Crude Oil Transport at the Port of AlbanyRoger Downs, Conservation Director

Sierra Club Atlantic Chapter

Buckeye Terminal

Global Terminal

Brief History of Crude by Rail at POA

• In 2009, Global Partners proposed to modify the Kenwood Rail yard to accommodate ethanol-by-rail delivery to the shipping terminal.

• In July, 2011, Global Partners applied for a modified Title V air permit to store Bakken crude oil at the terminal. The permit was approved in August of 2011.

• In November 2011, a following application was made to modify the Title V permit, again to accommodate crude oil loading capabilities at the facility’s marine loading dock.

• The DEC issued a Negative Declaration of Environmental Significance in July of 2012, and issued a permit, allowing Global to transload 1.8 billion gallons of Bakken Crude annually.

• At the same time another company “Buckeye” applied for similar modifications and was permitted to trans load 1 billion gallons of crude annually from rail to ship (2.8 B in total)

• Jun 1, 2013 global filed an application to modify it’s title V permit for the Albany terminal to facilitate the offloading of Canadian tarsands – a proposal which included the addition of 7 natural gas boilers to heat the crude for trans loading purposes. In November 2013, DEC Issued a Negative Declaration signaling that the project would move forward.

Where the State has Jurisdiction Over Crude Oil Transport at the Port of Albany

• Title V Air Permits• Petroleum Bulk Storage

permits• State Pollution Discharge

Elimination System permits• DOT Rail Inspections• Dredging Permits• Summary Abatement

Powers

Albany Fights Back

Impacts to the Community• air quality degradation and

petroleum odors• increased asthma and other

health problems• concerns over safety

especially with playgrounds, schools, parks, medical facilities and residences so close to the tracks

• long, unsafe disruptions at road crossings

• excessive noise

Major Developments• January 2014 – Pressure from

Albany City government forces Global to move proposed heating facility outside of City jurisdiction.

• March 2014 -Albany County imposes a moratorium on the heating of crude oil and other crude by rail transport expansions.

• June 2014 – Ezra Prentice Tenants association and environmental groups Sue DEC and Global for SEQRA violations with the propose Tar Sands Boiler facility

Groups File Article 78 June 7, 2014The Complaint:

• issuance of Negative Declaration was arbitrary failing to identify relevant areas of concern

• DEC violated SEQRA by failing to require an EIS• the Negative Declaration was based upon a flawed and

incomplete air quality analysis• the Negative Declaration failed to consider GHG emissions• the Negative Declaration failed to identify or evaluate

environmental and safety risks associated with rail and barge transport of crude oil

• The EAF contained inaccurate and incorrect information that resulted in a fatally flawed negative declaration

DEC Rescinds Negative DeclarationSends Notice of Incomplete Application to Global

May 21, 2015

The Reasoning:• Significant project changes• new information• concerns for tar sands spills• failure to model for H2S air

emissions• non-compliance with New

Source Review requirements• Environmental Justice

concerns• 19,000 public comments

Where do we go from here?