Category Archives: Public permitting

Valero’s delay request – what will happen on April 4?

By Roger Straw, March 18, 2016

Valero’s delay request – what will happen on April 4?

City_of_Benicia_logoAs of this writing, there is much confusion over Valero’s March 15 request at City Council to delay consideration of their appeal of the Planning Commission’s unanimous rejection of their Crude by Rail proposal.

Earlier today, several independent inquiries were sent to City staff asking what will happen next. City Attorney Heather McLaughlin responded to all in a single email, in which she attempted to give some direction to the public. Her answers left much still to be determined. We may learn more later, as she wrote, “Staff will be preparing a staff report for the April 4 [City Council] meeting. We hope to publish it by close of business on March 28.” [Staff reports and Council packets can be found on the City’s City Council page.]

McLaughlin listed questions and gave her answers in bold, below:

  1. Could you please tell me if the City’s code describes the situation of a request for a delay of an appeal by an appellant contesting planning commission decisions  made under a CEQA review of a project?  If so, what are the rules governing such a request? If there are no rules that address such a request, what authority does the council have to either approve or ignore Valero’s request for delay in a hearing process?  Section 1.44.040 (F) of the Benicia Municipal Code allows the City and the appellant to agree to extend the time for hearing an appeal.  The City’s agreement would have to be made at a public meeting if the appeal, like here, is to a person or body that holds regular meetings.  Regular meeting rules would apply like public comment before taking action. 
  2. Would Valero’s request for delay constitute an action under the purview of CEQA, since the CBR Project is still under CEQA review via Valero’s appeal at this point?  No CEQA review would be required for delaying the project. 
  3. If the City Council agrees to Valero’s requested delay, would this mean that the public hearings and all submissions/comments under CEQA would be continued into the indefinite future until such time as Valero receives whatever word on preemption from the Surface Transportation Board? This decision would be up to the Council. Staff does not have a recommendation at this time. 
  4. Would information from the STB on preemption be considered “new information”, and if so, would that response from STB have to be incorporated in a revised FEIR under CEQA?  Depending on what an STB decision might say, the City may or may not decide to revise the FEIR.  The City Council will make this decision after considering any STB decision. 
  5. If the Council continues the hearings and takes public testimony on previously scheduled days (April 4th, 6th, 19th), would future hearings be held after Valero receives info from the STB? In other words, how would the public be informed of new information rec’d, (if any)?  The City Council will have to take any future action on the project at one or more noticed meetings.  There will be opportunity for public comment until the public hearing is closed.
  6. Will the City Council hold two public hearings on the project to receive public comments – one regarding Valero’s request for a continuance and another on the project? The City Council will determine the process.  Staff does not have a recommendation at this point. 
  7. Will the City Council first consider Valero’s request to delay the appeal before the public hearing on the appeal begins?  Please see the answer to 6RK above.
  8. Will the public have the opportunity to comment on Valero’s request for delay of the appeal? Yes.  Public comment will be allowed before the Council decides. 
  9. If the request to delay the appeal is granted, will the scheduled public hearing on the appeal be cancelled?  Please see response 3MB above. 
  10. If the request to delay the appeal is denied, will the public hearing then proceed as scheduled? Yes.

My summary:  Every time the City Attorney says Council will decide and staff has no recommendation at this time, it means staff will probably confer (with Council members?) and make a more or less decisive staff recommendation, which the public will not know until March 28. This applies to questions 3, 4, 5, 6, 7, and 9. So – my opinion – there’s not much information here.

What we DO learn, without much surprise, is that:

  1. Question 1: The City attorney upholds Valero’s right under city code to request a delay. See item F: “The time limits in this section may be extended if the applicant(s) and appellant(s) agree.”
  2. Question 2: The City attorney holds that “no CEQA review would be required for delaying the project.” It might be good to get a CEQA expert’s opinion.
  3. Question 8: Public comment will be allowed on the delay.
  4. Question 10: If the delay is denied, hearings on the appeal will proceed as planned.

Council rally and hearing 4.4.16 (125)SO … It seems clear that significant important decisions will be made at the City Council hearing on April 4.  Plan to attend – our Council members need to know how we feel about health and safety here in Benicia.  You can RSVP on Eventbrite or on Facebook.

FAIRFIELD DAILY REPUBLIC: Valero taking oil-by-rail to feds; Benicia stays its course

Repost from the Fairfield Daily Reporter

Valero taking oil-by-rail to feds; Benicia stays its course

By Todd R. Hansen, March 18, 2016
Tank cars sit on the railroad tracks, near Cordelia Road and Chadbourne Road on January 1, 2016. Benicia's Planning Commission denied Valero's bid to build a rail offloading facility for crude oil, and now the company is seeking the opinion of the federal Surface Transportation Board. (Robinson Kuntz/Daily Republic file)
Tank cars sit on the railroad tracks, near Cordelia Road and Chadbourne Road on January 1, 2016. Benicia’s Planning Commission denied Valero’s bid to build a rail offloading facility for crude oil, and now the company is seeking the opinion of the federal Surface Transportation Board. (Robinson Kuntz/Daily Republic file)

BENICIA — More than four hours of staff and Valero testimony this week ended with the oil company asking the Benicia City Council for a delay and the city moving forward with its public hearing process.

Valero will seek an opinion from the federal Surface Transportation Board to determine if the city has any authority to require environmental impact mitigation for a proposed railway off-loading facility at its refinery.

The company wants to move crude oil on trains to its refinery in the Benicia Industrial Park. It has applied to the city for a use permit to construct the necessary off-loading facility.

Planning commissioners in February denied the use permit, stating in its resolution:

“(T)he proposed location of the conditional use and the proposed conditions under which it would be operated and maintained would not be consistent with the General Plan as it would be detrimental to the public health, safety or welfare of persons residing or working in or adjacent to the neighborhood of the use, or to the general welfare of the city as well as uprail communities.”

Valero appealed that decision to the City Council, which started its public hearing process Tuesday. The hearing was continued to April 4 to receive comments from the public. April 6 and April 19 are also dates set aside as needed.

Valero representatives told the city it would take a month or more to submit material to the federal board, and that the decision-making process could take three to six months more.

Valero officials could not be reached Thursday. A message was left seeking comment.

Essentially, the company does not believe the city has the authority to impose conditions on railway matters, which typically falls under federal authority, according to city documents.

The city, while admitting it does not have any authority about what happens on the railways themselves, believes it does have planning and land-use authority over the refinery facility.

“The issue is where does (the railway pre-emption) start, and where does it stop,” said Amy Million, principal planner for Benicia.

Pre-emption, in this case, is basically a concept in which state and local laws are pre-empted in favor of interstate commerce regulations, which are governed under federal authority.

The Surface Transportation Board was given its authority in the Interstate Commerce Commission Termination Act of 1995, which “pre-empts state and local regulation, i.e., ‘those state laws that may reasonably be said to have the effect of ‘managing’ or ‘governing’ rail transportation.’ ”

The act gives “the Surface Transportation Board exclusive jurisdiction over: (1) transportation by rail carriers and the remedies provided with respect to rates, classifications, rules (including car service, interchange, and other operating rules), practices, routes, services, and facilities of such carriers; and (2) the construction, acquisition, operation, abandonment, or discontinuance of spur, industrial, team, switching, or side tracks, or facilities, even if the tracks are located, or intended to be located, entirely in one state.”

Transportation board spokesman Dennis Watson said he could not comment on a project that had not yet been received by the agency.

The proposal is for oil to be transported on 50-car trains, twice daily, using Pacific Union tracks, which would pass through Fairfield, Suisun City, Dixon and into Benicia.

The shipments would replace about 70,000 barrels of oil currently brought in daily by ship.

The project has generated a great deal of comment. The city reports it tallied 1,800 substantive comments on the Environmental Impact Report, of which 550 discussed hazards, 260 focused on air quality and greenhouse gas emissions, 80 on transportation, 60 on biological resources, 50 on hydrology and geology and 40 on noise.

VIDEO: Benicia City Council, March 15, 2016: Valero Attorney John Flynn surprises everyone, calls for a delay

This is a video clip of Valero’s presentation at the City Council meeting of March 15. The clip begins with a 7 minute presentation by Valero Environmental Engineering Manager Don Cuffle.  Attorney John Flynn follows, speaking for only 2 1/2 minutes, first dismissing local opposition, other attorneys and Benicia’s Planning Commissioners, and then asking Council to delay the hearings while Valero petitions the federal Surface Transportation Board (STB) for the agency’s backing on Valero’s legal argument, a process which could take three to six months.  (See also Marilyn Bardet’s analysis of Valero’s delay tactic.)

This clip runs for about 12 minutes. (On the City’s longer and unindexed video, this clip begins at minute 1:56:14. and ends at 2:08:16  Note that the video archive of the entire meeting can be found on the City of Benicia website at ci.benicia.ca.us/agendas.)

VIDEO: Benicia City Council, March 15, 2016: Benicia Planning Commission Chair Donald Dean

This is a video clip of the presentation by Benicia Planning Commission Chair Donald Dean at the City Council meeting of March 15. This clip runs for about 15 1/2 minutes.  Many thanks to Benicia videographer Constance Beutel for her Youtube video recording. (On the City’s longer and unindexed video, Chair Dean’s comments begin at minute 1:36:48 and run to 1:51:45. Note that the video archive of the entire meeting can be found on the City of Benicia website at ci.benicia.ca.us/agendas.)