Category Archives: State regulation

Vancouver oil terminal hearings wrap up, decision expected late 2016

Repost from Hood River News

Gorge leaders oppose Vancouver oil terminal as hearings wrap up

By Patrick Mulvihill, August 5, 2016
ERIC STRID, of White Salmon, speaks out against an oil terminal proposed in Vancouver. Hearings before the state energy council wrapped up this week, marking a tonal shift as opponents and proponents await the council’s decision, expected in late 2016.
ERIC STRID, of White Salmon, speaks out against an oil terminal proposed in Vancouver. Hearings before the state energy council wrapped up this week, marking a tonal shift as opponents and proponents await the council’s decision, expected in late 2016. Photo courtesy of Friends of the Columbia Gorge

Gorge leaders spoke out against a proposed oil-by-marine terminal in Vancouver as hearings over the project’s fate came to a close July 29.

Washington State’s Energy Facility Site Evaluation Council (EFSEC) heard closing arguments for an environmental review of the terminal proposed by Vancouver Energy, a venture spearheaded by Tesoro Corp.

EFSEC is charged with recommending whether Washington Gov. Jay Inslee should approve or reject the 360,000-barrel per day oil hub at the Port of Vancouver, and panel’s decision is expected in late 2016.

At Friday’s hearing — the final chance for public oral testimony — local elected leaders and environmental advocates evoked the recent memory of Mosier, where a crude oil bearing train derailed and caught fire on June 3.

Arlene Burns, mayor of Mosier, gave the panel a stark depiction of the aftermath.

“We’re really still exhausted,” she said. “This is going to be an ongoing, long-term process that we’re going to be dealing with,” Burns said.

She noted that Mosier’s groundwater had been contaminated by oil during the spill. Drinking water has been declared safe, but concerns remain for the rainy season washing out remaining oil in the ground.

Peter Cornelison, a Hood River City Council member and field representative for Friends of the Columbia River Gorge, argued the risks of a new terminal — and boosted train traffic — would affect all river communities.

Proponents of the terminal highlighted economic benefits and stressed a need for United States’ independence in the oil industry. They said the terminal would be held to regulatory safeguards.

“We believe the evidence has demonstrated that this project is necessary to secure a strong sustainable reliable supply of energy for the citizens of Washington,” Jay P. Derr, an attorney representing Tesoro, said.

“We ask the council to recognize and remember the benefits the Port of Vancouver provides, and work hard to avoid … hurting those structures and processes that allow the port to provide those benefits to the community,” said David Bartz, a port attorney.

Most testimony disagreed with the terminal’s backers about the project’s safety and economic value.

Washington Attorney General’s Office came out last week against the terminal. Attorney General Bob Ferguson said the potential benefits of the project are “dramatically outweighed by the potential risks and costs of a spill.”

The cities of Vancouver and Spokane also voiced opposition, a sentiment expressed in recent months by letters and resolutions by tribes, advocacy groups and governments throughout the region.

Lauren Goldberg, staff attorney with Columbia Riverkeeper, said the local group hopes in light of the Mosier derailment, EFSEC will recognize the risk of another fiery oil train wreck in the Columbia Gorge.

Both sides in the issue will now file closing written briefs, ending testimony. EFSEC is expected to issue a decision in late 2016. From there, Inslee will make a decision that can be appealed in state supreme court.

SACRAMENTO BEE: State seeks fee on dangerous chemicals crisscrossing California

Repost from the Sacramento Bee

State seeks fee on dangerous chemicals crisscrossing California

By Tony Bizjak, July 22, 2016 6:00AM

HIGHLIGHTS
• California officials say the state isn’t prepared to handle hazardous materials spills
• A new $45 fee on every rail car carrying dangerous substances will help beef up spill response

Appeals Court Doesn’t Stop Crude Oil Rail Shipments Through Richmond CA

Repost from CBS San Francisco (5KPIX, 740AM, 106.9FM)

Appeals Court Doesn’t Stop Crude Oil Rail Shipments Through Richmond

July 19, 2016 9:22 PM
Protesters against fracked oil trains held a demonstration outside the Kinder-Morgan rail yard in Richmond on September 4, 2014. (CBS)
Protesters against fracked oil trains held a demonstration outside the Kinder-Morgan rail yard in Richmond on September 4, 2014. (CBS)

SAN FRANCISCO (CBS SF) — A state appeals court upheld dismissal of a lawsuit in which environmentalists sought to challenge crude oil rail shipments through Richmond.

A trial judge’s dismissal of the lawsuit was upheld in court Tuesday in San Francisco. The court said Communities for a Better Environment, known as CBE, and other groups missed a state law’s six-month deadline for challenging a lack of environmental review for the shipments.

A three-judge panel said the California Environmental Quality Act didn’t allow an exception to the deadline even though the groups said they couldn’t have discovered the project sooner.

“Ultimately, CBE’s arguments about the proper balance between the interests of public participation and of timely litigation are better directed to the Legislature, not this court,” Court of Appeal Justice Jim Humes wrote for the court.

The panel unanimously upheld a similar ruling in which San Francisco Superior Court Judge Peter Busch dismissed the lawsuit in 2014.

The crude oil is carried by the Texas-based Kinder Morgan energy company in railroad tanker cars from North Dakota’s Bakken shale formation to Kinder Morgan’s Richmond terminal, where it is transferred to tanker trucks.

The shale oil is extracted through hydraulic fracturing, or fracking, and horizontal drilling.

The environmental groups contend that shale crude oil, which is lighter than other types of crude oil, is dangerous because it is more explosive in the event of a derailment. They also say fumes emitted during the oil transfers harm human health.

The groups sued the Bay Area Air Quality Management District in March 2014 after discovering that the agency had quietly issued a permit for the project in July 2013 without requiring an environmental impact report.

The permit allowed Kinder Morgan to change its previous ethanol facility to the crude oil facility.

In addition to CBE, the plaintiffs were the Natural Resources Defense Council, Asian Pacific Environmental Network and Sierra Club. They were represented by the Earthjustice law firm.

They argued that a report should have been required under the CEQA law, while the air district and Kinder Morgan contended no report was needed because granting the permit was a ministerial rather than discretionary decision.

But the issue of whether there should have been an environmental report was never reached in court because Busch ruled, and the appeals court agreed, that the lawsuit was filed too late.

The appeals court said, “We acknowledge that if there were any situation in which it would be warranted to delay the triggering of a limitations period in the manner CBE urges, it would be one in which no public notice of the project was given and the project’s commencement was not readily apparent to the public.”

But the panel said that case law set by the California Supreme Court and other courts established that the Legislature made a “clear determination” that CEQA challenges must be filed within the deadline.

California attorney general subpoenas oil refiners

Repost from SFGate
[Editor:  See also coverage in Bloomberg, Reuters, Wall Street Journal and Los Angeles Times.  – RS]

California attorney general subpoenas refiners on gas prices

Associated Press, Updated 2:57 pm, Friday, July 1, 2016

The California attorney general has issued subpoenas to several oil refiners to learn how they set gasoline prices, which are consistently higher in California than in most other states.

Chevron Corp., Exxon Mobil Corp., Valero Energy Corp. and Tesoro Corp. confirmed on Thursday that they have received subpoenas in recent weeks.

The attorney general is making a sweeping request for information about gasoline supplies, pricing, and maintenance shutdowns that can temporarily create shortages and increase prices, according to people familiar with the investigation. The people spoke on condition of anonymity because they were not authorized to discuss details of the subpoenas.

The requests came from Attorney General Kamala Harris, a Democrat who is running for the U.S. Senate. Kristin Ford, a spokeswoman for Harris, declined to comment on whether her office was investigating.

Chevron spokesman Braden Reddall said the company received a subpoena from the attorney general’s office and would cooperate with the investigation.

Valero received a subpoena “and we will respond accordingly,” said spokeswoman Lillian Riojas.

Spokesmen for Exxon and Tesoro also confirmed the requests for information. None of the companies would discuss the matter further.

California perennially has among the nation’s highest prices for gasoline. This week, the average for a gallon of regular was $2.90 in the state compared with the national average of $2.29, according to the AAA auto club.

Some consumer advocates have charged that refiners drive prices higher by tactics such as frequent or overly long plant shutdowns.
Refineries are routinely taken offline for maintenance, and there have been longer-lasting outages after disasters such as the explosion in February 2015 at an Exxon refinery in Torrance, near Los Angeles.

Gordon Schremp, senior fuels specialist with the California Energy Commission, said 2015 saw an “extraordinary price spike in magnitude and duration in California,” which a commission advisory committee has been investigating.

“We are aware that they were doing this,” Schremp said of the attorney general’s investigation, “because off and on they’ve talked to us about what was going on with the 2015 market, important factors that can cause spikes in the markets.”

Industry officials blame high prices on California’s stricter clean-air requirements, which they say add costs and make it more difficult to import gasoline from other states when there is a price spike.
Rebecca Adler, a spokeswoman for the American Fuel & Petrochemical Manufacturers, called the allegations in the subpoenas baseless.

“We are confident that nothing will come of this,” she said.

The group Consumer Watchdog has repeatedly called on Harris to investigate oil companies over California gas prices and welcomed news of the investigation.

“It’s great that we have a law enforcement official asking questions about both supplying the market and equitable pricing within the market,” said the group’s president, Jamie Court.