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HomeMy WebLinkAboutItem A: Panel Discussion on the Transport of Coal for Export through Eugene 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 A panel of guest speakers with varied perspectives has been assembled to provide input on this issue: 1.Reedsport Mayor Keith Tymchuk, Regional Solutions Committee 2.Ross Macfarlane, Climate Solutions 3.Dr. Andy Harris, Physicians for Social Responsibility 4.David Koch, Port of Coos Bay RELATED CITY POLICIES Adopted City Council goals include reductions in fossil fuel consumption and greenhouse gas emissions. COUNCIL OPTIONS No council action is necessary at this time. CITY MANAGER’S RECOMMENDATION The City Manager has no recommendation on this item. SUGGESTED MOTION No motion is required at this time. ATTACHMENTS A. Proposed Resolution 5065 B. April 13, 2012, Memo from Sustainability Commission C. July 9, 2012, Letter from Port of Coos Bay FOR MORE INFORMATION Staff Contact: Babe O’Sullivan Telephone: 541-682-5017 Staff E-Mail: Babe.osullivan@ci.eugene.or.us S:\CMO\2012 Council Agendas\M121008\S121008A.doc RESOLUTION NO._____ A RESOLUTION TO OPPOSE THE TRANSPORT OF COAL FOR EXPORT THROUGH EUGENE. TheCity Council of the City of Eugene finds that: A. In October 2011, the Oregon International Port of Coos Bay (the “Port”) signed an exclusive negotiating agreement with an anonymous company interested in shipping coal from the Port. The proposal, called Project Mainstay, would build a new terminal and ship 6-10 million tons of coal per year. B. This coal would originate in Wyoming and Montana and would be shipped to Asia. The Port of Coos Bay indicated that as many as 10 trains with 120 to 135 cars that are 1.5 miles long could pass through Eugene per week. At 10 to 15 mile per hour these trains could block intersections in Eugene for 5 minutes. This would increase traffic and the risk of delaying emergency vehicles at rail crossings. C. According to findings from the Environmental Protection Agency and research in other communities; there are likely to be significant negative impacts to Eugene’s public health, economy, and air and water quality. D. These mile and half long trains which typically carrying 100 tons of coal; can lose up to 3% of their load in transit in coal dust. The train cars are not likely to be covered due to danger of fires, and nor are they likely to be sealed with a surfactant to prevent the coal dust loss en route because of the additional cost of applying the surfactant. E. This coal dust will have a negative impact on local businesses, farms, homes and crops. Property values along coal transport routes have also been shown to decline. As well, local food production is likely to sustain adverse impacts which are counter to our community’s desire to increase local healthy food production. F. Coal dust contains toxic heavy metals, including mercury, arsenic, and lead; all known to have serious adverse health impacts on people of all ages, particularly children. These heavy metals, as well as emissions from the diesel-powered engines, are linked to increases in cancer, bronchitis, emphysema, black lung disease and birth defects. The train tracks through Eugene go directly through neighborhoods with populations that already face adverse health impacts. G. Mercury and other toxic air pollutants produced from burning the coal in Asian nations have been shown to adversely impact the Northwest’s air, water, fish, and wildlife. H. Exporting to, and burning coal in, Asia for electricity production will increase greenhouse gases (GHG) and hasten the adverse effects of global warming. Exporting coal to Asia will extend the period of time that Asian nations are reliant on coal, resulting in greater worldwide GHG emissions and other air pollution. It is difficult to see how exporting coal fits into the larger strategy of moving to a lower carbon future. I.The City of Eugene is a leader in the fight for clean air, and against climate change, by signing on to the US Mayors Climate Protection Agreement, creating our award-winning Community Climate and Energy Action Plan (CEAP), and by establishing Council goals to become carbon neutral in City-owned facilities and operations by 2020, and to reduce community-wide fossil fuel use by 50% by 2030. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE,a Municipal Corporation of the State of Oregon, as follows: Section 1. While we strongly support the use of rail on the Coos Bay Rail Link for freight, and the resulting jobs at the Port of Coos Bay; we find that coal trains through our City will have adverse social, economic, and environmental consequences for Eugene without much, if any, economic benefit to our community. Allowing coal trains to pass through our City is not compatible with the City’s efforts to improve air quality, enhance public health, and promote local food production. Section 2. Exporting coal to Asia for electricity production is inconsistent with Eugene’s efforts to reduce GHG emissions that cause climate change, move toward a lower carbon future, and to create clean energy jobs. Section 3. The City of Eugene shall explore whether there are local, state or federal laws protecting public health, safety, and air and water quality that can be used to prevent the transport of coal through the City, and if so, take reasonable steps to prevent that transport. Section 4. We fully support Governor Kitzhaber’s request that a federal agency prepare a programmatic and comprehensive environmental impact statement (EIS) under the National Environmental Policy Act to look at the unprecedented number of coal export proposals pending in the Pacific Northwest, as well as the potential effects in this country of the use of coal in Asia. Now is the time for a programmatic EIS, before substantial and irreversible commitments of resources are made. Section 5. This resolution shall be sent to Governor Kitzhaber, Senators Wyden and Merkley, Congressman DeFazio, Secretary of the Interior Salazar, Secretary of the Army McHugh, General Temple of the US Army Corp of Engineers, Director Abbey of the Bureau of Land Management, our local state legislative delegation; and the City shall lobby on its behalf where appropriate. Section 6 . This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted on the day of , 2012. ATTACHMENT B Sustainability Commission Sustainability Office th 99 W. 10 Avenue, Suite 116 Memorandum Eugene, Oregon 97401 (541) 682-5017 (541) 682-5221 FAX www.eugene-or.gov/sustainability April 13, 2012 To: Mayor and City Council Members From:Sustainability Commission Subject: Proposed Coal Train Transport Through Eugene In October 2011, the Oregon International Port of Coos Bay signed an exclusive negotiating agreement with an anonymous company interested in shipping coal from the port. The proposal, called Project Mainstay, would build a new terminal and ship 6-10 million tons of coal a year. This coal would originate in Wyoming and one to two trains will pass through Eugene per day, each Montana and be shipped to Asia. It is estimated that i carrying up to 15,000 tons of coal . We recognize that development of the terminal and shipping will create an estimated 30-45 jobs in Coos Bay ii (based on other proposed projects for Oregon). We also recognize that the Port of Coos Bay is conducting extensive research and assessment on the environmental impacts of coal transport and shipment. However, according to findings from the Environmental Protection Agency and research in other communities, there are likely to be significant negative impacts to Eugene’s public health, economy, and air and water quality. The Sustainability Commission strongly supports the expansion of rail for freight and passenger transport. However, we urge the City Council to address the local impacts of transporting this coal. Local Impacts of Coal Transport The detrimental impacts of coal transport are extensive. Trains are typically a mile and a half long. Each train iii car is estimated allow up to 3% of its load (which is typically 100 tons or more) to blow away in transit. The iv cars are not likely to be covered due to danger of fires and costs of applying surfactant. Coal transport has economic, health and human rights, environmental and policy impacts. Economic : Increased train traffic and coal dust will have negative impacts on local businesses and crop values vvi , for local farmers. Home values along coal transport routes have also been shown to decline. Health and Human Rights : Coal dust contains toxic heavy metals, including mercury, arsenic, and lead, all known to have serious adverse health impacts on people of all ages, particularly children. These heavy metals, as well as emissions from the diesel-powered engines, are linked to increases in cancer, bronchitis, emphysema, vii black lung disease and birth defects. The train tracks through Eugene go through neighborhoods that already face adverse health impacts. Environmental : Environmental impacts from coal dust and diesel trains generated during transport will impact local water and air quality. Mercury and other toxic air pollutants produced from burning the coal in China and other Asian nations impact the Northwest’s air, water, fish, and wildlife. For example, The Mount Bachelor Observatory has recorded at least 1400 tons of mercury annually falling in the Pacific Northwest as a result of coal burning in China while other studies show that 14% of the mercury dropping from the atmosphere on Mt. viiiix , Bachelor originates in Asia. Policy : The City of Eugene has been a leader in demonstrating how to reduce dependence on coal and emissions of greenhouse gas through the Community Climate and Energy Action Plan, Sustainable Business Initiative, and the City government’s internal commitment to greenhouse gas emissions reduction. Enabling the transport of . coal through the City is contrary to these policy values Recommended Actions ● Direct the City Manager and appropriate staff to identify all possible actions the City can take to prevent the transport of coal through Eugene; ● Pass a resolution or ordinance to oppose transport of coal for export through Eugene; ● Inform Governor Kitzhaber, Port of Coos Bay officials, and coal companies involved in proposals to transport coal through Eugene, that the City will enforce all applicable local, state, and federal laws protecting public health, safety, and air and water quality to prevent the transport of coal through the City; and ● Join other cities in Oregon to lobby the Governor and legislature to oppose coal export terminals in the State of Oregon. Conclusion While the Sustainability Commission strongly supports the use of rail for freight and passenger transport, coal transport will have adverse social, economic, and environmental consequences for Eugene. Allowing coal trains to pass through our City is not compatible with state and regional efforts to close coal plants, nor with local goals to reduce greenhouse gas emissions, improve air quality, enhance public health, and promote local food production. Furthermore, coal mining, export, and combustion are highly destructive and unsustainable energy development practices that undermine Eugene’s efforts to reduce emissions that cause climate change and develop clean energy jobs. On behalf of the community of Eugene, Council should act proactively and quickly to safeguard the citizenry and oppose the transport of coal through our City. i Coal Train Facts (a nonprofit in Washington State) http://www.coaltrainfacts.org/key-facts ; Sightline Institute: http://www.sightline.org/research/energy/coal/coal-FAQ.pdf ; Sierra Club (based on rail industry study) http://www.sierraclub.org/coal/or/ ii The Oregonian Learn, Scott. 2012. “Two coal companies want to export coal through the Port of St Helens.” . January 17. http://www.oregonlive.com/environment/index.ssf/2012/01/two_coal_companies_want_to_exp.html iii Coal Train Facts (a nonprofit in Washington State) http://www.coaltrainfacts.org/key-facts ; Sightline Institute: http://www.sightline.org/research/energy/coal/coal-FAQ.pdf ; Sierra Club (based on rail industry study) http://www.sierraclub.org/coal/or/ iv www.powerpastcoal.org v http://www.coaltrainfacts.org/key-facts vi http://www.coaltrainfacts.org/entrepreneur-freight-property-values vii http://climatesolutions.org/nw-states/washington/cherrypoint viii http://www.guardian.co.uk/commentisfree/2009/feb/15/james-hansen-power-plants-coal ix Strode S., Jaeglé L., Jaffe D., Swartzendruber P., Selin N., Holmes C. and Yantosca R.; Pacific Transport of Mercury. J.Geophys. Res. doi:10.1029/2007JD009428, 2008. D. Jaffe, S. Strode; Fate and Transport of Atmospheric Mercury from Asia, Environ. Chem. 2008, 5, 121, doi:10.1071/EN08010.