Category Archives: Valero Benicia Refinery

GRANT COOKE: Questions about Valero’s operating capacity

Repost from the Benicia Herald (letters are not available in the online edition)

Valero raises further questions

By Grant Cooke, August 10, 2016

Regarding the recent letter by Valero’s environmental manager, Kimberly Ronan. The letter writer complains that there were inaccuracies in a previous letter written by Kathy Kerridge that pointed out that data from BAAQMD indicated that Valero was refining about 65% of its capacity. This clearly begs lots of questions that one would like to ask the refinery.

The Valero’s manager’s response, unfortunately, shied no light on BAAQMD’s reported data. The response was basically, “Kerridge’s analysis may not be right, but we’re not telling what it is” There was also a vague suggestion that BAAQMD’s charts were confusing. Is this really the refinery’s response? (I have a hard time believing that the refinery’s GM and/or corporate communications people didn’t write or review the letter before it went out).

At a time when Valero’s crude-by-rail project has created such animosity, and confusion, the refinery is going to step away from a clear explanation of such a simple question? This sort of misinformation, secrecy, and silliness is just what gets oil companies and other big corporations in deep trouble. Not being clear and straightforward with capacity information has been an issue with California’s refineries for years, and it leads to all sorts of rumors and investigations into maintenance shutdowns and production reductions verse the price of gas and a host of other questions.

Recently, in Valero’s earnings report, which noted that Valero, Inc. made $19.6 billion in Q2 and $87.8 billion last year, Joe Gorder, Valero’s CEO, said “We are also encouraged by ample supplies of medium and heavy sour crude oils in the market…” So, if there is plenty of supply, and Benicia’s refinery isn’t producing at full capacity because the market doesn’t need anymore gas, why the heck is it pushing for a crude-by-rail project that is clearly not in the town’s interests?

On another note, it is not particularly comforting to know that the refinery monitors 265,000 individual valves and components, or that it has a long period of without recordable injury. Those of us who know a bit about mechanical engineering, know that it is not a question of if, but when, a mechanical part will fail, particularly, when you’re dealing with volatile substances. Since Bakkan crude is extremely volatile, knowing that the refinery wants to run that stuff through that many valves and components just makes me shiver.

Grant Cooke, Benicia
Sustainable Energy Associates
DEW – Harvesting Water from Air

Letter: Bay Area Air Board needs to step up for cleaner air

Repost from the Vallejo Times-Herald

Where our mayor, supervisor stand

By Michelle Pellegrin, 08/04/16, 4:09 PM PDT

There are 24 people in the Bay Area with the power to regulate the air we breathe. Their decisions cause or reduce asthma, cancer and other illnesses that can and have resulted in death.

This regional board has so much power to affect peoples’ lives and deaths, yet most people haven’t even heard of this agency with the unwieldy name: The Bay Area Air Quality Management District — or BAAQMD.

The 24 members of this board — which includes Vallejo Mayor Osby Davis — have a mandate to protect public health.

The neighborhoods around the refineries have suffered severe health effects from emissions. The 2012 Chevron toxic explosion and fire in Richmond sent more than 15,000 people to the hospital, which is now closed. A broad coalition of Bay Area groups would like to see refinery emissions, which have continuously gone up for the past 20 years, capped and then methods found to reduce harmful emissions. The first step in this process is an Environmental Impact Report (EIR).

On Wednesday, July 20, after four long years and several refinery incidents, the board, in a room with standing room only, was to vote on this. What appeared as a simple slam dunk became a political football between clean air advocates and Big Oil.

Bay Area refineries have been preparing to process heavier dirtier crudes, which will increase emissions and their diseases. The wave of Crude By Rail (CBR) of proposed projects, such as the Valero Benicia CBR project, are designed to facilitate the importation of extreme crudes, such volatile oil from the Bakken fields and volatile heavy crude from the Canadian Tar Sands.

BAAQMD staff, in what can only be seen as another move to interminably delay implementing modern and necessary emission standards on Bay Area refineries, supported combining the simpler refinery emission cap EIR with a complex EIR on toxic chemical emissions for up to 900 businesses.

Bay Area refinery corridor communities and their allied cities want the EIRs to be conducted separately, as the EIR on refineries can be done much more quickly than the more complex toxic chemical EIR because it requires no infrastructure changes. They want answers and relief from the constant health problems they are suffering.

And here is where our mayor stepped in to show his stripes. Davis, just recently appointed to the board, gave a critical speech supporting combining the two EIRs. Who would have thought the BAAQMD’s newest member would have such sway with the board?

Anyone with respiratory health problems or cancer can give a big round of applause to our mayor and Solano County Supervisor Jim Spering, who made the motion to combine the two EIRs. We in Solano County have the dubious distinction of having the most anti-public health, pro-corporate members on the board.

Even the Contra Costa appointees where four of the five refineries are located weren’t as instrumental as the Solano reps in pushing for the delay of this most important EIR.

Luckily, other board members did uphold their duty to the public’s health and a compromise was reached. The EIRs will be combined but if they become bogged down then they will be separated out. In addition, and a very important one from the public’s point of view, there will be citizen oversight of the process.

The irony here is that this is a false dichotomy. Big Oil will keep functioning and we need them for those cars we drive. These companies provide jobs and add to our economies. But it is no longer legitimate to trade health for jobs. It is an outmoded model and has no place in deciding public policy. It is no longer acceptable for companies to dominate local economies and the policies of the people in those communities where they are located.

Big Oil has known for years that this is the direction things are moving. A 2014 article in the San Jose Mercury News notes the refineries are already working on improving their systems in anticipation of processing the dirtier and volatile oil from outside California.

As Tom Griffith, head of the Martinez Environmental Group back in 2014 stated, “The missed opportunity here is for the oil companies to refocus their sights on the future of renewable energy.”

We should be working together to improve public health. The corporate stranglehold on such important regional boards must end. Citizens need to be attend BAAQMD board meetings and provide input on upcoming board decisions for this to happen. The next meeting is Wednesday, Sept. 21, at 9:30 a.m. at the BAAQMD headquarters at 375 Beale St. San Francisco.

And here in Vallejo we need to do the same and be more engaged. We have seen the result of complicity between politicians and corporations that excluded public input: The absurd notion of putting a cement factory in a residential area with its disastrous public health consequences. Don’t let Mayor Davis and his cronies put our community in harm’s way. Say “no” to the Orcem/VMT cement plant and don’t vote in November for any candidate who supports it!

— Michelle Pellegrin/Vallejo

Benicia City Council member speaks out on Valero Crude by Rail

Repost from The Pioneer, Cal State East Bay

Benicia Council member Tom Campbell interviewed by Cal State University newspaper: “Transportation plan in ‘uncharted territory’”

By Kali Persall, Managing Editor, July 13, 2016
Photo by Kali Persall/The Pioneer

Benicia residents will have to wait a few more months for a final decision on the Valero refinery’s controversial proposal to transport more than two million gallons of crude oil by train into the city, daily.

The three-year-long Crude by Rail initiative is currently awaiting review by the Surface Transportation Board, an offshoot of the U.S. Department of Transportation that regulates railroad activity across the country.

The Benicia City Council, which voted 3-2 in March to allow the project to progress to the STB for a second opinion, will reconvene on September 20 to review the case again, according to Benicia City Council member Tom Campbell.

According to the proposal, which was created in 2013, approximately 70,000 barrels of Canadian tar sand and bakken crude oil from North Dakota would be brought into Benicia by 100 railroad cars on the Union Pacific Railroad every day. The U.S. Energy Information Administration reports that one barrel of crude oil contains 42 gallons, which can be converted to 12 gallons of diesel and 19 gallons of gasoline.

The project also includes the construction of a service road and an offloading facility, the implementation of 4,000 feet of underground pipeline and the replacement of underground infrastructure at the refinery.

Cities, counties and states are currently preempted from controlling what is transported by railroad, meaning the city of Benicia cannot look into any of the potential dangers that could occur during transportation of the crude oil. Until the oil reaches the city limits, the city has no say in that aspect of the project, explained Campbell.

According to Campbell, Valero is trying to extend the railroad’s preemption to itself by arguing that a rejection of the project — and thus the rejection of the offloading facility that would need to be built — would impede indirectly on the railroad’s economic success by directly affecting Valero’s.

This preemption clause contributed largely to the Benicia Planning Commission’s rejection of the project in February.

Dozens of community members have spoken out against the project and the potential safety hazards that a derailment or malfunction could cause. Residents are also concerned about the possibility of their property values decreasing, which happened in Richmond when a fire erupted in the Chevron Refinery in 2012.

Conversely, the project has the potential to create an estimated 120 temporary and 20 permanent jobs, according to a final Environmental Impact Report for the project. Campbell estimates that property taxes could also increase to between $150,000 and $200,000 annually.

The STB will issue a declarative statement about what is considered off-limits for the city, either in favor of Valero’s petition or against, according to Campbell.

If the board votes “yes,” to the refinery qualifying for preemption, it would take away all of the rights of the city to have any say in the project. The city would be preempted from looking at whether the plan follows zoning or building codes, explained Campbell. In theory, the railroad could build the offloading facility wherever it wanted, even in a residential neighborhood.

According to Campbell, the issue is unprecedented, far-reaching and transcends anything the city council has handled in the past.

A declaration in favor of Valero’s petition would be “pushing the envelope further than it has ever gone before” and venturing into “uncharted territory,” stated Campbell. If this happened, the case would be escalated to the federal court system.

“I don’t think the STB is going to go anywhere near that, but there’s no telling,” said Campbell. “If they were to go down that route and decide something that extreme, which would have an effect on every city, county and state that has a railroad going through it.”

If the board issues a “no” declaration, Campbell said the city council’s vote depends solely on the aspects of the project that directly concern the city, such as the construction of the offloading dock.

Campbell believes the board will not reach a decision before September.

Valero Public Affairs Manager Sue Fisher Jones was unable to provide any additional details on the refinery’s next plan of action at the time of publication.

DAVIS ENTERPRISE: Area agencies oppose Valero oil train petition

Repost from the Davis Enterprise

Davis joins regional agencies in opposing Valero oil train petition

By Felicia Alvarez, July 10, 2016

In the latest addition to the turbulent saga of Valero Refining Company’s proposal to expand a crude oil-by-rail train route through the Sacramento-Davis region to a refinery in Benicia, the City of Davis, Yolo County, and the Sacramento Area Council of Governments have submitted formal letters opposing the Valero’s latest moves to approve the project.

The local agencies are joined by a formidable coalition opposing Valero’s project, including State Attorney General Kamala Harris, the cities of Oakland and Berkeley, and a number of air quality management districts.

The letters oppose Valero’s most recent steps to push through the crude-by-rail proposal and expansion of their Benicia refinery.

Last February saw the Benicia Planning Commission unanimously vote down the project’s environmental impact report. Valero decided to take it to the federal level, petitioning the Surface Transportation board for a federal preemption [by] the railroads.

Preemption would allow the company to expand its operations to transport oil through Davis along Interstate 80 toward the refinery in Benicia. It would also include routes that travel to San Luis Obispo, Bakersfield, and several other projects in Oregon and Washington.

The route of the most local concern would see 100-car trains travel through Old East Davis, downtown Davis, and the south end of UC Davis each day.

Last Friday, the City of Davis delivered its own letter to the Surface Transportation Board opposing Valero’s proposal. The city signed alongside Yolo County, Oakland, Berkeley and SACOG.

Fighting to maintain local control of planning and zoning management of the proposal in the interest of public safety, the letter states:

“Valero’s complaints do not actually pertain to rail operations at all. They pertain to the operations of oil refineries within California, refineries that wish, for their own financial benefits, to be exempted from compliance with state and local environmental and planning laws.”

The local agencies go on to argue that granting preemption is outside of the role of the board to rule on an oil refinery’s obligations.

The Yolo Solano Air Quality Management District decried Valero’s petition as well, drafting a letter alongside the Butte, Sutter, Placer, Sacramento, Shasta and Bay Area air quality management districts. 

The letter points to the project’s revised draft environmental impact report, which lists the additional air quality impacts that would be felt across multiple air districts if additional railcar trips were made across the region.

” … federal preemption prohibits the mitigation of project emissions either directly from locomotives or indirectly through the purchase of emission offsets,” the letter states, adding that this is what prompted the air quality districts to oppose the petition.

Yolo Solano AQMD’s letter goes on to echo the city’s argument that Valero is not a rail carrier, and therefore is not eligible to receive a preemption on the railroads from the Surface Transportation Board.

The Benicia City Council is slated to give the oil train proposal another hearing in September.