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Crude Oil Moratorium

Crude Oil Moratorium. May 3, 2016 Vancouver City Council Workshop Sandra Towne, Planning Manager Brent Boger, Assistant City Attorney. Presentation Overview. What we plan to accomplish today: Provide brief background

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Crude Oil Moratorium

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  1. Crude Oil Moratorium May 3, 2016 Vancouver City Council Workshop Sandra Towne, Planning Manager Brent Boger, Assistant City Attorney

  2. Presentation Overview • What we plan to accomplish today: • Provide brief background • Provide staff recommendation on how to address the crude oil facilities moratorium • Provide recommended next steps and schedule Crude Oil Moratorium - 2

  3. Prior Council Review • September 2014 – Ordinance M4090 • Established a moratorium on applications for permits for the establishment or expansion of all crude petroleum facilities that accept crude oil except those vested or contingently vested. • March 2015 – Ordinance M4118 moratorium extension • August 2015 – Ordinance M-4132 moratorium extension • February 2015 – Ordinance M-4157 moratorium extension (Expires 8/17/16) Crude Oil Moratorium - 3

  4. Why the Moratorium • Establishment of additional crude oil facilities will increase the transportation of Bakken crude oil and will result in an increase in the transportation of that commodity through the city • Human error, acts of nature, and unforeseen disasters are beyond the control of measures proposed for the transportation of Bakken crude oil and could have devastating effects on the entire community • The Association of American Railroads reported that the volume of crude oil shipped by rail increased from 9,500 carloads in 2008 to 400,000 car loads in 2013 and the volume transported by rail through Vancouver is expected to increase in the future. Crude Oil Moratorium - 4

  5. Why the Moratorium • The City has a paramount interest in the health, safety, and welfare of its citizens, and the City Council believes that the development of additional and expanded crude petroleum facilities is contrary to the health, safety, and welfare of its citizens and business community. Crude Oil Moratorium - 5

  6. Staff Research • Two Washington Cities limit fossil fuel refining and storage • City of Bellingham – prohibits petroleum refining and storage • The operation and manufacturing, compounding, processing, refining, treatment and assembly of significant quantities of the following materials is prohibited. For the purpose of this section, “significant quantity” consists of a barrel or more at a single time. • Petroleum processing and storage Crude Oil Moratorium - 6

  7. Staff Research con’t • City of Hoquiam – Prohibits bulk crude oil storage and handling facilities and provides a definition for bulk crude oil storage and handling facility • “Bulk crude oil storage and handling facility” means any structure, group of structures, equipment, pipeline or device that stores or transfers any naturally occurring petroleum extracted from geological formations beneath the earth’s surface which requires further refinement before consumer use, including: conventional crude oil, heavy oil, extra heavy oil, and oil sands/bitumen. The term does not include facilities that store and handle finished products from petroleum. Crude Oil Moratorium - 7

  8. Staff Research cont • Staff recommends to focus on bulk crude oil storage and oil refineries to address the Council’s moratorium. • Substantial safety concerns across the nation provides justification to limit crude oil storage and refinement processes • Two other Washington city development codes provide good examples Crude Oil Moratorium - 8

  9. Staff Recommendation • Staff recommendation: • Prohibit bulk crude oil storage and handling facilities except for vested or contingently vested projects • Provide a definition of crude oil storage and handling facilities, based on Hoquiam’s example • Prohibit oil refineries • Prohibit expansion of existing crude oil storage and handling facilities Crude Oil Moratorium – 9

  10. Stakeholder /Interested Parties Outreach • Attempt to schedule a specific stakeholder meeting with Vancouver petroleum companies, the Port, and CREDC • Mailing to over 50 industrial companies • Mailing to several environmental groups • Mailing to Neighborhood Associations • Planning Commission and City Council meetings Crude Oil Moratorium – 10

  11. Next Steps/Timeline • May 24, 2016 – Planning Commission public hearing • June 13, 2016 – City Council workshop • July 11, 2016 – City Council consent agenda • July 18, 2016 – City Council public hearing • August 17, 2016 – Ordinance M4157 expires Crude Oil Moratorium - 11

  12. Questions and Discussion Crude Oil Moratorium - 12

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