Category Archives: Valero Crude By Rail

Davis City Council finds Valero crude-by-rail impact report lacking

Repost from The Davis Enterprise
[Editor: Breaking news … DAVIS, CA – On Tuesday evening, 9/2/14, the Davis City Council approved the letter as written (but with minor editorial changes) and directed staff to submit it to the City of Benicia for the record.  The DRAFT letter can be seen here.  – RS]

City Council finds Valero crude-by-rail impact report lacking

By Elizabeth Case, September 3, 2014

The Davis City Council has released a draft of the letter it plans to send to the city of Benicia in response to the Valero crude-by-rail project’s draft environmental impact report.

The project would build out the Valero refinery’s capacity to unload oil from rail cars, increasing shipments to about 70,000 barrels of oil a day in two, 50-car-long shipments, likely from Roseville to Benicia along the Capitol Corridor rail line. That line passes right through downtown Davis.

Draft environmental impact reports are required for projects that could have significant impacts on their surroundings. Notably, this report found the risk of an accident — a derailment and spill — to be an insignificant risk, while the additional trains would have a significant air quality impact.

The City Council will meet at 6:30 p.m. Tuesday in the Community Chambers at City Hall to vote on the language contained in the letter. The letter, as it stands, argues that the assessment is both misleading and incomplete, and focuses on a few main concerns:

* The report’s failure to address a May emergency order and an August notice from the U.S. Department of Transportation. The former requires railroads transporting more than 35 cars, or 1 million gallons, of North Dakota’s Bakken crude oil in a single shipment to notify state emergency response commissions. The latter includes a report about improving vehicle-to-vehicle communication.

* A request that Benicia mandate the use of the newer 1232 tank cars. These have thicker shells and other improvements over “legacy” — DOT 111 — cars, which have been involved in most of past decade’s oil-by-rail accidents.

However, 1232 cars were involved in at least one derailment in Lynchburg, Va., in April. Benicia cannot legally require Valero or Union Pacific to use a specific type of car, since railroads fall under federal jurisdiction.

Valero spokesperson Chris Howe has previously confirmed that the company would use only the 1232 cars to transport oil.

* A lack of information on where and how Valero might store the crude oil, if it isn’t used right away. Specifically, Davis is concerned that the siding between Interstate 80 and Second Street in Davis could, and might already, be used for the storage of crude oil.

In addition to the above concerns, the Davis City Council requests an investigation into the current conditions of the railroad line from Roseville to Benicia.

The letter also alleges that the EIR fails to account for fire or explosions in its assessment of damage caused by release of hazardous materials, that it fails to take a magnitude of such a spill into account, and that it does not assess all the possible routes for the crude oil to be shipped to the Valero refinery.

The letter also requests that advance notice of shipments be made to city of Davis and Yolo County authorities — information oil companies have been tight-lipped about, citing terrorism concerns.

If Valero is importing Bakken crude at amounts specified in the transportation department’s order, it will have to inform the state commission. Assembly Bill 380, which was approved Friday, would require flow data and other information to be submitted about a company’s top 25 hazardous materials, including oil from the Bakkens, though it would continue to keep the information out of the public realm.

Davis’ comments draw strongly from those already filed by the Sacramento Area Council of Governments and Yolo County.

Davis City Council member Lucas Frerichs, who also sits on SACOG’s Rail Ad Hoc Committee, said the council understands the need for oil imports, but doesn’t believe the environmental assessment adequately assesses potential dangers.

“It’s going to come in by rail, we just need to make sure it’s done safely,” Frerichs said. “(But the report) absolutely needs to be adjusted in order to protect the safety of citizens up and down the rail corridor.”

The council passed a unanimous resolution in April opposing oil by rail until safety issues, like better warning signs about speed changes, have been addressed.

“Our read of it — even if the risk is only once in every 111 years, if there was a catastrophic explosion, especially in our downtown, it would obviously have a great impact on our community, on lives on our property,” said Mike Webb, the city’s community development and sustainability director and author of the letter.

“Even if that was only once in 111 years, that’s once too much.’

If the Benicia Planning Commission acknowledges the concerns voiced by Davis, it would require a reissue and recirculation of the EIR, delaying the project. Representatives for the commission could not be reached before deadline.

“It would slow the process down, but I don’t think that would necessarily be a bad thing,” Webb said,” because we’re asking for more information and disclosure about what the project is.”

Interested parties have until Sept. 15 to submit a comment on the EIR before the Benicia Planning Commission begins its review.

Sacramento leaders question Benicia’s crude oil rail project

Repost from The Sacramento Bee
[Editor: The SACOG letter can be viewed here.  (Note that this download is in draft form, but the letter was approved as is.)  Of interest also is this 10-page Union Pacific letter addressed TO the SACOG Board, encouraging no action.  A recording of the Board meeting  is available here.  – RS]

Sacramento leaders question Benicia’s crude oil rail project

By Tony Bizjak, Aug. 28, 2014
Tracks lead to Benicia’s Valero refinery. Sacramento area leaders have drafted a letter saying a Benicia report doesn’t take major oil train risks into account. | Manny Crisostomo

Sacramento leaders will send a letter to Benicia today formally challenging the Bay Area city to do a better job of studying train derailment risks before it approves an oil company’s plans to ship crude oil on daily trains through Sacramento-area downtowns to a Benicia refinery.

Acting collectively through the Sacramento Area Council of Governments, which represents 22 cities and six counties, Sacramento representatives say they are protecting the region’s interests in the face of a proposal by Valero Refining Co. to transport an estimated 2.7 million gallons of crude oil daily on trains through Roseville, Sacramento, West Sacramento and Davis. Valero officials say the oil will be refined into gas for cars in California, as well as diesel fuel and jet fuel.

“We are not taking a position on whether the project should proceed,” said Don Saylor, a Yolo County supervisor and SACOG member. “We are pointing out, as we have the responsibility to do, the public safety issues in our region. There are ways those issues can be identified and mitigated.”

Benicia officials have been collecting public comments and questions about their environmental review of the Valero project plans, and said they will respond to all comments after the comment period closes Sept. 15.

The SACOG group also is drafting a letter to federal regulators, encouraging them to make hazardous materials transport on rail safer, particularly shipments of volatile crude oil produced in North Dakota’s Bakken region. Crude oil train shipments have increased dramatically in recent years, leading to several derailments and explosions, including one that killed 47 in a Canadian town last year.

Railroad officials nationally say derailments are very infrequent. A study commissioned by Benicia determined that a derailment and spill would be a rare occurrence on the line between Roseville and Benicia. But Sacramento leaders contend Benicia has underplayed derailment possibilities, and has not adequately studied the consequences of a spill and fire.

“We think there are serious safety concerns that should be addressed by Benicia, not downplayed,” said Sacramento Councilman Steve Cohn, chairman of the SACOG board.

The Benicia trains would travel on tracks just north of downtown, through the downtown Sacramento railyard, and over the I Street Bridge.

Elk Grove Mayor Gary Davis was one of two SACOG members who voted to oppose sending the letter. “I thought it is a little outside our scope. It’s a slippery slope,” he said.

SACOG’s main role is to serve as the region’s transportation planning agency and to administer a portion of the region’s federal transportation funding allotment.

Sutter County Supervisor James Gallagher also voted against sending the letter, saying many safety issues are in the federal government’s purview, not Benicia’s. He said he doesn’t want to discourage production of domestic oil that creates jobs and reduces reliance on foreign oil.

Sac Bee: More Information

Sacramento Area Council of Governments: Letter critical of Valero DEIR approved

SACOG – representing 6 counties and 22 cities – to file objections by Sept 15 deadline

August 21, 2014
[Editor: This is an edited version of an email by Lynne Nittler of Davis, CA, who attended the meeting.  – RS]

The 28-member Board of the Sacramento Area Council of Governments (SACOG) met on August 21, 2014, and listened to 15 community member comments from Davis, Sacramento, Dixon and Benicia who thanked them for their thorough and well-documented letter on uprail concerns not adequately addressed in the Benicia Valero Crude-by-Rail Project DEIR.  All urged the Board to submit the letter.

In addition, SACOG counsel Kirk Trost, who researched and wrote the letter, explained his efforts to execute their directions and stood by his letter.  A spokesperson from Valero claimed that many of the requests in the letter should be directed to the federal government due to federal preemption.  Union Pacific offered to serve as an information resource as they are not technically involved; however their letter to SACOG (also submitted to the DEIR) stresses federal preemption and states outright, with citations of similar cases, that ”neither SACOG nor its member agencies has authority to  impose the mitigation measures or conditions proposed in the draft Comment Letter on Valero Crude by Rail Project Environmental Impact Report.”

The SACOG Board held to their original plan to submit the letter which they commended and believed stated the truth of the inadequacies of the DEIR.   With just one substitute Director attempting to dismiss or weaken the letter unsuccessfully, the rest of the Board voted to submit the letter.

In the next item on their agenda, the SACOG Board agreed to look at the comments developed by Mr. Trost on the federal DOT Rule-making document presently open for public comment through the end of September.   (For information on how to send your comment to the Pipeline and Hazardous Materials Safety Administration, see Two-month comment period starts for new federal oil train rules.)

It remains to be seen how this all plays out legally, as Valero and UP are powerful players who are used to winning.

The Sacramento Air Quality Management District will shortly send their letter, another strong one, but more narrowly focused on air quality issues.  Also, watch for letters from the cities of Davis (city council on Sept. 2), Sacramento, Roseville, and Colfax.

Benicia Herald: report on the August 14 Planning Commission hearing

Repost from The Benicia Herald
[Editor: Winning the award for most ridiculous comment was Larry Fullington: “For the past 45 years, Fullington said, the refinery has not experienced any overturned oil tanker car.”  His unskilled use of statistics rises almost to the level of expertise of the Illinois consultant, who came up with the once-in-111-years spill estimate, based on PAST experience and neglecting to account for the massive increase in rail traffic if Valero’s proposal goes forward.  – RS]

Rail plan hearing goes long again

■ Capacity crowd offers pro, con views in commission meeting that is continued 2nd time

THE COUNCIL CHAMBER was filled, and others were seated elsewhere throughout City Hall for Thursday’s meeting. Donna Beth Weilenman/Staff

The Planning Commission’s ongoing public hearing on the Valero Crude-By-Rail Project draft environmental impact report resumed Thursday. It lasted until 12:30 a.m. Friday and it still wasn’t long enough.

After hearing hours of comments and testimony from the proposed project’s supporters and detractors, the Planning Commission decided to continue the hearing a second time, to its Sept. 11 meeting, to give more people — including commission members — a chance to weigh in on the environmental document.

As they did when the hearing first was opened July 11, members of the public filled the Council Chamber at City Hall, which has a capacity of 120, including the commission, staff members and those handling the recording and broadcast of the meeting.

Between 20 and 30 were seated in the Commission Room and another dozen or more were in a City Hall conference room, where they could watch the proceedings on a screen. Nearly 20 more sat in the City Hall courtyard, where they could hear an audio broadcast. More than 70 chose to spoke Thursday.

Unlike the practices at past meetings, city staff kept the Council Chamber doors locked until about 6:15 p.m. while additional sound equipment was put in place. Once the room was filled, those attending the hearing were directed to side rooms.

Despite the packed City Hall, several speakers said Thursday that people in Benicia remained unfamiliar with the project, and many didn’t even know it had been proposed.

The project initially was proposed after Valero wrote its land use permit application December 2012. The Benicia Department of Community Development has been taking public comment since May 30, 2013.

Public comment on the draft environmental impact report (DEIR) will be taken until the close of business on Sept. 15.

The project would add 8,880 feet of rail and would modify or expand some of the refinery’s infrastructure. Once completed, it would enable the refinery to accept up to 100 tank cars of crude oil a day in two 50-car trains entering refinery property on an existing rail spur that crosses Park Road.

The crude would be pumped to existing crude oil storage tanks by a new offloading pipeline that would be connected to existing piping within the property.

Using photographs, maps and some animation, Ed Ruszel, who owns a business near the proposed construction site, showed how railroad tracks in the city’s industrial area have been reduced, changing from loops that circulated trains around the area to cul de sacs.

He said the project would impact trafic more significantly than described in the DEIR, especially along commercial driveways and along Interstate 680 and major Industrial Park roads, such as Bayshore Road.

He criticized the contention that the twice-a-day trains that would arrive and depart the refinery would have little or no impact on traffic, saying Union Pacific Railroad won’t agree to limits on volume of product it ships or frequency, routing or configuration of its shipments.

In general, railroads are governed under federal law, not by state or local agencies or regulations.

Ruszel said the DEIR presumes the railroad and refinery will operate flawlessly as the oil cars are brought in, unloaded and depart. “The notion that longer trains and increased train traffic will reduce auto traffic is absurd and intentionally misleading.”

Marilyn Bardet, speaking briefly for Benicians for a Safe and Healthy Community, one of the organizations that opposes delivery of crude by rail, said some issues were “obscured” in the DEIR, especially those affecting railside cities besides Benicia.

“The local and regional impacts spiral out,” she said.

Bardet was one of several who told the commission that the state had little regulatory authority over locomotives or how many would be used. “Union Pacific is not part of the application,” she said. “Union Pacific logistics and performance is pivotal.”

Because trains and railroads are regulated at the federal level as interstate commerce, she said, Valero would have little control over Union Pacific, the railroad the refinery would hire to deliver the crude.

“This cast doubts on the DEIR,” she said, adding that “the report didn’t discuss the threat of derailment and of flammable liquid in the Industrial Park.”

Bardet called the project a “local, undesirable land use,” or “LULU.”

Roger Straw, publisher of an online website dedicated to opposing the Crude-by-Rail Project and members of Benicians for a Safe and Healthy Community, challenged the DEIR’s statistics about the likelihood of derailments and spills, calling those numbers “an insult.”

Straw also questioned the safety of the reinforced tanker cars the refinery has promised to use instead of those currently in use. He urged putting the process on hold until only new tank cars and stronger federal rail regulations are in place.

Bibbi Rubenstein, also with Benicians for a Safe and Healthy Community, disagreed with project supporters that allowing Valero to bring in crude by train would provide any significant jobs, either during construction or once the operation started.

More supporters of the project spoke than detractors. Among them was attorney John Flynn, who said he has been helping Valero Benicia Refinery during the environmental review process. Flynn reminded the commission that the DEIR applies to elements over which the city has control — not those it doesn’t. “Context is essential to any fair discussion,” he said.

In answer to those who sought to delay the project until new federal guidelines are adopted to improve the safety of rail delivery of crude oil, he said rule changes “can’t be the reason to delay,” because Benicia can’t control the federal government.

“Does that mean … that you don’t have a voice?” he said. “No.” But people need to express those concerns to the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration in Washington, rather than to a city panel.

“The city has drafted a DEIR it can be proud of,” he said.

Don Cuffel, the refinery’s environmental engineer, repeated several residents’ frustration that some of the DEIR’s findings were that some air quality impacts were “significant and unavoidable.”

“It sounds ominous,” he said; however, he explained that phrase is a California Environmental Quality Act term to note that certain thresholds would be exceeded by the project.

And those thresholds differ by county, he said, and numbers that might indicate no impact in Placer County could be considered “significant” in Yolo County.

The air quality differences caused by the project in those areas would be the equivalent of 10 round trips from Benicia to Tahoe in a diesel recreational vehicle, Cuffel said.

“That doesn’t seem quite so fearsome,” he said.

LINED UP in front of Benicia City Hall, spectators wait for the doors to open to the Planning Commission meeting. Donna Beth Weilenman/Staff

Another term that bothered some residents was “unavoidable,” used in the DEIR to describe some of the impacts.

Cuffel said that word meant no mitigation was available to Benicia or Valero because the situation is governed at the federal level, not the state or city level.

“I hope this brings peace of mind,” he said.

The volatility of crude oil brought in from the Bakken fields of North Dakota also worried some who spoke Thursday. But Cuffel said Valero Benicia Refinery has been shipping more volatile chemicals than the light, sweet Bakken crude.

Even before Valero bought the original Humble refinery, he said, the plant had been shipping butane and propane, “which are more volatile than any crude.”

Some speakers were not reassured.

Ramón Castellblanch joined others who were skeptical of the information provided by the refinery to ESA, the city’s consultant that composed the DEIR.

While some contended the consultant had started with a desired goal and found statistics to match, or accused the refinery of manipulating numbers, Castellblanch pointed out that Valero Energy, the local refinery’s owner, had paid millions to the Environmental Protection Agency in 2005 for air pollution violations, and that in 2008 and 2009 the Benicia refinery was cited for 23 violations.

Such characterizations were countered by other speakers, such as Larry Fullington, who described the Benicia refinery’s history that dates to 1969, when Humble built the plant.

For the past 45 years, Fullington said, the refinery has not experienced any overturned oil tanker car.

“Valero is one of the safest in the nation,” he said, joining those who pointed out the refinery is the only one of two in California — the other also belongs to Valero — to be certified by the California Occupational and Safety Act as an approved Voluntary Protection Program Star site. Valero Benicia Refinery has been earning that designation since 2006.

“They truly care about safety,” Fullington said.

Union Pacific Railroad, the company that would be transporting crude oil should the project be approved, “is one of the most prestigious firms,” he said.

Fullington noted that some critics had expressed fears that the project could lead to an event similar to the 2013 Lac-Megantic tragedy, in which an unmanned runaway train derailed as it sped along the tracks and killed 47 people in Quebec, Canada.

But circumstances in Benicia “aren’t even close,” he said.

Several speakers had described the July 6, 2013, Lac-Megantic incident in which a crude-carrying, 74-car train had been left unmanned but with one locomotive running to provide power to air brakes.

Emergency responders had responded to reports of smoke and fire. The locomotive was shut off, and the train again was left unattended. Without the air brakes, the train began rolling down the hill and picked up speed as it approached Lac-Megantic.

The train derailed and exploded.

At least five of the 47 who died were thought to be incinerated; 30 buildings were destroyed and water lines were severed and couldn’t be repaired until December of last year.

On Thursday, Giovanna Sensi Isolani called crude-carrying trains “rail bombs” as she spoke against the project, and Alan C. Miller demanded the refinery build a rail bypass that would set rail traffic back from heavily populated areas.

But Fullington explained how Benicia’s circumstances were different.

“Valero is on level land,” he said, and trains going in and out of the refinery would travel at 10 mph or less. At that speed, he said, a car that derailed simply would sit on the road bed.

Nor, he said, would a train be left alone, as it was in Lac-Megantic: At several public meetings, refinery officials have said no train would be left unattended.

Fullington said the refinery also had stated it would use the reinforced tank cars that are sturdier than the current Department of Transportation-111 model. The reinforced types are numbered 1232, and he said the ones Valero would use would be manufactured by reputable companies.

And by bringing North American crude to Benicia, he said, the company would help the nation reduce its dependence on oil from other countries.

James Bolds, a rail car specialist who had traveled from Montgomery, Texas, to speak, said he had been hired by Valero to develop specifications, review drawings and review the cars it would use for its project. He described the 1232 car as being made from high-strength steel, with reclosing valves, head shields and other features that make it stronger than the DOT-111 car.

Others remained unconvinced, saying the DEIR didn’t delve deeply enough into possible seismic disturbances; into who would be responsible for the cleanup and liability of any accident; whether train safety could be assured along the Feather River and other places California has considered high risk for derailment; or why the city was considering the project before new federal regulations for tanker cars, rail inspection and automatic systems were in place.

They weren’t swayed by supporters’ reminders that Valero annually contributes about a quarter of the city’s General Fund revenues, and that it had donated more than $13 million to area charities in 10 years; that the refinery employs 450 people, contracts for another 250 and supports 3,900 others; or that the project would provide temporary jobs to 120 construction workers and create 20 permanent jobs at the refinery.

But to those who spoke out against “big oil,” Art Gray, a shift supervisor at Valero, said, “The refinery is made up of people like me. My front yard is 150 yards from the refinery fence line.”

Explaining that the DEIR “finds this to have a positive effect,” he asked the commission, “Let us compete against other refineries.”

Rather than wrapping up the hearing as it kept going until early Friday, the commission unanimously decided to continue the opportunity to take public comment at its Sept. 11 meeting, at which commissioners also would be given a chance to speak.

Donna Beth Weilenman/Staff