Category Archives: Sacramento Area Council of Governments (SACOG)

Valero Crude By Rail: All about extreme crude (Canadian Tar Sands diluted bitumen)

Repost from the Sunflower Alliance

Valero Crude By Rail: Extreme Crude as Extreme Threat

By Charles Davidson, Hercules CA, February 20, 2016
CBR_3.jpg
Lynne Nittler of Davis, CA

Like many other fossil fuel infrastructure expansions in the Bay Area, the Valero Crude by Rail project is a key part of the transition to greater processing of extreme crudes. Yet another project poses significant, yet unnecessary public health hazards—this time to Benicia, the Bay Area, the Delta ecosystem and all communities up-rail from Benicia.

Valero’s recently completed Valero Improvement Project, or VIP, was designed to facilitate the processing of much higher sulfur and heavier crudes than the refinery’s former crude oil slate. The VIP permitted the Refinery to process heavier, high sulfur feedstocks as 60% of total supply, up from only 30% prior to the VIP.  The project also raised the average sulfur content of the imported raw materials from past levels of about 1 – 1.5% up to new levels of about 2 – 2.5% sulfur.

Now, Valero’s proposed Crude by Rail Project is specifically designed for the importation into Valero of so-called “mid-continent, North American” crudes, which would be either very lightweight, highly flammable shale oil from Bakken ND or extra heavy tar sands from Alberta Canada.  However, because the Valero Crude by Rail Project combined with the VIP are related parts of a single expanded heavy oil project, the Crude by Rail Project is most likely for the delivery of tar sands (bitumen).

Tar sands is open pit mined as a solid; it does not start out as a liquid. The Bitumen mined in Northern Canada needs to be heated to several hundred degrees before it can be diluted with chemical solvents and made to flow into railroad tank cars. According to the recent Carnegie Endowment study, Know Your Oil: Towards a Global Climate-Oil Index, tar sands refining produces three times the climate-changing greenhouse gases in order to make gasoline, compared to traditional lighter crudes.

Worse, in a 2007 US Geological Service study, it was reported that tar sands bitumen contains 102 times more copper, 21 times more vanadium, 11 times more sulfur, six times more nitrogen, 11 times more nickel, and 5 times more lead than conventional heavy crude oil. Sulfur and nitrogen oxide pollutants contribute to smog, soot, acid rain and odors that affect nearby residents. Because of these considerations, Benicia could likely experience an increase in local air pollution, and the refinery’s equipment could suffer enhanced sulfur corrosion, leading to potential accidents, such as documented for the 2012 Richmond Chevron fire.

The tar sand diluent itself adds significant risk: it is a highly flammable solvent that tends to separate from the heavier mixture during travel.  In a derailment this could cause an explosive fire with a uniquely hazardous tar sands smoke plume. The diluted tar sands mixture would tend to rapidly sink very deep into the soil, with the diluent eventually evaporating and then leaving the tar sands bitumen deep underground.

A significant tar sands spill, in places like the environmentally sensitive Feather River Canyon, the Delta or the Suisun Marsh would be impossible to clean up.  This was proven in Michigan’s 2010 Kalamazoo River Enbridge pipeline rupture, which will never be remediated, despite the spending of over 1 billion dollars to date. Nearby public infrastructure needs to be considered from a public health perspective; for example, East Bay MUD and others are doing a brackish delta water desalination pilot study near Pittsburg.

We must deny Valero the CBR permit and help keep the world’s absolutely dirtiest oil in the ground. To do so would comply with the expressed wishes of the Sacramento Area Council of Governments composed of six counties and 22 municipalities up-rail from Valero who have also asked that this project be denied. Our massive turnout at the Planning Commission hearings achieved our first step in this goal with a unanimous vote of the Planning Commission to deny the land use permit.  Now we must continue our opposition to insure the full Benicia City Council follows this path.

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.

Sacramento Bee: Area leaders accuse Benicia of failing to take steps to help protect cities

Repost from The Sacramento Bee

Sacramento officials challenge Benicia oil train project

By Tony Bizjak, February 5, 2016 11:30AM

HIGHLIGHTS
•  Valero Refining company wants to ship two 50-car oil trains daily through Northern California
•  The trains would pass through downtown Sacramento and other local cities
•  Sacramento area leaders say Benicia has failed to respond to rail cities’ safety concerns

This train is a crude oil train operated by BNSF. The train is snaking its way west through James, California just outside of the Feather River Canyon in the foothills into the Sacramento Valley. Photo taken June 5, 2014 by Jake Miille
This train is a crude oil train operated by BNSF. The train is snaking its way west through James, California just outside of the Feather River Canyon in the foothills into the Sacramento Valley. Photo taken June 5, 2014 by Jake Miille

Sacramento leaders this week accused the city of Benicia of failing to take any steps to help protect cities against potential oil spills from daily train shipments an oil company wants to run through Northern California.

The Sacramento Area Council of Governments, representing six local counties and 22 area cities, sent a letter Thursday to Benicia, saying that city’s environmental impact analysis of a rail plan by Valero Refining Co. is inadequate and represents “a non-response” to Sacramento’s safety concerns.

The challenge comes the week before the Benicia Planning Commission is scheduled to hear Valero’s controversial request for a permit to make changes at its Benicia refinery to allow it to receive two 50-car trains a day of crude oil from North America fields. The train shipments will replace current oil deliveries via ocean vessels.

The trains would travel through Rocklin, Roseville, downtown Sacramento, West Sacramento, Davis and other rail cities en route to the the refinery. It is not clear which route the trains will take east of Roseville, but potential routes include the Feather River Canyon, Donner Summit and via Oregon through Dunsmuir and Redding.

As more and larger crude oil shipments have ramped up in the United States in recent years, the number of oil spills and fires has increased as well. Several have produced major fires, including one that killed 47 people in a Canadian town two years ago. Cities along rail lines across the United States have been demanding more protections.

Benicia recently released an environmental analysis that concluded the trains would create a “potentially significant” hazard to the public from oil spills and fires, but said a spill is likely to only occur once every few decades.

Benicia city planning department officials wrote that they believe federal rail regulations prohibit the city from denying the project or placing restrictions because of concerns about rail safety. City officials also noted that Valero is the city’s largest employer and that it provides “a large source of revenue for the city.”

Yolo County Supervisor Don Saylor, who signed the SACOG letter, said Sacramento officials are not asking Benicia to reject the plan, only to take legal steps to require the shipments are handled as safely as possible, including requiring rail companies use stronger tanker cars with safety mechanisms, and that the trains use new computer safety controls called “positive train control.”

Saylor pointed out that local emergency responders apparently will not be allowed to know when the trains are coming through.

“Our concern is about the 500,000 people in the 6-county area that live within a half mile of the rails, people who are exposed to potential risk,” Saylor said.

Sacramento officials and officials in other rail-line cities nationally have also called for requirements that companies take more steps to “stabilize” volatile North Dakota oil before it is shipped.

Benicia city officials have declined comment pending upcoming city hearings on the subject. Officials have set aside several nights in a row, beginning Monday, Feb. 8, for public comment on the plan. Those hearings are expected to be heavily attended by people arguing for and against the proposal.

Benicia’s approach contrasts with the way San Luis Obispo County is handling a similar crude oil train project. County officials there have recommended the county’s Planning Commission reject a proposal from Phillips 66 for changes at its local refinery that would allow it to bring oil trains on site. Those shipments would go through both Northern and Southern California, including the Sacramento area. The Phillips refinery currently receives oil via pipeline.

In a report, San Luis Obispo planning staff wrote they do not believe the economic and other benefits from the proposed project outweigh the unavoidable negative environmental impacts the project would cause. County officials listed the potential for elevated cancer risk from added air pollution near the tracks in the county and elsewhere in California.

“The project would be detrimental to the health, safety and welfare of the public and the residents of San Luis Obispo County due to the increase of hazardous accidents as a result of the project,” the county planning staff wrote in a report issued on Monday.

Hearings are ongoing over that project. SACOG sent a letter this week as well to San Luis Obispo County saying that –if the project is approved –the county should imposed “a full complement of mitigation measures addressing our safety concerns.”

Phillips 66 recently announced it will reduce the number of annual train shipments it plans to make from 250 to about 150.

“Uprail” government agencies critical of Valero Benicia environmental report

Repost from the Fairfield Daily Republic

Safety still a primary concern with Valero rail transport plan

By Kevin W. Green, November 07, 2015
The Valero oil refinery operates, Friday, Sept. 25, 2015, in Benicia.  (Steve Reczkowski/Daily Republic file)
The Valero oil refinery operates, Friday, Sept. 25, 2015, in Benicia. (Steve Reczkowski/Daily Republic file)

FAIRFIELD — Most of those who provided formal comments on the revised draft environmental impact report for the Valero crude-by-rail project in Benicia focused on a need for increased safety and possible mitigation measures.

The city of Benicia Planning Department received plenty of input leading up to last week’s deadline for submitting written comments on the revised report.

The proposed project would allow Valero to transport crude oil to its Benicia refinery on two 50-car freight trains daily on Union Pacific tracks that come right through downtown Davis on their way to Benicia. The trains also pass through Dixon, Fairfield and Suisun City.

The rail shipments would replace up to 70,000 barrels per day of crude oil currently transported to the refinery by ship, according to city documents. The Valero refinery would continue to receive crude by pipeline, the city said.

Among the written comments submitted on the revised impact report was an eight-page response from the Sacramento Area Council of Governments. The agency responded on behalf of the 22 cities and six counties in its jurisdiction, including the city of Davis and Yolo County.

“Our earlier letter expressed grave concern that the DEIR concluded that crude oil shipments by rail pose no ‘significant hazard’ to our communities, and we urged the city of Benicia to revise the DEIR to fully inform decision-makers and the public of the potential risks of the project,” SACOG said in its remarks.

The agency’s response included a list of eight measures its board of directors indicated that, at a minimum, should be followed.

Those directives include advance notification to county and city emergency operations offices of all crude oil shipments; limits on storage of crude oil tank cars in urbanized areas of any size; and appropriate security for all shipments.

Other directives outlined need for support, including full-cost funding for training and outfitting emergency response crews; and use of freight cars with electronically controlled pneumatic brakes, rollover protection and other features that mitigate what the agency believes are the risks associated with crude oil shipments.

Finally, the agency calls for the implementation of Positive Train Control to prioritize areas with crude oil shipments.

Solano County Resource Management Director Bill Emlen, a former Davis city manager, noted in his response that he had no specific comment on the revised report, but that the county stands behind its initial remarks about the original draft report.

In those remarks, dated Sept. 8, 2014, Emlen said the county wanted more done to address potential derailments.

The original draft EIR admitted the project “could pose significant hazard to the public or the environment,” but minimized the chances of that happening.

“Although the consequences of such a release are potentially severe, the likelihood of such a release is very low,” the report said.

Emlen disagreed that the accident risks associated with the crude-by-rail proposal are “less than significant” without mitigation.

Valero plans to use a type of tank car designated as CPC-1232 to transport oil between Roseville and Benicia and there will be a 40 mph speed limit through federally designated “high-threat urban areas,” including cities along the route, according to the draft report.

Emlen said it appears Valero’s use of the CPC-1232 tank cars is voluntary, rather than mandatory. He also pointed out that the federal designation for high-threat urban areas extends only 10 miles east of Vallejo and 10 miles west of Sacramento, which leaves out most of Solano County.

Emlen cited a derailment and spill that took place in Virginia with a train using CPC-1232 tank cars and traveling 23 mph.

“Therefore, the use of CPC-1232 tank cars at low speeds does not alone mitigate the potential impact from a train derailment,” he said.

Other cities that submitted a written response on the revised draft included Davis, Albany, Gridley and Briggs. Other counties that responded included Yolo, Placer and Nevada counties.

An original draft EIR was issued for the project in June 2014. Benicia said it issued the revised draft EIR in response to requests made in that original report. The city released the revised document Aug. 31 for a 45-day review period. It later extended the deadline for submitting written comments from Oct. 16 to Oct. 30.

The Benicia Planning Commission also gathered public input on the revised document at a Sept. 29 meeting.

The Valero project involves the installation of a new railcar unloading rack, rail track spurs, pumps, pipeline and associated infrastructure at the refinery, according to a city report. The crude would originate at sites in North America.

Union Pacific Railroad would transport it using existing rail lines to Roseville, and from there to the refinery, the city said.