The Pittsburg Energy Infrastructure Project
Questions and Answers
1. What is the Pittsburg Energy Infrastructure Project?
WesPac Energy–Pittsburg LLC (WesPac) will modernize and reactivate the existing marine terminal, oil storage and transfer facilities at the GenOn Pittsburg Generating Station located at 696 West 10th Street. It will be used to transport and store virgin and partially refined crude oil. All products will be transferred by ship, barge and pipeline and will be stored in the storage tanks on site. The crude oil will be shipped to local refineries through existing pipelines. One pipeline is already connected to the facility and the other will require a new pipeline to connect to it, approximately ¾ of a mile long.
2. Why is this needed?
The California Energy Commission (CEC) has identified the lack of adequate storage and receiving capacity for crude oil in the San Francisco Bay area as a major concern (CEC, 2009). The demand for more crude oil marine terminals and storage facilities is increasing as California oil production declines and is replaced with imported oil delivered by marine vessels. The Pittsburg Energy Infrastructure Project will relieve ship congestion, reduce air pollution from idling ships, add reserve oil storage capacity and increase crude oil storage infrastructure.
3. What are the benefits to Pittsburg?
The Pittsburg Energy Infrastructure Project will improve and revitalize an existing dormant facility and will generate significant property tax revenue. The project will create up to 250 union construction jobs and 10-15 jobs for ongoing operations and maintenance. WesPac is committed to hiring as many local Pittsburg residents as possible. The modernization of this facility will include state-of-the-art equipment and technology to ensure environmental compliance with all federal, state and local regulations.
4. What is the company doing to ensure the safety of our neighborhood?
WesPac provides some of the safest and cleanest transportation and storage systems for energy products around the country and is committed to protecting the public, the environment and employees. These facilities and all of the existing equipment will be modernized using the most up-to-date equipment and technology. The transfer process and the storage facilities will be controlled by operators and automatic control systems and will be monitored on-site for safety 24 hours per day. The storage tanks will be modernized and equipped with the “Best Available Control Technology” to minimize emissions and comply with all environmental rules and regulations. There will be emergency shutdown provisions, state-of-the-art vapor and leak monitoring and detection equipment, fire detection and suppression equipment, and an oil spill containment system. The proposed new pipeline will be constructed with a protective coating against corrosion and will have a corrosion control system along its length. It will have regular internal inspection by internal inspection devices and will have station shut off valves.
5. What is the timeline for approval?
An Environmental Impact Report (EIR) is being prepared for the project to determine the effect the project will have on the environment in accordance with requirements of the California Environmental Quality Act. The City of Pittsburg is the lead agency and is directing the preparation of the EIR. A Notice of Preparation of an EIR was issued by the City of Pittsburg to local residents and appropriate government agencies on July 21, 2011. A public EIR Scoping Meeting was held in the City of Pittsburg City Hall on August 4, 2011. The Draft EIR is expected to be completed in January 2012 and released for public review at that time. For additional information about the EIR, please visit the City of Pittsburg web site.6. What is the timeline for construction and operation?
WesPac estimates that all permits will be received by mid 2012 and construction will start shortly thereafter. It is estimated that the Terminal will begin operation after about nine months of construction (mid 2013). Total construction time is estimated at 15 months.