tuesday night, Councilmember Alan Schwartzman responded to a recent Benicia Herald letter from project opponent Andres Soto, who had suggested Schwartzman had taken Valero money for his campaign. Schwartzman denied the accusation and criticized Soto’s behavior at past meetings. ”It’s disrespectful,” he said.

Councilmember Mark Hughes supported Schwartzman, saying he, too, had had his integrity questioned.

“Show a reasonable level of respect,” he urged, adding that Benicians didn’t like that style of campaigning.

But in Tuesday’s vote, they were unanimous.

After Councilmember Tom Campbell moved to deny the use permit, Councilmember Christina Strawbridge described the depth of her own research of various sides of the issue. What finally led her to oppose the permit was the June derailment and fire in Oregon.

Saying others, including those voting on the Phillips 66 Santa Maria rail extension, were waiting to see how Benicia would vote, she said railroads and those regulating them weren’t addressing derailments.

“This is a safety issue,” she said, adding that she would vote to deny the use permit.

Schwartzman said the matter was complex, and he had wanted to make a decision that wouldn’t embroil the city in a lawsuit. While he appreciated Valero’s decision to use safer tanker cars, he said, he couldn’t ignore the Oregon derailment. “I can’t vote for the project.”

Hughes said he agreed with the Surface Transportation Board’s guidance that the city couldn’t address railroad operations. He observed there was no such thing as a perfectly safe project. He said risk management consisted of looking at the probability something bad would happen, then at the consequences resulting from that happenstance.

Given UP’s and Valero’s safety record, especially the refinery’s plant-wide culture of safety, Hughes suggested the chance of a catastrophe was low. However, the consequences of an incident made him uncomfortable.

“There is too much uncertainty for me,” he said. The recent derailment gave him a signal.

“It was not something I could live with.”

Patterson said she, too, had made an extensive study of the matter, and said she was vilified when she tried to share her research. She said she had concerns about who would pay for a disaster cleanup, and worried how it would affect the city’s small businesses.

“I could not certify a flawed EIR,” she said, suggesting the Council deny the appeal and approve its findings at a future meeting.

In addition, she asked city staff to urge state and federal regulators to improve the way they regulate rail safety.

“That’s exactly what I want to do,” Campbell said.

KCRA TV3 NEWS VIDEO: Valero’s oil train project halted by Benicia city leaders

Repost from KCRA TV3, Sacramento CA
[Editor: The video could not be embedded here on Benicia Indy, but it’s a good one – click the image to go to KCR3’s website for the video.  – RS]

Valero’s oil train project halted by Benicia city leaders

Crude oil train would have traveled through NorCal cities daily
Sep 21, 2016, 9:10 PM PDT

benicia_video_linkBENICIA, Calif. (KCRA) —Benicia City Councilmembers denied Valero’s plans Tuesday night to move forward on its crude-by-rail proposal, citing safety concerns.

The project would have had trains transporting tens of thousands of crude oil – daily — to Benicia through Sacramento-area communities.

In the city of Benicia, with a population just under 30,000, you can’t miss the large presence of Valero.

“They provide a lot of money to the city,” Benicia resident John Geels said.

The company is the largest employer, providing 20 percent to the general fund. So, it became a big deal last night when city council members told the company “No.”

“We denied the appeal that Valero put forward, after the planning commission unanimously denied their application for a permit,” Benicia Councilmember Christina Strawbridge said.

That permit would have paved the way for an expansive crude oil project impacting Northern California cities.

For years, the issue went beyond the borders of Benicia, as the public and other jurisdictions expressed concerns over safety.

“Right in the heart of Davis, we are in the blast zone right now,” Yolo County Supervisor Don Saylor said. “And, that increased volume would increase the risk in our communities.”

Ultimately, Benicia councilmembers voted unanimously to reject the plan, many citing recent oil train emergencies.

“It gave me real pause,” Strawbridge said. “As far as rail safety, there’s been 13 different derailments since 2013.”

Valero issued a response to the decision:

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the city councilmembers have chosen to reject the crude by rail project. At this time, we are considering our options moving forward.”

The divisive issue still has some residents split on the outcome.

“I feel bad for Valero, and I’m sure it’s going to hurt them financially,” Geels said. “But, I’m glad they were turned down.”

Meanwhile, others said the small city is making big waves, setting a new precedent as the conversation over crude oil transport continues.

“So, it’s a milestone because this community stood up,” Saylor said.

On Thursday morning, the planning commission in San Luis Obispo County will be taking up a similar hearing — for an oil-by-rail project proposed by Phillips 66.

VALLEJO TIMES-HERALD: Valero’s crude-by-rail project turned down in Benicia

Repost from the Vallejo Times-Herald

Valero’s crude-by-rail project turned down in Benicia

By Matthew Adkins, 09/20/16, 9:54 PM PDT
Anti-Valero supporters wave sunflowers as Benicia’s crude by rail project was denied Tuesday evening by council members in Benicia City Hall.
Anti-Valero supporters wave sunflowers as Benicia’s crude by rail project was denied Tuesday evening by council members in Benicia City Hall. Matthew Adkins — Times-Herald

BENICIA >> Environmentalists hoping to defeat Benicia’s crude-by-rail project scored a huge victory Tuesday night, handing Valero Refining Company a significant defeat in the process.

In a unanimous decision from Mayor Elizabeth Patterson and Benicia City Council, Valero’s application for a conditional use permit for a crude oil off-loading facility was denied.

Vicki Dennis, who moved to Benicia two years ago, was one of many present at City Hall and said she was “just delighted” with the decision.

“I’m so proud of this city,” Dennis said. “Our council people are very thoughtful. This process has been a long one, but I think they handled it in a wonderful way.”

The City of Benicia’s Planning Commission first began considering the issue in December 2012 when the refinery submitted an application seeking permission to build infrastructure to bring two 50-car trains a day carrying up to 70,000 barrels of North American crude oil into Benicia.

In March, the Planning Commission voted unanimously to deny the application and to not certify an accompanying environmental impact report. The decision was made against the recommendation of city staff who said the project’s involvement with rail-related issues made the decision a federal issue.

Valero representatives submitted an appeal looking to reverse the commission’s decision to deny their application, and the matter was postponed until Sept. 20.

As part of the appeal, Valero sought a declaratory order from the Surface Transportation Board on the issue of federal preemption in regards to the project.

During this time, many governmental agencies, private organizations and individuals publicly opposed the city council’s decision to transfer authority on the matter to the federal government.

At the city council meeting Tuesday, however, public comment on the topic was officially closed.

“We are eager to hear from you about any item that is not on the agenda,” Patterson said. “I know it’s a little difficult right now. We have an item on the agenda that I know a lot of you are interested in, but there is no public comment on that tonight.”

This drew a few hushed laughs from the crowd of approximately 150 people who had shown up to witness the landmark decision at Benicia City Hall.

Mayor Patterson’s warning didn’t stop a few concerned citizens from indirectly talking about the issue.

“I originally put in my request to speak before I knew you were not accepting public comments about Valero,” said one man. “If the council decides to change their mind and re-open public comment on the issue, I would be glad to come back up and speak.”

“Since I can’t talk about what the Surface Transportation Board has just done, I would urge the council to support the struggle against the Dakota Access pipeline,” said another man.

After public comment was closed, a brief recap of the project’s journey though Benicia’s civic system was put forth along with two resolution findings, one for approval and the other for denial,

The denial resolution highlighted specific issues that city council members had with Valero’s proposed project, including the unclear traffic impacts of having an unregulated shipment schedule, spill risks associated with shipping by rail and the project’s uncomfortable proximity to the city’s waterways.

Before making a judgement, Council members took turns voicing their concerns about health, safety and the project’s effect on the environment.

“When we first started considering this, there seemed to be little risk involved,” said Councilwoman Christina Strawbridge. “After four years, the community has endured numerous public hearings with hundreds of people speaking about the project. During this time, there have been 13 derailments around the country involving multiple carriers.

“The derailment in Oregon was a game-changer for me,” she continued. “Union Pacific was the same carrier and the railroad cars involved were the same ones Valero is offering. The strongest car didn’t withstand a puncture and crude oil came in contact with fire and burned for 13 hours. Union Pacific failed to maintain its track, resulting in its derailment. The railroad industry has not kept up with safety standards regarding the transportation of crude. I’m going to vote to deny the project in hopes that the community can begin to heal after such a divided process.”

After the council’s comments, Councilmember Tom Campbell put forward a motion to deny, and was seconded by Patterson.

A quick vote was taken and the motion to deny Valero’s presence in Benicia was decided.

Misao Brown, a retired teacher and environmental activist from Alameda, was thrilled with the council’s decision and was seen embracing her friends outside of Benicia City Hall.

“If there were any spills where we are in Benicia, it would be in the Bay and go all over the place,” she said. “Benicia is concerned about the greater good and it’s just wonderful. It was really hard sticking it out for so long, but they gave every chance to Valero. In the end, we’re really talking about life on earth. So, when the decision comes through like this under tremendous pressure, I’m really grateful to every member of the planning commission and city council.”

SACRAMENTO BEE: Benicia nixes Valero’s plan to run crude oil trains through Sacramento, Davis and Roseville

Repost from the Sacramento Bee

Benicia nixes Valero’s plan to run crude oil trains through Sacramento, Davis and Roseville

By Tony Bizjak, September 20, 2016 10:25PM

A train carrying 98 tankers of crude oil passes through midtown Sacramento.
A train carrying 98 tankers of crude oil passes through midtown Sacramento. Jake Miille

The Benicia City Council on Tuesday unanimously rejected a controversial plan by the Valero Refining Co. to ship crude oil trains through Sacramento and other Northern California cities to its bayside refinery.

The 5-0 vote, taken after four years of bitter debate, represents a victory for environmentalists and offers relief to Sacramento-area leaders who said the oil trains would put local residents and habitat at risk of a catastrophic oil spill and fire.

The Valero proposal, if approved, would have sent up to two 50-car crude oil trains rolling daily through Roseville, downtown Sacramento, Davis and other rail cities, as well as along mountainsides in the Feather River Canyon.

“I’m over the moon,” Yolo County Supervisor Don Saylor said Tuesday night. “The community of Benicia, in the crosshairs of history, made one of those decisions that will make a difference for the country. They stood up and said the safety of our communities matters.”

Sacramento County Supervisor Phil Serna said he believed letters and legal briefs from local leaders, as well as lobbying by Sacramento-area activists, played a role in persuading the Benicia council to say no to that city’s biggest employer. “I’m very pleased,” he said.

A coalition of environmental groups, including Benicia-area residents, Stand.earth, and the Natural Resources Defense Council, issued a statement Tuesday night calling the decision “a victory for the right of communities to say no to refineries’ dangerous oil train projects.”

Valero officials expressed disappointment with the decision. The company had previously said it likely would challenge an adverse decision in court, but it did not indicate Tuesday what its next steps will be.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the city council members have chosen to reject the crude by rail project,” company spokesman Chris Howe wrote. “At this time we are considering our options moving forward.”

Increased oil train shipments in the United States and Canada in the last five years have led to a serious of crashes and explosions, including one that killed 47 people in a small Canadian town three years ago. Federal officials have issued new safety regulations, but officials in many rail cities have said the government has not gone far enough to ensure safer shipments.

A Benicia environmental impact report last year concluded that the trains would pose significant health and safety risks along the rail line, but also concluded that a harmful spill would be a rare event.

Benicia City Council member Christina Strawbridge said she made up her mind this summer after a Union Pacific crude oil train derailed in Mosier, Ore., causing an explosion and fire that forced evacuations in the area. She called that “a game changer for me” because the rail company involved was UP, the company that Valero would use, and the rail cars that punctured were newer, supposedly safer models.

“The railroad industry has not kept up with safety standards,” Strawbridge said.

Councilman Mark Hughes commended Valero for its safety record, but added: “That said, bad things do happen. At this point, there is too much uncertainty (for) me.”

The Valero refinery currently receives its oil via marine shipments and pipeline. The oil company applied in 2012 for a permit to build a rail transfer station on its refinery grounds to allow it to receive oil via train. Officials said it would help the refinery remain competitive in a changing oil industry.

The Benicia planning commission denied Valero’s request earlier this year, citing safety issues for up-rail cities, as well as concerns about negative impacts to a creek in Benicia and to the city’s nearby industrial park. The denial also included concern about the possibility of an explosion at the refinery.

Valero appealed that decision to the City Council. It also asked the federal Surface Transportation Board to issue a ruling saying that Benicia does not have the right to deny Valero’s request to build a rail transfer station. The oil company argued that federal interstate commerce regulations preempt cities from saying yes or no on rail-related projects.

In a statement issued Tuesday, the Surface Transportation Board denied Valero’s request, pointing out that Valero is not a railroad company, so it could not claim federal pre-emption protection for its transfer station project. The board issued further “guidance,” however, warning that cities cannot unreasonably interfere with rail transportation.

Several city council members said they were waiting for the transportation board’s comments before deciding on Valero’s request. The council instructed city staff to come back with a list of findings to support their denial. Several council members cautioned that those findings should focus on safety concerns at the Benicia site rather than risks to rail cities, saying that locally focused findings would be easier to defend in court if Valero sues the city.

A similar hearing is set for Thursday in San Luis Obispo County, where Phillips 66 is proposing a rail transfer station at its refinery that will allow it to ship crude oil via train, some of it likely through Sacramento and other northern California cities.