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CC 2015-04-14 Info. Recv'd at Mtg.
Phillips 66 Santa Maria Refinery Rail Project Update The Phillips 66 Santa Maria Refinery has operated on the Nipomo Mesa for nearly 60 years and employs approximately 200 people. The refinery has filed an application with San Luis Obispo County for approval to extend our existing rail track on refinery property and install equipment needed for rail delivery of North American crude oil. Changes in the California oil industry are changing the way the Phillips 66 Santa Maria Refinery does business. The refinery currently processes crude oil that arrives via underground pipe from locations throughout California. With the decline in California crude oil production, the refinery is looking to alternate sources outside the state for reliable supplies of competitively priced crude oil. However, there are no pipelines that connect the refinery to these alternate sources of crude oil and the refinery does not have a marine offloading facility. The solution is to utilize and enhance our existing rail facility to enable delivery of crude oil. The refinery already uses trains to transport products, and refinery personnel have decades of experience safely handling railcars. The proposed change will help the refinery, and the approximately 200 permanent jobs it provides, remain viable under increasingly challenging business conditions. Everything at Phillips 66 is done with safety at the forefront. We take special pride in the safe operations of the Santa Maria Refinery, which earned our facility the highest safety honors awarded by the American Fuel & Petrochemical Manufacturers (AFPM). The proposed rail project is designed with safety as a top priority and with safety measures embedded in the project. Phillips 66 has one of the most modern crude rail fleets in service in the industry, and every railcar used to transport crude in our fleet exceeds current regulatory safety standards. All railcars that will deliver crude to the refinery have been built after October 2011. Phillips 66 will continue to only utilize cars that meet or exceed applicable regulations. The Union Pacific railroad will be responsible for delivering the crude oil railcars to the refinery. Union Pacific safely transports a variety of products, including crude oil, through SLO County every day. The project will extend an existing railroad track by approximately four thousand feet within the refinery property, occupying fewer than 30 acres of the refinery’s 1,780-acre site. The proposed project was specifically designed to avoid sensitive environmental resources. There will be minimal increased water usage associated with this project to provide for an employee restroom at the rail facility. • The project will create 30 to 50 temporary positions during the nine-month construction period. Depending on the final approved project, several new full-time operating positions could also be added. • The project will extend the refinery’s existing track and include construction of an “unloading rack” used to move the oil into the refinery’s storage tanks. • Up to five 80-car trains will deliver the oil to the refinery weekly. • Crude oil will come from a variety of sources in North America that meet the refinery’s specifications. The Santa Maria Refinery is designed to run heavy crude oils that are typical of the type of crude oil produced in California. • Trains will enter the refinery via a spur from the existing rail track and be secured for 24-hour turnaround unloading. • Pending approval of state and local permits, construction is expected to begin in mid-2015, with the rail spur operational in 2016. Winter 2015 ABOUT WHAT WHY SAFETY AND ENVIRONMENTAL CONSIDERATIONS PROJECT SPECIFICS • The original Draft Environmental Impact Report (DEIR) was released in November 2013. The public provided comments on the DEIR during the 60-day public comment period that ended in January 2014. • The recirculated Draft Environmental Impact Report (DEIR) was released on October 10, 2014 by San Luis Obispo County. The 45-day comment period ended November 24, 2014. The DEIR is available at the SLO County website, SLOcounty.ca.gov/planning. • A Final EIR (FEIR) is anticipated to be released in first quarter 2015. The project will be scheduled for a public hearing before the SLO County Planning Commission, currently anticipated for spring 2015. • In addition to County oversight, the proposal is being reviewed by government agencies including the San Luis Obispo County Air Pollution Control District, California Department of Fish and Wildlife and CAL FIRE. 1. Will the project generate noise? The Draft EIR includes the findings from noise studies and modeling tests conducted by both the refinery and an independent third party retained by the County. The findings were consistent: noise issues can be resolved by requiring specific noise reducing practices. Operations are subject to modification or shutdown if noise exceeds permit requirements. 2. What about lights? The Draft EIR also includes reviews of lighting impacts and recommends downward focused lights and other measures to eliminate neighborhood impacts. The project will use “dark sky” compliant lighting. 3. What effect will the trains have on air quality? The refinery operates with oversight from the San Luis Obispo County Air Pollution Control District to ensure that air quality at the refinery will not be degraded. 4. How do I get involved? Monitor the SLO County website SLOcounty.ca.gov/planning for meeting notices and agendas. Phillips 66 also maintains a mailing list and email database of residents who have asked to receive our project updates. Please call our message line at (805) 788-4441 and leave your name, address, phone number and email address, and we will add you to our group. PROJECT APPROVAL PROCESS ADDITIONAL INFORMATION ADDITIONAL QUESTIONS San Luis Obispo County: SLOcounty.ca.go v/plann ing Santa Maria Refinery Rail Project: SantaMariaRefinery.com Under “Additional Links” on right column, click on: “Rail Project Information” Message Line & Mailing List: (805) 788-4441 For questions, additional information or to join our mailing list, call the Phillips 66 Santa Maria Rail Project message line. Calls are returned within one business day. www.Phillips66.com © 2015 Phillips 66 Company. All rights reserved.CSB 15-0195 SANTA MARIA REFINERY ECONOMIC IMPACT Built in 1955 • Plays an important part in the California energy infrastructure and the local economy. • Employs 120 full-time workers and 80 regular, specialized contractors. •Processes 44,000 barrels of crude oil per day. • Transports semi-refined products used to make gasoline, aviation fuel and diesel to the Rodeo Refinery in the San Francisco Bay Area via pipeline. Santa Maria Refinery Statistics Year-End 2014 Property tax paid $1,673,000 Local sales tax $99,000 Sales tax paid to state of California $429,000 Miscellaneous $276,000 Total taxes paid $2,477,000 Site employee payroll* $17,053,000 Total contractor payroll $26,016,000 Total site payroll $43,069,000 Total purchasing from vendors $31,624,000 * Includes payroll benefits. † Job estimates are based on direct and indirect benefits, per the ECONOMIC AND POLICY ANALYSIS GROUP, Los Angeles County Economic Development Corporation’s report, 2012 OIL AND GAS IN CALIFORNIA: THE INDUSTRY AND ITS ECONOMIC CONTRIBUTION. Santa Maria Refinery locally impacts more than 1,200 jobs.† The Mesa Refinery Watch Group DERAIL THE SPUR EXECUTIVE SUMMARY: REASONS TO REJECT THE PHILLIPS 66, SELF-PROCLAIMED “CRUDE-BY-RAIL STRATEGY” Submitted By The Mesa Refinery Watch Group Updated: 4/8/15 CRUDE-BY-RAIL: • Only Phillips 66 Wins • Citizens Become Collateral Damage www.mesarefinerywatch.com REASONS TO REJECT THE PHILLIPS 66 SELF-PROCLAIMED, “CRUDE-BY-RAIL STRATEGY” 1. OVERVIEW: What Phillips 66 Intends For SLO County & California 2. Phillips’ Stated Motivation Is A Misleading, Red Herring; It’s About Increased Profits, Not Jobs 3. Phillips Is Minimizing The Enormous Scope Of What They Intend To Bring To SLO County 4. Phillips Is Minimizing The Historical Odds Of Accidents; Crude Oil Derailments Are Accelerating 5. The Project Is Well Beyond A “NIMBY” Issue - In Reality It Creates Countywide & Statewide Impacts 6. Rail Disasters Could Occur In Virtually Any Of SLO County’s Populated Areas 7. Phillips’ Rail Cars - They’re Not As Safe As Claimed & They’re Banned In The REIR 8. Sending Thousands Of Crude Oil Trains Down The Cuesta Grade Is Inviting A Monumental Disaster 9. A Major Rail Accident Would Require A Widespread County Evacuation 10. Emergency Response: Underfunded/Undertrained/Under-equipped/Unprepared/Preempted 11. Phillips’ Project Is Inconsistent With SLO County’s General Plan To Protect Citizens 12. Federal Preemption Blocks SLO & Other Counties From Protecting Its Citizens’ Health & Safety 13. Phillips May Be Engaged In “Piecemealing”, Which Is Illegal Under CEQA 14. Phillips Will Introduce Obnoxious Noise Levels Throughout California & SLO County 15. Visual Impacts Throughout SLO County Cannot Be Mitigated 16. The Project Would Put The Reputation & Financial Well Being Of SLO County In Grave Danger 17. Approving The Phillips Plan Will Negatively Impact SLO County’s Business Development 18. The Impacts Could Devastate The Reputation Of SLO County’s Agricultural Businesses 19. Phillips’ Plan Will Put SLO County’s Tourism Business At Severe Risk 20. Crude-By-Rail Puts Jobs Throughout SLO County At Risk 21. Crude-By-Rail Puts 2,000 Jobs On The Nipomo Mesa At Risk 22. Who Pays When Phillips Crude-By-Rail Plan Goes Wrong 23. A Rail Terminal Intensifies The Use Of The Land, From Passive To Active; This is Incompatible With Adjacent Residential Zoning (continued) 2 REASONS TO REJECT THE PHILLIPS 66 SELF-PROCLAIMED, “CRUDE-BY-RAIL STRATEGY” 24. The Project Degrades The Air Quality Via Five Class I, Significant/Unavoidable Impacts To Health 25. The Use Of Emission Credits By Phillips Is A Clear-Cut Health Danger To SLO County Citizens 26. The Refining Of Tar Sands Will Lead To Major Health Problems 27. Phillips Will Introduce Ongoing, Obnoxious Noise Levels Throughout The County 28. Visual Impacts Of The Rail Terminal Cannot Be Mitigated 29. Lighting Impacts At The Rail Terminal Cannot Be Mitigated 30. Phillips Is Not The Only “Good Neighbor”; And, Being A “Good Neighbor” Doesn’t Count In This Situation: 31. The Proposal Benefits Only Phillips; The Citizens Of SLO County Become “Collateral Damage” 3 1. OVERVIEW: What Phillips 66 Intends For SLO County & California • Phillips’ Motivation: Phillips claims they are running out of California crude to process, and therefore jobs at their Nipomo refinery are at risk. This is false. Phillips’ corporate executives have stated in writing that they want their entire company to process lower-cost crude oil in order to generate higher profits. That crude would come from out of the country - from Canada. They call it “taking a classic company in a new direction” ... i.e., it’s their self-proclaimed “crude-by-rail strategy.” The issue is about higher profits by switching to rail delivery, not about protecting jobs. • Phillips’ Proposal For SLO County: For 60 years their refinery has received crude oil by pipeline ... not one drop by rail. Under their proposal, Phillips for the first time would bring in 20,800 rail tankers per year, fully loaded with Canadian “tar sands” crude. Each year, 260 trains, each 1.5 miles long, would travel into the county. Then the same 260 trains would depart (520 trains in total). Along with the loaded tankers, would come, for the first time, the construction of a rail terminal -- including a “railcar unloading facility”, a pumping station, and a new pipeline to move the crude within the refinery. This would be accompanied by trucks and other vehicles to service the facility. • The Negative Impacts Of Conducting Business In An Entirely New Way: This represents an entirely new business model for Phillips - it’s a dramatic transformation in the way they operate in SLO County and all of California. This is not a benign “rail spur.” The issue is the new intensity of their operations and what they intend to bring in on those rails. The impacts ... - Shipments throughout California of highly flammable, diluted “tar sands” (“one of the world’s dirtiest and most environmentally destructive sources of fuel” - U.S. Sen. Barbara Boxer). - Air pollution from diesel exhaust, the refining of tar sands and the resulting petroleum coke dust. - Noise pollution from blaring whistles and track noise throughout SLO County & California. - Light pollution from 30-foot tall light towers surrounding the rail yard. - Statewide visual pollution of 1.5 mile-long trains laden with graffiti, each hauling 80 oil tankers. - The potential for derailments and oil spills anywhere in SLO County & California. - The potential for fires, explosions and toxic smoke anywhere in SLO County & California. - The potential for severe property damage anywhere in SLO County & California. - The potential for injuries and deaths anywhere in SLO County & California. - The potential to damage the reputation of SLO County as a place to live, work and visit. - And the potential to damage the economic well-being of our homeowners and businesses. Of special note is that SLO County and California officials will be preempted from protecting their citizens about anything related to the mainline railroad and the contents of the tank cars -- Federal law will not allow our local governments to safeguard us. Local governments would be impotent. • What SLO County Officials Must Do: Therefore, given all of the above impacts and the issue of “preemption” -- SLO County’s Planning Commissioners and Supervisors must reject Phillips’ “rail spur” plan. If the terminal is not built, the trains will not be targeting California and SLO County. 4 2. Phillips’ Stated Motivation Is A Misleading, Red Herring; It’s About Increased Profits, Not Jobs: For almost 60 years the Phillips refinery has received crude oil via a benign pipeline - not one drop arrives by rail. Now Phillips claims their sources for crude-by-pipeline are “diminishing” and their 140 jobs are at stake. So in the fall of 2013 they filed to replace pipeline delivery with crude-by-rail. First of all, this is illogical because in 2012, just prior to their 2013 crude-by-rail request, Phillips applied for and was granted a 10% increase in production at the SMR. They went through the effort of asking to receive even more crude by pipeline. Yet within months, they then claimed they were running out of crude for their pipeline. Certainly, within just a few years, all of their sources could not have dried up. And, while oil production in California has declined, it has risen by 36% on the Central Coast from 1995 to 2012. Phillips’ stated desire for bringing crude-by-rail to SLO County is a misleading “red herring.” The truth is -- in 2012 Phillips was spun off from Conoco-Phillips as new company. The new management, in its first annual report stated their new corporate strategy. It was to access lower-cost crude, and to deliver it via crude-by-rail. Their report stated - “We’re Taking A Classic Company In A New Direction.” Their motivation -- far higher profits. So the Santa Maria Refinery must now fall in line with this new corporate dictate from Houston. This is all about a new business model for their firm and refinery, resulting in higher profits via rail. It’s not about the refinery going out of business and lost jobs. In fact, a Phillips corporate spokesman, Dennis Nuss, was interviewed last December by the New Times. Quote - “When asked if Phillips had considered shutting the refinery if the rail spur wasn’t approved, Nuss said such discussions hadn’t occurred.” 3. Phillips Is Minimizing The Enormous Scope Of What They Intend To Bring To SLO County: Phillips states that all they’re asking for is “five trains per week, 80 cars each.” But each year, throughout SLO County and elsewhere, the very fabric of our lives would be changed, forever ... • 260 trains arriving + 260 trains departing = 520 additional trains traveling through SLO County. • Each train would be 1.5 miles long x 520 trains = 780 miles of oil trains blighting SLO County and California. That quantity of trains could stretch continuously from Nipomo to Union Square in San Francisco, then back to Nipomo, then back again to Union Square ... an encircling necklace of oil trains around the neck of the Central Coast and Northern/Southern California. • Each year the trains would haul 20,800 fully-loaded crude-oil tankers + 20,800 “empties” departing ... 41,600 tankers in total. • And each arriving tanker would hold 27,000 gallons of crude = 562,000,000 gallons ... more than one- half billion gallons that can severely damage cities and towns through spills, pollution, fires and toxic smoke. 5 4. Phillips Is Minimizing The Historical Odds Of Rail Accidents; Crude Oil Derailments Are Accelerating: Phillips quotes old odds of train accidents involving hazardous materials ... first as 99% delivered safely and then as an accident being likely once every 226 years. But all of that was prior to the huge boom in crude-by-rail which has increased by 40-fold in the last 5 years! In fact - oil trains in the U.S. spilled more crude oil more often in 2014 than in any year since data has been collected. In just approximately the last 24 months there have been 36 major derailments and crashes of these types of trains - we can provide the list. The odds of derailments, oil spills, fires and explosions in SLO County are real and significant ... the odds are far higher than ever! Phillips is trying to excuse away bringing in 20,800 fully loaded oil tankers each year by saying there are already oil trains passing through our County. But that’s like telling you there are already a few rattlesnakes in your living room. So you won’t mind if we put 20,800 more in your bedroom! Yes we do mind! We do mind that Phillips wants to vastly expand the danger we’re exposed to, and vastly increase the odds of train disasters. And even if Phillips’ “odds” are correct, there will still be dozens of major disasters each year ... each of which will involve hazmat spills, fires, injuries, toxic smoke, environmental damage and severe financial costs to local residents and governments. Why would we consciously invite those odds to become part of SLO County? 6 5. The Project Is Well Beyond A “NIMBY” Issue - In Reality It Creates Countywide & Statewide Impacts: Phillips’ supporters paint opponents to the Rail Spur as NIMBY neanderthals - simply looking to avoid discomfort on the Nipomo Mesa. The reality is that Phillips is trying to make all of SLO County a HUB for crude-by-rail ... which would affect communities throughout northern and southern California as well. The pain of Phillips rail terminal would be felt countywide -- air pollution, noise pollution, the visual pollution of 520, 1.5 mile-long graffiti-laden crude oil trains, the potential for derailments and loss of life and property, oil spills, fires, explosions, and smoke pollution. Not to mention the degradation of the County’s reputation for agriculture, tourism and a pristine place to live. And not to mention the impact of such disasters on businesses and the economic well-being throughout California. Phillips intends to change the way all of our citizens live their lives. We would shift from a sense of security to a sense of fear of potential crude oil train disasters. Here are the municipalities that have already sent letters of protest to the SLO County Planning Commission (letters upon request) ... • Alameda County • Alameda County Health Services Agency • Berkeley • Berkeley Rent Stabilization Board • Camarillo • Davis • Moorpark • Pleasant Valley School District • Oakland • Richmond • Santa Barbara County - 3rd District • Simi Valley • San Jose • City of San Leandro • San Leandro Unified School District • San Luis Obispo City • Santa Cruz County • Ventura City • Ventura County • Ventura Unified School District 7 6. Rail Disasters Could Occur In Virtually Any Of SLO County’s Populated Areas: Phillips claims that any accidents would be limited to their property on the Mesa. That’s absurd and highly misleading to the commissioners. Phillips’ “crude-by-rail” strategy means accidents could occur adjacent to any of the following locations on the mainline, as trains move through SLO County ... • In downtown San Miguel. • Next to Paso Robles’ vineyards and in the city itself, next to the Fairgrounds, local hotels & City Park. • In downtown Templeton and Templeton Park. • In downtown Atascadero. • In downtown Santa Margarita, next door to its elementary school. • On the long, winding Cuesta Grade, which Union Pacific admits is one of their “5 highest hazards.” • Through the center of the Cal Poly campus, where 18,000 students reside and study each year. • In SLO city, next to City Hall, the Gov’t. Center building, French Hospital and SLO’s airport. • In the backyard of the Los Ranchos Elementary School. • Along most of Price Canyon Road. • Next to Pismo’s Premium Outlets, Coast Shopping Plaza, Price Street restaurants, its North Beach Campground, and Monarch Butterfly Grove. • At the Grover Beach’s intersection at Grand Ave. where a new conference center will be built. • In Oceano, at the beach’s Pier Avenue entrance and next to the Great Melodrama theater. • Next to the agricultural fields and Lopez High School in Arroyo Grande. • And next to Nipomo communities like Trilogy, Black Lake and others being built and planned. Disasters from Phillips’ “crude-by-rail strategy” could occur anywhere in SLO County. 7. Phillips’ Rail Cars - They’re Not As Safe As Claimed & They’re Banned In The REIR: Phillips recently purchased 3,700 tankers to turn their “crude-by-rail strategy” into reality. These are all model DOT-111 cars. Yet, in July, 2014 the Dept. of Transportation decided DOT-111 cars are extremely failure- prone and outmoded. And, the REIR requires Phillips to use an entirely different model of tanker - the DOT-117. In fact, the exact specs for DOT-117s are still being debated by government and the industry. Special Note: In February, 2015, 15 tankers derailed in West Virginia with many exploding, leaking and sending toxic smoke into the sky. A home burned down and two towns evacuated. All the oil tank cars were CPC 1232 models. These are the newer supposedly “tougher version of the DOT-111 cars”, not the older versions widely criticized for being prone to puncture (which regulators are seeking to phase out). Therefore, Phillips is sitting with new, yet outdated tankers they may try to patch up to meet standards that have yet to be determined. Phillips’ rush to higher profits via rail has left them with obsolete equipment - tankers that are dangerous and totally unacceptable to the citizens of California. 8 8. Sending Thousands Of Crude Oil Trains Down The Cuesta Grade Is Inviting A Monumental Disaster: Over the coming years, thousands of Phillips’ fully loaded crude oil trains would come from the north and pass over and then down the Cuesta Grade. That mountainous area is an extremely steep pass with a 7% slope. Regardless of the precautions taken by a train engineer -- with each crude oil train weighing approximately 11,600 tons, the Grade is perfectly made for “runaway” trains. In fact, the REIR states “In SLO County, the Cuesta Grade represents an area where a runaway train could occur. A runaway train coming down the Cuesta Grade could result in spills of crude oil and associated fires.” The Union Pacific RR identifies the Cuesta Grade as one of the five “highest hazard rail passes” in California. This past November, there was a major train derailment and disaster at one of the other five highest hazard locations -- The Feather River Canyon in northeastern California. Eleven freight cars plunged off the UPRR tracks into a canyon. Similarly, the Cuesta Grade is a perfect setting for this type of calamity. And of additional danger - at the bottom of the Cuesta Grade is the 120-year-old, spindly Stenner Creek trestle ... an archaic structure precariously positioned over the SLO City water treatment plant. One other fact - in 1959 two trains collided in SLO County. The locomotive of one train slammed into the cars of the other, derailing both trains, ripping out 700 feet of track, and causing five injuries. One train caught on fire. Where did this occur? On the Cuesta Grade. Yes, it occurred long ago. And yes, there’s no reason why it couldn’t occur again. 9. A Major Rail Accident Would Require A Widespread County Evacuation: One thing that’s been learned from the recent major crude oil train accidents, is that the impact is not limited to the accident site alone. For example, in the Casselton, ND accident, 18 tank cars exploded, toxic fumes were released, and 400,000 gallons of crude oil spilled. But what happened immediately after the accident? All 2,300 Casselton residents had to evacuate their town. In fact, there was a 5-mile evacuation zone. Heaven forbid, but if such an accident occurred in SLO County, there would be one major difference between us and Casselton. Instead of having 2,300 residents, SLO County has 274,000 residents. And it’s likely that far more people would be included in a 5-mile evacuation zone. And of course, there’s no way to prevent such accidents and no way to mitigate the aftermath. 9 10. Emergency Response Services - Underfunded, Undertrained, Under-equipped, Unprepared, Preempted: The Rail Terminal Project brings a full spectrum of never-before-seen dangers to all of SLO County ... including the very real potential for toxic fires, smoke, explosions and oil spills. In fact, the REIR states that “a single significant event at the rail unloading facility could overwhelm the first responder resources.” But the nearest certified hazmat response team is in Santa Barbara ... at least 1 to 1.5 hours away from our County’s border -- far too distant to provide effective assistance. The REIR states in detail that local emergency services are underfunded, undertrained, under- equipped and unprepared to deal with these dangers. The report contains a long list of potential mitigations for this ... but reality tells us there is no practical way to make them happen. There’s also the issue of federal preemption, which makes the implementation of many mitigation measures impossible. And there’s the issue of who would pay for the huge spectrum of mitigation measures necessary to handle the catastrophes. Last October, Supervisor Caren Ray remarked on the Phillips proposal - “We have to deal with emergency preparation including funding for decision making that we don’t make here in the County. We have to make sure that our local tax payers don’t get stuck with the bill for the rail.” For example - does SLO County have the funds for the vast increase in emergency services that would be required? Can we afford to pay for the ongoing training of a certified hazmat team? Do we have a plan or funding to share the cost of equipment with other governments? Can we fund the cleanup of major oil spills? Do we have the funding to create an emergency notification system for South County, where the Rail Terminal would reside? We think not. Helping Phillips increase their profits should not be paid for out of the pockets of SLO County’s citizens. 11. Phillips’ Project Is Inconsistent With SLO County’s General Plan To Protect Citizens’ Health: The Phillips project needs to be consistent with the County’s vision of our way of life. But in the REIR, it diverges from the General Plan’s demand that each project “reduce the potential for exposure to humans and the environment by hazardous substances.” For example there’s ... a. The Unknown Toxic Nature Of What Phillips Wants To Ship Here: The description of the crude Phillips wants to bring here lacks the detail needed to show that citizens will be protected from hazardous substances. The EIR fails to show that the new crude will be no more of a hazard than the crude currently being processed. That new crude is likely to be tar sands, with toxins such as heavy metals, most of which will be in higher concentrations than conventional crude. That’s a definite increase in health hazards. b. Their Plan Doesn’t Divulge That Diluting Tar Sands Makes It Far More Flammable: Phillips’ proposal doesn’t describe how the heavy crude they’ll bring here needs to be diluted for shipment. For example, tar sands is diluted with volatile lighter products such as natural gas liquids or naphtha. The composition of what arrives could be over 30% of these lighter products. It’s a combination that’s far more likely to burn and explode during derailments. This increases hazardous substances in our County. Again - that’s a violation of the General Plan. Our General Plan calls for citizens to be protected from hazardous substances. But the Phillips plan introduces and increases those substances in SLO County. 10 12. Federal Preemption Blocks SLO & Other Counties From Protecting Their Citizens’ Health & Safety: Phillips' REIR uses the term "mitigate" 176 TIMES! That speaks to the quantity and scope of the problems that would be caused by the proposed rail terminal project and Phillips implementing their crude-by-rail strategy. That includes potential train derailments, oil spills, explosions, fires, toxic smoke injuries, deaths, property damage, crop damage, and air, noise, visual and light pollution. Phillips' REIR also uses the term "preemption" 104 TIMES! That refers to the fact that SLO and other counties are neutered from protecting their citizens and from controlling their own destiny. It means that Federal law has control over the trains on the mainline and on what's carried on those trains. Regardless of the huge breadth and depth of the dangers the rail terminal project presents, our government would have to roll over and be quiet. The only way SLO County commissioners and supervisors can protect our citizens is via their ability to decide on what’s built on the refinery site and how that land is used. They can say “no” to the Rail Terminal project ... and there are many compelling, legitimate reasons for doing so. If they say “no” to the terminal, the trains have nowhere to go. If they don’t allow the Rail Terminal to be built, the trains won’t be targeting SLO County as a HUB for crude-by-rail. 13. Phillips May Be Engaged In “Piecemealing”, Which Is Illegal Under CEQA: Phillips appears to be “piecemealing” its Santa Maria Refinery project with another project the firm desires for their Rodeo, CA facility. The two facilities are connected via a 200-mile pipeline (Phillips actually considers the two facilities to be a single refinery). Semi-refined crude from Santa Maria is piped to Rodeo for further processing. Phillips has filed two different EIRs ... one for each facility. But neither EIR links the plants together, nor discusses the joint impact of the two projects ... either locally or throughout the state. Under CEQA, this could be identified as piecemealing, which is distinctly forbidden. Phillips and Contra Costa County have now been sued over this matter by the Communities for a Better Environment. 11 14. Phillips Will Introduce Obnoxious Noise Levels Throughout California & SLO County: Here’s what citizens, tourists and businesses will be hearing from Phillips’ trains all day and night long ... • Noise will come from blaring train whistles, as 260 fully-loaded, 1.5 mile-long trains travel through California and enter SLO County each year ... blasts heard for miles. • Noise will come from blaring train whistles, as another 260 empty, 1.5 mile-long trains leave each year ... blasts heard for miles. • Track noise will be generated by the 520 trains coming and going. That’s the loud clatter of metal wheels racing over rails ... an unending sound from trains of extreme length. • The empty trains will make even more noise than the loaded ones, because empty cars tend to shake, rattle and roll with even greater intensity. • Engine and vibration noise will be heard as 200-ton locomotives idle at crossings. In addition, on the Nipomo Mesa, here’s what residents would hear from the Terminal ... • They too will hear blaring whistles, track noise and engine and vibration noises ... but they’ll hear far more of that as three locomotives idle for a combined 25 hours a day. • Plus - sharp clanging will be generated as locomotives uncouple and then connect with tankers. • Ongoing mechanical, operational noise from the new offloading facility, pumping systems, HVAC equipment, and air compressors. Is that what we desire for California’s and SLO County’s environment and our lives? Roaring noises all day and night long, all week long, all year long, forever? 12 15. Visual Impacts Throughout SLO County Cannot Be Mitigated: We must consider the visual impacts Phillips’ crude-by-rail strategy will have on people throughout California and SLO County. This includes our citizens as well as the tourists and businesspeople who visit here. Have you ever watched a 1.5 mile crude oil train go by? You’d try to guess how long it was and how long you’d be there. And most of the time you couldn’t see the beginning ... and you’d wonder when it would end. Sometimes the trains go slower, due to dangerous rail conditions or crossings ... with each train taking far longer to go by. In fact, they often have to idle at the grade crossings based on traffic issues ... spewing even more pollution, clogging up roadways and causing traffic jams. In addition, graffiti artists will have a field day with the black tank cars, just as they’ve done in northern California. We can look forward to enjoying their artwork as trains idle at crossings. This will happen 520 times every single year throughout California, as Phillips’ trains arrive and depart SLO County. It’s estimated that if those trains were linked together, they’d be 780 miles long. Imagine what that looks like ... 780 miles of meancing, jet-black cylinders hauling hazardous materials. That visual would become the new icon for California. For SLO County, forget about the visual of Morro Rock. Forget about Bubblegum Alley. Forget about bountiful vineyards. Forget about the Pismo Beach Pier. Our state’s new icon ... the one seen by virtually everyone all year long will be of ugly crude oil tankers. And lord forbid ... if a serious accident occurred, the videos of derailments, oil spills and fires would also become our icons ... just as they have for Casselton, North Dakota and elsewhere. Crude oil trains would become our new normal. And then, millions of citizens and tourists will shake their heads and say, “How could they have let this happen?” 13 16. The Project Would Put The Reputation & Financial Well Being Of SLO County In Grave Danger: With Phillips’ proposed crude-by-rail strategy, the entire reputation of SLO County would be at stake -- as a community concerned for the well being of its citizens, as a destination for tourists, as being a model for protecting the environment, as a location for parents to send children to college, as a site for successful new small businesses, and as a shining example of what a community can stand for in a world that often puts mammoth corporations first. If a serious rail tanker accident or oil spill occurred in one or more of our towns, imagine the depth of the impact on SLO county overall ... • Housing -- would you want to live in a county that sets itself up for such disasters? • Leisure and hospitality -- would you want to vacation in such a county? • Launching new businesses -- would you want to start a business in a “damaged” county? • Employment -- would you want to work in such a county? • Education -- would you want to send your children to school here? By the way, the tracks carrying oil trains run right through the Cal Poly campus, where 18,000 students study. And, as reported recently, CalPoly has a $1.4 billion impact on the economic well-being of SLO County. Let’s take a another example - agriculture. If there were a rail accident, smoke and residue from crude oil fires settling on strawberry fields or vineyards would make them unmarketable for years. The REIR says so. How would that affect the prestige of our wines and fruits? Another example -- our local leisure and hospitality industry. Oil spills or fires could potentially damage tourism to the extent that many small businesses could not survive. We suggest our county’s economy, continued growth, high quality of life, desirability, and natural beauty, will be seriously jeopardized by making the County a hub for crude-by-rail. At the very least, our economic health will be in peril, let alone our lives. The solution - rejection of the Phillips Rail Terminal project. 14 17. Approving The Phillips Plan Will Negatively Impact SLO County’s Business Development: It’s been said that a key factor in the success of a business is “location, location, location.” So if you were a professional thinking of building an office complex, hotel, retail center, residential complex, restaurant, etc., what would be your reaction to the following location ... • Mile-and-a-half long crude oil trains moving endlessly near your site ... each year, 520 nearby trains, each with three locomotives, tossing diesel pollution into the air ... whistles from trains constantly blasting their warnings near your location ... the potential for nearby derailments, complete with property damage, injuries, fire and smoke ... and the potential for adjacent spills of tar sands, the most difficult of all crude oils to clean up. The answer is obvious. You’d think seriously of looking elsewhere. Well, how do you think the following developers will feel about their chances of success if crude-by-rail is approved (all of which are either a few hundred feet or less than a mile from the mainline tracks) ... • The Grover Beach Lodge & Conference Center • The La Plaza Center In Atascadero • The Paso Robles Pine Street Promenade • The Cove Residential Development In Paso Robles • The Inn At The Pier In Pismo Beach • The Chinatown Project In SLO • The PG&E Kendall Road Campus • The Santa Margarita Ranch Development If those developers had known of the crude-by-rail project, it would have weighed heavily on their decisions to move forward. And surely, allowing Phillips’ project to go forward will negatively threaten future business development throughout SLO County. 18. The Impacts Could Devastate The Reputation Of SLO County’s Agricultural Businesses: Agriculture is a primary driver of our local economy. It provides over 20,000 jobs. And during 2013, the value of our ag products was a record high - $960 million. But the Phillips project contains impacts that can devastate our ag business and the esteem it has created for itself. The EIR warns of a Class 1, unavoidable impact caused by crude oil trains derailing along the mainline. It says ... • “The addition of up to five round-trips per week on the mainline would increase the potential for spills or fire- related impacts on adjacent agricultural soils.” • “(It) could result in effects that impair adjacent agricultural uses, including the generation of contaminated air emissions, soil and water contamination, and increased risk of fire, which have the potential to adversely affect agricultural areas.” • “A fire could spread substantially beyond the areas directly adjacent to tracks. The mainline passes through numerous prime, statewide or local important farm lands. All of these could be impacted. In the event of an oil spill, there could be a complete loss of the agricultural resources.” Phillips’ plan would add 520, 1.5 mile-long trains to our County. That's why the EIR classifies the above threats as “Class 1” unavoidable impacts. There would be no way to prevent derailments. Such spoilage of agricultural resources will also result in a destruction of our County’s reputation for growing wine, strawberries, and other crops vital to tourism and our economy. Is this what we wish for our farmers and everyone else who depend on our agricultural enterprises, simply to satisfy Phillips desire for greater profits? 15 19. Phillips’ Plan Will Put SLO County’s Tourism Business At Severe Risk: Tourism is part of our County’s economic lifeblood. In 2011 it was our #1 industry, totaling $1.2 billion. Back then it helped merchants earn $405 million ... resulting in $79 million in direct taxes. It also employs 15,000 people in lodging, food service, entertainment, recreation and agri-tourism. It’s an economic engine that needs to be protected, not put at risk. But Phillips’ plan to make us a highly traveled route for crude oil trains, puts it all at risk. Individual businesses and the entire industry’s fame could be severely damaged. Here are the tourism-related operations next door to or less than a mile from where the trains would travel. Not only would they bring visual pollution, but they could derail, cause oil spills, property damage or injuries, catch fire, cause toxic smoke, and of course evacuations. • The Midstate Fairgrounds in Paso Robles. • The Pismo Sports Complex. • Hotels, restaurants and tasting rooms in Paso. • The Pismo Sports Complex. • Firestone Walker Brewery. • The 5 Cities Premium Outlets. • Chalk Mountain Golf Course in Atascadero. • Pismo Beach North & Oceano campgrounds. • Athletic fields at Cal Poly. • The Monarch Butterfly Grove. • The Performing Arts Center in SLO. • Holiday RV Park in Pismo. • Mission Square and restaurants in SLO. • Le Sage Riviera golf course in Grover Beach. • Sinsheimer Baseball Stadium. • The entrance to Grover Beach. • SLO’s regional airport. • The ATV businesses next to Grover Beach. • SLO Country Club & Golf Course. • Pismo Sands & Coastal Dunes RV Parks in Oceano. • Wineries along Rt. 227 in SLO. • The entrance to Oceano Beach. • Restaurants in downtown Pismo Beach. • The Great Melodrama Theater. • Pismo Pier. • The Monarch Dunes & Black Lake golf courses. These are assets SLO County’s financial stability relies on in good and bad economic times. Let’s not intentionally shoot ourselves in the foot. Let’s not put our tourist economy in danger simply to generate more profits for Phillips 66. 16 20. Crude-By-Rail Puts Jobs Throughout SLO County At Risk: SLO County has an estimated 81,000 non-farm workers employed at 7,700 non-farm businesses. Many of those jobs will be put at risk if Phillips’ crude-by-rail project is allowed to go forward. Simply put, do you think investments are now being made or planned for places like Lac-Megantic, Canada or Casselton, North Dakota, where major derailments, fires and oil spills occurred? Where peoples’ lives were severely disrupted? Those towns are likely in the midst of economic hard times. If a major rail accident occurred in SLO County, hundreds or thousands of jobs would definitely be lost: • Far fewer people would want to build new homes and live here. Far fewer commercial enterprises would be started. That would mean a major loss of construction jobs and the tradesmen that service those homes and businesses. • Far fewer tourists would come to SLO County ... so leisure and hospitality jobs would be lost. • Far fewer tourists also means less business for wineries, and fewer jobs. • If major oil spills or fires affected our crops, more jobs would be lost. • Professional buildings, hotels and shopping centers might not be built ... eliminating the potential for job growth. • Health care professionals, educators, lawyers, realtors, restauranteurs, shopkeepers and others would look elsewhere ... further halting job growth and the economic vitality that comes with it. We respect the 140 people who work at the Nipomo refinery. But because Phillips will very likely keep their refinery operating even if the Rail Spur is rejected, those jobs will be safe. On the other hand, a great many of the 81,000 jobs throughout SLO County would be put at risk. And they’d be put at risk for no good reason, other than to support the growth of profits at Phillips 66. 17 21. Crude-By-Rail Puts 2,000 Jobs On The Nipomo Mesa At Risk: Any discussion of jobs at the refinery must also include a discussion of jobs in adjacent communities like Trilogy, Cypress Ridge, and Black Lake. They currently have about 2,250 homes with 5,000 adults ... most paying higher-than-average taxes. These residents stimulate jobs - lots of them. And those jobs would be put at risk by Phillips’ crude-by-rail strategy. Here are conservative estimates based on the Trilogy community alone: • Let’s start with ongoing, head-of-household construction jobs. About 40 companies are involved - carpenters, electricians, landscapers, and others. If each employs just five people, that’s 200 jobs. • Then there are the existing homes. Residents employ services such as plumbers, electricians, painters, etc. Trilogy’s 600 existing homes already account for about 75 permanent service jobs. • Residents shop throughout Nipomo and Arroyo Grande, helping generate hundreds of retail jobs. • Trilogy’s Monarch Club employs about 40 jobs in leisure, hospitality, maintenance and management. • There’s the Monarch Dunes Golf Course ... another 25 year-round jobs. • There’s the community landscaping, maintenance and repair - about another 20 permanent jobs. • There’s the planned Trilogy Business Park - a guesstimate is 250 permanent jobs. • There’s a planned 500-room, resort-style hotel - perhaps another 250 jobs. • And Trilogy plans a Village Center with retail shops and services - another 100 jobs. That’s about 1,000 in total, many head-of-household jobs, from Trilogy alone. Add in the other communities and we’re talking about 2,000 or more, not including the planned developments. As a County, we need all the jobs created on the Mesa ... including both Phillips’ 140 jobs as well as the thousands generated by local communities. But if a Rail Terminal were built with all of its dangers, disruptions, noise and pollution, countless jobs would be at risk. The existing communities’ desirability would be severely corrupted ... especially if there were a major accident. They’d be far less enticing places to live and visit. Who would want to invest in a home or take a vacation next to a busy, polluting, dangerous crude oil rail terminal? Fewer homes would be built. Property taxes would decline. Fewer services would be required. The resort hotel and retail shops might never be built. Retailing in Nipomo and AG would suffer. So any time you hear that jobs are at stake with the Rail Terminal Project, please broaden your thinking. Thousands of jobs are at stake ... throughout the Mesa and SLO County. 18 22. Who Pays When Phillips Crude-By-Rail Plan Goes Wrong: Who will pay for the extraordinary costs incurred to satisfy Phillips’ desire to profit from crude-by-rail? Who will pay for the ... • Ongoing salaries for the additional emergency services personnel who will be required? • Ongoing training for those personnel to handle hazmat spills, fires and explosions? • New equipment to handle hazmat emergencies ... fire apparatus, oil spill containment materials, etc.? • Long-term cleanups & monitoring required when viscous tar sands spills into our fields & streams? • An emergency notification system required for South County, when a major accident occurs there? • Additional SLO County staff to monitor the new rail operations, making sure they comply with dozens of new, complex mitigation measures? • The loss of revenue to construction workers when fewer homes are built in South County because people don’t want to live next to a crude oil rail terminal. • The loss of revenue to tradesmen, retailers and professional services when fewer homes are built? • The loss of property taxes when fewer homes are built in South County and home values decline. • The revenues lost when businesses shut down due to evacuations following hazmat accidents. • The taxes paid by those businesses when they shut down? • The loss of revenues and sales taxes from tourists, when far fewer of them travel to SLO County? The future economic success of our County is tied far more to enabling businesses to thrive, not suffer by bringing a crude-by-rail industry here. Our future is tied to vineyards, strawberry fields, beach communities, tourism, lodging, restaurants, a growing technology base, construction, and others. Our future is tied to businesses relocating here ... not turning away from SLO County. If the project is rejected, the refinery will continue to operate and make the same financial contribution to our coffers. But if the rail terminal is allowed, we must then answer the question -- who will pay? The answer is that SLO County and its citizens will pay. And the cost will have a “significant and unavoidable” financial impact, forever. 19 23. A Rail Terminal Intensifies The Use Of The Land, From Passive To Active; This is Incompatible With Adjacent Residential Zoning: What Phillips plans to build on their property is wildly inappropriate with the intended use of that land. Simply because it’s zoned “industrial”, does not mean that “anything goes!” Decades ago, county planners encouraged residential communities as desirable land use on the Nipomo Mesa. Planners expected beautiful views, golf courses, a hotel, and a serene way of life. They also knew they were generating homes with above-average property taxes. All of this was approved knowing that the adjacent Phillips’ land was in a passive industrial status. In response, more than 5,000 residents now live on the West Mesa. And the County is allowing expansion of existing communities and the construction of new ones. But a Rail Terminal would generate far greater intense activity than the benign delivery of crude by pipeline. It would change the use of the land from passive, inactive industrial, to highly active industrial. Instead of oil conveyed silently and safely, an entirely new facility is proposed ... with 520 trains arriving and departing each year. Tankers would noisily uncouple and couple with locomotives. Machinery would unload a half-billion gallons of dangerous and polluting crude. Plus, there would be numerous support vehicles, all in constant motion, forever. There’s also the issue of a land buffer. County planners were counting on a large open space buffer at the refinery to alleviate the close proximity with new communities. But Phillips plans to cut down the existing buffer distance by more than half -- by 57%. In its place would be intense operations that increase the health risks to citizens, along with noise, light, visual and other polluting outcomes. What Phillips proposes is also extremely inconsistent with SLO County’s land use policies in at least six different ways ... including impacts on air quality, protection from hazards, threats to life, and adequate fire protection. Therefore, the intended change from passive to active land use flies in the face of specific plans and zoning decisions already made for this area. We ask that the promises to residents of a safe, peaceful and pollution-free environment, not be broken. 20 24. The Project Degrades Air Quality Via Five Class I, Significant/Unavoidable Impacts To Health: The REIR specifies 5 impacts as Class I ... i.e., those that cannot be mitigated to less than significant levels ... 1) Rail Spur activities at the Refinery would generate criteria pollutant emissions that exceed SLO County Air Pollution Control District thresholds (SLOCAPCD). 2) Rail Spur activities at the Refinery would generate toxic emissions that exceed the thresholds. 3) Rail Spur activities would generate greenhouse gas emissions that exceed the thresholds. 4) Activities of trains along the rail mainline associated with the Rail Spur Project would generate toxic emissions that exceed the thresholds. 5) Activities of trains along the mainline outside SLO County associated with the Rail Spur would generate criteria pollutant emissions that exceed the thresholds. The REIR then pinpoints the health risks posed by this project - such as respiratory disease, cancer, heart disease, and premature death. Although mitigation measures are discussed, it’s clear they are not feasible or enforceable. The main reason - SLO County is preempted from imposing requirements on the railroads operating on the mainline. The County is also preempted from imposing emission requirements on the diesel engines that pull the locomotives this project will bring here. 21 25. The Use Of Emission Credits Is A Clear-Cut Health Danger To County Citizens: The pollutants that the REIR states are Class I (significant and unavoidable) include diesel particulate matter which would come from the 3 diesel locomotives on each of the 520 trains traveling through the County. Onsite at the refinery, each train with its 3 locomotives would be idling or moving a combined total of 25 hours. Given that Phillips would bring in 5 trains per week, that’s 125 hours of emissions per week. Annually, that’s 6,500 hours of diesel particulate matter sent into the air, that previously never existed. According to the U.S. National Institutes of Health (NIH) - “effects of diesel exhaust exposure include lung function changes, respiratory changes, and a number of profound inflammatory changes in the airways.” The EPA adds that “inhalation exposure is likely to pose a lung cancer hazard to humans.” The report states that Phillips intends to reduce these pollutants is by applying emission credits they earned years ago. This would be a “get out of jail free” card ... they could spew new pollution into the air regardless of the effects, and simply not worry about it. This flies in the face of the fact that South County already violates the state health standard for particulate matter over 70 times each year and has violated the federal health standard in each of the last three years. The SLO County APCD 2013 Annual Air Quality Report (presented 9/14) states ... • South County has the “most exceedence of state particulate matter 10 standard ever. South County continues to routinely exceed state and federal particulate matter standards.” There is “no sign of improvement.” They “expect non-attainment designation for state standard particulate matter 2.5.” Yet, despite this extremely unhealthy situation, Phillips tells us that breathing their additional pollutants is okay, because they can offset them by using banked credits. But it’s improper to use them to offset additional pollutants in an already harmful situation. Phillips says they’re “good neighbors.” Since when does a good neighbor pump additional toxins into your body, then simply shrug and walk away? It’s morally repugnant! 22 26. The Refining Of Tar Sands Will Lead To Major Health Problems: The Rail Spur project will bring “tar sands” to SLO County. The refinery’s superintendent has said there’s a “definite possibility” they will ship in “tar sands” (“oil sands”) via rail. A spokesman said it"could include crude produced from Canada's oil sands." And the DEIR refers to "Access Western Blend" and "Peace River Heavy," both of which are tar sands crude. Tar sands (a “heavy” crude) has substantially higher concentrations of sulfur, copper, nickel, nitrogen, lead and benzene than found in conventional crude. Senator Barbara Boxer has addressed the health effects. She’s stated - “Tar sands (is) one of the filthiest kinds of oil on our planet. The refinery stage poses health risks ... (including) higher rates of cancers linked to toxic chemicals, including leukemia and non-Hodgkin's lymphoma.” The main danger is that facilities that refine tar sands can emit significantly higher amounts of sulfur dioxide. And that could lead to asthma, reduced lung function, respiratory weakness and cardiovascular issues, as well as cancer. That’s what will spread throughout the South County. Secondly, the refining of tar sands yields higher amounts of the byproduct petroleum coke or “petcoke.” The Nipomo refinery already produces some of it. It’s left outdoors, as hills of black dust. These particulates can easily be blown into residential areas here by onshore winds. That of course is ill advised -- because petcoke also contains heavy metals ... and these metals have been linked to heart disease, childhood cancers, developmental disorders, and respiratory issues. According to the EPA -- “Fugitive dust from pet coke storage and handling present a health risk. EPA is particularly concerned about particles that are 10 micrometers in diameter or smaller (referred to as PM10) because those are the particles that pass through the throat and nose and enter the lungs. Once inhaled, these particles can affect the heart and lungs and cause serious health effects.” By the way - petcoke can actually be burned as a power source, like coal. But due to the high level of greenhouse gas and other pollutants it emits, most U.S. power plants won’t burn petcoke. So U.S. oil refineries ship it to developing countries with looser pollution restrictions. There’s also the issue of trains moving through the petcoke fields at the refinery, launching dust into the air to be carried by onshore winds. And there are the unwashed tankers leaving the site, with petcoke dust clinging to them, spreading it along the mainline in SLO County. Finally, the high sulfur content of tar sands makes the oil corrosive. This corrosion eats at a rail car or plant’s structure, making it more likely to fail. This was considered to be a major factor in the 2012 Chevron refinery disaster in Richmond, CA that sickened thousands of citizens. Approving the project very likely means tar sands will have found a major home here in SLO County. Bringing in tar sands means more pollution both from its refining and the resulting petcoke. On the other hand, no Rail Terminal means all of this will either be minimized or eliminated from County. 23 27. Phillips Will Introduce Ongoing, Obnoxious Noise Levels Throughout The County: Let’s take a close look at what we’d be hearing from Phillips all year long, forever ... • Throughout SLO County: Noise will come from blaring train whistles as 520, 1.5 mile-long trains enter and leave. Track noise will be produced by wheels of the 520 trains. Engine & vibration noise will be heard as three, 200-ton locomotives idle at crossings throughout towns in the County. • On The Nipomo Mesa At The Rail Terminal: Engine and vibration noise will be heard as locomotives idle at the refinery. Noise will be generated as trains shuttle from one location to another. Ongoing mechanical, operational noise will be generated by the new oil offloading facility, new pumping systems, HVAC equipment, and air compressors. Sharp clatter will be caused by locomotives disengaging and connecting again with their tank cars ... 520 trains and 41,600 tankers each year. And also onsite, noise will be heard from additional vehicles, as cars, trucks and other construction and transport vehicles work to service the new rail operations. The REIR states that the noise levels generated at the Rail Terminal, as measured by the consultants, will have “a potentially significant impact." The report also cautions that "there are uncertainties associated with estimating noise impacts. Meteorological conditions can strongly affect impacts. There are activities, including hooking up rail cars and locomotive noises that can travel long distances. There is not extensive data available on some issues, that bring in a range of potential errors into the analysis.” Indeed, the noise testing was highly unreliable. For example, their test of noise from the trains was a daytime test, involving only 34 rail cars and 2 locomotives ... a test that lasted only 30 minutes. A more realistic test would utilize 80 tankers + three locomotives + two buffer cars. In fact, it’s very likely there will be two trains at the refinery at the same time - so the noise of two trains operating at the same time should have been tested. And, there was no simulation of the unloading of crude oil or the coupling and uncoupling of rail cars. There was also no simulation of noise generated by accompanying trucks and other vehicles. And the test failed to take into account the additional whistle blowing likely to occur. Given that the REIR indicates there will be a “potentially significant noise impact”, and that the noise testing that occurred was totally inadequate, and that noise impacts would be felt throughout the County, the Rail Terminal project should be rejected. 24 28. Visual Impacts Of The Rail Terminal Cannot Be Mitigated: The Rail Terminal Project would be seen from public roadways, walking paths, recreation areas and residences within the Trilogy community, looking west past Highway 1. The residents’ views would include the unloading facility, railroad tracks and 520, 1.5 mile-long trains as they arrive and depart each year. But the REIR indicates there would be no visual impact. That’s completely inaccurate because the authors failed to measure the impact at the actual Trilogy community. They measured it from Highway 1. The homes are 100 feet higher than that point -- 50% higher. The view from that higher elevation, where the community actually resides, would be in direct sightline of the Rail Terminal. To alleviate the visual damage, the REIR suggests an earthen berm be constructed at the refinery. It says a berm 10 - 20 feet tall would block the views of the rail terminal and trains. That solution simply won’t work, given that homes in Trilogy are actually at an elevation 100’ higher than presented in the study. Without a doubt, permanent visual destruction would occur. 29. Lighting Impacts At The Rail Terminal Cannot Be Mitigated: New outdoor floodlights are proposed throughout the Rail Terminal. They would be on 30-foot tall poles every 300 feet, and operate 7 to 9 hours each day, perhaps more if they’re concerned about facility security. To mitigate all of this light pollution, Phillips proposes an earthern berm 10 - 20 feet high. Yet the floodlights will be 30 feet high, far higher than the berms. Therefore, the impact of the lights will still be visible from the Trilogy community. We’re also told the new lights would be pointed downward. But they’d obviously illuminate the rail terminal beneath them. Those surfaces will be lit up brightly to help employees go about their complex, dangerous work. Residents would see the reflected light on the surface of everything lit up at the facility ... including the tracks, tanker cars and pumping station. And because the nearest community is at a far higher elevation than the refinery, citizens would see everything, everyday. 25 30. Phillips Is Not The Only “Good Neighbor”; And, Being A “Good Neighbor” Doesn’t Count In This Situation: Phillips has gone overboard to have supporters let everyone know they’ve been “good neighbors”, and therefore deserve to implement their crude-by-rail strategy. Well, Phillips is not the only good neighbor in SLO County. And regardless of status, being a good neighbor shouldn’t count in this situation. For the record, Nipomo Mesa residents are just as conscious about the need to give back to the County. And their efforts go far beyond contributing money. They invest their time and energy to improve people’s lives. Yet, because they don’t do self-promotion, they don’t get the publicity they deserve. Let’s take one example -- the Trilogy Service Club -- 70 men and women who work to meet the needs of nonprofits. Here are a few of their recent accomplishments ... • Their Fashion Show benefited “Captive Hearts of Grover Beach”, “The Rancho Nipomo Dana Adobe Children’s Program”, and “Relay For Life.” • The Club’s Harvesting Hope Festival has benefited the “Five Cities Homeless Coalition” and the “Nipomo Food Bank.” • The Black & White Ball has helped support the “SLO Noor Foundation” and “Domestic Violence Solutions.” Those three 2014 events alone raised $150,000. And every dime was raised through thousands of hours of skill and sweat by Club members. What does this good will, or that earned by Phillips, have to do with decisions about the Rail Terminal Project? Honestly, being a good neighbor should have absolutely nothing to do with it ... it shouldn’t be part of the equation. The decision should be based only on the safety and well being of our citizens. And it should be based on protecting our assets, such as our reputation as an exceptional place to live, earn, and visit, all of which will be put at serious risk by the Rail Project. Being a good neighbor or a good-old-boy simply doesn’t count here. The issue is too important. 26 31. The Proposal Benefits Only Phillips; The Citizens Of SLO County Become “Collateral Damage”: It’s not logical that Phillips is running out of crude oil to process via pipeline. Sources for California crude are expanding -- Phillips simply doesn’t want to pay the price. They’d rather find cheaper crude out-of-country. So we don’t accept that their Nipomo refinery and 140 jobs are in danger. But the Rail Terminal does benefit Phillips, enormously. It gives this multi-billion dollar corporation a huge advantage ... enabling them to create a rail hub for accessing and processing low cost crude (tar sands), which can then be exported to increase their market share and profits. So what are the advantages to SLO County? There will be no real increase in employment or taxes. Only a few people might be hired, and Phillips will be processing the same amount of crude. But there are extensive disadvantages to the people of SLO County. In fact, our citizens will become “collateral damage.” Phillips’ plan introduces a full suite of unavoidable impacts and risks ... • Additional air pollution throughout the County, and emissions that aggravate an already unlawful situation on the Nipomo Mesa. • Additional noise pollution throughout the County. • The visual pollution of 520, 1.5 mile-long trains throughout the County. • The potential for physical damage when trains derail and destroy property. • The potential for oil spills. • The potential for fires and explosions. • The potential to damage the reputation of SLO County as a place to live, work and visit. • And the potential to damage the economic well-being of our County’s homeowners and businesses. Phillips’ response to all of this has been “Don’t worry. Trust us. We can mitigate all of that. We’re good neighbors. We’re an oil company and we’re here to help.” We don’t think so. We believe the vastly increased risks that this proposal brings to the citizens and businesses of SLO County are unacceptable. Phillips gets all the advantages. SLO County becomes collateral damage. If a company that had never conducted business in SLO County came to our officials tomorrow, with the same business model and risks, we’re certain it would be rejected. The safety and well-being of our citizens trumps the new direction in which Phillips intends to take us all. 27 Phillips 66's True Motivation for the "Rail Spur" Project, as Per Their Corporate Annual Report Issued Early in 2013: "We're Taking a Classic Company in a New Direction: Crude-by-Rail" - iff PHILLIPS 66 e. t 1 l CO MPS WE'RE TAKING A CLASSIC III A NEW DIRECTIONS liguatAu4k. 117[11 1 S L lltl - lCLL1 l ___ _ i _ _: ,:2012 SUMMARY ANNUAL REPORT, In this annual report(issued well prior to their"rail spur" application) Phillips said the crude oil revolution can "give Phillips a competitive advantage in the global marketplace. However, limited domestic pipeline creates a challenge to transporting lower-cost crudes. In 2012, we reached an agreement to manufacture 2.000 railcars for the transport of crude to our refineries." They called it their "crude-by-rail strategy". Never once did it mention reduced sources of California crude, nor problems with their Santa Maria Refinery. Phillips'CEO stated.their national goal: "Our opportunity is to•get advantaged(low cost )crudes to the West Coast..:moving Canadian crudes into-California(by):building rail facilities. > • ` '"A savings of$1'per barrel across our refining system , -- - is worth'about$450'million of net income to us.". , " So their true motivation is to gain a competitive advantage and far higher profits. And their local refinery must fall in line with this new corporate dictate. It's a new business model, nationwide, to generate higher profits by delivering low-cost crude by rail. It's not about the Santa Maria Refinery going out of business and lost jobs. In fact, Phillips' corporate spokesman, Dennis Nuss, was interviewed by the New Times newspaper. "When asked if Phillips had considered shutting the refinery if the rail spur wasn't approved, Nuss said such discussions hadn't occurred." So this is not about jobs-- it's about increasing profits via "crude-by-rail." http//www phillips66.com/EN/about/reports/Documents/Phillips-66-Summary-Annual-Report pdf(2012 report) http//www newtlmesslo com/cover/11850/a-crude-proposal-the-pros-and-cons-of-a-controversial-phillips-66-ollbyrail-project/ September 12,2013 Transcnpt,pdf 7.Available at http://www philhps66.com/EN/iinvestor/presentations_ccalls/Documents/Barclays_091213_Final.pdf http//www.phillips66 com/EN/newsroom/feature-stones/Pages/AdvantagedCrude aspx (over) 29 FACT-BASED REASONS to Oppose the Phillips 66 Rail Terminal Project 1. Phillips' Stated Motivation Is A Misleading, Red Herring; It's About Increased Profits, Not Jobs 2. The Project Is Not About"Energy Independence"; Phillips Is Engaged In A Global Export Strategy 3. Phillips Is Minimizing The Enormous Scope Of What They Intend To Bring To SLO County 4. Phillips Is Minimizing The Historical Odds Of Accidents; The Number Of Derailments Are Accelerating 5. The Project Is Well Beyond A"NIMBY" Issue- In Reality It Creates Countywide & Statewide Impacts 6. Rail Disasters Could Occur In Virtually Any Of SLO County's Populated Areas 7. Phillips' DOT-111 Rail Cars -They're Not As Safe As Claimed &They're Banned In The REIR 8. Sending Thousands Of Crude Oil Trains Down The Cuesta Grade Is Inviting A Monumental Disaster 9. Tar Sands Shipments Must Be Diluted With Flammable Substances-The Combination Is Explosive! 10.A Major Rail Accident Would Require A Widespread County Evacuation 11. Emergency Response: Underfunded/Undertrained/Under-e quipped/Unprepared/Preempted 12. Phillips' Project Is Inconsistent With SLO County's General Plan To Protect Citizens 13. Federal Preemption Blocks SLO & Other Counties From Protecting Their Citizens' Health & Safety 14. Phillips Will Introduce Obnoxious Noise Levels Throughout California & SLO County 15. Visual Impacts Throughout SLO County Cannot Be Mitigated- Oil Tankers Would Be Our New"Icon" 16. The Project Would Put The Reputation &Financial Well Being Of SLO County In Grave Danger 17.Approving The Phillips Plan Will Negatively Impact SLO County's Business Development 18. The Impacts Could Devastate The Reputation Of SLO County's Agricultural Businesses 19. Phillips' Plan Will Put SLO County's Tourism Business At Severe Risk 20. Crude-By-Rail Puts Jobs Throughout SLO County At Risk 21. Who Pays When Phillips Crude-By-Rail Plan Goes Wrong? SLO County's Taxpayers! 22.A Rail Terminal Greatly Changes 60-Year Old Land Usage From Passive To Highly Active 23. The Project Degrades Our Air Quality Via Five Class I, "Significant/Unavoidable" Health Impacts 24. The Use Of Emission Credits By Phillips Is A Clear-Cut Health Danger To SLO County Citizens 25. The Refining Of Tar Sands Will Lead To Major Health Problems ... Including "Pet Coke" Dust 26. Visual Impacts Of The Rail Terminal Cannot Be Mitigated 27. Lighting Impacts At The Rail Terminal Cannot Be Mitigated 28. Phillips May Be Engaged In "Piecemealing", Which Is Illegal Under CEQA; Law Suits Under Way 29. The Proposal Benefits Only Phillips; The Citizens Of SLO County Become "Collateral Damage" The Mesa Refinery Watch Group (www.mesarefinerywatch.com) Crude oil by Rail in California Supporting California's Energy Infrastructure 'Union Pacific`in CA Union Pacific shipped approximately 141,000 carloads of crude oil on our 23- 2014 Fast Fads network in 2014. Crude oil currently represents about 1 percent of our business in California.This amounts to 1,000–1,200 carloads of crude oil Miles of Track = 3,267 monthly. I Capital Investment $432 million The crude oil Union Pacific moves through California originates in California, Total Carloads 3,313,191 Canada and Utah.We do not move any crude oil in California originating from (originated or terminated) the Bakken region. Crude Oil Carloads 13,227 Union Pacific moves crude oil in California two ways: First responders ' 3,935 trained by Union Pacific • On"manifest"trains with tank cars carrying crude oil interspersed with since 2010 other commodities in box cars, hopper cars, etc. --- - • On"unit trains"made up of 80-100+cars with the same product in every car. �, We move crude oil along our coast route between Los Angeles and the �� Central Coast, a service we have safely provided for decades.We also move .. ,1 . crude oil on our 1-5 corridor running from California's northern border to the '� f' Los Angeles region through the Central Valle We do not currently move an <� „s;�� 9 9� 9 Y• Y any t� crude oil in the Bay Area ;,e. osev111e s i w r n. .v• i Preventing Derailments Francisco 0, •1.` Union Pacific works diligently to prevent derailments and other accidents. • • :, We spent more than $31 billion in private capital investments from 2005-2014, � 5 .G I ,: <,c .4 and plan to spend a record$4.3 billion in 2015 continuing to strengthen our ?` infrastructure. Doing so helps us improve safety for our employees, ,", ,, —, communities and customers. es ter; "_ SanP ,•�`. " We decreased derailments 38 percent during the last 10 years, due in large -ch% part to our robust derailment prevention and risk reduction process.This 1--UPRane ```� ° • xico process includes, among others,the following measures: • Developing and using the latest technology such as lasers and ultrasound to identify rail imperfections. • Forecasting potential failures before they happen by tracking acoustic wheel vibrations. • Performing a real-time analysis of every rail car moving on our system each time it passes a trackside sensor, equaling 20 million car evaluations per day. • Conducting rigorous safety training programs on a regular basis to help employees identify and prevent potential derailments. February 2015 UNION PACIFIC ��;1:I.�.1�l BUILDING AMERICA r- Union Pacific Network—,----__________ ,,,t,„ _____A_ i,.\,,„:, 1 - ,_r f— 7 C---• 1 , Bakken ._ ',�f " BS y fit, Greater ' Share +. 1 f �/yt � ' �,,t�• Niobrara/ _ (- / L'"' 3"...% ,�� Ol Basin •Ali,�Meieellus ""` } Umta, ~ `"`' i Basin , , Sh e ,) y Plceanee "'"y,' 1 VitMississippian, r'Permian GranNe Wash end ./ Basin !Berne. /l Woodford Shales ` � Shale ,,a `Haynesvillo - } DM Shale Formations � ice`4� I—UP yr` v� '�`" `!"` 'tiff/ �' r BaSha a rd ,�� ,J Preparing California's First Responders Our goal is the same as our customers' and the communities' in which we operate:to deliver every tank car safely while at the same time being prepared to respond in the case of an accident.We take our responsibility to ship crude oil, as mandated by federal law, seriously. Union Pacific follows strict safety practices and in many cases exceeds federal safety regulations. We work with 184 fire departments along Union Pacific rail lines in California.We work with fire departments and other emergency responders along our network to offer comprehensive hazmat response training in communities where we operate. Union Pacific trained more than 3,900 emergency responders across California since 2010. This includes classroom and hands-on training in tank car anatomy, hazmat shipping documentation and equipment securement. Union Pacific has significant response resources located in California for the unlikely event of a crude oil spill or other hazmat-related incident.We have access to more than 176,000 feet of containment boom in the state, chemical transfer trucks,fire fighting foam,fire fighting trailers and more. To provide additional information to emergency response professionals for training and response purposes,we are introducing AskRail,TM a new real- time mobile application produced by the Association of American Railroads. Once first responders download the AskRail app onto their mobile device, they can search by rail car identification number to identify the commodity inside the tank car.AskRail supplements existing response processes for hazardous materials-related incidents. UNION ►ACIFIC BUILDING AMERICA° ,- '., ; : �6 ""., L.� ,—4,,,,,,,,,,„.-.4, . , � _ ..,I,.-_a : . .-a _y M,4 _t- . :_ - - - -- -_-----IIIii)k.�._._•,. UNION PACIFIC Hazardous Materials Management Group The Union Pacific Hazardous Materials Management HMM is responsible for training Union Pacific employees Group(HMM)consists of experts in hazardous material about hazardous materials safety.U.S.Department of transportation safety,securement and response.The Transportation-defined"hazmat employees"are required HMM team understands that communities are concerned to be trained in the safe handling of hazardous materials. about the risks associated with hazmat shipment by rail. Union Pacific train crews are required to carry a copy Providing safe and fuel efficient freight transportation of Instructions for Handling Hazardous Materials while is how Union Pacific is participating in America's operating a train carrying hazmat.This is a reference energy evolution. guide published by HMM. We haul products related to the entire energy sector If Union Pacific inspections identify a shipper with recurring including wind,solar,coal,ethanol and crude oil.We take issues,HMM will provide onsite training for proper tank our responsibility to ship crude oil,as mandated by federal car securement to ensure the shipper is educated in best law,seriously.Our goal is the same as our customers and practices for preparing hazardous materials shipments. the communities in which we operate:to deliver every tank car safely while at the same time being prepared to PREPAREDNESS respond in the case of an accident. Preparation is critical to an appropriate incident response. The HMM Group is part of Union Pacific Railroad's Safety HMM develops the Union Pacific Hazardous Materials Department.Its primary focus is the safety of all Union Emergency Response Plan(HMERP),a performance based Pacific employees,the residents of communities where plan that provides guidance about reporting a release as we operate trains and our customers.This team of experts well as a list of training requirements for those responding has a four-part mission: to an incident.Each of the 22 operating divisions at Union • Prevention—Prevent releases of hazardous materials Pacific undergoes an annual unannounced drill to ensure in transportation all aspects of the HMERP are in place and being followed •Preparedness—Develop internal and external assets by Union Pacific employees.The requirements,including for hazmat education,response and recovery drills and exercises,for specific plans for large oil storage tanks are managed by HMM. • Response—Respond to incidents to protect health and minimize harm to the environment • Recovery—Restore normal rail operations as quickly as possible in the event of an incident PREVENTION ! � Union Pacific's HMM team members regularly inspect fti. tank cars moving on the Union Pacific network.In each -- L s II IF am inspection,an HMM team member examines fittings, r Newman •—, ii a :.: x I ... • markings,safety appliances and waybills.Union Pacific's li i1 L HMM managers annually perform thousands of these inspections.HMM conducts tank car inspection blitz programs throughout the year in which Union Pacific TA; ,T' 7 k "t rt � '�? managers,outside contractors,customers and regulators )';if t�;.r !t;rl' '�°'` G I Et work together to inspect a large number of tank cars fi'.. .I' 1.1'10 in a defined geographic area.High volume crude oil rr x r 4 ' + ' 1 r, locations are chosen for tank car inspection blitz programs, r ;.? of ;, i" f'f 4' i '• :"�4,``" ; ,; o with 10 to 16 blitzes performed annually across the t ' r i y, �li '`� , `•' Union Pacific network. A safety training event for local first responders. -- UNION www.up.com PACIFIC- - BUILDING AMERICA® AMES PREPAREDNESS (continued) Providing no-cost training to public responders is To supplement the response,HMM has air monitoring Union Pacific's most substantial preparedness effort. contractors who can be quickly deployed to provide Having cataloged every fire department that may respond real-time data to public responders.Union Pacific works to an incident along the Union Pacific network,HMM closely with community leadership throughout the response team members reach out to fire departments on an process.Additionally,HMM can deploy contractors who annual basis to offer training or information to assist fire are subject-matter experts in toxicology,industrial hygiene, departments in their preparation for a potential incident. medicine,nursing and environmental protection.These Training consists of classroom and hands-on activities specialty contractors can work in the communities using a specially-designed training trailer or training impacted by an incident and in concert with first responders tank car.Trainees learn how to contact the railroad during to ensure a safe response. an emergency,how to read shipping documentation, HMM invested in response equipment in the form of derailment safety considerations and what assets the firefighting trailers,foam caches,air monitoring equipment railroad can provide in the event of an incident.HMM and specialty tools to ensure resources are readily available. performs large scale training events in collaboration with Union Pacific's partners in TRANSCAER(Transportation RECOVERY Community Awareness and Emergency Response). Once an incident has been stabilized,recovery begins. RESPONSE If a tank car has been damaged and cannot travel safely The response process used by HMM is designed to be on the railroad,the contents must be transferred to an easily incorporated into public response incident command undamaged car.Union Pacific is the only railroad that owns structure.This process requires analyzing the problem, and operates all of the equipment necessary to transfer planning the response,implementing the plan,and any liquid or compressed gas from one tank car to another. evaluating and adjusting the response as necessary. Once the tank car is liquid free,HMM will clean and Union Pacific's Response Management Communication purge the damaged car to ensure it can be safely repaired Center(RMCC)is an around the clock security response or dismantled. center where critical call dispatchers manage calls from Once all hazardous materials have been removed from the public,law enforcement and others who are reporting the incident site,HMM will transition the project to the emergencies and other incidents on Union Pacific's Union Pacific Site Remediation Group for remediation and 32,000-mile network.RMCC follows all regulations closure with regulatory agencies. regarding notification of local,state and federal agencies The final aspects of recovery include a debriefing with in the event of an accident and works closely with first the public responders and an internal post incident responders throughout an incident. analysis.These activities are an invaluable means of Union Pacific has 30 highly trained hazardous materials improving the group's overall capability to respond to a responders.We rely on a network of private response hazmat-related incident. contractors who are carefully vetted and audited on an annual basis to ensure a constant state of readiness. Most of these contractors are qualified with fire fighting or United States Coast Guard Oil Spill Recovery Organization(OSRO)certifications.OSRO-certified contractors have demonstrated expertise and equipment to handle oil spills on land and water.Contractors have access to the equipment(boats,boom,skimmers,vacuum trucks,storage tanks,heavy equipment)necessary to respond to a hazardous materials incident. REV 11/14 1 UNION PACIFIC CALIFORNIA ( ,�.I.II_I�� Hazimat Response Resources BUILDING AMERICA The Union Pacific Hazardous Materials Management Group(HMM)consists of experts in hazardous material transportation safety,securement and response.Part of Union Pacific Railroad's Safety Department,the HMM Group's primary focus is the safety of Union Pacific employees,the residents of communities where we operate trains and our customers. Union Pacific has access to incident response equipment and assets across California.The HMM Group communicates regularly with 184 fire departments along Union Pacific rail lines in California to offer comprehensive hazmat response training in communities where we operate.Union Pacific trained more than 3,100 emergency responders across California since 2010.This includes classroom and hands-on training in tank car anatomy,hazmat shipping documentation and equipment securement. Union Pacific has access to more than 176,000 DUNSMUIR i feet of containment boom in the state. • Union Pacific boom trailers . t � CHICO j RENO • NRC Environmental boom trailers •H2O Environmental boom trailers •Union Pacific boom trailer ROSEVILLE ( - •Hazardous Materials Technician • Hazardous Materials Manager 0 •Midland Capping Kit SACRAMENTO / •Magnetic patch ••NRC Environmental • Union Pacific hazmat response vehicle Al i a l , N BENICIA •Tank car training trailer •Fire fighting trailer with four r ■Clean Harbors totes of foam , \ \ •10,000 gallon portable water tank ALAMEDA •Chemical transfer trailer - , \ •NRC Environmental RICHMOND \ . , •Patriot Environmental ;. \ o LAS VEGAS •H2O Environmental SANTA PAULA t . • Patriot Environmental \ BAKERSFIELD CITY OF INDUSTRY ,\,,,,•Hazardous Materials Technician y.. •United Pumping Services .. ■Patriot Environmental LONG BEACH FONTANA •NRC Environmental . ' •NRC Environmental •Patriot Environmental " --•Hazardous Materials Manager MIRA LOMA •Hazardous Materials Manager ONTARIO •Magnetic patch •Patriot Environmental •Union Pacific hazmat response vehicle •Fire fighting trailer with four SAN DIEGO totes of foam •NRC Environmental •10,000 gallon portable water tank •Patriot Environmental •Chemical transfer truck Union Pacific works with hazardous materials contractors including NRC Environmental,H2O Environmental, Clean Harbors and Patnot Environmental, to maximize response equipment and resources across our California network. These agencies are U.S.Coast Guard certified Oil Spill Response Organizations. Rev.3/2015 Improved Access To Rail Data NEW TOOLS FOR FIRST RESPONDERS Union Pacific Railroad helps America thrive by providing ®AskRalt- © AskRail's rail car ID query safe and efficient transportation of the products that I can be used to obtain rail power the country including crude oil,coal,ethanol,wind ' I - • car information,including: Equipment ID is a set of letters(up to turbines and solar panels. -4)and numbers(up to 6)on the side of i every freight car.See,the example • Loaded/empty status below outlined In red." Crude oil represents about 1 percent of Union Pacific's - •Contents'shipping name overall freight revenue.Though accidents are extremely rare,all of us at Union Pacific work diligently to follow 'RAIL 4001 1 • Contents'hazard class strict safety practices in an effort to keep trains moving — • Railroad name safely with zero derailments. • Railroad emergency An important part of Union Pacific's efforts to move j contact information crude oil safely is the Union Pacific Hazardous Materials Management Group(HMM).This team of 30 consists of highly trained experts in hazardous material transportation safety,securement and response.The HMM Group has UNION PACIFIC'S PREPAREDNESS TOOL a four-part mission:prevention,preparedness,response Developed by Union Pacific,the EPNM will give and recovery. emergency management professionals at state EOCs Union Pacific is introducing first responders on its rail an hour-by-hour snapshot of hazardous materials network to AskRail;a new real-time mobile application moving on Union Pacific track within state,boundaries. produced by the Association of American Railroads(AAR). The tool will show the location of tank cars carrying In addition,Union Pacific will soon launch its Emergency hazardous materials,helping emergency response teams Preparedness Network Map(EPNM),a desktop application in their efforts to prepare for potential incidents.Each for state Emergency Operations Centers(EOC). state EOC will be granted access to the EPNM upon AskRail Is a handheld tool for response and training signing a confidentiality agreement.The EPNM crude oil purposes.The EPNM helps state and local emergency data is proprietary,and some EPNM data may include management professionals prepare for potential incidents sensitive security information. by providing a current snapshot of the type and location The EPNM illustrates the following information about the of hazardous materials being transported in a state. Union Pacific network within an EOC's state: ASKRAIL RESPONSE TOOL •Trains and rail cars carrying crude oil,ethanol and other hazardous materials HMM team members will work with local emergency responders along Union Pacific rail lines to grant access to ' Detailed information regarding the hazardous material the AskRail app.Once first responders have downloaded in a rail car the AskRail app onto their mobile device,they will simply • Rail car's waybill,recipient and special conditions enter the identification number located on a tank car •Train and rail car ID numbers into the app to identify what commodity is inside the car. AskRail will supplement the existing response process •Train and rail car origin stations,including city/state Union Pacific's HMM Group uses to collaborate and •Train and rail cars current city location communicate with emergency responders during a •Current train statistics(e.g.,loaded cars,empty cars, hazardous materials-related incident. weight,length and locomotives on the train) _. UNION — — — PACIFIC www.up.com ` BUILDING AMERICA ' Alin sit 20 /`l Dear Mr. Wilson: I have reviewed the Phillips Refinery REIR information and feel that there is an important epidemiological issue that has not been addressed, namely,Valley Fever, or Coccidioidomycosis. I have been a practicing physician assistant in San Luis Obispo County for 30 years and have seen a number of cases of"cocci" and am aware of an increase in cases over the last few years. I have confirmed this with the SLO Public Health Department epidemiologist and herein have included numerous links to pertinent articles, including the SLO Public Health Dept dedicated "cocci" web page. Coccidioidomycosis, "Valley Fever," is a fungus that is spread by way of spores that become airborne when soil is disrupted. Most cases of the disease are limited only to the lungs and cause pneumonia-like symptoms that eventually clear. However,the disease may "disseminate" and cause widespread organ involvement and possible death. There are certain higher risk groups depending on age, sex and ethnicity. Specifically, I am concerned about the volume of soil that stands to be disturbed during construction of the proposed "rail spur"at the P-66 refinery. Referencing pages 4.3-35-4.3-41 in the REIR, I cannot find any specific quantification of yardage of dirt that stands to be disrupted during grading, construction and berm building, but I imagine it would be substantial. Moreover, my understanding is that the predominant direction of wind flow during daytime hours is toward populated areas of the Mesa and greater Nlpomo,which would tend to put those areas at potential risk of exposure to Cocci. Additionally, the workers on site, both construction workers and permanent workers at the refinery would be exposed depending on ambient conditions. I do not know if the fugitive dust emission mitigation plan is adequate to protect these individuals. The REIR states that with mitigation measures, such as soil dampening, there would be "61%fugitive dust control," but I do not find any specific information suggesting that the threat of Cocci infection was taken into account or addressed. Moreover, climatic conditions such as rainfall, especially after a period of drought causes Cocci spores to germinate, bringing up the question of whether dampening soil might actually aggravate a potential problem. Additional articles that I have included speak to the increase in cases of Cocci associated with the recent construction of the solar plant in California Valley as well as an increase in cases involving workers at Camp Roberts during construction in 2010. Thank you for your time and for the opportunity to comment on this proposed project. Sincerely, Kevin J. McCarthy, PA-C Physician Assistant-Certified 222 Garden St. Arroyo Grande, CA 93420 481-5618 San Luis Obispo Public Health Epidemiologic Profile of Cocci:http://www.slocounty.ca.00v/Assets/PH/Epidemiology/Epi+Profile+of+Cocci.pdf SLO Public Health Dept Cocci site: http://www.slocounty.ca.gov/health/publichealth/commdisease/Cocci in SLO County.htm SLO Public Health Power Point link re Cocci: S � San Luis Obispo County Health Commission Presentation, April 2007 Camp Roberts outbreak: Epidemiology and Infection (2010) 138:507-511 Cambridge University Press Calif Dept of Public Health Recommendations re Cocci:http://www.slocounty.ca.gov/Assets/P H/Epidem iologv/Cocci+Recomendations.pdf LA Times article re Solar Farm workers sickened: http://articles.latimes.com/2013/may/01/local/la- me-I n-valley-fever-solar-sites-20130501 Recommendations re Cocci exposure protection for workers: http://www.cdph.ca.gov/programs/ohb/Documents/OccCocci.pdf Climate factors influencing Cocci: http://www.ehponline.org/members/2005/7786/7786.html