Item A: Panel Discussion on the Transport of Coal for Export through Eugene

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Panel Discussion on the Transport of Coal for Export through Eugene Meeting Date: October 8, 2012 Agenda Item Number: A Department: Central Services Staff Contact: Babe O’Sullivan www.eugene-or.gov Contact Telephone Number: 541-682-5017 ISSUE STATEMENT Following discussion at its July 16 meeting, the City Council requested an expert panel discussion to inform the decision on a proposed resolution, Resolution 5065, which would signal the City of Eugene’s opposition to the transport of coal by train through the city for export via the Port of Coos Bay. The work session includes a panel of four guest speakers representing various perspectives on the issue. The vote on Resolution 5065 tentatively is scheduled for October 22. BACKGROUND In October 2011, the Oregon International Port of Coos Bay signed an exclusive negotiating agreement with a company interested in shipping coal from the port. The proposal, called Project Mainstay, would build a new terminal and ship six to ten million tons of coal a year. This coal would originate in Wyoming and Montana and be shipped to Asia, passing through Eugene on its way to the port. It is estimated that one to two trains would pass through Eugene every day, each carrying up to 15,000 tons of coal. Supporters of the project estimate that more than 100 permanent coal-related jobs would be created at the terminal, and lead to other economic activity in the region. The terminal and rail line construction would create 1,433 jobs in Coos County, with 1,155 elsewhere in the state, according to consultants advising the Port of Coos Bay. A number of concerns have been raised about the trains carrying coal through Eugene including delays at railroad crossings, negative public health impacts from fugitive coal dust, and negative impacts on air, water, fish, and wildlife -- as well as increased greenhouse gases from the burning of coal. An April 13, 2012, memo from the Eugene Sustainability Commission (Attachment B) called out concerns and recommended adoption of a resolution such as the one proposed. On July 9, 2012, Councilor Alan Zelenka proposed Resolution 5065 which would signal the City of Eugene’s opposition to the transport of coal by train through the city for export via the Port of Coos Bay. The Port of Coos Bay submitted a letter to the City Council on July 9, 2012 (Attachment C) expressing concerns about the potential loss of regional economic development opportunities and local job creation if Eugene were to oppose coal transport by train. S:\CMO\2012 Council Agendas\M121008\S121008A.doc