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Opinion: Crude by rail can be part of solution to Benicia’s budget woes

August 29, 2015 by Dan Broadwater 4 Comments

THE CITY OF BENICIA ENTERED ITS THIRD YEAR OF REVIEW for Valero’s proposed Crude by Rail Project having spent the bulk of this time working with independent experts to draft a mitigated negative declaration and an Environmental Impact Report (EIR). In February, the city announced plans to edit sections of the draft EIR and recirculate them for public comment this fall, causing another delay in what has already become a dragged-out process that hurts Benicia.

Valero Benicia Refinery originally applied for project permitting in 2012, seeking to invest in a multimillion-dollar infrastructure project on refinery property that would provide increased access to domestic energy supplies and help the refinery remain competitive in an ever-changing marketplace. The project is expected to create at least 20 permanent jobs at the refinery and require approximately 120 skilled craftsmen during construction, generating millions in additional tax revenues for Benicia and surrounding communities.

In a General Fund 10-Year Forecast presented to the City Council earlier this year, Benicia Finance Director Karin Schnaider reported that Benicia is taking more time to emerge from the recent deep recession and called for plans to avoid another recession in the city. The report indicated that without changing its current direction, Benicia’s reserves would be decimated in the next 10 years as expenses outstrip revenues.

Valero’s Crude-by-Rail Project is part of the solution to Benicia’s budget woes. With each month of delay, the city loses $30,000 in foregone tax revenues. That amounts to $360,000 a year — enough to pay for four police officers or two paramedics.

With the Great Recession in the rearview mirror for much of the country, Benicia needs to take action now to approve Valero’s project and secure the jobs and economic growth the project will provide. Valero’s top safety record makes it the kind of employer that I want for my union brothers and sisters. The refinery’s commitment to safety is integral to its operations. This project is another example of Valero’s commitment to the Benicia community to provide good-paying, stable jobs and significant tax revenues. It is an important step in ensuring Benicia does not face another recession in the years to come.

Yet Valero’s project is getting lost in city bureaucracy and the false claims of the opposition. Per the California Environmental Quality Act, Benicia has conducted an EIR and found the project will have significant positive impacts on the community, including fewer greenhouse gases and a reduced likelihood of spills compared to current marine delivery. The project also would bring a much-needed financial benefit to the city at a time when experts predict expenses will soon outweigh revenue. As Schnaider recently explained in the General Fund 10-Year Forecast, “(Benicia) will have a decline.” And, as Councilmember Christina Strawbridge affirmed in that meeting, “If we do nothing, we’re in trouble.” Yet continued delay on Valero’s Crude-by-Rail Project stands in the way of job creation and economic growth that can be part of the solution.

The city understands that it needs to take action to avoid financial calamity, but even as it searches for ways to bolster the local economy, this project continues to stall. It is time to recognize the vital contributions to the labor market this project represents. It is time to recognize how crucial Valero is to the local economy. It is time to approve a project that’s three years in the making.

After years of delay, our workers are ready and waiting for those high-paying, well-regarded jobs at one of the nation’s safest refineries.

Dan Broadwater is business manager of the International Brotherhood of Electrical Workers, Local 180.

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Filed Under: Features, Front Page, Opinion

Comments

  1. DDL says

    September 1, 2015 at 8:32 pm

    Thank you for this piece Dan. Refreshing to see some solid common sense on this subject rather then what we primarily see from those opposed.

    .

    Reply
  2. Bob Livesay says

    September 2, 2015 at 6:01 am

    Now Dennis there you go again. I think your going soft. Just fun. It was a very good article. But it will not change the shallow thinking Enviro Greenies or should I say their agenda driven ideals..

    Reply
  3. Paul Winders says

    September 19, 2015 at 1:32 am

    Dan good point, Bob please be more positive

    Reply
    • Bob Livesay says

      September 19, 2015 at 7:28 am

      Stop it Paul. I fully understand this issue. I said it was a good article but at the same time the Enviro Greenies are not going away. Now that is positive like it or not.

      Reply

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