Category Archives: Federal Regulation (U.S.)

Tar sands in Alberta and the Keystone XL Pipeline

Repost from NATUREInternational Weekly Journal of Science
[Editor: a friend sent this excellent overview of policy struggles behind the tar sands debacle in Alberta and the Keystone XL pipeline in the U.S.  Significant quote: “As scientists spanning diverse disciplines, we urge North American leaders to take a step back: no new oil-sands projects should move forward unless developments are consistent with national and international commitments to reducing carbon pollution. Anything less demonstrates flawed policies and failed leadership. With such high stakes, our nations and the world cannot afford a series of ad hoc, fragmented decisions.” – RS]

Energy: Consider the global impacts of oil pipelines

25 June 2014, by Wendy J. Palen, Thomas D. Sisk, Maureen E. Ryan, Joseph L. Árvai, Mark Jaccard, Anne K. Salomon, Thomas Homer-Dixon, & Ken P. Lertzman
Debates over oil-sands infrastructure obscure a broken policy process that overlooks broad climate, energy and environment issues, warn Wendy J. Palen and colleagues.

The debate over the development of oil sands in Alberta, Canada, is inflaming tensions in and between Canada and the United States.

In April, US President Barack Obama deferred a decision on the fate of the proposed Keystone XL oil pipeline, despite escalating pressure to approve it from Canadian Prime Minister Stephen Harper. The contentious pipeline would transport 830,000 barrels per day of partially refined bitumen from Alberta’s oil sands, through the US Midwest, to Gulf Coast refineries. Harper is also facing a controversial domestic battle over his approval on 17 June of the Enbridge Northern Gateway pipeline, to connect Alberta with a port on British Columbia’s remote Pacific coast.

But drama over the pipelines obscures a larger problem — a broken policy process. Both Canada and the United States treat oil-sands production, transportation, climate and environmental policies as separate issues, assessing each new proposal in isolation. A more coherent approach, one that evaluates all oil-sands projects in the context of broader, integrated energy and climate strategies, is sorely needed.

Although Keystone XL and Northern Gateway are among the first major North American projects to highlight flaws in oil-sands policies, more than a dozen other projects are on the drawing board. Meanwhile, the US government is considering its first oil-sands leases on federal lands, as bitumen mining expands on state land in Utah’s Uinta Basin.

As scientists spanning diverse disciplines, we urge North American leaders to take a step back: no new oil-sands projects should move forward unless developments are consistent with national and international commitments to reducing carbon pollution. Anything less demonstrates flawed policies and failed leadership. With such high stakes, our nations and the world cannot afford a series of ad hoc, fragmented decisions.

Incremental decisions

Current public debate about oil-sands development focuses on individual pipeline decisions. Each is presented as an ultimatum — a binary choice between project approval and lost economic opportunity. This approach artificially restricts discussions to only a fraction of the consequences of oil development, such as short-term economic gains and job creation, and local impacts on human health and the environment. Lost is a broader conversation about national and international energy and economic strategies, and their trade-offs with environmental justice and conservation.

This pattern of incremental decisions creates the misguided idea that oil-sands expansion is inevitable. By restricting the range of choices, governments have allowed corporations to profit from one-off policy decisions, leading to a doubling of oil-sands production in Alberta in the past decade, with production forecast to double again to 3.9 million barrels per day in the coming decade1. The collective result of these decisions is unnecessarily high social, economic and environmental costs.

When judged in isolation, the costs, benefits and consequences of a particular oil-sands proposal may be deemed acceptable. But impacts mount with multiple projects. The cumulative effects of new mines, refineries, ports, pipelines, railways and a fleet of transoceanic supertankers are often at odds with provincial, state, federal or international laws protecting clean water, indigenous rights, biodiversity and commitments to control carbon emissions.

Oil-sands development in Alberta, for example, has irreversibly transformed more than 280 square kilometres of the boreal landscape by burning or degrading peatlands covering oil-sands deposits2. Such ecosystems represent long-term carbon sinks that require thousands of years to develop. The development has also elevated waterway concentrations of chemical contaminants such as polycyclic aromatic compounds that are toxic to fish and other aquatic organisms3, 4, and has been associated with a tenuous but troubling rise in rare cancers in downstream indigenous communities5.

Major infrastructure such as pipelines requires decades of operation to recoup the initial investment, fostering expansion of oil-sands projects upstream and refineries and ports downstream. For example, the proposed US$5.4-billion Keystone XL pipeline would drive further oil-sands extraction by providing access to Gulf Coast refineries and profitable export markets (see ‘Big decisions’). Such investments create a ‘lock-in’ that commits society to decades of environmental degradation, increased risk of contamination and spills, and unsustainable carbon pollution.

Oil-sands production has already caused dramatic increases in carbon pollution. The United States and Canada have committed to the same 2020 greenhouse-gas emissions target: a 17% decrease relative to 2005 levels. But Canada’s agencies predict that it will miss its target by 122 million tonnes annually6, 7. Although emissions in many sectors are falling, those from oil-sands production are predicted to triple from 2005 by 2020, from 34 million to 101 million tonnes.

Smart steps

Despite these predictions, public discussions around emissions from expanding oil-sands production are being muted. Since 2010, public hearings on proposed pipelines, including Northern Gateway, the Trans Mountain pipeline in British Columbia, and the Line 9B pipeline reversal in southern Ontario, have formally excluded testimony by experts or the public about carbon emissions and climate (see go.nature.com/mpx2sc).

We propose two steps to improve decisions about the development of oil sands. First, North American citizens and policy-makers must enact policies at national, state and provincial levels that acknowledge the global consequences of expanding oil-sands develop­ment. Legislated constraints on carbon pollution (such as a carbon tax or cap-and-trade) based on current climate science will help to ensure that the full social costs of carbon combustion are incorporated into investment decisions about energy and infrastructure. This will help companies and policy-makers to better judge trade-offs between investment in oil-sands projects, renewables and energy-conservation programmes, while catalysing innovation in low-carbon technologies.

Second, policy-makers need to adopt more transparent and comprehensive decision-making processes that incorporate trade-offs among conflicting objectives such as energy and economic development, environmental protection, human health and social justice. The decision sciences offer pathways, from problem identification to policy implementation, which can encompass a wide range of public values and address multiple drivers, linked effects and nested scales of cause and effect.

Decision-support tools are being developed for exploring how outcomes, priorities and trade-offs shift under different future energy scenarios. Possibilities might include the approval or rejection of pipeline proposals, more stringent low-carbon fuel standards, carbon taxes, or a spike or drop in global demand for Canadian oil8. Such tools can be used to identify thresholds where development should shift from one energy option to another, and evaluate which investments are most robust given environmental, social and economic policies and their effects on energy supply and demand8. The territorial government in the Canadian north is using these tools to identify energy options that protect the Arctic environment and developing economy, while meeting the needs of local communities9.

In the absence of a global accord to reduce carbon emissions, the United States and Canada should agree to a suite of shared policies to guide development of both carbon-based and low-emission sources of energy over the coming decades. Such coordination might seem unlikely given the ideological gulf between the current US and Canadian administrations, but that divide will not persist indefinitely.

A binational carbon and energy strategy should align with existing continental trade accords, provide a clear road map for decisions about energy development — particularly for unconventional oil — and enhance North American competitiveness and leadership. It should specify priorities, expectations and principles whereby decisions on infrastructure projects, such as Keystone XL or Northern Gateway, are made in the context of an overarching commitment to limit carbon emissions. North America’s energy challenges would then become a vehicle for beneficial economic coordination and integration rather than remaining a source of rancour and friction.

A key step is a moratorium on new oil-sands development and transportation projects until better policies and processes are in place. Reform is needed now: decisions made in North America will reverberate internationally, as plans for the development of similar unconventional reserves are considered worldwide.

With clearer policy, smarter decisions and stronger leadership, Canada and the United States can avoid the tyranny of incremental decisions — and the lasting economic and environmental damage that poorly conceived choices will cause.

Journal name:
Nature
Volume:
510,
Pages:
465–467
Date published:
()
DOI:
doi:10.1038/510465a

References

  1. Canadian Association of Petroleum Producers. 2014 CAPP Crude Oil Forecast, Markets, & Transportation: Refinery Data (CAPP, 2014).

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  2. Rooney, R. C., Bayley, S. E. & Schindler, D. W. Proc. Natl Acad. Sci. USA 109, 49334937 (2012).

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  3. Kurek, J. et al. Proc. Natl Acad. Sci. USA 110, 17611766 (2013).

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  4. Kelly, E. N. et al. Proc. Natl Acad. Sci. USA 106, 2234622351 (2009).

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  5. Chen, Y. Cancer Incidence in Fort Chipewyan, Alberta 1995–2006 (Alberta Cancer Board, 2009).

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  6. Environment Canada. Canada’s Emission Trends (2013).

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  7. Office of the Auditor General of Canada. 2012 Spring Report of the Commissioner of the Environment and Sustainable Development Ch. 2 (2012).

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  8. Arvai, J., Gregory, R., Bessette, D. & Campbell-Arvai, V. Iss. Sci. Technol. 28, 4352 (2012).

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  9. Kenney, L., Bessette, D. & Arvai, J. J. Environ. Plan. Mgmt http://dx.doi.org/10.1080/09640568.2014.899205 (2014).

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Region north of Sacramento sees 200-300 tank cars carrying crude oil on a given day

Repost from The Appeal-Democrat (Sutter & Yuba counties in California)

Tracking trouble: Recent accidents highlight the dangers of transporting flammables on trains – including crude oil through Marysville

June 29, 2014, by David Bitton

It might be scarier to know how much of anything is being hauled through the Yuba-Sutter region via railroad. But it might be for the best to know exactly how much crude oil is going through; and it might help to put it into perspective.

Crude oil has been on the minds of communities with rails running through them since the booming of oil exploration and drilling in North Dakota. There have been a few high-profile accidents involving trains pulling tankers full of the crude oil.

It is now public record that Burlington Northern Santa Fe tank cars carrying North Dakota Bakken crude oil pass through Marysville about once a week. The information was released this past week from the Governor’s Office of Emergency Services.

Railroad companies sought to to restrict such information to just emergency responders, citing security concerns, but the state, after some time, went ahead and released the information.

The transporting of crude oil from the Bakken Fields in North Dakota has come under greater scrutiny in the past year, with fears over the potential problems with the crude oil that is more volatile and flammable than oil from other regions.

There have been fiery derailments in North Dakota, Virginia, Alabama and Lac-Mégantic, Quebec, Canada, all involving Bakken crude oil.

The likelihood of a train derailment in Yuba-Sutter isn’t any greater or different than much of the rest of the country, area emergency responders agreed. But that doesn’t mean accidents don’t happen — they do. And due to those accidents, state and federal agencies are scrambling to tighten regulations.

Much of the concern comes from the ever-increasing quantity of crude oil entering the state by rail.

Crude oil heading to California refineries via rail has spiked in recent years from 498,000 barrels in 2010 to 6.3 million barrels in 2013, according to the California Energy Commission (a barrel contains 42 gallons of crude oil).

And by 2016, as much as 150 million barrels of crude oil, or 25 percent of total imports, could be coming into the state on rail, according to the California Energy Commission.

Less than 1 percent

Despite the increases, Aaron Hunt, director of corporate relations and media for Union Pacific, said crude oil entering California currently accounts for less than 1 percent of its business.

“Though we ship more grain, cement and timber than crude oil, Union Pacific has safely moved crude oil on behalf of our customers for decades,” Hunt said. “Seeking energy independence, U.S. companies have enthusiastically developed crude oil resources and rail has played a role in getting those resources to the right markets.”

Both Burlington Northern Santa Fe and Union Pacific move commodities through Yuba-Sutter ranging from fruits and vegetables to sulfuric acid, anhydrous ammonia, chlorine and crude oil.

U.P. does not currently move crude oil in California originating from the Bakken region, Hunt said. But the rail company does move crude from other areas through this region.

The quantity is hard to pin down as Union Pacific isn’t releasing figures, but Bill Fuller, chairman of the Region 3 local emergency planning commission, which includes 13 Northern California counties and falls under the Governor’s Office of Emergency Services, was told by the Union Pacific that as many as 200-300 tank cars carrying crude oil could be moving through Yuba-Sutter on a given day.

Well-traveled lines

Lt. Aaron Easton, deputy chief of the Marysville Police Department, said the two Union Pacific rail lines that pass through Marysville are well traveled.

“Amtrak’s passenger lines come through twice each day in the pre-dawn hours,” Easton said. “The cargo lines pass numerous times at all hours of the day and night,” he said. “Cargo includes large volumes of fuels, chemicals, and a variety of other potentially hazardous types of cargo.”

Last month, the U.S. Department of Transportation ordered the railroad carriers to notify the State Emergency Response Commission when a single train is transporting more than 1 million gallons of Bakken crude oil into their state.

Railroad companies including Union Pacific support more stringent standards for tank cars, which are used to transport flammable liquids, including crude oil.

Tank cars are owned or leased by the companies shipping products, not by the railroad companies.

The Association of America of Railroads has standards for tank cars that currently exceed the federal requirements and have been pressing the Department of Transportation to upgrade.

Existing tank cars would need to be retrofitted or phased out, Hunt said.

“The new standard requires a thicker, more puncture-resistant shell, jacket, and thermal protection,” Hunt said. “It also requires extra-protective head shields at both ends of the tank car and additional protection for top fittings.”

Y-S ready in case of emergency

The stories are scary and run the gamut.

In April, a fire erupted after more than a dozen tanker cars carrying Bakken crude oil derailed in Lynchburg, Va. No one was injured.

But last July, 47 people in Lac-Mégantic, Quebec, Canada, were killed when a train carrying Bakken crude oil derailed and erupted in flames that destroyed part of the downtown area.

Though a derailment and fire of that magnitude isn’t likely in Yuba-Sutter, emergency procedures are in place in case of a train derailment.

The Yuba-Sutter Hazmat Response Team, which was formed in 2012, is made up of six fire agencies — Marysville, Linda, Olivehurst, Wheatland, Yuba City and Sutter County.

Many of its members are hazardous materials technicians or specialists and have received training on rail car emergencies including leaks, spills and derailments.

“The concept was to pool the resources of local hazardous materials response teams for better protection of Yuba and Sutter Counties,” said Sutter County Fire Chief Dan Yager. “A large-scale incident involving any release of known or unknown substances would trigger the activation of this team.”

The six agencies agreed that their immediate course of action would be to determine the scope of the incident, call for mutual aid and help those in need.

“Our mission is to protect life, the environment and property, in that order,” Yager said.

If a large-scale evacuation is necessary, Yuba County Undersheriff Jerry Read said his department and the California Highway Patrol have worked together to create routes based on the scenario.

A unified command structure would be established with fire, law enforcement, county office of emergency services and railroad representatives working together, said Linda Fire Chief Richard Webb.

“Continued training and planning are the mechanisms we will continue to use in an effort to mitigate the risks associated with a derailment,” Webb said. “The projection is for Bakken crude oil shipments by rail to spike up dramatically over the next several years, which would increase the risk of a derailment possibilities.”

Federal rail safety legislation proposed by NY Sen. Schumer

Repost from The Lockport Union-Sun & Journal

Schumer pushing new rail safety bill

June 28, 2014

Lockport Union-Sun & Journal — U.S. Sen. Charles Schumer, D-New York, announced Thursday he has co-sponsored a bill aimed at better coordinating federal resources to improve responses to railroad derailments, including those involving oil cars.

The bill, called the Railroad Emergency Preparedness, Operational Needs and Safety Evaluation (RESPONSE) Act of 2014, would establish a subcommittee under the Federal Emergency Management Agency’s National Advisory Council to address the issue of railroad derailments and the resulting hazmat incidents, with a specific focus on crude oil transported down New York state railroads.

Schumer said the committee would be tasked with bringing together all of the relevant federal agencies, emergency responders, technical experts and the private sector for a review of training, resources, best practices and unmet needs related to emergency responders to railroad hazmat incidents. Schumer said if the bill is approved all flammable, hazardous materials that travel railways would be subject to review by subcommittee members, with a particular focus on train oil transport, as evidenced by the increased risk associated with derailments of cars that carry this crude oil.

… MORE

CAL Energy Commission workshop: ‘wake up call’ on crude by rail

Repost from The Contra Costa Times
[Editor: Significant quote for Benicia and others along the Union Pacific rail line: “Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.”  – RS]

California trying to catch up to dangers of crude oil shipped on railroads

By Doug Oakley, Oakland Tribune, 06/25/2014

BERKELEY — California agencies have very little authority to regulate a massive increase in crude oil shipments by rail, and only now are they realizing the magnitude of the potentially explosive situation, according to state officials speaking Wednesday at a workshop sponsored by the California Energy Commission.

“It’s a wake up call when you look at the projections,” said commission Chair Robert Weisenmiller. “We have to plan for the worst case.”

Only in the last month, thanks to an order by the U.S. Department of Transportation, have railroads begun to disclose to the state Office of Emergency Services shipments of 1million gallons or more of highly flammable Bakken crude oil. Before that happened May 7, nobody knew anything about the shipments or where they were going, Weisenmiller said.

The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial
The Valero Refinery is seen in Benicia, Calif. on Monday, May 6, 2013. The Bay Area’s five refineries have moved toward acquiring controversial Canadian tar sands crude through rail delivery. (Kristopher Skinner/Bay Area News Group)

Crude oil rail shipments have increased 506 percent in 2013 to 6.3 million barrels, according to a report by the state Interagency Rail Safety Working Group released June 10. That number could increase to 150 million barrels of oil in 2016, it said. Petroleum spills on railroads in California increased from 98 in 2010 to 182 in 2013, according to the Office of Emergency Services.

In California, crude goes by rail to the cities of Richmond, Sacramento, Bakersfield, Carson, Long Beach and Vernon, according to the energy commission.

The only thing state and local governments can do to try and prevent a catastrophic disaster is to enforce federal rules and prepare local first responders, officials said. The regulatory effort falls on the California Public Utilities Commission President Michael Peevey.

“I’m not enthusiastic about having tens of thousands of tank cars running around California because accidents are inevitable,” Peevey said at the workshop. “There’s been a huge increase in volume and we have to step up our awareness and activities, in cooperation with the federal government, but the feds have the ultimate responsibility.”

The commission recently added seven rail safety inspectors who look at rail cars, railroad lines, bridges and shipping requirements, bringing the total to 59 inspectors statewide, which Peevey said was adequate for this year.

Peevey dismissed criticism that the PUC has been too easy on industry it is supposed to regulate, and assured the public it is up to the task.

“We’ve been pretty darn tough,” he said.

Weisenmiller said the state first needs to identify the areas most at risk for crashes and make sure the tracks are maintained. He acknowledged there is no way to prevent shipments from coming into the state, but the state can “get its act together and reach out to communities near rail lines and provide first responders with information and technical expertise,” so they can respond to an accident.

As the state tries to catch up and wrap its collective mind around the increased shipments, oil companies are attempting to add projects that would bring in more oil by rail.

Valero Refining Co. is planning on 100 cars per day to its Benicia facility by the first quarter of 2015; West Pac Energy is planning 70 cars per day to a facility in Pittsburg; Phillips 66 is planning a crude-by-rail project in Santa Maria that could bring shipments through the Bay Area; Alon USA is planning 200 cars a day in Bakersfield and Plains All American is planning for 200 cars a day in Bakersfield, according to the Oil by Rail Safety in California report.

Union Pacific Railroad Spokeswoman Liisa Lawson Stark said the company is not transporting any Bakken crude into the state, but it is bringing in other types of oil.

But Burlington Northern Santa Fe Railway is bringing in nine full train loads of Bakken per month into California, said spokeswoman LaDonna DiCamillo. She did not know how many tank cars each train has or what the actual volume is.

Lawson Stark said that even though railroads are now required to report shipments of the highly flammable Bakken crude oil to the Office of Emergency Services, the information most likely will not be available to the public. A spokesman for the office did not immediately return phone calls.