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Home My WebLink About01-15-2019 Item 7 - Opposing Plans to Truck Oil through SLO Department Name: Administration Cost Center: 1001 For Agenda of: January 15, 2019 Placement: Consent Estimated Time: Not Applicable FROM: Robert A. Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager SUBJECT: RESOLUTION OPPOSING PLANS TO TRUCK OIL THROUGH SAN LUIS OBISPO COUNTY AND TO BUILD AN OIL PIPELINE NEAR AND THROUGH SAN LUIS OBISPO COUNTY RECOMMENDATION Adopt a resolution opposing plans to truck oil through San Luis Obispo County and to build an oil pipeline near and through San Luis Obispo County (Attachment A). DISCUSSION Background In December of 2018, it came to the City’s attention that the County of Santa Barbara was considering a proposal from ExxonMobil to use approximately 70 truck trips per day to send oil to processing facilities in Santa Maria and Maricopa, including on roadways in southern San Luis Obispo County. The project, as described in the application to the County of Santa Barbara, estimates that the emissions from on-road transport alone could range from 4,600 metric tons of carbon dioxide per year (MTCO2e) to 11,500 MTCO2e per year. A related project focusing on replacing the oil pipeline that is currently in place is also under consideration. Previous Council or Advisory Body Action The City has a recent history of supporting efforts related to limiting the expansion and transportation of oil due to health and safety, environmental, and climate concerns: • On August 21, 2018 the City Council adopted Resolution 10932, which supported Measure G, a ballot initiative to ban fracking and new oil and gas wells in unincorporated areas of San Luis Obispo County. • On October 3, 2017, the City Council adopted Resolution 10836, which supports a ban on new drilling, fracking, and related techniques, opposes new or expansion of existing oil and gas leases, and supports a phase-out of all oil and gas extraction. • On June 23, 2015, the City Council committed to fossil fuel divestment through the adoption of the City of San Luis Obispo Investment Management Plan, which includes the following restriction, “No investments are to be made to support the direct production of drilling of fossil fuels.” • In February 2015, City Council directed staff to write a letter to the County of San Luis Obispo opposing the Phillips 66 oil train project due to health, safety, and environmental issues. Packet Pg. 127 Item 7 Policy Context The attached resolution (Attachment A) opposes the trucking of oil and replacement of pipeline plans. The resolution recognizes the critical importance of making decisions that supports the state movement toward carbon neutrality, the protection of groundwater as a fundamental resource, recognizes that expanded or intensified oil extraction would significantly increase the demands on the County’s limited water supplies and that the protection of this resource is the primary responsibility of all levels of government. The City’s legislative platform authorizes legislative advocacy opposing the expansion and continuation of oil and gas operations and the council has preliminarily indicated a desire to include broader opposition to legislation supporting or enabling fossil fuel operations in its 2019 platform. However, the platform does not authorize specific project advocacy on adjudicatory matters within the jurisdiction of other agencies. Thus, the request for opposition to this particular project within Santa Barbara’s jurisdiction is presented to the full council for consideration and actions. Public Engagement The proposed resolution affirms the City’s long-standing policy to oppose oil development and exploration that has the potential to impact the health and safety of the City and directed to be placed on an upcoming agenda at the January 8, 2019 City Council meeting. ENVIRONMENTAL REVIEW Passing a Resolution that opposes the trucking of oil and replacement of pipeline plans is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines Section 15378 (Definitions – Project). FISCAL IMPACT Budgeted: Yes Budget Year: 2018-19 Funding Identified: No Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A* State Federal Fees Other: Total *There is no direct fiscal impact associated with the recommended action as it requires minimal resources from the Administration Department and City Attorney’s Office. Packet Pg. 128 Item 7 ALTERNATIVE The City Council could decide to alter the draft Resolution or decide not to adopt a Resolution. Staff does not recommend this alternative because the resolution is consistent with City’s 2019 Legislative Action Platform, recent actions to restrict new fossil fuel extraction, and the City’s commitment to climate action. Attachments: a - Draft Resolution Packet Pg. 129 Item 7 R ______ RESOLUTION NO. _____ (2019 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, OPPOSING A PROPOSAL TO TRUCK OFFSHORE OIL ALONG SANTA BARBARA, SAN LUIS OBISPO, AND KERN COUNTY HIGHWAYS AND TO OPPOSE A PROPOSAL TO BUILD A COASTAL OIL PIPELINE SERVICING AGING OFFSHORE DRILLING PLATFORMS WHEREAS, City of San Luis Obispo values our state’s ocean and coastal waters, which provide habitat to a vast array of wildlife, including fish, whales, sea turtles, and birds that depend on a healthy and clean environment; and WHEREAS, San Luis Obispo’s residents and its visitors enjoy our beaches and the Pacific Ocean for recreational, commercial, and educational activities, all of which support our local economy; and WHEREAS, in 2015 a pipeline serving offshore drilling platforms burst near Refugio State Beach which fouled beaches and coastal waters for miles, causing irreparable damage to the environment and wildlife; and WHEREAS, the operating company of the aforementioned pipeline was recently convicted on multiple charges for failing to properly maintain that pipeline, failing to timely call emergency response agencies, and killing marine mammals, seabirds, and other marine life; and WHEREAS, that company has a long history of spills and enforcement actions against it; and WHEREAS, newly constructed pipelines pose significant risk of spills, with the risk increasing dramatically from pipelines after 20 years; many of the pipelines that will connect to this one are past 20 years of age; and WHEREAS, oil truck accidents cause fires and explosions, injure and kill people, and spill hundreds of thousands of gallons of crude a year onto roads and into waterways; and WHEREAS, burning the 4 million barrels of oil intended for trucking in a year would result in over 1.7 million metric tons of carbon pollution -- the same amount as burning nearly 2 billion pounds of coal; and WHEREAS, both the trucking and pipeline routes would pass through critical habitat for several species protected as threatened or endangered under the federal ESA, including red-legged frogs, California tiger salamanders and Southern California steelhead, which are highly susceptible to toxic crude oil; and WHEREAS, these proposals would ensure ongoing operations of aging offshore drilling platforms into the foreseeable future, which is fundamentally inconsistent with California’s legislation and executive orders focused on deep decarbonization and carbon neutrality; and Packet Pg. 130 Item 7 Resolution No. _____ (2019 Series) Page 2 R ______ WHEREAS, in 2017 the City of San Luis Obispo approved Resolution No. 10836 supporting a ban on new drilling, fracking, and related techniques, opposing new or expansion of existing oil and gas leases, and supporting a phase-out of all oil and gas extraction. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. The City of San Luis Obispo opposes any proposal to truck offshore oil along Santa Barbara, San Luis Obispo, and Kern County highways and opposes any proposal to build coastal oil pipelines that service the aging offshore drilling platforms. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2019. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 131 Item 7 Page intentionally left blank. Packet Pg. 132 Item 7