Repost from KCRA TV3, Sacramento CA [Editor: The video could not be embedded here on Benicia Indy, but it’s a good one – click the image to go to KCR3’s website for the video. – RS]
Valero’s oil train project halted by Benicia city leaders
Crude oil train would have traveled through NorCal cities daily
Sep 21, 2016, 9:10 PM PDT
BENICIA, Calif. (KCRA) —Benicia City Councilmembers denied Valero’s plans Tuesday night to move forward on its crude-by-rail proposal, citing safety concerns.
The project would have had trains transporting tens of thousands of crude oil – daily — to Benicia through Sacramento-area communities.
In the city of Benicia, with a population just under 30,000, you can’t miss the large presence of Valero.
“They provide a lot of money to the city,” Benicia resident John Geels said.
The company is the largest employer, providing 20 percent to the general fund. So, it became a big deal last night when city council members told the company “No.”
“We denied the appeal that Valero put forward, after the planning commission unanimously denied their application for a permit,” Benicia Councilmember Christina Strawbridge said.
That permit would have paved the way for an expansive crude oil project impacting Northern California cities.
For years, the issue went beyond the borders of Benicia, as the public and other jurisdictions expressed concerns over safety.
“Right in the heart of Davis, we are in the blast zone right now,” Yolo County Supervisor Don Saylor said. “And, that increased volume would increase the risk in our communities.”
Ultimately, Benicia councilmembers voted unanimously to reject the plan, many citing recent oil train emergencies.
“It gave me real pause,” Strawbridge said. “As far as rail safety, there’s been 13 different derailments since 2013.”
Valero issued a response to the decision:
“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the city councilmembers have chosen to reject the crude by rail project. At this time, we are considering our options moving forward.”
The divisive issue still has some residents split on the outcome.
“I feel bad for Valero, and I’m sure it’s going to hurt them financially,” Geels said. “But, I’m glad they were turned down.”
Meanwhile, others said the small city is making big waves, setting a new precedent as the conversation over crude oil transport continues.
“So, it’s a milestone because this community stood up,” Saylor said.
On Thursday morning, the planning commission in San Luis Obispo County will be taking up a similar hearing — for an oil-by-rail project proposed by Phillips 66.
Valero’s crude-by-rail project turned down in Benicia
By Matthew Adkins, 09/20/16, 9:54 PM PDT
Anti-Valero supporters wave sunflowers as Benicia’s crude by rail project was denied Tuesday evening by council members in Benicia City Hall. Matthew Adkins — Times-Herald
BENICIA >> Environmentalists hoping to defeat Benicia’s crude-by-rail project scored a huge victory Tuesday night, handing Valero Refining Company a significant defeat in the process.
In a unanimous decision from Mayor Elizabeth Patterson and Benicia City Council, Valero’s application for a conditional use permit for a crude oil off-loading facility was denied.
Vicki Dennis, who moved to Benicia two years ago, was one of many present at City Hall and said she was “just delighted” with the decision.
“I’m so proud of this city,” Dennis said. “Our council people are very thoughtful. This process has been a long one, but I think they handled it in a wonderful way.”
The City of Benicia’s Planning Commission first began considering the issue in December 2012 when the refinery submitted an application seeking permission to build infrastructure to bring two 50-car trains a day carrying up to 70,000 barrels of North American crude oil into Benicia.
In March, the Planning Commission voted unanimously to deny the application and to not certify an accompanying environmental impact report. The decision was made against the recommendation of city staff who said the project’s involvement with rail-related issues made the decision a federal issue.
Valero representatives submitted an appeal looking to reverse the commission’s decision to deny their application, and the matter was postponed until Sept. 20.
As part of the appeal, Valero sought a declaratory order from the Surface Transportation Board on the issue of federal preemption in regards to the project.
During this time, many governmental agencies, private organizations and individuals publicly opposed the city council’s decision to transfer authority on the matter to the federal government.
At the city council meeting Tuesday, however, public comment on the topic was officially closed.
“We are eager to hear from you about any item that is not on the agenda,” Patterson said. “I know it’s a little difficult right now. We have an item on the agenda that I know a lot of you are interested in, but there is no public comment on that tonight.”
This drew a few hushed laughs from the crowd of approximately 150 people who had shown up to witness the landmark decision at Benicia City Hall.
Mayor Patterson’s warning didn’t stop a few concerned citizens from indirectly talking about the issue.
“I originally put in my request to speak before I knew you were not accepting public comments about Valero,” said one man. “If the council decides to change their mind and re-open public comment on the issue, I would be glad to come back up and speak.”
“Since I can’t talk about what the Surface Transportation Board has just done, I would urge the council to support the struggle against the Dakota Access pipeline,” said another man.
After public comment was closed, a brief recap of the project’s journey though Benicia’s civic system was put forth along with two resolution findings, one for approval and the other for denial,
The denial resolution highlighted specific issues that city council members had with Valero’s proposed project, including the unclear traffic impacts of having an unregulated shipment schedule, spill risks associated with shipping by rail and the project’s uncomfortable proximity to the city’s waterways.
Before making a judgement, Council members took turns voicing their concerns about health, safety and the project’s effect on the environment.
“When we first started considering this, there seemed to be little risk involved,” said Councilwoman Christina Strawbridge. “After four years, the community has endured numerous public hearings with hundreds of people speaking about the project. During this time, there have been 13 derailments around the country involving multiple carriers.
“The derailment in Oregon was a game-changer for me,” she continued. “Union Pacific was the same carrier and the railroad cars involved were the same ones Valero is offering. The strongest car didn’t withstand a puncture and crude oil came in contact with fire and burned for 13 hours. Union Pacific failed to maintain its track, resulting in its derailment. The railroad industry has not kept up with safety standards regarding the transportation of crude. I’m going to vote to deny the project in hopes that the community can begin to heal after such a divided process.”
After the council’s comments, Councilmember Tom Campbell put forward a motion to deny, and was seconded by Patterson.
A quick vote was taken and the motion to deny Valero’s presence in Benicia was decided.
Misao Brown, a retired teacher and environmental activist from Alameda, was thrilled with the council’s decision and was seen embracing her friends outside of Benicia City Hall.
“If there were any spills where we are in Benicia, it would be in the Bay and go all over the place,” she said. “Benicia is concerned about the greater good and it’s just wonderful. It was really hard sticking it out for so long, but they gave every chance to Valero. In the end, we’re really talking about life on earth. So, when the decision comes through like this under tremendous pressure, I’m really grateful to every member of the planning commission and city council.”
Benicia nixes Valero’s plan to run crude oil trains through Sacramento, Davis and Roseville
By Tony Bizjak, September 20, 2016 10:25PM
A train carrying 98 tankers of crude oil passes through midtown Sacramento. Jake Miille
The Benicia City Council on Tuesday unanimously rejected a controversial plan by the Valero Refining Co. to ship crude oil trains through Sacramento and other Northern California cities to its bayside refinery.
The 5-0 vote, taken after four years of bitter debate, represents a victory for environmentalists and offers relief to Sacramento-area leaders who said the oil trains would put local residents and habitat at risk of a catastrophic oil spill and fire.
The Valero proposal, if approved, would have sent up to two 50-car crude oil trains rolling daily through Roseville, downtown Sacramento, Davis and other rail cities, as well as along mountainsides in the Feather River Canyon.
“I’m over the moon,” Yolo County Supervisor Don Saylor said Tuesday night. “The community of Benicia, in the crosshairs of history, made one of those decisions that will make a difference for the country. They stood up and said the safety of our communities matters.”
Sacramento County Supervisor Phil Serna said he believed letters and legal briefs from local leaders, as well as lobbying by Sacramento-area activists, played a role in persuading the Benicia council to say no to that city’s biggest employer. “I’m very pleased,” he said.
A coalition of environmental groups, including Benicia-area residents, Stand.earth, and the Natural Resources Defense Council, issued a statement Tuesday night calling the decision “a victory for the right of communities to say no to refineries’ dangerous oil train projects.”
Valero officials expressed disappointment with the decision. The company had previously said it likely would challenge an adverse decision in court, but it did not indicate Tuesday what its next steps will be.
“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the city council members have chosen to reject the crude by rail project,” company spokesman Chris Howe wrote. “At this time we are considering our options moving forward.”
Increased oil train shipments in the United States and Canada in the last five years have led to a serious of crashes and explosions, including one that killed 47 people in a small Canadian town three years ago. Federal officials have issued new safety regulations, but officials in many rail cities have said the government has not gone far enough to ensure safer shipments.
A Benicia environmental impact report last year concluded that the trains would pose significant health and safety risks along the rail line, but also concluded that a harmful spill would be a rare event.
Benicia City Council member Christina Strawbridge said she made up her mind this summer after a Union Pacific crude oil train derailed in Mosier, Ore., causing an explosion and fire that forced evacuations in the area. She called that “a game changer for me” because the rail company involved was UP, the company that Valero would use, and the rail cars that punctured were newer, supposedly safer models.
“The railroad industry has not kept up with safety standards,” Strawbridge said.
Councilman Mark Hughes commended Valero for its safety record, but added: “That said, bad things do happen. At this point, there is too much uncertainty (for) me.”
The Valero refinery currently receives its oil via marine shipments and pipeline. The oil company applied in 2012 for a permit to build a rail transfer station on its refinery grounds to allow it to receive oil via train. Officials said it would help the refinery remain competitive in a changing oil industry.
The Benicia planning commission denied Valero’s request earlier this year, citing safety issues for up-rail cities, as well as concerns about negative impacts to a creek in Benicia and to the city’s nearby industrial park. The denial also included concern about the possibility of an explosion at the refinery.
Valero appealed that decision to the City Council. It also asked the federal Surface Transportation Board to issue a ruling saying that Benicia does not have the right to deny Valero’s request to build a rail transfer station. The oil company argued that federal interstate commerce regulations preempt cities from saying yes or no on rail-related projects.
In a statement issued Tuesday, the Surface Transportation Board denied Valero’s request, pointing out that Valero is not a railroad company, so it could not claim federal pre-emption protection for its transfer station project. The board issued further “guidance,” however, warning that cities cannot unreasonably interfere with rail transportation.
Several city council members said they were waiting for the transportation board’s comments before deciding on Valero’s request. The council instructed city staff to come back with a list of findings to support their denial. Several council members cautioned that those findings should focus on safety concerns at the Benicia site rather than risks to rail cities, saying that locally focused findings would be easier to defend in court if Valero sues the city.
A similar hearing is set for Thursday in San Luis Obispo County, where Phillips 66 is proposing a rail transfer station at its refinery that will allow it to ship crude oil via train, some of it likely through Sacramento and other northern California cities.
We did it! Opponents of Valero’s oil train proposal gathered in City Hall on the night of Benicia’s historic vote to STOP crude by rail. September 20, 2016. Photo by Emily Jovais
Surprise unanimous vote – no to oil trains
Valero’s dirty and dangerous proposal to bring in Bakken and Tar Sands crude oil on trains from North Dakota and Canada is dead.
Opponents of the proposal worried and wondered for months whether a 3rd swing vote could be found on Benicia’s 5-member City Council. On Tuesday night, the wondering came to a sudden fairy tale conclusion: a unanimous vote to deny the land use permit and stop the project dead in its “tracks.”
Benicia City Council, September 20, 2016. Photo by Constance Beutel.
Benicia’s City Council vote follows a February unanimous vote of its Planning Commission vote to deny the project. Valero appealed the February decision to the Council, then received a six month delay to request backing from the federal Department of Transportation’s Surface Transportation Board (STB).
On Tuesday night, following a motion to deny by Council member Tom Campbell and seconded by Mayor Elizabeth Patterson, Council members Christina Strawbridge, Alan Schwartzman and Mark Hughes all expressed mounting concerns about on-site health, safety and environmental concerns. City staff was directed to revise it’s resolution to deny the project, and to return for a final vote on October 4. [NOTE: A revised version of the resolution was presented at yesterday’s Council meeting, taking into account yesterday’s STB decision. The revised version is not yet available in digital format on the City’s website.]
Which brings us to the OTHER SURPRISING, BREAKING NEWS:
Earlier on Tuesday, the Surface Transportation Board issued a statementdenying Valero’s petition for a declaratory order. On May 31, Valero submitted a petition asking the STB to rule that the Benicia Planning Commission’s unanimous February 11 decision denying Valero’s oil train proposal is preempted by federal law. Yesterday, the STB denied Valero’s petition for declaratory order.
“The Board finds here that there is no preemption because the Planning Commission’s decision does not attempt to regulate transportation by a “rail carrier.” The Board’s jurisdiction extends to rail-related activities that take place at transloading (or, as here, off-loading) facilities if the activities are performed by a rail carrier, the rail carrier holds out its own service through a third party that acts as the rail carrier’s agent, or the rail carrier exerts control over the third party’s operations.8 The record presented to the Board in this case, however, does not demonstrate that Valero is a rail carrier or that it is performing transportation-related activities on behalf of UP or any other rail carrier at its off-loading facility.”
Citing arguably similar case law, the STB repeatedly points out that Valero is not a “rail carrier” and that Valero would not be “performing offloading under the auspices of a rail carrier.”
Further, the STB rules that “Valero has not demonstrated that the Planning Commission’s decisions unreasonably interfere with UP’s common carrier operations.” Under federal law, “accordingly, this situation…does not reflect undue interference with ‘transportation by rail carriers’ within the Board’s jurisdiction.”
The STB ruling also provided guidance on the issue of preemption as it applies to any mitigations and conditions of approval that directly impact rail operations. The ruling strongly restated federal preemptory powers on any mitigation measures or conditions of approval that would “regulate Union Pacific’s rail operations on its lines.” But it went on to say, “State and local regulation is permissible where it does not unreasonably interfere with rail transportation….Localities retain their reserved police powers to protect the public health and safety so long as their actions do not discriminate against rail carriers or unreasonably burden interstate commerce. For example, local electrical, plumbing, and fire codes are generally applicable.”
The STB’s guidance continues, “State and local action, however, must not have the effect of foreclosing or unduly restricting the rail carrier’s ability to conduct its operations or otherwise unreasonably burden interstate commerce.” And finally, “If the offloading facility were eventually to be constructed but the EIR or the land use permit, or both, included mitigation conditions unreasonably interfering with UP’s future operations to the facility, any attempt to enforce such mitigation measures would be preempted…”
The exact definition or meaning of “foreclosing or unduly restricting” and “unreasonably interfering with” was not spelled out in yesterday’s STB ruling.
BENICIA, Calif. (KCRA) —Benicia City Councilmembers denied Valero’s plans Tuesday night to move forward on its crude-by-rail proposal, citing safety concerns.
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