Save the date! The California Energy Commission will be holding a public meeting on changing trends in sources of crude oil & transport at the Berkeley City College auditorium on Wednesday, June 25 at 9am (details below). An opportunity to give the CEC an earful about what they modestly term “market changes.” See p. 3 of the downloadable PDF for public comment instructions, background, etc. Basic info follows below.
California Energy Commission Workshop
RE: Crude Oil
Notice of Lead Commissioner Workshop on Trends in
Sources of Crude Oil
The California Energy Commission Lead Commissioner on the Integrated Energy Policy Report will conduct a workshop to highlight changing trends in California’s sources of crude oil with emphasis on the potential growth of crude oil transport to California by rail, and the impacts of these trends on the transportation energy market and existing government policies. The discussions will focus on existing and possible new roles of federal, state, and local government to address market changes.
Commissioner Janea A. Scott, Chair Robert Weisenmiller, and Commissioner Karen Douglas will be in attendance. CPUC President Michael R. Peevey will also be in attendance. Commissioner Scott is the Lead Commissioner for the 2014 IEPR Update and the Lead Commissioner on Transportation. Other Commissioners of the California Energy Commission and the California Public Utilities Commission may attend and participate in the workshop. The workshop will be held:
June 25, 2014, 9:00 AM Berkeley City College Auditorium 2050 Center Street, Berkeley, California 94704
(Wheelchair Accessible)
Remote Access Available by Computer or Phone via WebEx™ (Instructions background, agenda, etc here)
Repost from The Vallejo Times-Herald [Editor: … as if risks of derailment and explosion weren’t enough to worry about… – RS]
Legislation to enhance crude-by-rail safety passes House
Times-Herald staff report | 06/05/2014
Following an increase in crude oil by rail to the Bay Area, Rep. Mike Thompson has authored legislation aimed at making it safer to transport the highly flammable cargo.
The legislation, which would require an assessment of domestic refinery and rail-related infrastructure, passed the House of Representatives last week by a bipartisan vote of 345 to 59.
It’s currently in the Senate.
“Public safety is the number one priority when we’re transporting and holding crude oil and other cargo through and in our communities,” Thompson said Thursday. “This legislation will let us know if threats exist and how we can fix them.”
Thompson’s district includes three refineries, including the Valero Benicia Refinery, which is seeking approval of a major crude-by-rail terminal. The project’s environmental impact report is due out next week.
Bakken crude from North Dakota, regarded as more flammable than other crudes, is part of the mix of increased crude-by-rail shipments to California. The legislation would require the Department of Homeland Security Office of Intelligence and Analysis to conduct an intelligence assessment of the safety of refinery and crude-by-rail infrastructure. After the assessment is conducted, safety recommendations would be submitted to the House and Senate intelligence committees.
Should shipments of oil by rail be kept secret from the public?
Posted on June 4, 2014 | By Joel Connelly
Several CSX tanker cars carrying crude oil erupt in flames after derailing in downtown Lynchburg, Va., on April 30. It was the latest in a series of oil train accidents. Nobody was killed, but much of downtown Lynchburg was evacuated. (AP Photo/City of Lynchburg, LuAnn Hunt)
The nation’s railroads were told last week by the U.S. Department of Transportation that they must notify state emergency management officials about the volume, frequency and county-by-county routes used in cross country shipment of volatile North Dakota crude oil.
But a hitch has developed in Washington, where refineries at Anacortes and Cherry Point north of Bellingham are increasingly relying on oil by rail.
In its order, the Department of Transportation, siding with the railroads, said the information ought to be kept secret from the public.
The DOT told state emergency preparedness agencies to “treat this data as confidential, providing it only to those with a need to know and with the understanding that recipients of the data will continue to treat it as confidential.”
The BNSF and Union Pacific Railroads have sent the state drafts of confidentiality agreements that would restrict access to what the shippers call “security sensitive information.”
A DOT-111 rail tanker passes through Council Bluffs, Iowa. DOT-111 rail cars being used to ship crude oil from North Dakota’s Bakken region are an “unacceptable public risk,” and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board told Congress in February. The cars were involved in derailments of oil trains in Casselton, N.D., and Lac-Megantic, Quebec, just across the U.S. border. (AP Photo/Nati Harnik, File)
On Wednesday, however, spokesman Mark Stewart of state Emergency Response Commission told the Associated Press that the railroads’ request conflicts with one of Washington pioneering open government laws.
The confidentiality agreements “require us to withhold the information in a manner that’s not consistent with the Public Records Act,” Stewart told the AP.
The US DOT order came in the wake of a series of oil train fires, most recently train cars catching fire in Lynchburg, Virginia and dumping “product” into the James River.
This follows a deadly runaway trail explosion last year that leveled the downtown of Lac-Megantic, Quebec, and killed 47 people, as well as an explosion and fire near Casselton, North Dakota.
Lawmakers, notably Sen. Maria Cantwell, D-Washington, have pressed the Transportation Department to speed implementation of new safety rules that would require phaseout of 1960′s-vintage, explosion vulnerable DOT 111 tank cars.
The Tesoro Refinery in Anacortes accepted its first trainload of oil in September of 2012. The shipments have soared, with 17 million barrels of oil coming into the state by rail in 2013. Trains carry as many as 50,000 barrels of crude oil to the Tesoro refinery.
And Tesoro wants to build a $100 million rail-to-barge terminal in the Port of Vancouver on the Columbia River. It would be the largest such terminal in the Northwest, capable of receiving 380,000 barrels of oil a day. The Vancouver City Council voted earlier this week to oppose the project.
Shell Anacortes is in the process of creating a facility that would take 100-car oil trains. The BP Refinery at Cherry Point is also receiving oil by rail.
All told, according to a Sightline Institute study, 11 refineries and ports in Washington and Oregon are either receiving oil by rail, or have projects underway to receive rail shipments of oil.
The shipments head by rail through cities in both Eastern and Western Washington.
The railroads have been highly secretive about their operations. They are regulated by the federal government under the Interstate Commerce Act, leaving cities and local governments with almost no rights to request information or limit operations.
The BNSF has promised to purchase 5,000 newer, safer tank cars, and Tesoro has pledged to phase out use of the DOT-111 cars this year.
Rail transport of oil poses risk to Lake Champlain
By Lake Champlain Committee Staff Scientist Mike Winslow | April, 2014
An oil train rolls south along the shores of Lake Champlain. Photo by Frank Jolin
The sound of trains clacking along the rails that abut Lake Champlain has become more common recently with the dramatic increase in freight traffic attributed to fossil fuel extraction. Each week approximately 60 million gallons of oil travel along the lake carried by 20 trains with up to 100 cars each. The U.S. now meets 66 percent of its crude oil demand from production in North America with tremendous growth in outputs from Canada and the Bakken oil fields of North Dakota. In October 2013 U.S. crude oil production exceeded imports for the first time since February 1995.
Oil produced from the Bakken fields is very light. That means it flows easily, but it also means it is more volatile and flammable. As a result, the potential property damage and loss of life associated with rail accidents involving Bakken oil is higher than oil from other sources. In January of this year two federal agencies issued a safety alert warning of these risks.
The alert was triggered by a series of devastating accidents. The Federal Railroad Administration statistics suggest that on average at least one car slips off the tracks every day. There have been six major derailments between the beginning of 2013 and mid-January 2014. The most infamous occurred on July 5, 2013, in Lac Megantic, Quebec. An improperly secured train began rolling on its own, and 63 cars derailed near the center of town. Derailment led to multiple explosions and fires, evacuation of 2,000 people, and 47 fatalities. On Oct. 19, 2013, 13 tank cars derailed in Alberta leading to evacuation of 100 residents. Three cars carrying propane burned following an explosion. On Nov. 8, 2013, 30 cars derailed in a wetland near Aliceville, Ala., and about a dozen were decimated by fire. On Dec. 30, 2013, two trains, one carrying grain and one oil, collided in Casselton, N.D. Twenty of the oil train cars derailed and exploded leading to evacuation of 1,400 people. On Jan. 7, 2014, 17 cars derailed in New Brunswick and five exploded leading to evacuation of 45 people. On Jan. 20, 2014, seven cars derailed on a bridge over the Schuylkill River in Philadelphia, though no oil leaked. More recently, 15-17 cars derailed in Lynchburg, Va., on April 30. Three fell into the James River and one burst into flames. There were no injuries but 300-350 people had to be evacuated and oil leaked into the James River. The state estimated 20,000 to 25,000 gallons escaped during the wreck.
Our region is no stranger to train derailments. In 2007, a northbound Vermont Railways freight train derailed in Middlebury spilling gasoline into Otter Creek and leading to the evacuation of 30 streets in the vicinity. Trains have also derailed along the Lake Champlain route. In 2007, 12 cars derailed near Route 22 in Essex, N.Y., the same stretch of tracks now carrying volatile oil.
Concern over the state of North American freight rail safety predates the increase in oil shipments. In 2006 the Toronto Star ran a five-part series on rail safety. They noted “Canadian freight trains are running off the rails in near record numbers and spilling toxic fluids at an alarming rate, but only a tiny fraction of the accidents are ever investigated.”
In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult.
The greatly increased traffic in oil has further strained railroad infrastructure. According to an article in Pacific Standard Magazine, 85 percent of the 92,000 tank cars that haul flammable liquids around the nation are standard issue DOT-111s. They have been referred to as “Pepsi cans on wheels.” These cars are built to carry liquids, but lack specialized safety features found in pressurized tanks used for hauling explosive liquids. The industry has agreed to include additional safety features in any new cars put on the tracks, but since rail cars have an economic life of 30 to 40 years, conversion to the newer cars has been slow.
One relatively new risk is the predominance of “unit trains.” These are long series of cars all shipped from the same originating point to the same destination. Often the cars will all carry the same product. It used to be that oil cars were mixed in with other freight cars bound for different locations. Unit trains are a greater risk in part because safety standards are based on the carrying capacity of a single car and don’t account for the greater volumes that unit trains can transport. The National Transportation Safety Board, an independent federal agency charged with investigating accidents, has called on the Federal Railroad Administration to change this standard.
Recently, an oil company submitted plans to build an oil heating facility in Albany, N.Y. The facility would be used to heat oil shipped via rail. The oil would then be transferred to barges and floated to refineries. If permitted, a heating facility would draw increased transport of Canadian tar sands, which needs to be diluted or heated for loading or unloading, through the Lake Champlain region. In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult. When a pipeline carrying tar sands oil broke near Kalamazoo, Mich., 850,000 gallons spilled. The resulting cleanup cost over $1 billion and costs were “substantially higher than the average cost of cleaning up a similar amount of conventional oil,” according to a report prepared by the Congressional Research Service.
In November of 2013, the New York Department of Environmental Conservation (DEC) declared the proposed facility would have no significant environmental impacts. However, public outrage led them to reconsider that declaration, expand the public comment period, and seek additional information from the proponents. Still, the additional requested information only touches the tip of the facility’s impacts on the region. The facility should undergo a full environmental impact review that includes potential impacts on freight shipping throughout the region including along Lake Champlain.
The increased risk associated with more oil transport along Lake Champlain and in the region seemed to catch regulators by surprise, but they are reacting now. On Jan. 28, N.Y. Gov. Andrew Cuomo issued an executive order directing several state agencies to do a top-to-bottom review of safety procedures and emergency response preparedness related to rail shipments of oil. On Feb. 26, Sen. Schumer called for the phase-out of all DOT-111 rail cars and reduction in rail speed limits in heavily populated areas. On March 4, Cuomo sent a letter to the secretaries of the departments of Homeland Security and Transportation urging them to expedite and strengthen rail safety standards, require reporting by railroad companies of derailments, increase inspections and identify and track rail cars carrying crude oil. On April 10, the DEC issued a joint press release with EPA and the Coast Guard committing the agencies to enhance emergency preparedness and response capabilities for potential crude oil incidents. On April 30, Gov. Cuomo wrote a letter calling on President Barack Obama to prioritize federal actions to reduce risks of future train derailments.
Delays by the Federal Railroad Administration in updating standards to reflect the greatly increased traffic of potentially explosive Bakken crude oil all around the country puts people, communities, Lake Champlain and other waterways at risk. The administration needs to act before another disaster like what occurred in Lac Megantic occurs here or elsewhere. Train whistles echoing off the lake should elicit wistful thoughts of faraway places, not shudders of dread.
Lake Look is a monthly natural history column produced by the Lake Champlain Committee (LCC). Formed in 1963, LCC is the only bi-state organization solely dedicated to protecting Lake Champlain’s health and accessibility. LCC uses science-based advocacy, education, and collaborative action to protect and restore water quality, safeguard natural habitats, foster stewardship and ensure recreational access.
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