CHEVRON ENERGY AND HYDROGEN RENEWAL PROJECT Responses to Late-Received Comment Letters
Prepared for March 2008 City of Richmond
CHEVRON ENERGY AND HYDROGEN RENEWAL PROJECT Responses to Late-Received Comment Letters
Prepared for March 2008 City of Richmond
225 Bush Street Suite 1700 San Francisco, CA 94104 415.896.5900 www.esassoc.com
Los Angeles
Oakland
Olympia
Petaluma
Portland
Sacramento
San Diego
Seattle
Tampa
Woodland Hills
205166
TABLE OF CONTENTS Responses to Late Received Comments Letters on the Chevron Energy and Hydrogen Renewal Project
5.00 Introduction
5.01 Department of Justice (DOJ#2), Rose Fua, November 28, 2007
5.02 Department of Justice (DOJ#3), Rose Fua, December 13, 2007
5.03 Contra Costa Health Services (CCH), Wendel Brunner, December 4, 2007
5.04 Contra Costa Hazardous Materials Program (CCHM), Randall Sawyer, November 15, 2007
5.05 Adams, Broadwell Joseph and Cardozo (ABJC#2), Suma Peesapati, October 19, 2007
5.06 Adams, Broadwell Joseph and Cardozo (ABJC#2A), Phyllis Fox, October 19, 2007
5.07 Adams, Broadwell Joseph and Cardozo (ABJC#3), Suma Peesapati, November 20, 2007
5.08 Atchison Village Mutual Homes Association (AVMHA#2), Nick Jones & Ruth Gilmore, October 3, 2007
5.09 Citizens for a Better Environment (CBE#2), Greg Karras, November 15, 2007
5.10 Contra Costa Council (CCC), Linda Best, October 12, 2007
5.11 Scott Curtner, December 7, 2007
5.12 Jeff Shea, December 13, 2007
Chevron Energy and Hydrogen Renewal Project i ESA / 205166 Responses to Late Received Comment Letters March2008
5. Responses to Late-Received Comment Letters
5.00 Introduction
Responses to all comments on the Draft EIR that were received prior to the close of the formal comment period (July 9, 2007) were published, with supporting information, in the Final EIR, Volumes 3 through 5 (January 2008).
This document includes comments on the Draft EIR that were received after the close of the public comment period. Although this document is not bound into the Final EIR volumes, to avoid confusion with other Response to Comments, the late-received letters are numbered 5.01 through 5.12, so that these response numbers are unique in context of the Final EIR.
Chevron Energy and Hydrogen Renewal Project 5.00-1 ESA / 205166 Responses to Late Received Comment Letters March 2008
Comment Letter 5.01 Comment Letter 5.01 Comment Letter 5.01
Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01 Attachment to Comment Letter 5.01
5. Responses to Late-Received Comment Letters
5.01 California Department of Justice, Deputy Attorney General, Rosa B. Fua, November 28, 2007 Responses to Comments DOJ#2-1 Many projects, such as the Proposed Project, require approvals from “responsible agencies” as well as from the lead agency (in this case, the City). A responsible agency must consider the lead agency’s certified EIR when deciding whether to approve the project (or a component of the project). See CEQA Guidelines § 15096. Here, the California Energy Commission (“CEC”) is a responsible agency, with authority to approve, deny, or exempt the Power Plant Replacement component of the Proposed Project. CEQA does not require the lead agency to suspend its review and approval process until after the CEC has permitted the Power Plant, as the commenter has suggested. On the contrary, the approach called for in the CEQA Guidelines would be for the CEC to rely on the City’s EIR. See CEQA Guidelines § 15096. More importantly, after submitting its own information requests to Chevron throughout the preparation of the EIR, some of which were based on inquiries made by the public through the CEC process, the City has obtained sufficient information to complete a Final EIR that identifies the environmental effects of the Proposed Project, identifies alternatives, and identifies feasible mitigation measures. If the Power Plant changes substantially during the future CEC permitting process, CEQA would require subsequent or supplemental environmental review. See CEQA Guidelines §§ 15096(f), 1562, 1563.
DOJ#2-2 Chevron has informed the City that it intends to build the Proposed Project’s single CoGen unit, as described and analyzed in the Draft EIR (and as considered in the Final EIR) for the Proposed Project. Chevron’s recent reply letter to the City (Chevron, 2008a) indicates that the Proposed Project considered in the Draft EIR, and described with minor text revisions in the Final EIR, is consistent with the description of the cogeneration plant that was submitted to the CEC.
The Draft EIR described a cooling tower related to the LM6000 gas turbine, which was the originally proposed turbine equipment. After publication of the Draft EIR, Chevron revised the project design to replace the LM6000 gas turbine with a General Electric, Frame 6B gas turbine. This change rendered the cooling tower unnecessary and it was eliminated from the Proposed Project. See also Response to Comment DOJ#3-1.
DOJ#2-3 While it is true that Chevron’s initial application to the City (and to BAAQMD) requested up to four CoGen units, as the CEQA review process moved forward, Chevron determined the Proposed Project would require only a single unit (Chevron, 2008a). The application to the CEC reflects this change. Similarly, the
Chevron Energy and Hydrogen Renewal Project 5.01-1 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comment Letters
Draft EIR considered only one CoGen unit. The Draft EIR describes the Power Plant Replacement component on pages 3-5 and 3-31 to 3-32. This description remains accurate, except that the cooling tower associated with the gas turbine unit has been eliminated. This change is included in the text edits to the Final EIR (Vol. 3, Table 3-2, p. 4-40) and is expected to reduce environmental impacts.
DOJ#2-4 The City is using revised air emission estimates reviewed by the BAAQMD for the Proposed Project’s air emission sources. BAAQMD provided these revised estimates of these data to the City in September 2007. The changes resulting from these revised data are discussed in the Final EIR, Vol. 3, Master Response 2.5.
DOJ#2-5 Again, as discussed in Response to Comment DOJ#2-4, the City is using the most recently available air emission data from the BAAQMD for its analysis. Because important factors such as fuel types affect emissions, they are considered by the BAAQMD in evaluating the Chevron applications and in defining the air permit conditions. As discussed in response to BAAQMD’s comments on the Draft EIR (see Final EIR, Vol. 3, Section 3.4) and Master Response 2.5, the Final EIR presents the changes to the air emission estimates since publication of the Draft EIR.
DOJ#2-6 See Response to Comment DOJ#2-1. The City is required by CEQA to continue the process of preparing the Final EIR. The City’s CEQA process is separate and distinct from the CEC Small Power Plant Exemption process.
DOJ#2-7 See Final EIR, Vol. 3, Master Response 2.1 and Responses to Comments DOJ#2-1, 2, and 3 in this document.
References Chevron 2008a, Letter from Tery Lizarraga of Chevron to Lamont Thompson of the City of Richmond (January 10, 2008).
Chevron Energy and Hydrogen Renewal Project 5.01-2 ESA / 205166 Responses to Late Received Comment Letters March 2008 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02
Comment Letter 5.02
Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02
Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 Comment Letter 5.02 5. Responses to Late-Received Comments
5.02 California Department of Justice, Deputy Attorney General, Rose B. Fua, December 13, 2007 Responses to Comments Many of the Deputy Attorney General’s comments on the adequacy and accuracy of the information relied upon in preparing the Draft EIR and on the City’s CEQA process were also made by Adams Broadwell Joseph & Cardozo (ABJC) and Communities for a Better Environment (CBE) in their timely comments on the Draft EIR. Responses to those previously submitted comments by ABJC and CBE are provided in Volume 3 of the Final EIR, which was published in January 2008. In particular, see the Responses to comment letters ABJC, ABJC-A, CBE, and CBE-A. See also Responses to late comment letters ABJC#3 and DOJ#2 in this document.
DOJ#3-1 The Draft EIR relied on the permit information that was current at the time the document was published (May 2007) to assess the potential impacts of the Proposed Project. Changes in the Proposed Project or in the air permit applications prior to that time were not relevant to the analyses in the Draft EIR. After publication of the Draft EIR, Chevron and BAAQMD continued to discuss the air permit applications, and Chevron revised its Project and amended its air permit applications as part of the standard BAAQMD permitting process. Revised air quality information was provided to the City in September 2007. The preparation and publication of the Final EIR for the Proposed Project was delayed to assure that all of the information forming the basis of the analysis was current and sufficient. In Chevron’s June 2005 BAAQMD application, and in all subsequent revised submittals to the BAAQMD, estimated emissions of criteria air pollutants (except for VOCs) were below the CEQA thresholds of significance for air quality impacts that have been adopted by the BAAQMD and were used by the City in the EIR. The trend of the changes in Chevron’s BAAQMD application has been to reduce the magnitude of the Project’s impacts. With respect to VOC emissions, which were determined to be significant and unavoidable in the Draft EIR, Chevron revised its analysis and agreed to implement a mitigation measure that will ensure that emissions are below the significance threshold. This information is provided in Volume 3 the Final EIR, pages 2-31 to 2-34.
Elimination of the cooling tower is not a material change to the Proposed Project,
and its elimination reduces PM10 emissions by approximately 0.7 tons per year and also reduces water use. Elimination of the cooling tower also results in a small reduction in toxics emissions (bromine and compounds, chlorine, and chloroform), which results in a small reduction in chronic health risk. When the cooling tower was eliminated, updated criteria and toxic emissions estimates were provided to the BAAQMD for its evaluation. These emissions estimates are
Chevron Energy and Hydrogen Renewal Project 5.02-1 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comments
included in the Final EIR (Volume 4, Appendix 1). The effects of eliminating the cooling tower from the Proposed Project were considered in the preparation of the Response to Comments document (Final EIR, Volume 3, page 4-40). See also Responses DOJ#2-2 and DOJ#2-3 in this document. This change does not require revision and recirculation of the Draft EIR because it reduces impacts of the Proposed Project.
The CEC application does not include a cooling tower for the new CoGen unit. The cooling tower described in the CEC application (as well as the BAAQMD application process and the Draft EIR) is part of an energy recovery system in the Hydrogen Plant Replacement. (See Chevron 2007)
Chevron has provided the City with the information on Project revisions and emissions calculations given to BAAQMD. The City has determined that changes in the Proposed Project during the BAAQMD permitting process do not constitute “significant new information” as defined in CEQA Guidelines section 15088.5, and that recirculation of the EIR is not required. The description of the Proposed Project and its environmental characteristics in the Final EIR is an accurate picture of the Proposed Project and its impacts. If the scope of the Project changes significantly in the future, further CEQA review may be required as provided in CEQA Guidelines sections 15162 and 15163. See also Response DOJ#3-1 above.
The questions from BAAQMD staff to Chevron listed by the commenters are follow-up questions, requests for clarification, and requests for the information used by BAAQMD to develop its conditions of approval. BAAQMD has informed the City that it does not expect that further minor revisions to the air permit or emissions estimates will result in air emissions exceeding CEQA significance levels (see Final EIR, Vol. 3, Response BAAQMD-7). With respect to the comment on the “offset factor” for VOC emissions, Chevron (2008a) has provided the following explanation, which the City has reviewed and found reasonable:
“At the time that the existing Permit Condition No. 469 (RLOP Cap) VOC emission limit was established, the applicable EPA AP-42 VOC emission factor was 0.003 lb/MMBtu of fuel combusted. Since that time, the EPA has revised the AP-42 VOC emission factor to 0.0054 lb/MMBtu of fuel combusted. The Project’s emissions estimates and the generation of emission reduction credits (ERC’s) from existing equipment are based on the current EPA emission factor. Since Condition 459 requires the RLOP Cap Limit to be adjusted downward when ERC’s are generated from equipment subject to the limit, the BAAQMD asked Chevron to surrender Existing ERC’s to account for the difference in the two emission factors. As set forth in the table below, Chevron therefore intends to provide 24.63 tons/year of VOC emissions credits to the BAAQMD.
Chevron Energy and Hydrogen Renewal Project 5.02-2 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late Received Comments
Contrary to the Attorney General’s assertion, Chevron is not ‘seeking to use an “offset factor” that is almost twice as much as allowable by its current permit condition.’ Chevron is being required to apply the EPA AP-42 emission factor when calculating VOC emission increases and decreases occurring as a result of Renewal Project implementation. The EPA’s update of the VOC emission factor was an administrative change in the way emissions are estimated. There was no change in actual emissions and the Project’s VOC emissions will remain below CEQA significance levels.”
DOJ#3-2 The issue of VOC emissions from storage tanks was also raised in the November 28, 2007 letter from the Attorney General’s office (DOJ#2 in this document). Under BAAQMD permitting Regulation 2 Rule 1, it is too early for Chevron to file the air permit applications for many of the storage tanks. The time frame covered by the analysis of the Master EIR is much longer than the time frame over which Authority to Construct permits, if filed and approved now, would expire. The BAAQMD, as a responsible agency, has received and reviewed the EIR, which contains emissions estimates for the future, proposed storage tanks (See Responses to BAAQMD Comments in Volume 3 of the Final EIR. See also Response DOJ#2-4 in this document).
The issue of the type of fuel to be used in the power plant was also raised in the November 28, 2007 letter. See Responses to Comments DOJ#2-5 in this document and ABJC-A-11 in the Final EIR, Volume 3. The gas turbine will burn natural gas, medium BTU natural gas and LPG (propane, butanes and pentanes). The duct burner will burn refinery fuel gas. Thus, the description in the Draft EIR is correct. BAAQMD Draft Permit Condition 43 has been revised to conform to this description. The addition of natural gas to the list of fuels burned in the duct burner has no effect on emissions, because refinery fuel gas contains natural gas and the AP-42 emissions factors for natural gas are commonly used for refinery fuel gas as well.
Chevron Energy and Hydrogen Renewal Project 5.02-3 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comments
The calculation of SO2 emissions from the gas turbine/duct burner complex takes into account the potentially higher sulfur content of the LPG burned in the turbine relative to the other fuels. There is an additional allowance of 1.67 tons per year of SO2 emissions built into the emissions estimate to account for LPG burned in the gas turbine. This allowance is based on assumptions of 400 million BTU of the total 840 million BTU/hr maximum annual heat duty for both turbine and the duct burner coming from normal butane.
The question of inaccurate representations in the Draft EIR was raised in the November 28, 2007 letter. As discussed in Response to Comment DOJ#2-4, the City used the September 2007 revisions of air emission data from the BAAQMD for its analysis. As discussed in the Response DOJ#3-1, above, and in Responses to comment letter BAAQMD and Master Response 2.5 in the Final EIR, the Draft EIR presented and analyzed the air emission estimates that were current at the time of publication. After publication of the Draft EIR, revisions were made to the project and its emission estimates. On September 11, 2007, Barry Young, Manager of Permit Evaluation for the BAAQMD, sent a copy of the criteria pollutant emissions estimates to the City in an e-mail (Young, 2007), which stated:
“Based on review of the attached criteria pollutant emissions estimate spreadsheets for the Chevron Energy and Hydrogen Renewal Project, the District endorses these emissions estimates for CEQA purposes.”
All of the District-approved emissions estimates continue to show that the emissions from the Proposed Project would be less-than-significant based on CEQA thresholds. For example, the District-approved estimates show a reduction
in PM10 emissions, whereas the Draft EIR showed an increase in PM10 emissions. The District-approved emissions also show a smaller increase in CO emissions resulting from the Project than the increase described in the Draft EIR.
DOJ#3-3 The commenter describes at length the matter of new and net air emissions and the differences among the CEC application, the various stages of the air permit application submittals to BAAQMD, and the Draft EIR analysis. Because the CEC application for an exemption does not affect the City of Richmond environmental review and permitting process, the EIR analysis did not rely on the air quality information contained in that application. The Draft EIR and the Final EIR are based on information provided to the City by the BAAQMD. As intended by CEQA, the Draft EIR and the Final EIR consider the changes in air emissions and other effects – the environmental consequences - that would occur if the Proposed Project were constructed and operated. See Response to Comment DOJ#3-1, above. With respect to inconsistencies, the noted variations are typical of the evolution of a project in response to air permit application review by the BAAQMD. For example, differences between the CoGen applications to the BAAQMD and CEC are discussed in Response DOJ#2-3,
Chevron Energy and Hydrogen Renewal Project 5.02-4 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late Received Comments
while the hydrogen plant cooling tower PM10 emissions are discussed in Response to Comment ABJC-A-14 in the Final EIR Volume 3.
As explained by Chevron in its January 10, 2008 letter to the City, when Chevron initially submitted its air permit application to the BAAQMD in 2005, Chevron planned to replace its two existing cogeneration units and to construct two
additional units. The 100.24 tons/year NOx emissions estimate reflects the total firing for all four plants (3105 million BTU/hr (HHV)). Prior to publication of the Draft EIR, Chevron reduced the scope of the Project. As stated in the Draft EIR, Chevron plans to retain the two existing units and to construct only one new Cogen unit. Thus, the two planned replacement units are no longer part of the
Proposed Project and their emissions are not included. Estimated NOx emissions
for the one new cogeneration unit are 33.91 tons/year. Estimated NOx emissions for the existing No. 1 Power Plant (to be replaced) are 47.43 tons/year; therefore, the power plant replacement would create a net emissions reduction of 13.52
tons/year of NOx. (See Chevron 2008a.)
Other responses regarding emissions for individual components of the Proposed Project are contained in Master Response 2.5 in the Final EIR Volume 3. In sum, because the changes generally result in reductions of emissions, and BAAQMD has indicated that none of the changes to the air emissions estimates will cause the Proposed Project to exceed significance levels (Young 2008), there are no inconsistencies in the emissions data provided to the City, BAAQMD, and CEC that would lead to any unidentified or substantially more severe significant environmental impacts than those discussed in the EIR.
References Chevron 2008a, Letter from Tery Lizarraga of Chevron to Lamont Thompson of the City of Richmond (January 10, 2008).
Chevron 2007, Letter from Tery Lizarraga of Chevron to William Lindsay of the City of Richmond (December 24, 2007).
Young 2008, Electronic communication from Barry G. Young of the BAAQMD to the City of Richmond (January 7, 2008).
Young 2007, Electronic communication from Barry G. Young of the BAAQMD to the City of Richmond (September 11, 2007).
Chevron Energy and Hydrogen Renewal Project 5.02-5 ESA / 205166 Responses to Late Received Comment Letters March 2008
Comment Letter 5.03 Comment Letter 5.03 5. Responses to Late-Received Comment Letters
5.03 Contra Costa Health Services, Wendel Brunner, December 4, 2007 Responses to Comments CCH-1 Please see Master Response 2.8, Public Health, in Volume 3 of the Final EIR, pages 2-53 to 2-60. Section 2.8.1, Background and Structure of Responses, identifies the specific responses to comments that address the various public health issues, including asthma. Section 2.8.1 also summarizes the report: Issues and Opportunities Paper #8: Community Health and Wellness (City of Richmond, June 2007 draft), prepared for the City’s General Plan update, in which the potential causes of elevated asthma levels are discussed. In addition, Section 2.8.1 identifies reports that state it is very difficult to quantitatively relate air pollution directly to asthma, and concludes:
“Although many studies related to the incidences of health effects have been performed, it is very difficult to relate causes and effects when determining respiratory health problems such as asthma.”
Master Response 2.8 then discusses the health effects of VOC emissions. As explained in Section 2.8.2, the final EIR identifies mitigation measures that would reduce VOC emissions from the Proposed Project to a less-than- significant level. Thus, VOC emissions from the Proposed Project would not contribute to increased asthma levels.
Master Response Section 2.8.3, Diesel Particulate Emissions and Health Effects, addresses respiratory effects in the Richmond area and diesel particulate matter (DPM) emissions in particular. As explained in Response 2.8.3, the increased risk resulting from DPM emissions from the Proposed Project would be less than significant.
CCH-2 Anhydrous ammonia is already produced on site as a by-product of the refining process and would be beneficially recycled through use in the Refinery. Any alternative processes to generate aqueous ammonia or ammonia pellets on-site would be new processes that are not proposed at this time, which would add to the risk of release rather than reduce it, consume energy and generate additional waste products. Conversely, transporting aqueous ammonia or ammonia pellets from off-site would add to the risk of accidental releases of these hazardous materials during transport. As such, Chevron believes that it would be environmentally detrimental to replace Refinery use of anhydrous ammonia with aqueous ammonia or ammonia pellets and has not prepared an engineering evaluation of such options. Chevron does plan to perform an Inherently Safer Study (ISS) of the potential to use aqueous ammonia instead of anhydrous ammonia, for purposes of compliance with the local industrial safety ordinance, even though the Proposed Project will not use aqueous ammonia. In doing so,
Chevron Energy and Hydrogen Renewal Project 5.03-1 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comment Letters
Chevron will follow its established process for conducting and documenting an ISS on ammonia. Nevertheless, given that page 4.13-20 of the Draft EIR concluded that the use of anhydrous ammonia would not result in a significant public safety risk, the more detailed analysis conducted for purposes of the local industrial safety ordinance is not necessary for purposes of compliance with CEQA.
See also Response ABJC-51 in the Final EIR Volume 3.
CCH-3 See Master Response 2.7 in the Final EIR Volume 3.
CCH-4 Subsequent to the publication of the Draft EIR, Chevron agreed to the installation of dome enclosures over floating-roof Tanks T-954 and T-3228. Installation of domes over floating-roof tanks would result in emission reductions by blocking air currents that would otherwise directly contact the edge seals of the tanks’ floating roofs and increase leakage of VOC through the seals. The VOC emissions reduction from installing domes over these two tanks is estimated to be 4.9 tons/year for T-954 (resulting in net new emissions of 1.1 tons/year), and 6.8 tons/year for T-3228 (resulting in net new emissions of 1.2 tons/year). This represents a combined 11.7 tons/year (64 pounds/day) VOC emissions reduction and would reduce the 23.9 tons/year (per the Draft EIR) to 12.2 tons/year, which would mitigate this potentially significant impact to a less-than-significant level. For more detailed discussion of VOC emissions, please see Master Response 2.5, and especially Subsection 2.5.2 (Tank VOC Emissions) in the Final EIR Volume 3.
Chevron Energy and Hydrogen Renewal Project 5.03-2 ESA / 205166 Responses to Late Received Comment Letters March 2008 Comment Letter 5.04
From: Parin Shah [mailto:[email protected]] Sent: Tuesday, November 20, 2007 1:59 PM To: Lamont Thompson; Ellen J. Garber Cc: Gayle McLaughlin Subject: FW: FW: Chevron
Hi-
This is from the County Health Dept folks. They handle the Richmond ISO.
Parin
Parin Shah Mayor's Office 1401 Marina Way South Richmond, CA 94804 510-620-6527
-----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Thursday, November 15, 2007 5:18 PM To: Parin Shah Cc: [email protected] Subject: RE: FW: Chevron
Hi Parin,
Chevron's DEIR does have more information on Public Safety then I first understood. The big difference between Chevron's and ConocoPhillips' DEIRs is how ConocoPhillips looked at many different accident scenarios because of the new equipment. They discussed the likelihood of an incident and did modeling to look at the consequence of the incident. By doing this it gave a broader information of what could happen. Chevron's DEIR mostly stated that the amount of chemicals that they are increasing is well below the existing amounts being handled and because the existing scenarios did not impact the community this would not either. The exception to this is the use of anhydrous ammonia. This could have a potential offsite impact but Chevron's DEIR did not look at the likelihood or the consequence of the handling of anhydrous ammonia. Note: ConocoPhillips uses aqueous ammonia instead of anhydrous ammonia. Aqueous ammonia is considered to be inherently safer then using anhydrous ammonia. Chevron should use aqueous ammonia if it is feasible as required by the Industrial Safety Ordinance. ConocoPhillips DEIR goes into a lot more depth at looking at potential accidents because of additional equipment and transportation.
Chevron DEIR does look at the hazardous materials that are being handled and if this may impact the community. The Public Safety section of the DEIR does not consider that the additional equipment could increase the likelihood of such an incident occurring or that modifying existing units reduce or increase the likelihood.
Chevron's DEIR does give more information then I first was aware. So I apologize in leading you down a path that was not completely correct. Comment Letter 5.04
But I believe that Chevron EIR could expand on the different potential accidents, the likelihood, and the potential results of these accidents. Please let me know if you have any questions.
Randall L. Sawyer Hazardous Materials Programs Director 4333 Pacheco Blvd. Martinez, CA 94553 Phone: (925) 646-2286 Fax. (925) 646-2073
5. Responses to Late-Received Comment Letters
5.04 Contra Costa County Hazardous Materials Program, Randall L. Sawyer, November 15, 2007 Responses to Comments CCHM-1 For a discussion of the potential offsite impact from the use of anhydrous ammonia, see Response CCH-2 in this document and Response ABJC-51 in the Final EIR, Volume 3.
CCHM-2 See Response CCH-2 in this document and Response ABJC-51 in the Final EIR, Volume 3.
CCHM-3 Please see Response ABJC-51 in the Final EIR, Volume 3.
CCHM-4 Please see Response ABJC-51 in the Final EIR, Volume 3.
Chevron Energy and Hydrogen Renewal Project 5.04-1 ESA / 205166 Responses to Late Received Comment Letters March 2008
Comment Letter 5.05
ADAMS BROADWELL JOSEPH & CARDOZO
A PROFESSIONAL CORPORATION DANIEL L. CARDOZO SACRAMENTO OFFICE RICHA RD T. DRURY ATTORNEYS AT LAW THOMAS A. ENSLOW 520 CAPITOL MALL, SUITE 350 TANYA A. GULESSERIAN 601 GATEWAY BOULEVARD, SUITE 1000 SACRAMENTO, CA 95814-4715 MARC D. JOSEPH SOUTH SAN FRANCISCO, CA 94080-7037 TEL: (916) 444-6201 OSHA R. MESERVE ______FAX: (916) 444-6209 SUMA P EESAPATI GLORIA D. SMITH TEL: (650) 589-1 660 FAX: (650) 589-5 062 FELLOW speesapati@adamsb roadwell.com STEPHEN R. MILLER
OF COUNSEL THOMAS R. ADAMS October 19, 2007 ANN BROADWELL
VIA E-MAIL AND U.S. MAIL
Lamont Thompson, Senior Planner City of Richmond Planning and Building Regulations Department 1401 Marina Way South Richmond, CA 94804 Email: [email protected]
Re: Supplemental Comments on Chevron Energy and Hydrogen Renewal Project, Project Number: EID 1101974
Dear Mr. Thompson:
I. INTRODUCTION
On behalf of Plumbers and Steamfitters Union Local 342, International Brotherhood of Electrical Workers Local 302, Boilermakers Local 549, Heat and Frost Insulators/Asbestos Workers Local 16, Contra Costa Building and Construction Trades Council, Dennis Ervin Roos, Sr., Ernest Washington, John Paysinger and Stanley Fletcher (“Unions”), we submit the following supplemental comments on the City of Richmond’s (“City”) Draft Environmental Impact Report (“DEIR”) for Chevron Energy and Hydrogen Renewal Project, Project Number: EID 1101974 (“Project”). As explained more fully below, the City’s DEIR does not comply with the requirements of the California Environmental Quality Act (“CEQA”). The City may not approve the Project nor grant any permits for the Project until an adequate Environmental Impact Report is prepared and circulated for public review and comment.
We have prepared these comments with the assistance of a technical expert named Dr. Phyllis Fox. The comments of Dr. Fox along with her curriculum vitae is appended hereto. Please note that Dr. Fox’s comments supplement the issues addressed below and should be addressed and responded to separately.
1728-129a
printed on recycled paper Comment Letter 5.05
October 19, 2007 Page 2
II. THE DEIR VIOLATES CEQA
A. The DEIR Fails to Disclose the Specific Changes to Chevron’s Crude Slate
An accurate, stable and finite project description is the sine qua non of an informative and legally adequate EIR. (County of Inyo v. City of Los Angeles (1977) 71 Cal.App.3d 185, 192 [139 Cal.Rptr. 396, 401].) Without it, CEQA’s objective of fostering public disclosure and informed environmental decision-making is stymied.
As explained by Dr. Fox, the quality of the average crude refined in the United States has progressively become heavier and the sulfur content has progressively increased.1 The world supply of conventional light, sweet crudes is rapidly declining. Refiners around the world are upgrading their facilities to allow them to refine high-sulfur, heavy crudes that remain in abundance.2 This trend will only continue as light, sweet crudes become more scarce.
The no project alternative in the DEIR explains that “continued importation of sweet crude may not be feasible because future availability of sweet crude is in question. Approximately 75% of the world’s oil reserves are sour crude, and only 25% are sweet crude, while most of the current oil production (40%) and most of the world’s refineries are geared toward processing sweet crude.” DEIR, p. 11. Crude oil is defined as “sweet” if the sulfur content is 0.5% or less by weight and “sour” if the sulfur content is greater than 1.0%.
Dr. Fox’s analysis shows that the Refinery currently can process crude oil with about 2% sulfur and the current crude mix has about 1.7% sulfur. The DEIR
1 Robert E. Maples, Petroleum Refinery Process Economics, PennWell Books,1993, pp. 12-13; James G. Speight and Baki Ozum, Petroleum Refining Processes, 2002, pp, 27-28 and Fig. 2-1 & 2.2 (“In a more general sense the average quality of crude oil has become worse in recent years. This is reflected in a progressive decrease in API gravity (Fig. 2.2) (i.e., increase in density) and a rise in sulfur content (Fig. 2.3).”) 2 Gary R. Brierley, Visnja A. Gembicki, and Tim M. Cowan, Changing Refinery Configuration for Heavy and Synthetic Crude Processing at: http://www.uop.com/objects/ChangingRefineryConfiguration.pdf; California Energy Commission, Transportation Fuels, Technologies, and Infrastructure Assessment Report, December 2003, at www.energy.ca.gov/reports/100-03-013F.PDF; Oklahoma Secretary of Energy, The 2005 Oklahoma Refinery Report: Volume 1, Challenges & Opportunities. A Study of the Oklahoma Refining Industry, 2005 at http://www.ok.gov/marginalwells/documents/2005_Refinery_Rpt_Vol_1.pdf. 1728-129a Comment Letter 5.05
October 19, 2007 Page 3
admits that the Project “would enable the Refinery to process crude mixes with a typical sulfur content of up to 3 percent.” DEIR, p. 3-26. In other words one of the purposes of the Project is to expand the Refinery’s options for using a “wider range of crude oils, including the ability to process crude oils with higher sulfur contents” (Id. at p. 4.3-38) and to “process reliable supplies of globally available crude oils . . . including those with higher sulfur content.” Id. at p. 3-26.
According to Dr. Fox’s expert opinion, these higher sulfur crudes typically weigh more per unit volume (i.e., have a higher density and thus are “heavier”) than lower sulfur crudes, especially 3% sulfur crudes, which rank among some of the heaviest.3 Even higher sulfur crudes than 3% could be included in a 3% “mix,” which might include, for example, Canadian tar sands or heavy Venezuelan crudes, which are closer and more secure than oils from Russia or the Middle East.
The DEIR fails to disclose whether the future crude slate will be heavier or lighter than the current slate. However, Dr. Fox opines that as sulfur content goes up, the heaviness of the crude goes up (see cites in footnote 3), so it is inevitable that the Renewal Project will result in importing and processing heavier crudes. The DEIR ultimately discloses a new “Swing Tank for Heavy Crude Oil” to provide backup storage for heavy crudes, so clearly, some increase in heavy crudes is anticipated. DEIR, pp. 1-3, 3-6, 3-44. Further, the proposed upgrades are consistent with processing heavier crudes, e.g., increased hydrogen production
3 James G. Speight and Baki Özüm, Petroleum Refining Processes, 2002, Fig. 4.2 (“correlations exist between the density (API gravity) and sulfur content (Fig. 4.2).”); James G. Spreight, The Chemistry and Technology of Petroleum, 3rd Ed., Marcel Dekker, 1999, pp. 91-94. The cited material from these two Speight books can be viewed online through Google.Books at http//books.google.com; Paul G. Lillis, Representative Bulk Composition of Oil Types for the 2002 U.S. Geological Survey Resource Assessment of National Petroleum Reserves in Alaska, USGS Open-File Report 03-407, 2004, Tables 1,2 at http://pubs.usgs.gov/of/2003/of03-407/of03-407.pdf; Marilyn E. Tennyson and Caroline M. Isaacs, Geologic Setting and Petroleum Geology of Santa Maria and Santa Barbara Basins, Coastal California, In: Caroline M. Isaacs and Jurgen Rullkotter (Eds.), The Monterey Formation: From Rocks to Molecules, Columbia University, p. 358, Figures 19.6 & 19.7, 2001; Paul Lillis and Les Mogoon, Oil-Oil Correlations to Establish a Basis for Mapping Petroleum Systems – San Joaquin Basin, California, Compiled PowerPoint Slides, USGS Open File Report 2004-1037, 2004, pp. 10-11; Enbridge Pipelines, Inc., 2006 Crude Characteristics at http://www.enbridge.com/pipelines/about/pdf/crudecharacteristics2006.pdf; Crude Oil Specifications at http://www.genesisny.net/Commodity/Oil/OSpecs.html; The American Petroleum Institute, High Production Volume (HPV) Chemical Challenge Program, Test Plan, Crude Oil Category, Submitted to U.S. EPA, November 21, 2003, pp. 7-8; 1728-129a Comment Letter 5.05
October 19, 2007 Page 4
capacity.4 Especially because the import of heavier, higher sulfur crudes may result in more serious biological and water quality impacts in the event of a spill, the DEIR’s Project description must be revised to disclose whether the Project will allow Chevron to process heavier crudes. And, if so, the DEIR must be further revised to describe the composition of these heavier crudes with specificity.
B. The DEIR Fails to Analyze or Mitigate the Significant Impacts Associated with A Heavy Crude Spill
An EIR must disclose all potentially significant adverse environmental impacts of a project. (Pub. Res. Code § 21100(b)(1).) As explained by an appellate court CEQA decision:
The EIR must demonstrate that the significant environmental impacts of the proposed project were adequately investigated and discussed and it must permit the significant effects of the project to be considered in the full environmental context. (Guidelines, § 15125, subd. (c).) We interpret this Guideline broadly in order to “afford the fullest possible protection to the environment.” (Kings County Farm Bureau, supra, 221 Cal. App. 3d 692, 720.) In so doing, we ensure that the EIR’s analysis of significant effects, which is generated from this description of the environmental context, is as accurate as possible. (See also Remy et al., Guide to the Cal. Environmental Quality Act (CEQA) (10th ed. 1999), pp. 374-376.)
Friends of the Eel River v. Sonoma County Water Agency, (2003) 108 Cal.App.4th 859, 874. The DEIR fails to disclose the potentially significant and significant impacts associated with a heavy crude oil spill in San Francisco Bay.
Dr. Fox explains that crude oil is a complex mixture of hydrocarbons consisting predominately of aliphatic, alicyclic and aromatic hydrocarbons (mostly paraffins, naphthenes, and aromatics) covering the carbon range from C1 to C60+. The relative amounts of these materials vary depending upon the source of the crude. The relative amounts also determine the environmental impacts of a crude spill. The DEIR does not disclose the composition of either the current slate of crudes or the proposed future slate that will be imported as a result of the Project.
4 See, for example, W.V. Steele, Fundamental Chemistry of Heavy Oil, at: http://www.ornl.gov/sci/fossil/Publications/ANNUAL-2003/feac327.pdf. 1728-129a Comment Letter 5.05
October 19, 2007 Page 5
The lower molecular weight components of crude may dissolve, resulting in toxicity to aquatic biota. The intermediate fractions of crude may float and spread out on the water surface, forming emulsions that would foul marine birds, and/or adsorb to soil and sediment, impacting benthic organisms. The viscous, heavier components may agglomerate and sink to the bottom or remain suspended in the water column, posing risks to biological resources not normally impacted by spills. The proposed changes to the Refinery will accommodate much larger amounts of heavy crudes or crudes with higher heavy fractions than those currently processed.
It can be reasonably expected that large oil spills will occur in San Francisco Bay as a result of continuing to operate the Refinery. The Final Environmental Impact Report for the Chevron U.S.A Long Wharf Marine Oil Terminal Lease Renewal (“Long Wharf FEIR”) indicates that over the proposed 30-year lease, there would be a 64% probability that one or more spills greater than 1,000 barrels (42,000 gallons) would occur. Long Wharf FEIR, p. 4.1-35. The Long Wharf FEIR also predicts that a spill greater than 1,000 gallons would occur every 4 to 5 years at the Terminal and a spill of 42,000 gallons would occur every 29 years. Similarly, a spill from transiting tankers of over 100 gallons would occur every 290 years. Long Wharf FEIR, Table 4.1-13. Although the Long Wharf FEIR concludes that the probability of a spill is small, the consequences could be significant. Id., p. 4.1-45. The Long Wharf FEIR provides mitigation to reduce the probability of the occurrence of a spill, but not of its potential impact.
The Chevron Renewal Project would increase the import of high sulfur, heavy crudes, likely including Group V oils, which have a specific gravity greater than 1 and do not float on the water, and certain Group IV and other heavy oils that have a lower specific gravity but still sink to the bottom or remain suspended in the water column. These oils would result in more severe biological impacts than spills of the floating crudes evaluated in the Long Wharf FEIR for the following three reasons provided by Dr. Fox.
First, these heavier oils pose risks to biological resources that are not normally affected by floating crudes (shoreline habitats and marine birds). All water-column and benthic habitats are at increased risks from spills of nonfloating oils. These resources include fish, shellfish, seagrasses, and other benthic and water column biota. In San Francisco Bay, the more severely impacted organisms in a heavy crude spill would include Dungeness crabs, eelgrass beds, and
1728-129a Comment Letter 5.05
October 19, 2007 Page 6
threatened and endangered fish species including delta smelt, Chinook salmon, and tidewater goby.
Second, these heavy oils are unrecoverable once spilled and response operations are largely limited to locating and monitoring their movement. Thus, impacts would be long term. Oils suspended in the water column or deposited on the bottom are more likely to dissolve, resulting in higher concentrations of toxic fractions than from floating oils. Further, because dissolution is a slow process, exposure times are longer. Thus, the potential for chronic toxicity is greater.
Third, nonfloating oils often have high concentrations of polynuclear aromatic hydrocarbons (“PAHs”), which are the primary source of both acute and chronic toxicity to aquatic organisms. Naphthalene compounds (two-ringed aromatics), which are present at elevated concentrations in heavy crudes, have been shown to be more toxic than lightweight aromatics, such as benzene and toluene, more commonly found in lighter crudes. Thus, even though heavy crudes have a smaller soluble fraction than lighter crudes, they can still be more acutely toxic to organisms in the water column because they are mixed into the water column without weathering, causing a higher fraction to dissolve.
Chevron admits that its Long Wharf has no reasonable technology for dealing with nonfloating oils. Long Wharf FEIR at p. 4.1-38. The Long Wharf FEIR recommends mitigation, but admits the impacts of spills of nonfloating oils larger than 50 barrels could remain significant. Ibid. Thus, increased imports of heavy crudes to support the Renewal Project would cause unique and significant biological and water quality impacts that have not been quantified or mitigated.
In sum, modification of the Chevron Refinery to allow it to process more high- sulfur, heavy crudes will result in significant biological and water quality impacts in the event of a spill. Other refineries in California are making similar modifications to address the change in supply of crude on the global market. Thus, the cumulative biological and water quality impacts of spills of high-sulfur, heavy crudes are significant and unmitigated. The DEIR must be corrected to cure this deficiency and be circulated for public review and comment.
1728-129a Comment Letter 5.05
October 19, 2007 Page 7
III. THE CITY MUST PREPARE AND RE-CIRCULATE A SUPPLEMENTAL DEIR
A supplemental or revised DEIR should be prepared and re-circulated for public review. CEQA requires a lead agency to re-circulate a DEIR when significant new information is added to the EIR following public review but before certification. (Pub. Res. Code § 21092.1.) The Guidelines clarify that new information is significant if “the EIR is changed in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project” including, for example, “a disclosure showing that … [a] new significant environmental impact would result from the project.” (CEQA Guidelines § 15088.5.) As explained by a recent CEQA decision:
“The EIR must demonstrate that the significant environmental impacts of the proposed project were adequately investigated and discussed and it must permit the significant effects of the project to be considered in the full environmental context.” (Guidelines, § 15125(c)) We interpret this Guideline broadly in order to “afford the fullest possible protection to the environment.” (Kings County Farm Bureau, supra, 221 Cal.App.3d 692, 720) In so doing, we ensure that the EIR’s analysis of significant effects, which is generated from this description of the environmental context, is as accurate as possible. (See also Remy et al., Guide to the California Environmental Quality Act (CEQA) (10th ed. 1999), pp. 374-376.)
As discussed above, the Project will have numerous impacts not addressed in the DEIR, including impacts related to oil spills. A supplemental DEIR is required to disclose and analyze these impacts and to propose measures to mitigate the impacts.
IV. CONCLUSION
The DEIR fails to satisfy CEQA’s fundamental mandates of informing the public and decision makers of the potentially significant environmental impacts of a project, and imposing all feasible measures to mitigate those impacts to less than
1728-129a Comment Letter 5.05
October 19, 2007 Page 8
significant. The DEIR should be revised to address the shortcomings described above and in the attached document and re-circulated for public review.
Sincerely,
/s/
Suma Peesapati
SP:bh Attachments
1728-129a 5. Responses to Late-Received Comment Letters
5.05 Adams Broadwell Joseph & Cardozo, Suma Peesapati, October 19, 2007 Responses to Comments ABJC#2-1 The commenter discusses the world supply of crude oil and quotes from the Draft EIR, p. 6-11, regarding the processing of sweet and sour crudes. The commenter defines “sweet” crude oil as having a sulfur content of 0.5% or less by weight and “sour” if the sulfur content is greater than 1%. These definitions vary, however; note that p. 8-4 of Chapter 8, Glossary, of the Draft EIR defines “sour” crude as having a sulfur content of 2.5% or more. See Master Response 2.2, Subsection 2.2.3 Crude Oil Slate Changes and Related Effects in the Final EIR Volume 3.
ABJC#2-2 The commenter correctly notes the current and proposed sulfur content of crude oil processed by the Refinery. See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3.
ABJC#2-3 There is no direct causal relationship between sulfur content and heavier crude. The relationships between sulfur content and the weight of the crude for those crude oils that are anticipated to be used at the Refinery are discussed in Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3.
As discussed in Master Response 2.2, the change in the crude slate expected at the Refinery is that the crudes would become more sour (i.e., contain more sulfur) and would not be heavier.
ABJC#2-4 See Response to Comment ABJC#2-3. The Proposed Project does not involve changing the weight range of crudes that would be processed at the Refinery. Those would continue to be a mix of “medium” crudes, as the Refinery is designed to process, from whatever sources of such crudes become available. However, because of the decline in North Slope crude oils, Chevron anticipates that the amount of sulfur in the mix of suitable available crude oils will increase. Therefore, the Proposed Project is designed to allow the Refinery to process crudes that have a 3% sulfur content, which is an increase from the current 2% sulfur content of crudes that are processed now at the Refinery. The additional sulfur would continue to be processed by the expanded capacity sulfur recovery units; some of this equipment (in particular, the three hydrogen purity sulfur removal units) would be upgraded as part of the Proposed Project. Therefore, although additional sulfur processing capacity would be added to the Refinery, there are no planned changes in the specific gravity of the crudes processed and no change in the risk of crude oil spills.
Chevron Energy and Hydrogen Renewal Project 5.05-1 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comment Letters
As noted in Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects), it is incorrect to state that heavier crudes necessarily contain higher concentrations of metals or other constituents, or more-toxic components. In addition, please refer to Responses RWQCB-3 and RWQCB-4 in the Final EIR Volume 3.
ABJC#2-5 The Proposed Project would not involve the use of heavy crude oil. See Responses FOX-1, RWQCB-3, RWQCB-4 in the Final EIR Volume 3, and ABJC#2-4 in this document.
ABJC#2-6 See Master Response 2.2, subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) and Response FOX-2 in the Final EIR Volume 3, and ABJC#2-4 in this document.
ABJC#2-7 See Response FOX-1 and Master Response 2.2, subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3.
ABJC#2-8 The Proposed Project does not include any process or equipment changes that would facilitate the processing of heavy crudes at the Refinery, and the use of heavier crude oils is not anticipated. The Refinery now typically refines a mixture of Alaskan North Slope and Arab crude oils. The crude oils used would continue to be a mix of the intermediate and light crudes that the Refinery is designed to process. See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Response to Comment ABJC#2-4 above.
ABJC#2-9 See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Responses ABJC#2-4 and ABJC#2-8, above.
ABJC#2-10 See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Responses ABJC#2-4 and ABJC#2-8, above.
ABJC#2-11 See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Responses ABJC#2-4 and ABJC#2-8, above.
ABJC#2-12 See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Responses ABJC#2-4 and ABJC#2-8, above.
ABJC#2-13 See Master Response 2.2, Subsection 2.2.3 (Crude Oil Slate Changes and Related Effects) in the Final EIR Volume 3 and Responses ABJC#2-4 and Response ABJC#2-8, above.
Chevron Energy and Hydrogen Renewal Project 5.05-2 ESA / 205166 Responses to Late Received Comment Letters March 2008 5. Responses to Late-Received Comment Letters
ABJC#2-14 The Draft EIR disclosed and analyzed the environmental impacts of the Proposed Project. No significant new information has been added to the EIR following public review. Therefore, recirculation is not required. See Master Response 2.1 in the Final EIR Volume 3 and Response ABJC#2-8, above.
ABJC#2-15 This is a general comment on the adequacy of the Draft EIR. The commenter’s specific concerns have been addressed above.
Chevron Energy and Hydrogen Renewal Project 5.05-3 ESA / 205166 Responses to Late Received Comment Letters March 2008
Comment Letter 5.06
ENVIRONMENTAL MANAGEMENT J. Phyllis Fox, Ph.D., REA II, QEP, PE, DEE 745 White Pine Ave. Rockledge, FL 32955 321-626-6885
Suma Peesapati Adams Broadwell Joseph & Cardozo 601 Gateway Boulevard Suite 1000 South San Francisco, CA 94080
Dear Ms. Peesapati:
I have reviewed the Final Environmental Impact Report for the Long Wharf Marine Terminal (“Long Wharf FEIR”) and the Draft Environmental Impact Report for the Chevron Energy and Hydrogen Renewal Project (“Renewal Project DEIR”) to determine whether they considered the biological and water quality impacts of the proposed changes in crude slates. Neither EIR considers the impact of the change in crude slates on water quality and biological resources. As discussed below, these impacts would be significant and should be evaluated in a supplemental environmental impact report.
The quality of the average crude refined in the United States has progressively become heavier and the sulfur content has progressively increased.1 The world supply of conventional light, sweet crudes is rapidly declining. Refiners around the world are upgrading their facilities to allow them to refine high-sulfur, heavy crudes that remain in abundance.2 This trend will only continue as light, sweet crudes become more scarce.
The no project alternative in the Renewal Project DEIR explains that “continued importation of sweet crude may not be feasible because future availability of sweet crude is in question. Approximately 75% of the world’s oil reserves are sour crude, and only
1 Robert E. Maples, Petroleum Refinery Process Economics, PennWell Books,1993, pp. 12-13; James G. Speight and Baki Ozum, Petroleum Refining Processes, 2002, pp, 27-28 and Fig. 2-1 & 2.2 (“In a more general sense the average quality of crude oil has become worse in recent years. This is reflected in a progressive decrease in API gravity (Fig. 2.2) (i.e., increase in density) and a rise in sulfur content (Fig. 2.3).”) 2 Gary R. Brierley, Visnja A. Gembicki, and Tim M. Cowan, Changing Refinery Configuration for Heavy and Synthetic Crude Processing at: http://www.uop.com/objects/ChangingRefineryConfiguration.pdf; California Energy Commission, Transportation Fuels, Technologies, and Infrastructure Assessment Report, December 2003, at www.energy.ca.gov/reports/100-03-013F.PDF; Oklahoma Secretary of Energy, The 2005 Oklahoma Refinery Report: Volume 1, Challenges & Opportunities. A Study of the Oklahoma Refining Industry, 2005 at http://www.ok.gov/marginalwells/documents/2005_Refinery_Rpt_Vol_1.pdf. Comment Letter 5.06
25% are sweet crude, while most of the current oil production (40%) and most of the world’s refineries are geared toward processing sweet crude.” Renewal Project DEIR, p. 11. Crude oil is defined as “sweet” if the sulfur content is 0.5% or less by weight and “sour” if the sulfur content is greater than 1.0%.
The Refinery currently can process crude oil with about 2% sulfur and the current crude mix has about 1.7% sulfur. “The Renewal Project would enable the Refinery to process crude mixes with a typical sulfur content of up to 3 percent.” Renewal Project DEIR, p. 3-26. One of the purposes of the Renewal Project is to expand the Refinery’s options for using a “wider range of crude oils, including the ability to process crude oils with higher sulfur contents” (Id. at p. 4.3-38) and to “process reliable supplies of globally available crude oils . . . including those with higher sulfur content.” Id. at p. 3-26.
These higher sulfur crudes typically weigh more per unit volume (i.e., have a higher density and thus are “heavier”) than lower sulfur crudes, especially 3% sulfur crudes, which rank among some of the heaviest.3 Even higher sulfur crudes than 3% could be included in a 3% “mix,” which might include, for example, Canadian tar sands or heavy Venezuelan crudes, which are closer and more secure than oils from Russia or the Middle East.
The Renewal Project DEIR fails to disclose whether the future crude slate will be heavier or lighter than the current slate. However, it is well known that as sulfur content goes up, the heaviness of the crude goes up (see cites in footnote 3), so it is inevitable that the Renewal Project will result in importing and processing heavier crudes. The DEIR ultimately discloses a new “Swing Tank for Heavy Crude Oil” to provide backup storage for heavy crudes, so clearly, some increase in heavy crudes is anticipated. Renewal Project DEIR, pp. 1-3, 3-6, 3-44. Further, the proposed upgrades are consistent with processing heavier crudes, e.g., increased hydrogen production capacity.4 The import of heavier, higher sulfur crudes may result in more serious biological and water quality impacts in the event of a spill.
3 James G. Speight and Baki Özüm, Petroleum Refining Processes, 2002, Fig. 4.2 (“correlations exist between the density (API gravity) and sulfur content (Fig. 4.2).”); James G. Spreight, The Chemistry and Technology of Petroleum, 3rd Ed., Marcel Dekker, 1999, pp. 91-94. The cited material from these two Speight books can be viewed online through Google.Books at http//books.google.com; Paul G. Lillis, Representative Bulk Composition of Oil Types for the 2002 U.S. Geological Survey Resource Assessment of National Petroleum Reserves in Alaska, USGS Open-File Report 03-407, 2004, Tables 1,2 at http://pubs.usgs.gov/of/2003/of03-407/of03-407.pdf; Marilyn E. Tennyson and Caroline M. Isaacs, Geologic Setting and Petroleum Geology of Santa Maria and Santa Barbara Basins, Coastal California, In: Caroline M. Isaacs and Jurgen Rullkotter (Eds.), The Monterey Formation: From Rocks to Molecules, Columbia University, p. 358, Figures 19.6 & 19.7, 2001; Paul Lillis and Les Mogoon, Oil-Oil Correlations to Establish a Basis for Mapping Petroleum Systems – San Joaquin Basin, California, Compiled PowerPoint Slides, USGS Open File Report 2004-1037, 2004, pp. 10-11; Enbridge Pipelines, Inc., 2006 Crude Characteristics at http://www.enbridge.com/pipelines/about/pdf/crudecharacteristics2006.pdf; Crude Oil Specifications at http://www.genesisny.net/Commodity/Oil/OSpecs.html; The American Petroleum Institute, High Production Volume (HPV) Chemical Challenge Program, Test Plan, Crude Oil Category, Submitted to U.S. EPA, November 21, 2003, pp. 7-8. 4 See, for example, W.V. Steele, Fundamental Chemistry of Heavy Oil, at: http://www.ornl.gov/sci/fossil/Publications/ANNUAL-2003/feac327.pdf.
2 Comment Letter 5.06
The Long Wharf FEIR evaluated the biological and water quality impacts of oil spills of the current slate of crudes, or crudes that predominately float on the water surface. These impacts are significant, even with mitigation. Long Wharf FEIR, Secs. 4.2 (p. 4.2-46 to 4.2-51) and 4.3. However, neither the Long Wharf FEIR nor the Renewal Project DEIR evaluated the impacts of changes in the crude slate on the nature and severity of water quality and biological impacts. As demonstrated below, the impacts are likely significant and should be evaluated in a supplemental EIR.
The impact of a crude spill on water quality and biological resources depends upon the composition of the crude and a variety of complex and interrelated physical, chemical and biological transformations.5 Neither EIR contains any of the basic information required to assess biological and water quality impacts. This information would include baseline and future crude oil composition and properties, including gravity, sulfur content, pour point, carbon residue, salt content, nitrogen content, distillation range, metals content, and other chemical composition data required to assess environmental impacts. Most of these parameters constitute the design basis for the existing Refinery and the proposed changes to the Refinery. Thus, they must be in Chevron’s possession and should be provided to the lead agency and used to assess biological and water quality impacts. The Project description is deficient because it contains none of this information. The potential significance of this information is discussed generally below.
Crude oil is a complex mixture of hydrocarbons consisting predominately of aliphatic, alicyclic and aromatic hydrocarbons (mostly paraffins, naphthenes, and aromatics) covering the carbon range from C1 to C60+. The relative amounts of these materials vary depending upon the source of the crude. The relative amounts also determine the environmental impacts of a crude spill. Neither EIR discloses the composition of either the current slate of crudes or the proposed future slate.
The lower molecular weight components of crude may dissolve, resulting in toxicity to aquatic biota. The intermediate fractions of crude may float and spread out on the water surface, forming emulsions that would foul marine birds, and/or adsorb to soil and sediment, impacting benthic organisms. The viscous, heavier components may agglomerate and sink to the bottom or remain suspended in the water column, posing risks to biological resources not normally impacted by spills.6 The proposed changes to the Refinery will accommodate much larger amounts of heavy crudes or crudes with higher heavy fractions than those currently processed.
It can be reasonably expected that large oil spills will occur in San Francisco Bay as a result of continuing to operate the Refinery. The Long Wharf FEIR indicates that
5 R.E. Jordan and J.R. Payne, Fate and Weathering of Petroleum Spills in the Marine Environment: A Literature Review and Synopsis, Ann Arbor Science Publishers, 1980 and National Research Council, Oil in the Sea, III Inputs, Fates, and Effects, 2003. 6 The American Petroleum Institute, High Production Volume (HPV) Chemical Challenge Program, Test Plan Crude Oil Category, submitted to the U.S. EPA, November 21, 2003.
3 Comment Letter 5.06
over the proposed 30-year lease, there would be a 64% probability that one or more spills greater than 1,000 barrels (42,000 gallons) would occur. Long Wharf FEIR, p. 4.1-35. The Long Wharf FEIR also predicts that a spill greater than 1,000 gallons would occur every 4 to 5 years at the Terminal and a spill of 42,000 gallons would occur every 29 years. Similarly, a spill from transiting tankers of over 100 gallons would occur every 290 years. Long Wharf FEIR, Table 4.1-13. Although the FEIR concludes that the probability of a spill is small, the consequences could be significant. Id., p. 4.1-45. The FEIR provides mitigation to reduce the probability of the occurrence of a spill, but not of its potential impact.
The Chevron Renewal Project would increase the import of high sulfur, heavy crudes, likely including Group V oils, which have a specific gravity greater than 1 and do not float on the water, and certain Group IV and other heavy oils that have a lower specific gravity but still sink to the bottom or remain suspended in the water column. These oils would result in more severe biological impacts than spills of the floating crudes evaluated in the Long Wharf FEIR for at least three reasons.7
First, these heavier oils pose risks to biological resources that are not normally affected by floating crudes (shoreline habitats and marine birds). All water-column and benthic habitats are at increased risks from spills of nonfloating oils.8 These resources include fish, shellfish, seagrasses, and other benthic and water column biota. In San Francisco Bay, the more severely impacted organisms in a heavy crude spill would include Dungeness crabs, eelgrass beds, and threatened and endangered fish species including delta smelt, Chinook salmon, and tidewater goby.
Second, these heavy oils are unrecoverable once spilled and response operations are largely limited to locating and monitoring their movement. Thus, impacts would be long term. Oils suspended in the water column or deposited on the bottom are more likely to dissolve, resulting in higher concentrations of toxic fractions than from floating oils. Further, because dissolution is a slow process, exposure times are longer.9 Thus, the potential for chronic toxicity is greater.
Third, nonfloating oils often have high concentrations of polynuclear aromatic hydrocarbons (PAHs), which are the primary source of both acute and chronic toxicity to aquatic organisms. Naphthalene compounds (two-ringed aromatics), which are present at elevated concentrations in heavy crudes, have been shown to be more toxic than lightweight aromatics, such as benzene and toluene, more commonly found in lighter crudes.10 Thus, even though heavy crudes have a smaller soluble fraction than lighter crudes, they can still be more acutely toxic to organisms in the water column because
7 National Research Council, Spills of Nonfloating Oils: Risks and Response, 1999. 8 D.K. Scholz and others, Assessment of Risks Associated with the Shipment and Transfer of Group V Fuel Oils, HAZMAT Report No. 94-8, Hazardous Materials Response and Assessment Division, NOAA, 1994. 9 S.C. Lee and others, A Study of the Long-term Weathering of Submerged and Overwashed Oil, EE-119, Environment Canada, 1989. 10 J.W. Anderson and others, The Toxicity of Dispersed and Undispersed Prudhoe Bay Crude Oil Fractions to Shrimp and Fish, In Proceedings of the 1987 Oil Spill Conference, American Petroleum Institute, pp. 235-240.
4 Comment Letter 5.06 they are mixed into the water column without weathering, causing a higher fraction to dissolve.
Chevron admits that its Long Wharf has no reasonable technology for dealing with nonfloating oils. Long Wharf FEIR, p. 4.1-38. The Long Wharf FEIR recommends mitigation, but admits the impacts of spills of nonfloating oils larger than 50 barrels could remain significant. Ibid. Thus, increased imports of heavy crudes to support the Renewal Project would cause unique and significant biological and water quality impacts that have not been quantified or mitigated.
In sum, modification of the Chevron Refinery to allow it to process more high- sulfur, heavy crudes will result in significant biological and water quality impacts in the event of a spill. Other refineries in California are making similar modifications for similar reasons. Thus, the cumulative biological and water quality impacts of spills of high-sulfur, heavy crudes are significant and unmitigated by either the Long Wharf FEIR or the Renewal Project DEIR.
Sincerely,
Phyllis Fox, Ph.D, PE
5
Attachment to Comment Letter 5.06
J. Phyllis Fox, Ph.D, PE, DEE Environmental Management 745 White Pine Ave. Rockledge, FL 32955 321-626-6885 510-593-7576 [email protected]
Dr. Fox has over 35 years of experience in the field of environmental engineering, including air pollution control, air quality management, water quality and water supply investigations, hazardous waste investigations, environmental permitting, nuisance investigations, environmental impact reports, CEQA/NEPA documentation, risk assessments, and litigation support.
EDUCATION Ph.D. Environmental/Civil Engineering, University of California, Berkeley, 1980. M.S. Environmental/Civil Engineering, University of California, Berkeley, 1975. B.S. Physics (with high honors), University of Florida, Gainesville, 1971. Post-Graduate: S-Plus Data Analysis, MathSoft, 6/94. Air Pollutant Emission Calculations, UC Berkeley Extension, 6-7/94 Assessment, Control and Remediation of LNAPL Contaminated Sites, API and USEPA, 9/94 Pesticides in the TIE Process, SETAC, 6/96 Sulfate Minerals: Geochemistry, Crystallography, and Environmental Significance, Mineralogical Society of America/Geochemical Society, 11/00. Design of Gas Turbine Combined Cycle and Cogeneration Systems, Thermoflow, 12/00 Air-Cooled Steam Condensers and Dry- and Hybrid-Cooling Towers, Power-Gen, 12/01 Combustion Turbine Power Augmentation with Inlet Cooling and Wet Compression, Power-Gen , 12/01 CEQA Update, UC Berkeley Extension, 3/02 The Health Effects of Chemicals, Drugs, and Pollutants, UC Berkeley Extension, 4-5/02 Noise Exposure Assessment: Sampling Strategy and Data Acquisition, AIHA PDC 205, 6/02 Noise Exposure Measurement Instruments and Techniques, AIHA PDC 302, 6/02 Noise Control Engineering, AIHA PDC 432, 6/02 Optimizing Generation and Air Emissions, Power-Gen, 12/02 Utility Industry Issues, Power-Gen, 12/02 Multipollutant Emission Control, Coal-Gen, 8/03 Community Noise, AIHA PDC 104, 5/04 Cutting-Edge Topics in Noise and Hearing Conservation, AIHA 5/04 Selective Catalytic Reduction: From Planning to Operation, Power-Gen, 12/05 Improving the FGD Decision Process, Power-Gen, 12/05 E-Discovery, CEB, 6/06 McIlvaine Hot Topic Hour, FGD Project Delay Factors. McIlvaine Hot Topic Hour, What Mercury Technologies Are Available, 9/14/06 Attachment to Comment Letter 5.06
J. PHYLLIS FOX, PH.D., PAGE 2
McIlvaine Hot Topic Hour, SCR Catalyst Choices, 10-12-06 McIlvaine Hot Topic Hour, Particulate Choices for Low Sulfur Coal, 10/19/06 McIlvaine Hot Topic Hour, Impact of PM2.5 on Power Plant Choices, 111/06 Cost Estimating and Tricks of the Trade – A Practical Approach, P159, 11/19/06 Process Equipment Cost Estimating by Ratio & Proportion, G127 11/19/06 Power Plant Air Quality Decisions, Power-Gen 11/06 Negotiating Permit Conditions, EEUC, 1/21/06 BACT for Utilities, EEUC, 1/21/06 McIlvaine Hot Topic Hour, Chinese FGD/SCR Program & Impact on World, 2/1/07 McIlvaine Hot Top Hour, Mercury CEMS, 4/12/07 Coal-to-Liquids – A Timely Revival, 9th Electric Power, 4/30/07 th Advances in Multi-Pollutant and CO2 Control Technologies, 9 Electric Power, 4/30/07 McIlvaine Hot Topic Hour, Measurement & Control of PM2.5, 5/16/07 Ethanol 101: Points to Consider When Building an Ethanol Plant, BBI International, 6/26/07
REGISTRATION
Registered Professional Engineer: Arizona (2001-present), California (2002-present), Florida (2001-present), Georgia (2002-present), Washington (2002-present), Wisconsin (2005-present) Board Certified Environmental Engineer, American Academy of Environmental Engineers, Certified in Air Pollution Control (DEE #01-20014), 2002-present Qualified Environmental Professional (QEP), Institute of Professional Environmental Practice (QEP #02-010007), 2001-present Class I Registered Environmental Assessor, California (REA-00704), 1988-present. Class II Registered Environmental Assessor, California (REA-20040), 2000-present
PROFESSIONAL HISTORY
Environmental Management, Principal, 1981-present Lawrence Berkeley Laboratory, Principal Investigator, 1977-1981 University of California, Berkeley, Program Manager, 1976-1977 Bechtel, Inc., Engineer, 1971-1976, 1964-1966
PROFESSIONAL AFFILIATIONS
American Industrial Hygiene Association (2002-present) Air and Waste Management Association (1999-present) American Chemical Society (1981-present)
Attachment to Comment Letter 5.06
J. PHYLLIS FOX, PH.D., PAGE 3
American Society of Mechanical Engineers (2004-present) Phi Beta Kappa (1970-present) Sigma Pi Sigma (1970-present)
Who's Who Environmental Registry, PH Publishing, Fort Collins, CO, 1992. Who's Who in the World, Marquis Who's Who, Inc., Chicago, IL, 11th Ed., p. 371, 1993-present. Who's Who of American Women, Marquis Who's Who, Inc., Chicago, IL, 13th Ed., p. 264, 1984- present. Who's Who in Science and Engineering, Marquis Who's Who, Inc., New Providence, NJ, 5th Ed., p. 414, 1999-present. Who’s Who in America, Marquis Who’s Who, Inc., 59th Ed., 2005. Guide to Specialists on Toxic Substances, World Environment Center, New York, NY, p. 80, 1980. National Research Council Committee on Irrigation-Induced Water Quality Problems (Selenium), Subcommittee on Quality Control/Quality Assurance (1985-1990). National Research Council Committee on Surface Mining and Reclamation, Subcommittee on Oil Shale (1978-80)
REPRESENTATIVE EXPERIENCE
Performed environmental and engineering investigations, as outlined below, for a wide range of industrial and commercial facilities including refineries; reformulated fuels projects; petroleum distribution terminals; conventional and thermally enhanced oil production; underground storage tanks; pipelines; gasoline stations; landfills; railyards; hazardous waste treatment facilities; nuclear, hydroelectric, geothermal, wood, waste, gas, oil and coal-fired power plants; transmission lines; airports; hydrogen plants; petroleum coke calcining plants; asphalt plants; cement plants; incinerators; flares; manufacturing facilities (e.g., semiconductors, electronic assembly, aerospace components, printed circuit boards, amusement park rides); lanthanide processing plants; ammonia plants; urea plants; food processing plants; almond hulling facilities; composting facilities; grain processing facilities; grain elevators; ethanol production facilities; soy bean oil extraction plant; biodiesel plants; paint formulation plants; wastewater treatment plants; marine terminals and ports; gas processing plants; steel mills; iron nugget production facilities; railcar refinishing facility; battery manufacturing plants; pesticide manufacturing and repackaging facilities; pulp and paper mills; selective catalytic reduction (SCR) systems; halogen acid furnaces; contaminated property redevelopment projects (e.g., Mission Bay, Southern Pacific Railyards, Moscone Center expansion, San Diego Padres Ballpark); residential developments; commercial office parks, campuses, and shopping centers; server farms; transportation plans; and a wide range of mines including sand and gravel, hard rock, limestone, nacholite, coal, molybdenum, gold, zinc, and oil shale.
Attachment to Comment Letter 5.06
J. PHYLLIS FOX, PH.D., PAGE 4
EXPERT WITNESS/LITIGATION SUPPORT