Category Archives: Public permitting

Valero Crude By Rail: What’s next in Benicia?

By Roger Straw, February 19, 2016

2015-06-21 RDS Guerneville indoors (edited, soft, noexit whiteout 350px bdr)Now that the Benicia Planning Commission has rejected Valero’s oil train proposal, most observers expect that Valero will appeal the decision to the City Council.  Valero has until February 29 to appeal.

Speculation is ripe in Benicia and beyond as to the probable outcome of a City Council appeal.  The Council is made up of only 5 members.  Longtime Benicians will offer best guesses as to a likely vote, but no one knows.

City Council members’ votes will come in the context of Planning Commission hearings in which those who spoke out thoughtfully and passionately against Valero’s project far outnumbered Valero supporters.  A unanimous and incredibly popular Planning Commission vote has brought out a great number of expressions of appreciation.  Thanks and congratulations have been pouring in to local opponents of the project and to the Commissioners themselves.  Of course, Council members are in no way bound to honor local opinion, but …

More context: if Valero appeals, the Council will consider the appeal in an election year. Two Council members and the Mayor are up for reelection, and all have announced they will run.  Odds are it will be pretty hard to run a successful campaign in Benicia if you have voted in favor of Valero’s dangerous and dirty crude oil trains.

A few have speculated that Valero might prefer to NOT appeal the Planning Commission decision.  Valero’s strategy might be to remove the controversial issue from electoral politics, and hope for a more favorable City Council election outcome in November that would seat a pro-Valero Council.  Valero could then make a new run at the Planning Commission in 2017.  This would of course require a whole new EIR costing Valero a lot of money.  But other factors, including the low price of oil in current markets and the surging regional and national opposition to crude by rail, could swing Valero in this direction.

We should know by February 29.  Meanwhile …

Many have raised questions about the City’s procedures if/when Valero appeals the decision to the City Council.

On Feb. 14, I wrote to Benicia Principle Planner Amy Million, City Clerk Lisa Wolfe and Planning Commission Chair Don Dean, asking the following questions. (Ms. Million’s Feb. 17 answers follow in italics.)

  1. During the CEQA review, you carefully logged our letters for the public record. Anticipating that Valero will appeal, residents will continue to be on alert, and will want to communicate with Council members. Should letters on the issue still be sent to you? Or maybe to the City Clerk?  Million: Letters regarding the project should still be sent to me for inclusion in the project file, etc.
  2. The vote on the FEIR was to NOT certify, but the Commission avoided using the language of remanding the document for further study and recirculation. Is the CEQA process done now, or does it continue – for the public record – during the preparation of findings, and after that, during a Council appeal? Million: If the Planning Commission decision is appealed to City Council, the Council will consider both the denial of the use permit and the decision to not certify the EIR based on the deficiencies identified by the Commission.
  3. Will you or the City Clerk continue to send notices on the process to those of us who signed up for email notification? I’d like to see the Commission findings as soon as they are finalized, and I would assume they will be posted to the Community Development’s CBR page. But beyond that, will updates be posted timely there, or maybe somewhere else?  Million: The Community Development Department will continue to maintain the CBR webpage. We will provide a copy of the resolution when it is available.

Sacramento Bee Editorial: Oil train safety gets an important boost from area Planning Commissions

Repost from the Sacramento Bee

Oil train safety gets an important boost

By the Editorial Board, February 16, 2016 6:05 AM

HIGHLIGHTS
• Sacramento-area officials say the risks of transporting oil should be weighed in refinery plans
• The planning commission in Benicia and planners in San Luis Obispo County have rejected refinery proposals
• If officials want to approve plans, they must justify why public safety is outweighed

Workers tend to the scene of a oil train derailment in Watertown, Wis., last Nov. 9. Communities across California and the country are concerned about the safety of trains carrying oil.
Workers tend to the scene of a oil train derailment in Watertown, Wis., last Nov. 9. Communities across California and the country are concerned about the safety of trains carrying oil. John Hart Associated Press

Officials in the Sacramento region have every right to raise safety concerns about oil trains rumbling through. Now they have key allies in their cause.

Last week, the city of Benicia’s planning commission unanimously rejected a plan by Valero Refining Co. to take deliveries twice a day from 50-tanker trains that would roll through Roseville, downtown Sacramento, West Sacramento and downtown Davis on their way to Benicia. As The Bee’s Tony Bizjak reports, planners in San Luis Obispo County have also recommended against a plan by Phillips 66 for about 150 trains a year to bring oil to its refinery.

While local residents and environmental groups objected, some Benicia planning commissioners said they also heard Sacramento-area residents and officials loud and clear. “I don’t want to be the planning commissioner in the one city that said ‘screw you’ to up-rail cities,” Commissioner Susan Cohen Grossman said.

The Sacramento Area Council of Governments, representing six counties and 22 cities, had argued that Benicia’s environmental review was inadequate because it didn’t look at how to protect cities along the route. That analysis concluded the trains could create a “potentially significant” hazard to the public from oil spills and fires, but only once every few decades.

Yet, as Don Saylor, a Yolo County supervisor and a former SACOG chairman, points out, depending where a derailment happened, heavily populated neighborhoods could be in the blast zone.

He told The Sacramento Bee’s editorial board Tuesday that the best solution is for the oil to be stabilized at the source in the oil fields of North Dakota and elsewhere, and then transported in state-of-the-art rail cars. That, of course, would cut into oil and rail industry profits, and government regulators aren’t there yet.

Indeed, they have been trying to catch up to the boom in domestic oil production and rail transport. After more than two years of debate, the U.S. Department of Transportation last May issued new rules under which the oldest tank cars must be replaced by 2018 with thicker-shelled ones, and cars built since 2011 must be retrofitted or replaced by 2020.

Valero, which wants to build a rail spur and unloading station at its refinery, is expected to appeal to the Benicia City Council. The planning commission in San Luis Obispo is scheduled to vote in late March or April.

Officials could still overturn the recommendations and approve these trains. But at least now, they must justify why safety concerns are outweighed.

VALLEJO TIMES-HERALD: Benicia commissioners deny Valero’s crude by rail application

Repost from the Vallejo Times-Herald
[Editor:  Vallejo Times-Herald reporter Irma Widjojo gets BenIndy’s Media Award for enduring all four late-night hearings, and for her four news reports.  See FRIDAY’s final report below and TUESDAY: Benicia Planning Commission begins hearing to decide on crude-by-rail project, WEDNESDAY: Public comment begins on Valero Benicia Refinery’s proposed project, and THURSDAY: Passionate testimonies pour in on Valero proposed project.  – RS]

Benicia commissioners deny Valero’s crude by rail application

By Irma Widjojo, 02/12/16, 11:45 AM PST
The Benicia Planning Commission receives comments from the public Wednesday night, the third day of the hearing for Valero Benicia Refinery’s crude-by-rail project. About 200 people signed up to speak. IRMA WIDJOJO — TIMES-HERALD

Benicia >> The Benicia Planning Commission has denied the use permit application by Valero Benicia Refinery to bring crude oil by rail against the recommendation of city staff.

After four late-night meetings and hours of public testimony, the commissioners unanimously voted to not certify the final Environmental Impact Report and deny the application for the project.

Protesters hold up signs against Valero’s proposed crude by rail project during a rally Monday at Benicia City Hall. The Benicia Planning Commission began a series of special meetings Monday to consider Valero’s permit application for the project. Irma Widjojo — Times-Herald

“We are feeling great.” said Andres Soto, spokesman for Benicians for Safe and Healthy Community, a grassroot organization in opposition of the project.

“It’s been a three-year battle. We knew we were right the whole time,” Soto said.

Valero has 10 business days, beginning Tuesday due to the holiday weekend, to appeal the decision to the Benicia City Council.

Valero officials said Friday they are evaluating the company’s option for an appeal.

Valero Benicia Refinery General Manager Don Wilson speaks with supporters of the refinery’s proposed crude-by-rail project during a break at the Planning Commission hearing Tuesday night. Supporters can be seen wearing “It’s good for Benicia” stickers or carrying fans with the slogan. IRMA WIDJOJO — TIMES-HERALD

“We are disappointed that the Planning Commission did not agree with the staff recommendation to certify the project EIR and approve the use permit. Most disappointing was the commissioners disregard for the opinions of a multitude of environmental and legal experts who spent over three years to evaluate this project,” said Chris Howe, Valero’s Heath, Safety and Environment director, in an email.

In December 2012, the refinery submitted the use permit application to begin construction to allow up to 70,000 barrels of North American crude oil to be transported via two 50-car trains.

Since then, the project has been met with a strong opposition from a number of Benicia residents, as well as those who live “uprail,” including Davis and Sacramento. The report states that there are 11 “significant and unavoidable” impacts related to the rail transport of the project.

Though city staff said any mitigation to these rail-related impacts are preempted by federal laws, on Thursday the commissioners disagreed with the staff’s findings, calling the law surrounding the issue “murky.”

Many attorneys representing organizations, as well as the Sacramento Area Council of Governments, said Benicia is not preempted by federal laws. One of the arguments is that the applicant for the permit is Valero Benicia Refinery, and not Union Pacific Railroad.

“If Valero doesn’t get the permit, Union Pacific will go on business as usual,” an attorney said.

She added that any mitigation required by the city for Valero’s project will not interfere with the railroad’s current business operation.

Thursday night, city staff again reasserted its position on preemption, stating that any actions by the commission taken surrounding rail-related impacts are not allowed.

“The local agency will run afoul if it adopts a regulation that will indirectly or directly affect the railroad,” said Brad Hogin, an attorney contracted by the city.

The city is also not allowed to deny the project based on these impacts, Hogin said.

A couple commissioners took issue with the staff’s opinion.

“We’re asked to find that the benefits do not outweigh the risk, but we are not allowed to do anything about it,” Commission Chair Donald Dean said. “Do you see how this is a conundrum?”

Commissioner Steve Young, who has been the most vocal during the hearing, also expressed his displeasure.

“You’re very certain in your position, and the other lawyers are very certain of their positions,” Young said. “You’re asking us to make a decision based on what is not a set law.”

They also said there are too many risks that come with the project, citing inadequate methods of assessing the greenhouse gas emission and traffic impacts.

“There are serious flaws with the EIR,” Commissioner George Oakes said. “And to be told at the 11th hour that we have no options on the rail impacts, it’s not nice. … What are we really talking about here? Is it the additional profits for a couple of companies?”

In his conclusion, Young quoted Valero General Manager Don Wilson saying that Valero will not close the refinery if the permit was not approved.

Valero has contended that the project would benefit Benicia economically through the creation of jobs. The additional option to transport crude oil would also make the company more competitive and flexible in the market, officials said.

The commission also has agreed that staff will work with Dean to add the commissioners’ findings into the report.

Adams Broadwell attorneys on behalf of SAFER California: critical review of Valero FEIR

By Roger Straw, February 10, 2016
[See also the update section below for exhibits added later today.  – RS]

On February 8, 2016, the law firm Adams Broadwell Joseph & Cardozo sent the City of Benicia of lengthy and detailed review, highly critical of the City’s Final EIR on Valero Crude By Rail(Warning – this is a 10 MB download.)

The letter is written on behalf of “Safe Fuel and Energy Resources California (‘SAFER California’) and individuals who reside and work in the City of Benicia.”  It features individual reviews by well-known environmental experts Dr. Phyllis Fox and Dr. Petra Pless.

The Benicia Independent has created an INDEX to the document which is lengthy and is followed by extensive supporting attachments (see text version below).

Adams Broadwell Joseph & Cardozo – INDEX
PDF Page # Description
1 Adams Broadwell Joseph & Cordozo comments, cover letter
2 I. Interest of Commenters
3 II. The City’s responses to comments are inadequate
5 III. The City’s application of federal preemption is overbroad & conflicts with the constitutional exercise of traditional police powers
12 IV. The city still lacks substantial evidence to support its conclusions in the FEIR regarding the project’s significant impacts and still fails to incorporate all feasible mitigation measures necessary to reduce such impacts to a less than significant level
36 V. The FEIR still fails to analyze all feasible alternatives
38 VI. The FEIR fails to disclose the project’s inconsistencies with the City’s general plan
40 VII. The FEIR fails to disclose the project’s inconsistencies with the general plans of uprail cities and counties
43 VIII. Conclusion
44 Attachment A: Findings for denial (Exhibit C)
57 Attachment B: Responses to Adams Broadwell Joseph & Cordozo comments
60 Attachment C: Dr. Phillis Fox, Comments on FEIR
62 I. Summary & Conclusions
65 II. Failures to analyze air quality impacts on different types of crude
71 III. Underestimate of ROG estimates
85 IV. Southern route not  analyzed
97 V. Alternatives to the project
98 VI. Mitigations not required
106 Attachment D: Dr. Petra Pless, Review of FEIR
107 Cover letter
108 I. Inadequacies of project description & EIR analyses not adequately supported
112 II. Failures to mitigate air quality impacts – construction
119 III. Failures to mitigate air quality impacts – operations
164 IV. The EIR’s Health Risk Assessments Are Substantially Flawed and Fail to Identify Significant Impacts
181 V. Recommendation
182 Attachment F-1, REVISED ASSUMPTIONS FOR Year 2014 Daily Line Haul Locomotive Criteria Pollutant Emissions -100 Railcars per Day per EIR Methodology
185 Attachment F-2 Project characteristics, assumptions, and locomotive emissions according to Phillips 66 SMR CBR FEIR and Valero Benicia CBR FEIR
187 Locomotive Emissions

UPDATE:

On Feb. 10, the City of Benicia posted extensive additional Exhibits to the SAFER California Letter of February 8, 2016.  See below, or go to the City’s page.  [#53 and #62 are broken links.  I will fix if/when I get better information.  – RS]

Pless_Exhibit_F1_-_F21
Ex._1_SJVAPCD_Authority_to_Construct_Application_ Review_Bakersfield_Terminal_2012-07-25
Ex._2_Emissions_Rail_Car_Fugitives_Revised
Ex._3_Rasmussen_et_al
Ex._4_Targa_Project_ISMND_FINAL_02242012
Ex._5_Midland_Valves_for_Pressure_Cars
10. Phillips Rail Spur Project FEIR December 2015
14. Impl_doc
17.(2) Tec_development_doc_final_2000
17. Impl_doc
18. ep724-stb-data-spreadsheet
20._RA_05-01_SPRD_Peformance_Saa_Nov_05
22. (b)_4185_Field_Guide_To_Tank_Cars1-opt
22. CH2ThresholdsTables5-2015
26._H51A Executive Summary
36._Improving_Securement_in_Hazardous_Materials
36. (1)2014_crude_by_
36. (2)2015_crude_by_
36. (3)2013_crude_by_
36. (4)2012_crude_by_
36. (5)2011_crude_by_
36. (6)2010_crude_by_
36. (7)2009_crude_by_
45. Phillips Rail Spur Project FEIR December 2015
52. __102634-west-coast-seein
53.
58._vi.
59. (1)ethylene-oxide-4pg-brochure
59. (2)ethylene-oxide-4pg-brochure
61._c79122pirol-newsAr
62. tsocorpsite.files.wor…tesoro-dot-120-fact-sheet
63.
66. RAR1201
68._SP16188_2014060840