New York rescinds Albany rail terminal rulings

OREANDA-NEWS. May 22, 2015. The New York Department of Environmental Conservation (DEC) has rescinded two designations previously given to Global Partners' application to build bitumen-capable handling and storage units at its crude-by-rail facility in Albany, New York, a move that could force the company to conduct a time-consuming environmental impact statement (EIS).

The DEC will rescind its previously granted "negative declaration," a determination that a project will not result in a significant adverse environmental impact and thus not need an EIS. The move effectively places one more hurdle before Global as it tries to expand its Albany site, which unloads crude by rail and ships it to refineries on the east coast.

"Our review of Global's application has focused on protecting the health of people living around the facility and the environment," said DEC commissioner Joe Martens. "This community has voiced its concerns and raised some serious issues."

Global did not immediately respond to a request for comment.

About 19,000 comments were submitted during the public comment period on Global's proposal. The DEC highlighted concerns over how the proposed project would comply with the hydrogen sulfide ambient air quality standard and said Global failed to provide sufficient information to determine net emissions increases associated with the project. Regulators also noted the proximity of a 137-unit residential housing development as a reason to more closely analyze potential impacts.

The DEC is also rescinding its 2013 Notice of Complete Application, marking Global's application as incomplete.

The crude-by-rail industry as a whole, and Global's facilities in particular, have faced significant opposition in Albany, calling into question east coast refiners' ability to source more crude through a key regional hub.

Albany county executive Daniel McCoy last year urged the relocation of residents who live near Global's site and proposed stiffer fines for failing to quickly report spills. He also imposed a moratorium blocking the facility's expansion, saying a public health investigation was needed first.

New York governor Andrew Cuomo has also been vocal in urging better safety requirements on crude-by-rail, and has ordered several inspections.