Category Archives: Public Health

EAST BAY EXPRESS: Benicia Oil-by-Rail Battle Hinges on Legal Controversy

Repost from the East Bay Express

Benicia Oil-by-Rail Battle Hinges on Legal Controversy

Opponents of oil-by-rail shipments want the city to block a proposed Valero facility, but Valero says the city lacks this power.
By Jean Tepperman
mg_ecowatch_3827.jpg
Andres Soto said Benicia shouldn’t wait on federal regulators to reject Valero’s oil-by-rail project. BROOKE ANDERSON

An oil-by-rail facility that Valero wants to build at its Benicia refinery has been stalled by opponents concerned about environmental impacts and safety issues for over three years now. But Valero and an attorney working on contract for the City of Benicia claim that the city cannot stop the project because federal railroad law preempts the city’s powers. Project opponents say this is a flawed interpretation of federal law, however, and that Valero’s new oil facility should be cancelled.

Valero’s original proposal was presented in 2013 as a simple plan to build a couple of rail spurs from the main railroad line to the company’s refinery, and the city announced its intention to approve the plan without doing an environmental impact review. A torrent of opposition greeted this announcement, however. As a result, the city was forced to conduct three environmental impact reviews and hold public hearings. Then, last February, Benicia’s planning commission unanimously reversed approval for the project. Now the oil facility is pending a final decision by the city council.

Supporters say the crude-by-rail project is necessary to preserve Valero’s — and Benicia’s — economic viability and the nation’s energy independence. Opponents say it will cause increased air pollution and environmental destruction, and that expanding oil-by-rail transportation increases the risk of catastrophic accidents like explosions and fires due to derailment.

But according to Bradley Hogin, a contract attorney advising the city, the federal government’s authority over railroads means that local governments are not allowed to make regulations that affect rail traffic — even indirectly. And when they’re deciding on a local project, cities are not allowed to consider the impact of anything that happens on a rail line, claims Hogin. The legal doctrine Hogin is referring to is called federal preemption.

But other attorneys call Hogin’s interpretation of federal laws “extreme” and say that the city has every right to block the project if it so chooses. Environmentalists have also pointed out that Hogin has represented oil companies against environmental and community groups in the past. Project opponents say Hogin is biased in favor of Valero, and is not giving the city accurate legal advice. When asked if Hogin’s previous work suggests that he could be biased, Benicia City Attorney Heather McLaughlin said no. “I think he has had great experience in the refinery industry and I think that’s been helpful for us,” she said.

Hogin’s legal argument that cities are preempted from influencing oil-by-rail projects has major national implications. As the shipment of crude oil via railroad has grown in recent years, so have the number of derailments, oil spills, fires, and explosions, including the 2013 explosion that killed forty-seven people in Lac Megantic, Quebec. As a result, communities across North America have demanded that local authorities stop rail shipments of crude oil through their towns. In addition to Benicia, San Luis Obispo County is currently in the midst of a battle over crude by rail.

“Hogin is making a case that would affect cities across the nation dealing with crude by rail,” said Marilyn Bardet, a founder of Benicians for a Safe and Healthy Community. “They [are trying] to create a legal precedent here.”

Many lawyers, including California Attorney General Kamala Harris, say the exact extent of federal preemption of local authority is still being worked out in the courts. In her legal opinion on the Valero project’s environmental review, Harris cited several cases in which local governments were allowed to implement health and safety regulations involving railroads.

Several lawyers submitted opinions and testified in Benicia City Council hearings held on April 4 and 5 challenging Hogin’s interpretation. And in one of the hearings, Berkeley City Council member Linda Maio told her Benicia counterparts that the city council has the right to make its own land-use decisions. “This is in your town and you’ve been elected to see to the health and safety of your citizens,” said Maio.

Valero and its critics have been arguing about the extent to which Benicia’s authority is preempted by federal law since last summer. After the planning commission rejected Valero’s project in February, the company showed up at the March city council meeting with a surprise request: that the council delay voting on the project until Valero has a chance to make an appeal to the federal Surface Transportation Board (STB), which regulates railroads.

That didn’t sound right to Benicia resident Andres Soto, who works for Communities for a Better Environment, an environmental group opposed to the project, so Soto called the STB and talked to staff attorney Gabriel Mayer. In a report Soto submitted to the city council, he wrote that Mayer told him that the STB is not the final authority on federal preemption, and that the state and federal courts serve that purpose.

Soto also said that the STB deals with disputes among railroads, and since Valero is not a railroad, it’s unlikely the agency would take its case. Many speakers at last week’s hearings urged the city council to deny Valero’s bid for a delay and reject the project immediately.

But project supporters emphasized the economic benefits of bringing crude oil by rail to Benicia. Berman Olbadia of the Western States Petroleum Association, an oil industry lobbying group, said that Valero creates jobs and generates tax revenue. Michael Wolf, of Ageion Energy Services, said that oil by rail reduces California’s dependence on foreign oil.

Later, however, Greg Karras, senior scientist at Communities for a Better Environment, said North American crude would create serious new problems that the environmental reviews for the Valero project did not address. Canadian tar sands produce very heavy oil with an extra load of toxic chemicals, said Karras. In addition, refining tar sands oil would dramatically increase the refinery’s emissions of carbon dioxide, the main pollutant causing global warming. The other major type of North American crude from North Dakota’s Bakken fields produces highly explosive oil. Trains carrying Bakken crude have been involved in a number of fires and explosions.

People from “uprail” communities have also turned out at Benicia hearings to oppose the Valero project. “The oil trains will pass through our downtown and pass my house,” said Frances Burke, a resident of Davis. “We will have the fumes and particulate matter from increased daily trains. I’m also a potential victim of a deadly accident, explosion, or derailment.”

Benicia resident Bardet said the project site is especially dangerous because the crude-oil-offloading tracks would be “adjacent to crude oil storage tanks and Sulphur Springs Creek, in a flood-plain zone and active fault zone, and also directly across from the industrial park along East Channel Road.” According to Bardet, derailment or fire involving flammable crude oil could have catastrophic results.

College student Jaime Gonzalez said the project would further proliferate fossil fuels, which accelerate climate change, and that future generations will bear more of the burden. “The consequences would fall on the shoulders of my generation,” he said.

Hearings will continue April 18 and 19 in Benicia, and the city council will then decide whether to wait for Valero’s federal appeal, or vote to approve or deny the project.

VALLEJO TIMES-HERALD: Public comments on Valero’s appeal

Repost from the Vallejo Times-Herald
[Editor:  Many thanks to the Vallejo Times-Herald and reporter Irma Widjojo for her late-night service to our communities, covering hearings on this incredibly important issue of statewide and national significance. We can only wish the major news outlets in the Bay Area and Northern California were so inclined.  Oh, and … great photo!  – RS]

Public comments on Valero’s appeal

By Irma Widjojo, 04/05/16, 6:28 PM PDT
Irma Widjojo - Times-HeraldMembers of Benicians for Safe and Healthy Community unravel a scroll of signed petitions against Valero Benicia Refinery 's proposed crude-by-rail project during the group's public comment slot Monday night at the Benicia City Council Chambers.
Members of Benicians for Safe and Healthy Community unravel a scroll of signed petitions against Valero Benicia Refinery ‘s proposed crude-by-rail project during the group’s public comment slot Monday night at the Benicia City Council Chambers. Irma Widjojo — Times-Herald

Benicia >> About 50 people spoke Monday night to voice their opinion on Valero Benicia Refinery’s proposed project as the public comment period of the appeal hearing began.

Like previous public comment periods on the issue, the Benicia City Council Chambers was packed for the hearing, causing a number of people to be asked to listen from the overflow areas.

The City Council is being asked to consider the Planning Commission’s decision to deny Valero’s use permit application for the crude-by-rail project and to not certify the project’s Environmental Impact Report, or EIR.

Elected officials from surrounding areas, representatives from governmental and other agencies and spokesmen for organized groups were allowed to speak first at the meeting.

About 30 people came by a chartered bus from Sacramento and the “uprail” cities to oppose the project and spoke.

A local grassroots organization Benicians for Safe and Healthy Community also used a visual prop during its address in the form of a scroll of papers containing more than 4,080 signatures of those who are against the project.

At a March hearing, an attorney working with Valero on the project said the company intends to send a request for an opinion from the Surface Transportation Board on the issue of federal preemption in relation to the project.

At the end of the hearing, later in April, the council will also decide if it will wait to make a decision on the appeal after the Surface Transportation Board, or STB, returns with a declarative order.

The staff has recommended for the council not to wait because the agency’s decision can be appealed in court and waiting would risk for the EIR to become stale.

Those who support the project are urging the council to wait, while the other side ask for a decision to be made at the end of the hearing.

“Too much money and time have been spent on this process,” a speaker said. “Let’s not postpone it further.”

At stake is the ability for the refinery to bring in two 50-car trains a day carrying up to 70,000 barrels of North American crude oil. The company’s oil is now being transported into the city by marine vessels and pipeline.

Those who supported the project say Valero has been a good neighbor in Benicia and that the project is needed for the company to remain competitive.

The refinery said the $50 million project would result in about 120 temporary construction jobs and 20 full-time jobs, as well as generate tax revenues for the city.

However, those who are against the project said the risks outweigh the benefits.

In fact, the project EIR states that there are 11 “significant and unavoidable” impacts, though staff and Valero have said they cannot be mitigated because they are rail related and are preempted by federal laws.

The Planning Commission, however, disagreed, and denied the project.

Public comment will resume Wednesday at 7 p.m. at City Hall, 250 E. L St., and the hearing will then continue April 18 and 19, if necessary.

Public Comments on Valero Crude by Rail April 4-5

By Roger Straw, April 5, 2016

Benicia, California

Today the City of Benicia released new letters and reports on Valero Crude by Rail received by the City on April 4-5, 2016.  The city’s PDF document is 19.4 MB and 456 pages. (The document is sometimes slow to download from the City’s website.  A copy may be downloaded more quickly here.)

The document has an index at the top, but no page numbers.  Here’s a quick guide:

    • Page 2 – Association of Irritated Residents vs. Kern County Board of Supervisors ruling
    • Page 8 – League of Conservation Voters East Bay
    • Page 9 – Benicia Chamber of Commerce
    • Page 10 – Safe Fuel and Energy Resources California (summary of the lengthy letter to follow…)
    • Page 13 – Safe Fuel and Energy Resources California (on Valero’s appeal of the Planning Commission decision to deny the project)
      • pp. 13-48 Attorney Rachel Koss letter
      • pp. 49-315 Expert comments by Dr. Phyllis Fox (Table of Contents on pp. 50-50, Summary and Conclusions on pp. 52-54.  See her report on the BenIndy here.)
      • pp. 316-427 Expert comments by Environmental Biologist Scott Cashan (Report on pp. 316-324; bio on pp. 325-331; attachments on pp. 332-427.)
    • Page 428 – Letter from Valero alleging a misinformation campaign  [Editor’s note: look who’s talking!]
    • Page 443 – Letter from California State Senator Lois Wolk
    • Pages 432-456 – Individual letters for and against the appeal and the delay request.

When time allows I will break out additional significant and interesting pieces from this huge document and post on the Project Review page.  Stay tuned for more!

LETTER OF OPPOSITION: Five environmental attorneys and others

By Roger Straw, March 31, 2016

On March 31, five environmental attorneys and a host of experts and others (including Benicians for a Safe and Healthy Community) sent the Benicia City Council this strong 3-page letter of opposition to Valero’s oil trains proposal.  (For a much longer download, see the Letter with Attachments [13 MB, 214 pages].)

Attorney signatories:

    • Jackie Prange, Staff Attorney for Natural Resources Defense Council;
    • Roger Lin, Staff Attorney for Communities for a Better Environment;
    • George Torgun, Managing Attorney for San Francisco Baykeeper;
    • Clare Lakewood, Staff Attorney for Center for Biological Diversity;
    • Elly Benson, Staff Attorney for Sierra Club.

Others signing the letter:

    • Ethan Buckner, ForestEthics;
    • Katherine Black, Benicians for a Safe and Healthy Community;
    • Janet Johnson, Richmond Progressive Alliance;
    • David McCoard, Sierra Club SF Bay Chapter;
    • Jessica Hendricks, Global Community Monitor;
    • Colin Miller, Bay Localize;
    • Denny Larson, Community Science Institute;
    • Nancy Rieser, Crockett-Rodeo United to Defend the Environment;
    • Steve Nadel, Sunflower Alliance;
    • Kalli Graham, Pittsburg Defense Council;
    • Richard Gray, 350 Bay Area and 350 Marin;
    • Bradley Angel, Greenaction for Health and Environmental Justice;
    • Sandy Saeturn, Asian Pacific Environmental Network

SIGNIFICANT EXCERPT:

The City Council can, and must, uphold the Planning Commission’s unanimous decision to deny the use permit for the Valero crude-by-rail project. Federal law does not preempt the City from denying the permit for this project. Furthermore, the City should not tolerate Valero’ s delay tactic of seeking a declaratory order from the Surface Transportation Board (STB). As explained below, the STB does not have jurisdiction over this project and will almost certainly decline to hear Valero’ s petition for the very same reason that preemption does not apply. Finally, even if preemption were to apply here, the project’s on-site impacts, especially the increases in refinery pollution, require the City to deny the permit.