Vancouver City Council Workshop Brent Boger, Assistant City Attorney Crude Oil Moratorium May 3, 2016 Vancouver City Council Workshop Sandra Towne, Planning Manager Brent Boger, Assistant City Attorney DESIGN NOTES: Do not move text, logo or transparent black boxes any further out towards the edges of the slide. The current layout is within the “safe area” for broadcast on CVTV. To change the background photo on this slide, follow these simple instructions: Right click on the photo Select “Change Picture” from the menu Navigate to the photo you want to use instead and select Open It will automatically place your photo in the same space at the same size (unless it’s a vertically aligned photo). You may need to resize it to fit the space. Avoid using vertical/portrait aligned images, as they will not fit this space well.

Presentation Overview Provide brief background Provide staff recommendation on how to address the crude oil facilities moratorium Provide next steps and schedule Crude Oil Moratorium - 2

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) The September 2014 Ordinance M4090 provides a significant list of serious incidents caused by the transport of crude oil and points out that the Columbia River would be used as a major shipping channel for any new crude petroleum storage facility in Vancouver. The moratorium extensions have been primarily based on the delays in the Energy Facility Site Evaluation Council (EFSEC) process preparing an environmental impact statement for petroleum uses. The EIS was released in Nov 2015 and found to be seriously deficient in analyzing the risks associated with petroleum use expansion in the Port of Vancouver. The EFSEC schedule includes an adjudication procedure that includes sworn testimony from proponents and all others from June 27th through the end of July on whether the Tesoro proposal does or does not meet state statute The Final EIS is expected to be released in fall following the adjudication procedure . Then the governor is given 30-60 days to make a decision on the proposal Crude Oil Moratorium - 3

Why the Moratorium Crude oil facilities will increase the transportation of Bakken crude oil resulting 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 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. The September 2014 Ordinance M4090 provides a significant list of serious incidents caused by the transport of crude oil and points out that the Columbia River would be used as a major shipping channel for any new crude petroleum storage facility in Vancouver. The moratorium extensions have been primarily based on the delays in the Energy Facility Site Evaluation Council (EFSEC) process preparing an environmental impact statement for petroleum uses. The EIS was released in Nov 2015 and found to be seriously deficient in analyzing the risks associated with petroleum use expansion in the Port of Vancouver. The EFSEC schedule includes an adjudication procedure that includes sworn testimony from proponents and all others from June 27th through the end of July on whether the Tesoro proposal does or does not meet state statute The Final EIS is expected to be released in fall following the adjudication procedure . Then the governor is given 30-60 days to make a decision on the proposal Crude Oil Moratorium - 4

Staff Research Two Washington Cities limit fossil fuel refining and storage City of Bellingham –limits petroleum refining and storage to one barrel at a single time. City of Hoquiam – Prohibits bulk crude oil storage and handling facilities and provides a definition for bulk crude oil storage and handling facility Researched other port cities in Washington and other parts of the US. The research was not all inclusive however we found 2 cities in WA that prohibit crude oil storage facilities – the City of Bellingham and Hoquiam. Crude Oil Moratorium - 5

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 The EFSEC draft EIS was released on November 24, 2015, and is seriously deficient in analyzing the risks associated with petroleum use expansion in the Port of Vancouver area. Two other Washington city development codes provide good examples DESIGN NOTE: Do not move the text blocks or logo any further out towards the edges of the slide. The current layout is within the “safe area” for broadcast on CVTV. Crude Oil Moratorium - 6

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 SEPA notifications Planning Commission and City Council meetings Based on the documented danger of crude oil transport and that any crude oil storage facility will be transporting crude oil via the Columbia River staff recommends to : Crude Oil Moratorium – 7

Staff Recommendation Staff recommendation: Prohibit bulk crude oil storage and handling facilities 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 Based on the documented danger of crude oil transport and that any crude oil storage facility will be transporting crude oil via the Columbia River staff recommends to : Crude Oil Moratorium – 8

Next Steps/Timeline 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 DESIGN NOTE: Do not move the text blocks or logo any further out towards the edges of the slide. The current layout is within the “safe area” for broadcast on CVTV. Crude Oil Moratorium - 9

Questions Crude Oil Moratorium - 10 DESIGN NOTE: Do not move the text blocks or logo any further out towards the edges of the slide. The current layout is within the “safe area” for broadcast on CVTV. Crude Oil Moratorium - 10