Category Archives: Local Regulation

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.

Valero’s appeal: ok, this was expected. What’s next?

By Roger Straw, March 1, 2016

We’ve been expecting this for years. Get on with it!

Yes, this pep talk is for myself – but it might work for you, too: This is no surprise. Stop worrying over Valero’s attorney-driven shock and awe.

Yes, for a week or two, we entertained a slim hope that Valero would do the right thing.  A huge turnout of local and distant residents showed overwhelming opposition.  Our Planning Commission arrived at a unanimous decision to turn down the EIR and deny the project.  Oil train projects across the Strait in Pittsburg, in San Luis Obispo and in Washington state have been stopped or met with official disapproval.  Oil prices are down.  And this is a Benicia City Council election year.

We dared to hope.

But yesterday, Valero showed its hand: it will disregard the public’s concerns for health and safety.  It will rely on an unproven federal exemption to muzzle local decision-makers and to allow dangerous and polluting railroad traffic uprail from Benicia.  It will rely on that exemption with legalese and not-so-hidden threats of litigation, hoping the City of Benicia would rather be sued by environmentalists than by the corporate legal muscle of the largest refinery in the U.S.

Valero showed its hand: corporate profit trumps all.

And so many of us thought Valero was a “good neighbor.”

Clearly Valero is not Davis’ good neighbor, nor Sacramento’s. Clearly not neighbor to the Feather River Canyon or Donner Lake or the lands and inhabitants of the Upper Midwest and Alberta, Canada.  Mother Earth is Valero’s neighbor, but it doesn’t seem to matter.

I have been openly critical of the Crude By Rail proposal here in Benicia since my editorial in the Benicia Herald in June of 2013.  At every turn, I have politely invited Valero to consider withdrawal, to do the right thing.  My voice and that of a growing tide of concerned citizens, the voices of California’s Attorney General and other attorneys, the detailed studies of environmental experts, and the unanimous vote of a Planning Commission that studied the proposal for months – all these ignored.

So … our disappointment is real, but we need to forget it and move on.  Remind yourself: this is exactly what we expected.  Now comes the real test.

Sure, we’re tired.  Yes, we need new energy, new volunteers, more yard signs, more letters, and stamina for yet another series of long nights at City Council hearings.  That’s what we signed on for.

We will soon have yet another chance to STOP Crude By Rail.

So what’s next?

For now, we know this (check for updates later):

  • Benicia City Council will consider the appeal on Tuesday, March 15 at 7pm.  This will only be a formal setting of dates for public hearings on the matter. Still, you may want to show up to send a signal.
  • Sometime in late March or April, the City Council will hold a series of hearings much like those recently held by the Planning Commission.  Stay tuned for those dates and plan to attend.
  • Sign the petition if you haven’t already done so.
  • Write to Benicia’s City Council members.  Send your email to City Planner Amy Million at amillion@ci.benicia.ca.us.  Be sure to note that your comments are “for the public record on Valero Crude By Rail.”
  • Benicians For a Safe and Healthy Community needs your help. Please go to their Facebook page and their website, SafeBenicia.org.

Valero Benicia appeals Planning Commission’s unanimous decision

By Roger Straw, February 29, 2016 2:25pm PT

City Council will review Valero Crude By Rail on Tuesday, March 15

Valero Benicia Refinery dropped off its appeal at City Hall this afternoon, Monday, February 29, 2016.  The City posted the following announcement on its Valero Crude By Rail webpage today:  “It is anticipated that the City Council will hear the appeal on March 15, 2016.”  I’m told that this will only be a formal setting of dates for public hearings on the matter. Still, you may want to show up to send a signal.  Sometime in late March or late April, the City Council will hold a series of hearings much like those recently held by the Planning Commission.  Stay tuned for those dates and plan to attend.

The 1-page Formal Appeal was accompanied by a hard-hitting 11-page letter by Valero’s attorney, John Flynn of Nossaman LLP.  The letter details Valero’s position, and is posted on the City’s website.  The letter tears into Benicia’s Planning Commission for its unanimous Feb. 11 decision to deny the project.

Stop Crude By Rail yardsign

It’s official – our work is not done!  STOP CRUDE BY RAIL!