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HomeMy WebLinkAboutres2018-015WHA TCOM CO UNTY CO UNCIL A GENDA BILL NO. 2018 76 B CLEARANCES Initial Date Date Received in Council Office Agenda Date Assigned to: Originator: Donovan 4/17/2018 4/24/2018 SCOTW /Council Division Head: Dept. Head: Prosecutor: Purchasing /Budget: �T- 411 Executive: TITLE OF DOCUMENT. Res. requesting Executive draft legislation re Cherry Point UGA permits ATTACHMENTS: SEPA review required? ( ) Yes ( ) NO Should Clerk schedule a hearing ? ( ) Yes ( ) NO SEPA review completed? ( ) Yes ( ) NO Requested Date: SUMMAR Y STA TEMENT OR LEGAL NOTICE LANGUAGE: (If this item is an ordinance or requires a public hearing, you must provide the language for use in the required public notice. Be specific and cite RCW or WCC as appropriate. Be clear in explaining the intent of the action.) Resolution requesting the County Executive direct staff to draft legislation relating to processing and approval of major project permits in the Cherry Point Urban Growth Area COMMITTEE ACTION: COUNCIL ACTION. 4/24/2018: Amended and forwarded to Council for approval 4/24/2018: Substitute Approved 5 -1, Brenner opposed, Byrd absent, Resolution 2018 -015 Related County Contract #: Related File Numbers: Ordinance or Resolution Number: Res.2018 -015 Please Note: Once adopted and signed, ordinances and resolutions are available for viewing and printing on the County's website at: www.co.whatconi.wa.us /council. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 RESOLUTION NO. PROPOSED BY: DONOVAN INTRODUCTION DATE: 2018 -015 REQUESTING THE COUNTY EXECUTIVE DIRECT STAFF TO DRAFT LEGISLATION RELATING TO PROCESSING AND APPROVAL OF MAJOR PROJECT PERMITS IN THE CHERRY POINT URBAN GROWTH AREA WHEREAS, on August 9, 2016, the Whatcom County Council adopted Ordinance 2016 -031, an emergency ordinance imposing a sixty day moratorium on the filing, acceptance, and processing of new applications for conversion of land or water, new building or structure permits, or other County permits or authorizations in the Cherry Point Urban Growth Area for new or expanded facilities whose purpose is to facilitate the increased shipment of unrefined fossil fuels not to be processed or consumed at Cherry Point; and WHEREAS, on September 27, 2016, March 21, 2017, and September 26, 2017, the Whatcom County Council adopted interim measures (Ordinance 2016 -039, Ordinance 2017 -011, and Ordinance 2017 -049) prohibiting the filing, acceptance, and processing of new applications for conversion of land or water, new building or structure permits, or other County permits or authorizations in the Cherry Point Urban Growth Area for new or expanded facilities whose purpose is to facilitate the increased shipment of unrefined fossil fuels not to be processed or consumed at Cherry Point; and WHEREAS, on February 27, 2018, Whatcom County Council extended the interim moratorium on the acceptance and processing of applications and permits for new or expanded facilities in the Cherry Point Urban Growth area the primary purpose of which would be the shipment of unrefined fossil fuels not to be processed at Cherry Point; and WHEREAS, the interim moratoria are intended to provide time for the County to assess how to improve the acceptance and processing of applications and permits for new or expanded facilities in the Cherry Point Urban Growth to better protect public health, safety, transportation, and the environment; and WHEREAS, the County Council previously adopted Title 20- Zoning of Whatcom County Code which regulates land use within unincorporated areas of Whatcom County; and WHEREAS, the County Council adopted the Whatcom County Comprehensive Plan on May 20, 1997, which contains goals, objectives, and policies regarding land use compatibility and environmental considerations; and WHEREAS, the Whatcom County Council recently updated the Whatcom County Comprehensive Plan as required by Revised Code of Washington (RCW) 36.70A; and WHEREAS, during the Comprehensive Plan review process the Whatcom County Council received many individual public comments on fossil fuel transshipment, transport, and transfer from Cherry Point related to the protection of the safety and health of Whatcom County's environment, economy, and residents; and 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 WHEREAS, the County recognizes that the existing refineries have for decades been significant shippers of refined fossil fuels such as jet fuel and calcined coke used in manufacture of aluminum while providing substantial local employment; and WHEREAS, multiple trains carrying crude oil from the Bakken formation moving through the United States and Canada have derailed and exploded causing damage to property and the environment; and WHEREAS, on July 6, 2013, a single derailment in Quebec caused 47 fatalities and destroyed half of the downtown of Lac- Megantic, leaving a town heavily contaminated with benzene, which are major reasons that local zoning regulations must be improved; and WHEREAS, a unit train carrying Bakken crude traveling through Mosier, Oregon, on June 3, 2016, derailed and exploded causing damage to property and to the Columbia River, demonstrating that recently adopted state and federal policies and corporate investment intended to reduce the risks associated with oil by rail have proven insufficient to protect communities along the rail corridor; and WHEREAS, the Washington State Department of Natural Resources has designated waters adjacent to the Cherry Point Urban Growth Area as an aquatic reserve to ensure long -term protection of this unique aquatic environment; and WHEREAS, the United States recently lifted a ban on the export of crude oil from the country, increasing pressure on deep water ports such as Cherry Point to develop to increase the amount of fuels transported through Whatcom County that arrive at Cherry Point; and WHEREAS, existing refineries at Cherry Point have recently increased their ability to accept crude oil by rail by constructing new rail offloading facilities to serve the refineries; and WHEREAS, existing and proposed pipeline facilities have increased, or proposed to increase, their capacity to move crude oil, diluted bitumen, and natural gas to Cherry Point; and WHEREAS, expansion of existing facilities for purposes receiving and shipping fossil fuels into and out of Cherry Point will increase the transport of dangerous fuels through our community and increase the risk of possible harmful emissions, train derailment, spills, explosions, and the fallout of these will pose serious threats to the community's public health and safety, and to the local environment; and WHEREAS, pursuant to the Washington State Constitution, the general police powers granted to counties empower and authorize Whatcom County to adopt land use controls to provide for the regulation of land uses within the County and to provide that such uses shall be consistent with applicable law; and WHEREAS, in 2017, the Whatcom County Council entered into a contract with Cascadia Law Group for assistance in examining existing County laws and developing recommendations for recommendations about how the County may further limit the negative impacts on public safety, transportation, the economy, and environment from crude oil, coal, liquefied petroleum gases, natural gas, and other fuels transported through Whatcom County to Cherry Point and shipped from the Cherry Point UGA above levels in existence as of March 1, 2017; and 2 1 WHEREAS, in 2018, a Cascadia Law Group study provided guidance on the County's 2 legal rights, responsibilities, and limitations regarding interpretation and application of 3 project evaluation under Section 20.88.130 (Major Projects Permits) of the Whatcom County 4 Code; and 5 6 WHEREAS, the above study will assist in developing proposed Comprehensive Plan 7 amendments and associated code and rule amendments for Council consideration, and 8 9 WHEREAS, Whatcom County Council finds the public interest is best protected by a 10 permitting process for major projects at Cherry Point that provides the County clear 11 authority for requiring mitigation of project impacts on the community and the environment, 12 and that provides clear requirements that project proponents assume financial responsibility 13 for potentially hazardous activities that present risks to the community; and 14 15 WHEREAS, the Cascadia study determined that zoning codes of other local 16 jurisdictions provide examples of discretionary decision - making criteria; and 17 18 WHERAS, in RCW 90.58.020 the legislature found that the shorelines of the state 19 are among the most valuable and fragile of its natural resources and that there is great 20 concern relating to their utilization, protection, restoration, and preservation. In addition it 21 found that increasing pressures of additional uses are being placed on the shorelines, and 22 that that unrestricted construction on the privately owned or publicly owned shorelines of 23 the state is not in the best public interest, and that local governments play a role in 24 preventing harm to the state's shorelines; and 25 26 WHEREAS, WAC 173 -27 -160 states that conditional use permits provide local 27 governments flexibility in the application of use regulations in a manner consistent with the 28 policies of RCW 90.58.020, and that special conditions may be attached to the permit by 29 local government to prevent undesirable effects of the proposed use; and 30 31 WHEREAS, WAC 197 -11 -660 states that proposals may be conditioned or denied 32 under the State Environmental Protection Act to mitigate the environmental impact, subject 33 to limitations, and that proposal can be denied if they are likely to result in significant 34 adverse environmental impacts that cannot be mitigated. 35 36 NOW, THEREFORE, BE IT RESOLVED by the Whatcom County Council that the 37 Council requests the County Executive have Planning staff draft code amendments to the 38 County's Major Project Permit Review Process, and other related zoning code, that 39 strengthen the discretionary authority of County staff, and the County Council, with respect 40 to processing and approving major project permits, and with respect to mitigating the 41 impacts of proposed major projects, and with respect to mitigating changes in existing uses, 42 in the Cherry Point UGA. 43 44 BE IT FURTHER RESOLVED that Whatcom County Council requests proposals for 45 code and SMP amendments that protect public health, safety, and the environment, and 46 that provide clear discretionary standards for accepting and rejecting permits. These 47 include: 48 49 1) Require Conditional Use Permits. Require conditional land use permits, and 50 conditional shoreline permits (per WAC 173 -27 -160), for certain heavy industry uses, such 51 as new petroleum tank farms, new fossil fuel distribution facilities, additional piers, new on- 52 site rail yards, new facilities that transfer fuel from rail cars, new rail car storage facilities, 53 new coal storage facilities, new coal transfer facilities, and new facilities that transfer fuels 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 from permitted or proposed facilities across existing or proposed piers. The purpose of such conditional use permits is: a) To provide a process that allows flexibility in the application or regulations, consistent with RCW 90.58.020, and to allow that conditions be attached by the County to prevent undesirable effects of the propose use and to assure consistency of the project with the goals in the County Comprehensive Plan, County SMP, and with treaty rights, policies of Washington State DNR, the Army Corps of Engineers, and the Cherry Point Aquatic Reserve Plan, and b) To ensure the project will cause no significant adverse effects to the shoreline, to the environment, to air emissions, to traffic patterns, and that, broadly, the public suffers no substantial detrimental effect of the cumulative impact of the proposed project, and c) To ensure that any use must demonstrate that it is adequately served by essential public facilities such as highways, roads, police and fire protection, drainage facilities, water, sewer, bridges required for rail crossings, and waste disposal, and that the agents proposing the use shall be able to adequately provide such services. d) To ensure the proposed facility will not create excessive additional requirements, at public cost, for public facilities and services and that the applicant provide mitigation for added public costs, including investment into emergency response capacity, and that commit the applicant to compensate Whatcom County and associated jurisdictions for costs associated with emergency responses, clean -up, mitigation, and such events that are associated with transporting materials, by the applicant and by third parties, to and from the permitted facility. 2) Require Master Site Planning provisions for major project permits. This would include a) requirements that applicants submit a fee (up front or in increments) covering the County's EIS review costs; b) requiring a Development Agreement that obligates the developer to pay costs (given a rational nexus) of all traffic, public safety, and environmental impact mitigation identified in the SEPA review; and identified in the discretionary project review by staff and County Council, should a Master Site Plan or conditional use be approved; c) requiring mitigating conditions proportional with the impact of the EIS; d) amending code to give the Planning Department and County Council the discretion to require a bond or insurance policy (or combination of) to ensure that all development commitments for transportation mitigation, public safety mitigation, environmental mitigation, and other mitigation are followed through to completion and that safety hazards to the community are insured against. 3) Review and revise SEPA policy. Review, and if needed to accomplish code changes to advance the goals of conditional use and enhanced discretionary authority of the county staff and County Council. SEPA provides that a project may be denied after an EIS is completed where it is decided that adverse impacts cannot be mitigated. Code and/ or SMP and / or Comp. Plan language must provide a clear basis for accepting proposals with conditional requirements, and a clear basis for denial. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 4) Review and Revise Provisions for Change of Use and Occupancy. Changes in use of existing facilities should be consistent with current code, and with code revisions requested above. Changes in use or occupancy should not result in a substantive functional change in the initial permitted use of an existing facility without being subject to discretionary authority and conditional requirements per, points 1, 2 & 3 as listed above. Code should allow staff approval of changes or occupancy or use where new uses remain consistent with current and with code adopted per this resolution. Code should also provide for a clear obligation to review and properly address, and mitigate, impacts of changes in use or occupancy of existing facilities. BE IT FURTHER RESOLVED that: • The Whatcom County Council will work with staff to develop the proposed Comprehensive Plan and development regulation amendments. The proposed amendments will be reviewed by the Council's Committee of the Whole, which will provide for public comment. • The proposed amendments will undergo SEPA review. The Whatcom County Planning Commission will hold a town hall meeting and a public hearing prior to issuing recommendations on the proposed amendments. The Whatcom County Council will hold a public hearing prior to adopting an ordinance relating to the amendments. ���rmE4�i4�SEPP<BBd Aff CI,/Eb�t l�! 44 day of April 2018. ATTEST.';" r `!4�p0� >� WHATCO 0 WHATC NCO - OUNCIL WASHINGTON Dana ti own`, K of thCouncil Rud Browne, Council Chair 34 36 APPROVED AS TO FORM: 40 Civil`Deputy Prosecutor 41 42 43 5