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RPVCCA_CC_SS_2012_08_21_02b_Rancho_LPG_Butane_Storage_FacilityCITY OF STUDY SESSION MEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE:. SUBJECT: HONORABLE MAYOR &CITY COUNCIL MEMBERS COUNCILWOMAN SUSAN BROOKS AUGUST 21,2012 RANCHO LPG BUTANE STORAGE FACILITY The Rancho LPG butane storage facility at North Gaffey Street and Westmont Drive in San Pedro was constructed beginning in the early 1970s.At the time that construction started, the City of Los Angeles did not issue a building permit for it because it was believed (erroneously)that the facility was exempt from City regulation.Eventually,a building permit was issued and an EIR was prepared. The facility includes 2 large refrigerated butane storage tanks with a combined capacity of 25 million gallons and several smaller tanks for the storage of propane.The butane stored in the large tanks is a by-product of petroleum refining at the nearby Valero and BP refineries.In the past,butane was transported from the site through an underground pipeline to a nearby berth in the Port of Los Angeles.Curtently,butane is transported from the facility via rail car and tanker truck. City Staff has been reporting on the Rancho LPG facility as a part of the Border Issues Status Report for nearly 2 years,but there has been public concern about the facility in the surrounding community for many years.These concerns were heightened following the catastrophic explosion of an underground natural gas transmission line in a residential neighborhood in San Bruno,CA in September 2010.At about this same time,the City of Los Angeles'Northwest San Pedro Neighborhood Council commissioned a risk assessment of the facility by Cornerstone Technologies.The Cornerstone report identified a variety of possible accident scenarios,ranging from a relatively small,on-site mishap to a sudden,catastrophic failure of the butane tanks,with impacts extending for miles. In response to the Cornerstone report,the facility operator commissioned its own risk assessment by Quest Consultants.The Quest report of January 2011 concluded that the area affected by the most catastrophic events that could realistically occur would be several orders of magnitude less than the most-catastrophic scenario identified in the Cornerstone report.Third-party independent assessments ofthe Cornerstone and Quest SS 2b-1 MEMORANDUM:Rancho LPG Butane Storage Facility August 21,2012 Page 2 reports-prepared at the request ofthe U.S.Environmental Protection Agency-generally concluded that the Cornerstone report was flawed in its analysis of the risk of catastrophic upset at the facility,while the Quest report defined more realistic scenarios that were indicative of the actual risk posed by the facility upon the surrounding community. There is still a great deal of controversy about this facility in the surrounding community. Community members have questions about a number of critical topics,including (but not limited to): •The circumstances of the environmental review of the facility,both at the time of its construction and since; •T~e validity and accuracy of either of the risk assessments recently performed for the facility; •The potential effects of seismic activity from the Palos Verdes fault upon the facility, including liquefaction and earthquake-induced landslides;and, •The amount,type and sufficiency of liability coverage afforded to surrounding residents and property owners by the operator of the facility. Opponents of the facility have pleaded with local,State and Federal officials and agencies to have the facility closed and/or relocated.Opponents have also prepared a 12-minute video called "Before the Ashes"and recently testified before Councilman Joe Buscaino and the Public Safety Committee of the Los Angeles City Council in July 2012. On 2 previous occasions,this City Council has taken a formal position on the facility.In letters to then-Councilwoman Janice Hahn,Senator Dianne Feinstein and Senator Barbara Boxer in 2011,the City Council encouraged the addressees to: •Regularly monitor the facility and enforce all applicable regulations and environmental review processes with respect to the on-going operation of the facility and any possible future proposals for its modification,renovation and/or expansion; and, •Provide to the general public a transparent and accountable clearinghouse for the dissemination of information and the discussion of issues about the facility. Given the high level of concern that continues to exist in the surrounding community,I suggest that the City Council should re-assess its past position and potentially propose new action regarding this facility.In my view,it is incumbent upon our City Council to take action to ensure that our community is as safe and protected as possible,and to enlist the support of surrounding communities on the Peninsula to bring sufficient pressure to bear upon the facility operator and the local,State and Federal agencies charged with overseeing this facility.To this end,I recommend that we direct Staff to report back to the City Council on the next available agenda regarding our available options and strategies to ensure that the health,safety and welfare of our residents are protected. SS 2b-2 MEMORANDUM:Rancho LPG Butane Storage Facility August 21,2012 Page 3 Attachments Letter to Councilwoman Janice Hahn (dated 1/6/11) Letters to Senators Feinstein and Boxer (dated 6/21/11) M:\Border Issues\Rancho LPG Butane Storage Facility\20120821_RanchoLPG_StudySessionRptdoc SS 2b-3 January 6,2011 CITYOF RANCHO PALOS VERDES Councilwoman Janice Hahn,15 th District City of Los Angeles 200 N.Spring St.,Room 435 los Angeles,CA 90012 SUBJECT:City of Rancho Palos Verdes'Concerns regarding the Rancho LPG Butane Storage Facility,2110 North GaJfey Street,San Pedro Dear Councilwoman Hahn: As you may be aware,residents in San Pedro and Rancho Palos Verdes have been ooncerned for many years about the RanchO LPG (formerly AmeriGas)butane storage facility at North Gaffey Street and Westmont Drive.Recently,these concerns have returned to the forefront,particularly in the aftermath of the oatastrophic gas pipeline failure tn the Bay Area community of San Bruno in September 2010. We understand that plans were made several years ago for this faoility to be rewlooated to Pier 400 in the Port of los Angeles-away from homes,schools and looal business-· plans that (for some reason)have never oome to fruition.The facility was approved for this site more than thirty (30)years ago,at a time When less-rigorous environmental review and public participation processes were in effect than is the case today. Earlier this year,the Northwest San Pedro Neighborhood Council (NWSPNC) commissione.d a quantitative risk assessment of the Rancho LPG facility.The risk assessment-released in September 201 Q-identified a variety of posslbleaocident scenarios for the facility.These ranged from a relatively small,on-site mishap with impacts mainly contained to the site,to a sudden,catastrophic fallure of the butane storage tanks with impacts extending for a 5-to 7-mile radius from the facility. The facility's operator,Rancho LPG Holdings,LLC,has refuted the conclusions of the NWSPNC risk assessment,and the assessmenfs authors have not (to the City's knowledge)responded publicly to questions about how the risk assessment was prepared or how its conclusions were reached.Although Ranoho LPG has stated that it intends to prepare its own risk assessment of the facility and to publicly release its findings,there remain today many unanswered questions about the safety of this facility for residents living nearby. 30940 HAWTHORNE BLVD /IWicHO B\LOS VERDES,LA 90275·5391 SS 2b-4 Councilwoman Janice Hahn January 6,2011 Page 2 Ideally,the City of Rancho Palos Verdes and its residents would like to see this facility relocated to another site that does not pose such a significant "risk of upset"to surrounding property and neighborhoods.Failing that,however,we wish to be assured that the facility is operated as safely as possible,and in complete accordance the regulations of all local,State and Federal agencies having Jurisdiction over this site and these typesot facilities.To these ends,we respectfully request your assistance in the fulfilling the foHowing community objectives: •Regularly monitor the Rancho LPG site and facility,and enforce (to the maximum extent possible)the City of Los Angeles'land use regulations and the State's environmental review processe.s (Le.,CEQA)with respect to the on-goIng operation of the facility and any possible future proposals for its rnodification, renovation and/or expansion;and, •Provide to the general public a transparent and accountable clearinghouse for the dissemination of information and the discussion of issues about the Rancho LPG site and facility. Our Planning Staff continues to monitor issues related to the Rancho LPG site and facility,and to report these issues regularly to our City Council.We look forward to working with you and the facility's owner/operator to ensure the future safety and tranquility of our respective communities and residents. Sjnce~~I¥you~s, \ .'-..- Thomas D.Long Mayor / cc:Rancho Palos Verdes City Council Carolyn Lehr,Oity Manager IJoel Rojas,Community Development Director'V Kit Fox,Associate Planner M:\Border Issues\Rancho LPG Butane Storage Facility\20101221_Hahn_RanchoLPG.doc SS 2b-5 CITYOF THOMAS D.LONG,MAYOR ANTHONY M.MISETICH,MAYOR PRO TEM BRIAN CAMPBELL,COUNCILMAN DOUGLAS W.STERN,COUNCILMAN STEFAN WOLDWICZ,COUNCILMAN June 21,2011 RANCHO PALOS VERDES The Honorable Dianne Feinstein United States Senate 331 Hart Senate Office Building Washington,DC 20510 SUBJECT:City of Rancho Palos Verdes'Concerns regarding the Rancho LPG Butane Storage Facility,2110 North Gaffey Street,San Pedro,California Dear Senator Feinstein: Residents in San Pedro and Rancho Palos Verdes have been concerned for many years about the Rancho LPG (formerly AmeriGas)butane storage facility at North Gaffey Street and Westmont Drive in San Pedro.Within the past year,these concerns returned to the forefront,particularly in the aftermath of the catastrophic gas pipeline failure in the Bay Area community of San Bruno in September 2010. We understand that plans were made several years ago for this facility to be re-Iocated to the Port of Los Angeles-away from homes,schools and local business-plans that (for some reason)have never come'to fruition.The facility was approved for its current site more than thirty (30)years ago,at a time when less-rigorous enVironmental review and pUblic participation processes were in effect than is the case today. In September 2010,the City of Los Angeles'Northwest San Pedro Neighborhood Council (NWSPNC)released a quantitative risk assessment of the Rancho LPG facility,prepared by Cornerstone Technologies.The Cornerstone report identified a variety of possible accident scenarios for the facility.These ranged from a relatively small,on-site mishap with impacts mainly contained to the site,to a sudden,catastrophic failure of the butane storage tanks with impacts extending for a 5-to 7-mile radius from the facility. The facility's operator,Rancho LPG Holdings,LLC,immediately refuted the conclusions of the Cornerstone report,whose authors have not (to the City's knOWledge)responded publicly to questions about how the risk assessment was prepared or how its conclusions were reached.Rancho LPG subsequently commissioned its own risk assessment of the 30940 HAWTHORNE BLVD./RANCHO PALOS VERDES,CA 90275·5391/(310)544·5205/FAX (310)544·5291/WWW.PALOSVERDES.COM/RPV '.,~;~>PRINTED ON RECYCLED PAPER SS 2b-6 Senator Dianne Feinstein June 16,2011 Page 2 facility,prepared by Quest Consultants.The findings of the Quest report,which were publicly released in January 2011,concluded that the area potentially affected by the most catastrophic events that could realistically occur at the Rancho LPG facility.would be several orders of magnitude less than the nearly 7-mile radius affected under the most- catastrophic scenario identified in the Cornerstone report.Despite this,there remain today many unanswered questions about the safety of this facility for residents living nearby. Ideally,the City of Rancho Palos Verdes and its residents would like to see this facility relocated to another site that does not pose such a significant "risk of upset"to surrounding property and neighborhoods.Failing that,however,we wish to be assured that the facility is operated as safely as possible,and in complete accordance the regulations of all local, State and Federal agencies having jurisdiction over this site and these types of facilities. To these ends,we respectfully request your assistance in the fulfilling the following community objectives: • Regularly monitor the Rancho LPG site and facility,and enforce (to the maximum extent possible)any applicable Federal regulations and environmental review processes (i.e.,NEPA)with respect to the on-going operation of the facility and any possible future proposals for its modification,renovation and/or expansion;and, •Provide to the general public a transparent and accountable clearinghouse for the dissemination of any information and the discussion of issues about the Rancho LPG site and facility. Our Planning Staff continues to monitor issues related to the Rancho LPG site and facility, and to report these issues regularly to our City Council.We look forward to working with you and the facility's owner/operator to ensure the future safety and tranquility of our respective communities and residents. Thomas Mayor cc:Rancho Palos Verdes City Council Carolyn Lehr,City Manager Joel Rojas,Community Development Director Kit Fox,Associate Planner SS 2b-7 CITYOF THOMAS D.LONG,MAYOR ANTHONY M.MISETICH,MAYOR PRO TEM BRIAN CAMPBELL,COUNCILMAN DOUGLAS W STERN,COUNCILMAN STEFAN WOlDWICZ,COUNCILMAN June 21,2011 The Honorable Barbara Boxer United States Senate 112 Hart Senate Office Building Washington,DC 20510 RANCHO PALOS VERDES SUBJECT:City of Rancho Palos Verdes'Concerns regarding the Rancho LPG Butane Storage Facility,2110 North Gaffey Street,San Pedro, California Dear Senator Boxer: Residents in San Pedro and Rancho Palos Verdes have been concerned for many years about the Rancho LPG (formerly AmeriGas)butane storage facility at North Gaffey Street and Westmont Drive in San Pedro.Within the past year,these concerns returned to the forefront,particularly in the aftermath of the catastrophic gas pipeline failure in the Bay Area community of San Bruno in September 2010. We understand that plans were made several years ago for this facility to be re-Iocated to the Port of Los Angeles-away from homes,schools and local business-plans that (for some reason)have never come to fruition.The facility was approved for its current site more than thirty (30)years'ago,at a time when less-rigorous environmental review and public participation processes were in effect than is the case today. In September 2010,the City of Los Angeles'Northwest San Pedro Neighborhood Council (NWSPNC)released a quantitative risk assessment of the Rancho LPG facility, prepared by Cornerstone Technologies.The Cornerstone report identified a variety of possible accident scenarios for the facility.These ranged from a relatively small,on-site mishap with impacts mainly contained to the site,to a sudden,catastrophic failure of the butane storage tanks with impacts extending for a 5-to 7-mile radius from the facility. The facility's operator,Rancho LPG Holdings,LLC,immediately refuted the conclusions of the Cornerstone report,whose authors have not (to the City's knOWledge)responded publicly to questions about how the risk assessment was prepared or how its conclusions were reached.Rancho LPG subsequently commissioned its own risk assessment of the facility,prepared by Quest Consultants.The findings of the Quest 30940 HAWTHORNE BLVD./RANCHO PALOS VERDES,CA 90275-5391/(310)544-5205/FAX (310)544-5291/WWW.PALOSVERDES.COM/RPV ;::,~>PRINTED ON RECYCLED PAPER SS 2b-8 Senator Barbara Boxer June 16,2011 Page 2 report,which were pUblicly released in January 2011,concluded that the area potentially affected by the most catastrophic events that could realistically occur at the Rancho LPG facility would be several orders of magnitude less than the nearly 7-mile radius affected under the most-catastrophic scenario identified in the Cornerstone report.Despite this,there remain today many unanswered questions about the safety of this facility for residents living nearby. Ideally,the City of Rancho Palos Verdes and its residents would like to see this facility relocated to another site that does not pose such a significant "risk of upset"to surrounding property and neighborhoods.Failing that,however,we wish to be assured that the facility is operated as safely as possible,and in complete accordance the regulations of all local,State and Federal agencies having jurisdiction over this site and these types of facilities.To these ends,we respectfully request your assistance in the fulfilling the following community objectives: •Regularly monitor the Rancho LPG site and facility,and enforce (to the maximum extent possible)any applicable Federal regulations and environmental review processes (Le.,NEPA)with respect to the on-going operation of the facility and any possible future proposals for its modification,renovation and/or expansion; and, •Provide to the general public a transparent and accountable clearinghouse for the dissemination of any information and the discussion of issues about the Rancho LPG site and facility. Our Planning Staff continues to monitor issues related to the Rancho LPG site and facility,and to report these issues regularly to our City Council.We look forward to working with you and the facility's owner/operator to ensure the future safety and tranquility of our respective communities and residents. Thomas D.Long Mayor cc:Rancho Palos Verdes City Council Carolyn Lehr,City Manager Joel Rojas,Community Development Director Kit Fox,Associate Planner SS 2b-9