Category Archives: Federal pre-emption

Benicia Blocks Oil-By-Rail Plan

Repost from the East Bay Express
[Editor:  I am posting this excellent review by Jean Tepperman belatedly, with thanks for East Bay Express’ regional coverage of a Benicia story with huge regional and national implications.  I’ve not read a better review of the Feb. 8-11 Benicia Planning Commission hearings.  – RS]

Benicia Blocks Oil-By-Rail Plan

By Jean Tepperman, February 12, 2016
Valero Refinery in Benicia. - WIKIMEDIA COMMONS
Valero Refinery in Benicia. – WIKIMEDIA COMMONS

The little town of Benicia is looking to become the next link in the chain barring crude oil from traveling by rail to the West Coast. After four evenings of contentious hearings, the Benicia Planning Commission on Thursday unanimously rejected Valero refinery’s proposal to build a rail spur that would allow it to import up to 70,000 barrels a day of “North American crude oil” — meaning extra-polluting crude from Canada’s tar sands and the highly explosive crude from North Dakota’s Bakken shale fields. Both fossil fuels have been involved in numerous derailments, explosions, and fires, including a 2013 fire and explosion in Lac Megantic, Quebec that killed 47 people.

Starting on Monday, planning commissioners, led by Commissioner Steve Young, grilled staff members about their decision to recommend approval of the Valero project, identifying inconsistencies and pointing to problems that the project would create, from blocking traffic to increasing pollution to potential oil spills and other emergencies that the city would not be able to cope with. The central issue that emerged, however, was whether the city had the authority to make decisions about the project.

The staff report actually said the benefits of the project did not outweigh the potential harm. Shipping crude oil by rail, the staff found, would have “significant and unavoidable” impacts on air quality, biological resources, and greenhouse gas emissions. These impacts would conflict with air quality planning goals and state goals for reducing greenhouse gas emissions. But the city can’t prevent any of this, the staff report said, because only the federal government has the authority to regulate railroads.

Bradley Hogin, a lawyer whom the city hired on contract to advise on this project, said federal law prevents local governments from interfering with railroads, a principle referred to as “preemption.” According to the interpretation of “preemption” described by Hogin and city staff, local governments are not permitted to take actions that “have the effect of governing or managing rail transport,” even indirectly. And they are not allowed to make decisions about a project based on impacts of rail shipping connected with that project.

“Hogin is making a case that would affect cities across the nation dealing with crude by rail,” said environmental activist Marilyn Bardet in an interview. “They were going to create a legal precedent on preemption here.”

Bardet reported that public testimony by representatives of environmental organizations and “two young women from the Stanford-Mills Law Project made it clear that “there are many people who would disagree with Hogin’s interpretation.”

Roger Lin, lawyer with Communities for a Better Environment, said in an email that, contrary to Hogin’s claims, the California Environmental Quality Act actually requires local governments to consider “indirect or secondary effects that are reasonably foreseeable and caused by a project, but occur at a different time or place.” Valero is not a railroad, he said, so the “preemption” doctrine does not bar the city from using its land-use power to reject the project.

However “preemption” is interpreted, Bardet said, “the commissioners seemed uncomfortable with being told they would have to approve the project based on considerations they couldn’t accept.” Late in the hearing process, commission chair Donald Dean said, “I understand the preemption issue on a theoretical legal level, but I can’t understand this on a human level.”

Bardet expressed appreciation for the commissioners’ concern. “My sense was that these guys are real human beings,” she said. “They all listened carefully. None of them was asleep.”

Project opponents packed the hearing room for four straight nights, filling two overflow rooms on the first night. People came from “uprail” communities, including Davis and Sacramento, as well as allies from across the Bay Area, Bardet said.

Opposition to the project has been led by a community group, Benicians for a Safe and Healthy Community, formed in 2013 when the city seemed ready to approve the project without requiring any environmental impact study. “We joined with other refinery communities in the Bay Area Refinery Corridor Coalition” and in a coalition working to persuade the Bay Area Air Quality Management District to pass tough new regulations on refinery pollution, Bardet said. She said support from the National Resources Defense Council and Communities for a Better Environment was also important. “The grassroots came alive together,” she said.

Many of these organizations, like the Benicia group, are concerned, not only about the hazards of shipping crude by rail, but by the impact of refining the extra-polluting crude oil from Canada’s tar sands, Bardet said. She noted that the city’s environmental review of the project made no mention of this issue, although it is well established that refining dirty crude oil, like oil from tar sands, emits more health-harming pollution as well as more greenhouse gases.

Valero is expected to appeal the planning commission decision to the city council, which could meet to decide on the issue as early as mid-March. “The city council is going to be hard-pressed to reject the views of their own planning commission,” Bardet said.

She emphasized the significance of this decision for the national and international issue of shipping crude oil by rail. “The whole world is watching,” she said. “I just got a message from a guy in New Jersey congratulating us.”

Inspector General Cites Failure of Federal Railroad Administration on Oil Train Safety

Repost from The Root Word, ForestEthics Blog
[Editor:  See also the earlier Associated Press story: Railroad Regulators Fail to Pursue Criminal Prosecution of Hazardous Cargo Safety Violations.  – RS]

News Analysis: Inspector General Cites Failure of Federal Railroad Administration on Oil Train Safety

By Matt Krogh, March 2, 2016
2015 Paul K. Anderson

In a scathing critique, the US Department of Transportation Inspector General called out the Federal Railroad Administration (which is an agency within DOT) for failing to adequately evaluate or reduce the risks of a catastrophic oil train accident to the American public. The conclusion: The FRA is failing to provide adequate oversight and policing of oil trains, and FRA fails to enforce the rules or prosecute violators when they find dangerous violations.

Oil trains are too dangerous for the rails. The Inspector General makes this point in the first sentence of the review, citing the fatal Lac Megantic oil train disaster. But we’ve heard from far too many local, county, and state officials around the country who believe the federal government is overseeing oil trains and guaranteeing public safety. It’s true that century-old railroad law puts railroads under federal control. That makes sense because a continental railroad system would grind to a halt if it was regulated by thousands of different local and state government entities. But no one should let “pre-emption” or federal-control get in the way of local permitting decisions, especially when it comes to public safety. Especially when it comes to preventing a calamity that could reduce another town to ashes.

This Inspector General report makes it clear the FRA is failing the American people with a good cop/good cop approach when it comes to mile-long oil trains carrying millions of gallons of toxic, explosive crude through US cities and towns.

Here’s some key quotes from the DOT IG report, reviewed in an excellent article by AP reporter Joan Lowy:

the Agency has no overall, national understanding of the risk environment and cannot be sure that the regions consider all appropriate risk factors

This points to a key flaw in FRA oversight: they assume that region-based inspection systems are all that are needed, and fail to look nationally, comprehensively, at the risks of moving oil by train.

…do not take into account risk factors such as the condition of transportation infrastructure, the shippers’ compliance histories, or the proximity of transportation routes to population centers.

This begs the question, what does the FRA look at in risk assessment? Track conditions, how good the individual railroads are at safety, and how close people are living to oil train routes seem pretty important.

FRA issues few violations, pursues low civil penalties, and does not refer possibly criminal violations to the office of inspector general

The FRA turns a blind eye to criminal violations, settles for low fines, and fails to bring in the Office of Inspector General when criminal investigations are warranted. We need a bad cop, folks.

One inspector noted that the Office of Chief Counsel has effectively “numbed” a large portion of inspectors into not writing violations and stated that some inspectors have preconceived notions that violations will not get through the process.

It’s true that the FRA does have inspectors — but the FRA’s buddy culture with the railroads means that hard-working inspectors on the ground have lost faith in the agency’s willingness and ability to regulate railroads.

respondents just smile and cut the check

By respondents the Inspector General means railroads. They don’t argue with miniscule fines, but then why should they? They are happy to pay small fines as a normal operating expense, and get back to moving vast quantities of explosive, toxic crude oil through America’s population centers.

While the specific circumstances of all of these violations may not have warranted maximum penalties, FRA settled for 5.1 percent of the roughly $105.6 million dollars in penalties it could have levied…

No, seriously, the fines are miniscule. FRA is only issuing 5% of the fines they could levy under the law. Wouldn’t it be nice if the highway patrol took the same approach to speeding tickets? It would, but then, the Wild West of our highways would be littered with the smoking wreckage of souped-up Camaros.

By applying the same penalty to all violations of a regulation, FRA is distancing its enforcement actions from the context of the behaviors they are meant to rectify, thus weakening penalties’ deterrent effect. Furthermore, by bundling violations, FRA’s settlement process removes penalty enforcement from the context of each violation and low penalties diminish the potential deterrent effect of the penalties set in the guidelines and the regulatory maximums.

And there you have it: it doesn’t matter the scale or the number of fines you get, you can talk your way out of it in the settlement process.

The Inspector General audit of the Federal Railroad Administration found an agency that fails to understand and regulate the severe threat to 25 million Americans living in the blast zone. When it comes to oil trains the FRA seems to work for the railroad and oil industry, and not the American people. Local and state officials faced with permitting decisions need to recognize their responsibility to protect the public, just as the FRA now needs to do their job when it comes to deadly oil trains.

Public speaks on Valero project

Repost from the Vallejo Times-Herald

Public comments on Valero Benicia Refinery’s proposed project

By Irma Widjojo, 09/30/15, 6:14 PM PDT
Andrés Soto, spokesperson for Benicians for a Safe and Healthy Community, wears his sentiments on his T-shirt, as he speaks in opposition to a proposed Valero Crude-by-Rail project at a public comment hearing on the project’s Revised Draft EIR at a special Benicia Planning Commission meeting at City Hall. MIKE JORY — TIMES-HERALD

Benicia >> In a special meeting that drew a large crowd Tuesday night, the Benicia Planning Commission received comments from concerned citizens on recently distributed documents on Valero’s proposed Crude-by-Rail project.

Many of those supporting the project wore a sticker on their clothing indicating their approval, while some of those opposing the project wore pins, brought signs and sported a sunflower — a symbol of environmentalism — at the Benicia City Council Chambers at City Hall.

The meeting, which began at 6:30 p.m. and lasted until about 10 p.m., was an opportunity for the public to submit verbal comments on the Revised Draft Environmental Impact Report, or RDEIR, of the project. Those who could not get a seat in the chambers, which has a 120-person capacity, were asked to wait for their turn to speak in an overflow room.

The RDEIR concluded that the project would cause “significant and unavoidable” impacts to air quality, greenhouse gas emissions, biological resources and hazards and hazardous materials. However, the report also adds “potential mitigation measures to reduce these new impacts would be preempted by federal law.”

A few speakers who were concerned with the project took issue with the federal preemption mentioned in the report. Federal preemption means federal laws displace state or other local laws.

“It has become a justification for the lack of mitigation,” Benicia resident Roger Straw said. Straw also is the editor of the online publication The Benicia Independent, which disseminates articles and information regarding crude-by-rail and Valero refinery.

Another Benician, Judith Sullivan, said “preemption makes it sound like we don’t have any choices.

“But grassroots efforts like this have been pushing the federal government to enact new environmental laws,” she said.

Representatives from Valero Benicia Refinery and Union Pacific, which would operate the railroad used for the trains hauling crude if the project is approved, also spoke during the meeting.

“This process has forged into a new territory and goes beyond what CEQA (California Environmental Quality Act) requires,” said Don Cuffel, Valero Benicia Refinery’s lead environmental engineer.

An attorney working with Valero on the application called the process “out of control.”

“We’ve lost sight of the city’s discretion,” said attorney John Flynn. The RDEIR, released Aug. 31, came after an outpouring of feedback from the public on the Draft Environmental Impact Report last year.

Valero Benicia Refinery applied for the permit for the project in early 2013.

If the project is approved, Valero will be allowed to transport crude oil through Benicia via two 50-tanker car trains, rather than shipping the crude oil by boat. It will not replace the crude that is transported by pipeline, officials said.

Concerns voiced on Tuesday about the RDEIR included conflicting information, conclusions based on assumptions and lack of details, among others.

Though the commission reminded the public that the comments should be limited to the redistributed report, instead of about the project in general, not everyone heeded the reminder.

“Valero is a powerful oil company that provides most revenue to this town,” a speaker said. “Are you going to let them get richer on the expense of the health and well being of the residents?”

Many supporting the project said Valero has “gone above and beyond” in the process to ensure the project’s safety, and called Valero a “good neighbor.”

However, that was not good enough of a reason for those in opposition.

“While Valero has been a good neighbor, we can’t be held hostage by what they have given generously to our city,” Anina Hutchinson said.

They also brought up issues about increased greenhouse gas emission, chance of derailment while carrying volatile crude and destruction of the environment in the area of the railroad.

Herbert Forthuber told the Times-Herald he supports the project because Valero is a major financial revenue for the city.

“I’ve seen in the past that when it’s not economically viable anymore for (a refinery) to be in a city, they close down,” Forthuber said, adding that it would be a blow for the local employees and other local businesses that depend on the refinery.

Forthuber is the vice president and general manager of a local business that repairs industrial machineries.

“The RDEIR really hasn’t changed my mind,” he said. “I’m more economically minded, and I care about the impact it would have for people who work for me.”

Valero officials have contended that the railroad addition would make the refinery more competitive by allowing it to process more discounted North American crude oil.

All of those who were present Tuesday were given an opportunity to speak, and the remaining three special meetings for this purpose have been cancelled.

Comments on the report may still be submitted in writing no later than 5 p.m. on Oct. 30.

Written comments should be submitted to amillion@ci.benicia.ca.us or Principal Planner Amy Million at the Community Development Department. For further information about the revised environmental report, contact Million at 707-746-4280.

The report can be reviewed at the Benicia Public Library, 150 E. L St.; the Community Development Department, 250 E. L St.; or online at bit.ly/1lBeeTt.

Following the end of the comment period, a final Environmental Impact Report will be released to the public.

During the meeting, Million said staff estimated Planning Commission hearings will be held in January for the commission to certify the report and whether to grant Valero the use permit for the project.

SACRAMENTO BEE – critical review of Benicia Valero RDEIR

Repost from the Sacramento Bee

Sacramento oil spills would be risky but rare, new report says

By Tony Bizjak, August 31, 2015

HIGHLIGHTS
• Valero Refining Co. wants to send two 50-car oil trains daily through central Sacramento
• A report says project presents risks to humans and the environment, but says spills are rare
• Sacramento and NorCal leaders have called for more safety steps to reduce the spill and fire risks

A train travels near the Feather River Canyon in the foothills into the Sacramento Valley.
A train travels near the Feather River Canyon in the foothills into the Sacramento Valley. Jake Miille Special to The Bee/Jake Miille

Benicia city officials have concluded a proposal to transport large amounts of crude oil daily on trains through Sacramento and Northern California would create a “potentially significant” hazard to the public, but say a spill is probably only a once every few decades occurrence.

In a revised environmental impact report issued Monday, officials in the Bay Area city contend spill risks are unavoidable and there is nothing that the city or the Valero Refining Co. can do to mitigate them, given that the federal government controls how rail shipments are handled. The report makes a point of saying that federal and state governments have taken recent steps to make crude oil rail transports safer.

Valero, which operates a major oil refinery in Benicia, is asking for city approval to ship two 50-car crude oil trains daily from north American fields through California to the Bay Area, replacing marine oil shipments.

Oil train shipments have come under the spotlight nationally after a handful of crashes that caused spectacular explosions and fires. One crash two years ago resulted in the deaths of 47 people in a Canadian town; others have forced evacuations and spilled oil into waterways.

Benicia officials conducted the latest analysis after critics, including Sacramento regional leaders, complained earlier risk assessments were inadequate. They have called on Benicia and Valero to take more safety steps.

Cities on the rail line include Roseville, Sacramento, West Sacramento, Davis, Dixon, Vacaville, Fairfield and Suisun City. The oil train route through rural Northern California remains uncertain. Trains could enter the state from Oregon and pass through the Dunsmuir area, or through the Feather River Canyon, or via Donner Summit.

Benicia’s initial environmental report, published last year, had said spill damage hazards are “less than significant.” The new report is based on a deeper analysis of an expanded geographic area.

The Benicia report cites federal data showing that less than 1 percent of train accidents cause releases of hazardous materials. But it also notes that trains to Benicia would have to travel through mountainous areas that have higher derailment rates. It projects that an oil spill of more than 100 gallons – described in the report as a small spill – might be expected to happen once every 20 to 27 years. A larger spill of 30,000 gallons is listed as a once-every-38-to-80-years event, but could cause injuries and deaths.

The release of the new report sets in place a 45-day public comment period. Benicia officials said they will respond to those comments, then set a Planning Commission review and vote on the project. The date for that hearing has not been set.

Valero officials, who have complained that Benicia’s vetting process has gone on too long, said in a brief email statement Monday that they are looking forward to participating in the Planning Commission discussion of their project. Officials with the Sacramento Area Council of Governments, the regional entity that has been monitoring the project, could not be reached for comment Monday.

A copy of the report can be found under “Revised Draft EIR” on the city of Benicia’s website.