Category Archives: Federal pre-emption

Benicia City Attorney Heather McLaughlin, Benicia City Council, Benicia City Manager, Benicia Planning Commission, Crude By Rail, Environmental Impacts, Federal pre-emption, Local land use authority, Local Regulation, On-site impacts, Surface Transportation Board, Valero Benicia Refinery, Valero Crude By Rail

City staff again recommends approval of Valero Crude By Rail – Council can vote on Tues, Sept 20

By Roger Straw, September 15, 2016

New staff report again recommends overturning Planning Commission’s unanimous decision

oil tank carsOn Thursday, City of Benicia staff released the agenda for the crucial and perhaps decisive September 20 meeting of the Benicia City Council.

A staff report accompanying the agenda stands by the staff’s previous positions on Valero’s oil train proposal, recommending on p. 10 that Council approve Valero’s appeal, reject Benicia’s Planning Commission decision, and approve the Crude By Rail project.

The staff report fails to quote the City’s own strong defense of local land use authority as stated in its recent legal brief before the federal Surface Transportation Board (STB), and attaches the brief seemingly as an afterthought, the 10th among 10 attachments.

Although City staff follows protocol, offering Council four alternative courses of action including approval, denial, re-working the environmental report and continuing discussion – it’s recommendation is unenlightened, a repeat of previously heard pro-oil-train postures of Valero and the City’s paid consultants.

The one indication that staff is giving Council real alternatives is that they include a ready draft of a resolution to deny the project, a professional courtesy not afforded to Benicia’s Planning Commission last February.

That said, eight of the ten attachments that accompany the staff report  lean heavily in favor of Valero and against opponents. A new memo by Valero Benicia executive Don Cuffel disputes the findings of environmental expert Dr. Phyllis Fox. In the memo, Cuffel touts his own experience and authority, then launches into a 6-page attack on Dr. Fox, characterizing her arguments as based on “ideology or on heated rhetoric.”

The City’s release of Cuffel’s September 13 memo at this late date will no doubt make it difficult if not impossible for Dr. Fox to rebut and defend herself and her positions prior to the September 20 meeting of Council.

The agenda also attaches a second September 13 memo commissioned by Valero that claims Benicia’s Sulphur Springs Creek is perfectly safe from potential environmental impacts, and that the “proposed project meets the requirements and intent of the City of Benicia’s stream setback ordinance.”

It is interesting that public comment on the proposal has officially been closed, and yet Valero’s latest memos are attached to the official Council agenda.  Would the City have given such prominence to an afterword by Dr. Fox?  Did staff choose to attach the recent critiques of Benicia structural engineer Amir Firouz or Benicia engineer C. Bart Sullivan, who have pointed out on-site impacts that have nothing to do with rail-related dangers?  Of course not.  When does manufactured rebuttal by the project applicant come to a close here?

Valero plays hard ball, of course, and has done so throughout the more than three years of procedings.  One can only guess at the behind-the-scenes pressure applied by Valero to City staff and supposedly impartial City consultants.  Who knows why our City Manager, Assistant City Manager and Principal Planner have chosen to leave our employ in recent weeks?

Opponents of the project have been waiting and watching for signals from Benicia’s new interim City Manager Steve Salomon. It is disappointing, if not alarming, to witness staff’s new (old) approach on Valero’s dirty and dangerous proposal. The lone holdovers on senior staff are City Attorney Heather McLaughlin and Community Develolpment Director Christina Ratcliffe. These two will be responsible, along with Council members, if Valero gets its way.

One can only hope that City Council members have taken note of the recent derailment disaster in Mosier, Oregon, the consistent input of outside experts, local structural engineers, California’s Attorney General and outside attorneys, and make a decision – finally on September 20 – to be done with Valero’s foolish proposal.

There is ample evidence of off-site and on-site factors that are sufficient for denial of this project. An entirely inadequate environmental review should not be certified, and a permit should not be granted.

(For a full listing of links to the staff report and attachments, see Benicia City Council: Sept. 20 agenda & attachments.)

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attend2016-09-20x

Please attend the Tuesday, September 20 City Council meeting. Arrive early if you want a seat – some  will arrive as early as 5pm for this 7pm meeting! City Hall, 250 East L Street, Benicia.

Benicia City Council, Benicia Planning Commission, Crude By Rail, Federal pre-emption, Local land use authority, Local Regulation, Phillips 66 Nipomo Mesa refinery, San Luis Obispo County, Santa Maria Refinery, Surface Transportation Board, Valero Benicia Refinery, Valero Crude By Rail

Phillips 66 seeks six-month delay in San Luis Obispo rail spur hearing

Repost from the New Times, San Luis Obispo, CA

Phillips 66 seeks six-month delay in rail spur hearing

By Chris McGuinness, August 18, 2016

The oil company proposing one of SLO County’s most controversial projects is asking the SLO County Planning Commission to wait six months before taking up the issue again.

After months of lengthy hearings, Phillips 66 requested that a planned commission meeting on its proposed rail spur extension project scheduled for Sept. 22 be pushed back until March 2017.

The move comes as the company waits for a decision by federal regulators on another controversial proposal also involving oil-carrying trains in the Northern California city of Benicia.

Hearings for Phillips 66’s project, which would allow the company to bring in crude oil by train to its Santa Maria Refinery on the Nipomo Mesa, began in February. In a July 10 letter to county planning staff, the company said it wanted to wait until the Federal Surface Transportation Board ruled on a petition involving an oil train-related project in Benicia. The company in charge of that project, Valero, is seeking declaratory relief from the three-person federal board after the oil company’s proposal to transport 50 trains per-day carrying crude oil through the city was denied by the Benicia Planning Commission and appealed to its City Council.

At the heart of the Benicia case is the issue of pre-emption, or the extent of a local government’s authority over interstate rail transportation, which is the purview of federal government.

The same issue is at play in SLO. The hearings on the Phillips 66 project featured discussions over the county’s ability to set limits or conditions on the project.

“In the interest of efficiency of the commission as well as the planning staff, we believe it would be prudent to further continue the hearing on Phillips 66’s Rail Spur Extension Project until March 2017, so that all parties can benefit from the direction expected from the Surface Transportation Board,” the letter from Phillips read.

Andres Soto is a member of Benicians for a Safe and Healthy Community, an organization of residents who oppose Valero’s proposed project. Soto told New Times he was concerned that the impact of a decision that favored Valero would have far-reaching consequences.

“It would gut local land-use authority across the country,” he said.

Whether Phillips 66 gets the delay will be up to the SLO County Planning Commission. The commission will take up the request at the Sept. 22 meeting.

Benicia City Manager, Crude By Rail, Environmental review, Federal pre-emption, Local Regulation, Public permitting, Surface Transportation Board, Valero Benicia Refinery, Valero Crude By Rail

Benicia City Manager leaving to take post in Martinez, CA

By Roger Straw, April 30, 2016

City Manager Brad Kilger oversaw Valero Crude By Rail proposal, not sticking around for outcome

Brad Kilger, City Manager of Benicia, 2010-2016
Brad Kilger, City Manager of Benicia, 2010-2016

In Benicia’s Council/Manager form of government, there is no more powerful person than the City Manager.  The Mayor and City Council supposedly run the city, and they do make the final decisions. Some decisions are also made by Commissions, but the real power in Benicia is the city manager.

The CM presides over staff, and staff guides every decision of our elected and appointed officials, making recommendations and consulting with officials outside of public meetings. For instance, the city manager works with the mayor in setting the agenda for every Council meeting.

Brad Kilger was hired as Benicia’s city manager in 2010, and has overseen the Valero Crude By Rail (CBR) proposal from the start. Outwardly, CBR has been routed through the City’s Community Development Department and its Planning Division. Those offices have undergone personnel changes during the lengthy 3½ year Valero process, but Mr. Kilger has remained in charge throughout.

Kilger is due to begin work in Martinez on June 13, leaving only 6 weeks to finish up here in Benicia. As of this writing, no word has been released as to Kilger’s final day in Benicia. Nor have details been given about his rather sudden departure.

Getting out of dodge before a decision on CBR may very well be a smart career move. Everyone expects litigation, which would be any manager’s nightmare, and a loss either way could be expected to leave a blemish on his professional profile.

Kilger was welcomed to Benicia by Council members and citizens in 2010 as a promising new presence, bringing credentials and commitments that offered hope in the area of environmental sustainability. Indeed, his tenure has seen numerous advances on that front. But many of those advances can be credited primarily to the leadership of Mayor Elizabeth Patterson and the Community Sustainability Commission.

City Council during Kilger’s time in Benicia has often been contentious. Collegiality has often been wanting among Council members, and the public has come into fierce conflict with staff over staff’s seemingly blind support for Valero’s CBR proposal.

The City will no doubt bring in an interim. No telling how long the interim will be in charge, but it seems highly likely a permanent replacement would not be in place until January 2017, after elections, and under the authority of a new City Council.

It seems likely the City Council will face a decision on Valero CBR in September with a new and possibly untested interim city manager. If the delay for review by the federal Surface Transportation Board results in a re-write and recirculation of the environmental report with attendant written comments and lengthy public hearings, it could be a real handful for whoever is in charge.

It may be a real challenge locating a qualified candidate who is willing to step in at this critical moment in Benicia’s history.

Benicia City Council, Benicia city staff, Benicia Planning Commission, Contract attorney Bradley Hogin, Crude By Rail, Environmental review, Federal pre-emption, Local elections, Local Regulation, Public Health, Public permitting, Public Safety, Surface Transportation Board, Valero Benicia Appeal, Valero Benicia Refinery, Valero Crude By Rail

EDITORIAL: Valero wins one; attorneys wrangle; opponents get testy

By Roger Straw, April 29, 2016

Valero wins one; attorneys wrangle; opponents get testy

Catching up on recent events

RDS_2015-06-21_200pxSorry, I had to take a little break.  When the Benicia City Council voted 3-2 to put off a decision on Valero’s crude by rail proposal (CBR), it was just a bit too much.

I was deeply discouraged by the majority’s need for yet more information.  Three Council members wish to hear from the federal Surface Transportation Board (STB) before making the decision whether to permit a rail offloading rack on Valero property – a project that would foul California air and endanger lives and properties from here to the border and beyond, a project that would clearly contribute to the ongoing effects of global warming.

So I was one discouraged 3½ year supposedly-retired volunteer.  I was in no shape last week to send out my Friday newsletter.

Here, as best I can summarize, is news from the last 2 weeks:

Valero wins one

You will recall that Valero appealed the Planning Commission’s unanimous February decision on crude by rail to not certify the environmental report and to deny the land use permit. Then at the Benicia City Council’s opening hearing on the appeal on March 15, Valero surprised everyone by asking for a delay in the proceedings so that it could ask for guidance from the federal Surface Transportation Board (STB).

City staff recommended against Valero’s request, rejecting the proposed delay as unnecessary and risky, given that the City and Valero could end up with a “stale” environmental report that requires yet another time-consuming revision and more hearings.

Opponents also argued against the delay, noting that the request would be carefully framed by Valero in its own favor, submitted for review to an industry-friendly STB, and result in a judgement that would still be subject to final review in a court of law. Opponents also pointed out the possibly that the delay was a Valero political tactic, given that this is an election year with three members of City Council up for re-election.

At the most recent City Council hearing on April 19, contract attorney Bradley Hogin disclosed that he was not involved in the staff decision to recommend against the delay, and that he disagreed with his employers. Given every opportunity by Council members, Hogin argued at length in favor of the delay. During verbal questioning, Council did not give similar opportunity to Hogin’s bosses to argue against the request for delay.

And guess what, 3 members of Council were convinced by the pleasant instruction of their outside attorney Hogin that we would do well to hear from the STB before rushing (3 years into the process) to judgement.

Win one for Valero.  Council will resume consideration in September.

The attorneys wrangle

We are asked to believe that the big issue here after 3 years of environmental review has nothing at all to do with the earth or the health and safety of you, me, our neighbors or the lands and wildlife.

Supposedly, according to Valero’s attorney and contract attorney Hogin, it’s all about “federal preemption.”  Supposedly, our city officials have no legal authority to impose conditions or mitigations or deny a permit in this case.

However, according to California’s Attorney General and environmental attorneys, “federal preemption” does not prohibit City government from making such land use decisions based on local police powers and the legal requirement to protect public health and safety. Federal preemption protects against state and local authorities regulating railroads. A refinery, says our Attorney General, is not a railroad. Go figure.

Anyway, Valero’s attorney has written several letters on preemption and taking issue with the Attorney General. The Attorney General has written several letters, sticking by its argument. Environmental attorneys have written several letters making similar arguments.

In addition to the letters, Valero’s attorney and Mr. Hogin have testified at length under questioning by City Council members. Environmental attorneys have been given only 5 minutes each to speak at hearings, with little or no back and forth questioning from City Council members.

Everyone I have talked to expects this decision to end up in court, whether or not the STB issues a ruling, and regardless of which way they rule.

Benicians for a Safe and Healthy Community gets testy

Like me, I suspect, members of our local opposition group, Benicians for a Safe and Healthy Community (BSHC) were highly disappointed and discouraged by the Council vote to delay for Valero and the STB.

In interviews and online statements that followed the April 19 Council vote, some BSHC members were quick to presume that the 3 Council members who voted for delay would also support Valero when it comes to a final vote in September.

Of course, a 3-2 vote favoring Valero in September is not the only possible outcome. Some would say that the next 5 months might best be spent respectfully reminding Council members of facts of the case, and encouraging them to make the right decision.

Those of us who have spent countless hours opposing Valero’s dirty and dangerous proposal have known all along that it is an uphill battle, that the odds are against us, that big business prevails all too often against the interests of health, safety and clean air.  But look what happened at our Planning Commission.  There is hope.

It seems to me that the presumption of a negative outcome can only serve to harden Council members’ attitudes and opinions.  But I may be wrong.

Some will continue to argue that Council members should be made to feel the public’s disappointment, that outrage and pessimism is understandable, and that an obvious implication is that unhappy voters will have their say in November.

I’m convinced that hardball politics and small-town respect for decision makers will need to co-exist over the next few months. Come September, we shall see.