HELENA CHEMICAL COMPANY NELSON TERMINAL PROJECT USE PERMIT UP Butte County Board of Supervisors January 29, 2013

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1 HELENA CHEMICAL COMPANY NELSON TERMINAL PROJECT USE PERMIT UP Butte County Board of Supervisors January 29, 2013

2 Helena Chemical Nelson Terminal Project Develop the Nelson site for use as a regional storage and distribution facility for crop production and protection products. The name Nelson Terminal Project, refers to the project s use of the adjacent Union Pacific RR line to facilitate transportation of product via rail.

3 Nelson Terminal Project - Objectives 1. Minimum 15 acres in size to accommodate the minimum development footprint. 2. Suburban or rural setting rather than an urban setting (e.g. cities of Chico or Yuba City) to avoid land use conflicts with urban populations. 3. Consistent with Butte County General Plan land use designations. The proposed project is a conditionally allowed use in the Agriculture Services and Industrial Land Use designations.

4 Nelson Terminal Project - Objectives 4. To reduce truck trip impacts and make Helena s businesses in Butte County more efficient by emphasizing delivery of products to Butte County by rail, the project has the following objectives: a. The location must have ready and feasible access to development of a railroad spur on the main north-south Union Pacific Railroad line for efficient delivery of agricultural production and protection products; b. In addition to ability to develop a railroad spur, the site must be in a location where Union Pacific Railroad is willing to provide services to the spur; and c. The site must be in close proximity to a signalized railroad crossing of the main north-south Union Pacific Railroad line to allow for the safe east-west flow of truck traffic for delivery and distribution of products to and from the facility.

5 Nelson Terminal Project - Objectives 5. The location should be roughly central to the majority of Helena Chemical s end-user customers from both the Yuba City and Chico facilities. The majority of these customers are located north of Yuba City and south of Chico; about 95 percent of which are located west of the Highway 99.

6 Entitlements Requested 1. Use Permit UP : Helena Chemical proposes to develop and operate a fertilizer and pesticide storage and distribution facility on 10-acres of a 26 acre property located north of Nelson Road and East of the Union Pacific Railroad (UPRR). UP would result in the development and operation of a regional storage and distribution facility for fertilizers and pesticides including an office, bulk dry fertilizer storage building, bulk liquid fertilizer storage tanks, bulk liquid pesticide storage tanks, packaged pesticides warehouse, stormwater retention basin, creation of a railroad spur to the Union Pacific Rail Road (UPRR) main line, a driveway onto Nelson Road, and improvements to Nelson Road

7 Entitlements Requested 2.Lot Line Adjustment LLA : A Lot Line Adjustment of the property line between APN (Helena) and APN (UPRR), resulting in a squaring-up of the irregular southwestern corner boundaries between the properties. Approximately 0.57 acres would be added to the Helena parcel from the UPRR parcel in the area proposed for development of the railroad spur. While LLA is incorporated in the Environmental Impact Report as part of the proposed project under CEQA, this application is a ministerial act approved administratively by the Director of Development Services and does not require specific approval by the Board of Supervisors.

8 Vicinity Map

9 Project Area Aerial

10

11 Site Plan

12 Structures by Phase: Use Permit UP Phase- Building Letter on Site Plan I-A I-B I-C I-D Proposed Building Ag Products Warehouse Building Bulk Dry Fertilizer Storage Warehouse Eight (8) Herbicide Tanks Office Area 30,000 square feet 37,000 square feet 10,000 gallons each 1,250 square feet Estimated Maximum Building Height Phase 21 One 62 One 35 Two 13 One I-E Two (2) Railroad Spur Tracks NA NA One II-F II-G II-H Ag Products Warehouse Building Expansion Three (3) Liquid Fertilizer Storage Tanks Bulk Dry Fertilizer Storage Warehouse Expansion 30,000 square feet 300,000 gallons each 22,500 square feet 21 Two 35 Two 62 Two

13 Entitlements Requested 3.Zoning Code Amendment ZCA : An amendment to the Agriculture zone (BCC Section 24-90) in the old Zoning Ordinance to establish agricultural support services uses as permitted subject to approval of a Use Permit: Applied to lands in the Agriculture zone and designated Agriculture Services in the General Plan. Affected thirty-two (32) individual parcels. Adoption of new Zoning Ordinance established Agricultural Services zone allows agricultural support services such as the proposed storage and distribution facility, with issuance of a Conditional Use Permit. Zoning Code Amendment ZCA is no longer required.

14 Helena Chemical Nelson Terminal EIR Helena EIR is a 2nd Tier CEQA document; it tiers off the Butte County General Plan EIR (certified on October 26, 2010). GPEIR evaluated the whole of anticipated development in Butte County through approximately The GPEIR also served as the cumulative development scenario for the Helena Nelson Terminal EIR.

15 Conservation Measures CM 1 Giant Garter Snake Habitat CM 2 Monitoring Costs CM 3 Biologist for Construction Monitoring CM 4 Construction Employee Training CM 5 Construction Barrier Fencing CM 6 Wetland Permits CM 7 Cultural Resources CM 8 General Permit for Storm Water Discharges (Construction General Permit) CM 9 Geo-Technical Compliance CM 10 Transportation Regulation and Infrastructure Improvements CM 11 Waste Discharge Permit for fill of wetlands CM 12 Industrial Storm Water General Permit CM 13 Water Conservation (MWELO) CM 14 Drainage Regulation

16 Mitigation Measures MM MM MM MM MM MM MM MM MM MM MM MM MM Lighting and Glare Noxious Weeds Management Plan Commitments to Air Quality Bottom Dump Rail Cars with Winds over 15mph Butte County Pre-Planning for Release Butte County Area-Plan Update Helena Funding for Equipment and Supplies RMP Modifications Storox and Zerotol RMP Modifications Emergency Response Decision Tree Grounding for dry bulk fertilizer building Grounding for all Tanks Separation of Water Reactive Chemicals Construction Noise

17 Helena Chemical Nelson Terminal EIR Dates: September 23, 2011: Department of Development Services released an Initial Study/Notice of Preparation (IS/NOP) for an EIR. May 17 to July 2, 2012: Draft EIR circulated for public comment and review. June 14, 2012: Planning Commission public hearing on Draft EIR. September 28, 2012: Final EIR, including responses to comments received on the Draft EIR, was circulated.

18 Comments & Responses to Comments on EIR Issue Title Response to Comment Substantive Conclusions Gridley Alternative 1-1 Potentially unsafe turn movements at SR99 and West Liberty Limitations on Future Uses 1-2 Limited to uses consistent with COA# and COA# Compatibility with Organic Farming Practices 1-5 Facility Design precludes release into the environment; Off-site Consequence Analysis performed; MM# Bottom Dump Rail Cars with Winds over 15mph Sharing Roadways with Farm Equipment 1-7 Traffic assessment prepared by KD Anderson notes existing vehicles currently share the roadways and limited shoulders with agricultural equipment and will continue to do so. More accurate traffic estimates requested 1-8 Traffic assessment provides more accurate trip generation estimates and supports conclusions of Draft EIR regarding less than significant traffic impacts.

19 Comments & Responses to Comments on EIR (Continued) Issue Title Response to Comment Substantive Conclusions Enforcement of CM 10 limiting trucks on Nelson Road and Entler Avenue to local deliveries only Traffic Assessment notes that designated routes to SR 99 via Richvale Highway or SR 162 have access to the highway at signalized intersection(s) with left turn lanes. Thus, the designated access to the state highway will be easier to use for truck trailer combinations and is likely to be chosen. Midway 1-11 Midway was found to operate acceptably with the project. Nelson Road improvements 1-12 Nelson Road will be improved to State standards per CM10 and will operate acceptably with the project. FEMA flood zone 1-13 Flood Zone X, flood safety confirmed Size of Trucks Identified 2-5 Roadways found adequate for anticipated truck traffic.

20 Comments & Responses to Comments on EIR (Continued) Issue Title Response to Comment Substantive Conclusions Traffic Counts 2-10 New traffic volume counts were conducted on Midway and Nelson Road in August Change in community footprint as a result of the project 2-18 The Project s consistency with the AS Land Use Designation and the criteria evaluated in the Draft EIR support the Less Than Significant impact conclusion. Project monitoring needed 3-4 Mitigation Monitoring and Reporting Program (MMRP) ; County CUPA program provide monitoring. Railroad Spur terms 7-3 One railroad spur, with two body tracks was confirmed as proper reference; diagram provided. Comment disputed description of relationship to BUCRA facility 11-3 Clarified description of relationship to BUCRA facility

21 Comments & Responses to Comments on EIR (Continued) Issue Title Response to Comment Substantive Conclusions ZCA impacts to the A Agricultural zone Conversion of prime agriculture lands and growth inducing impacts as significant and unavoidable Loss of agricultural land could be avoided Truck load assumptions and the effect on numbers of trucks ZCA affects 32 parcels totaling acres, probably for only a few months Whether there are specific economic, social, or reasons the project should be approved will be considered by the Planning Commission (UP ) and Board of Supervisors (ZCA ) in their actions on the project Loss of agricultural land is found unavoidable given project objectives for rail access 17-1 Page 12 of the Traffic Assessment addresses assumptions about truck loads in assigning truck trips generated, e.g. whether twenty-six tons is presumed for every truck. Air Quality Concerns 19-6 Localized air quality conditions for Nelson are considered in Butte County Air Quality Management District s permit to construct and permit to operate permits. The Nelson Terminal facility has submitted application and necessary materials necessary to obtain permit to construct and permit to operate permits.

22 Significant and Unavoidable Impacts After Mitigation (Project Specific) Five Significant and Unavoidable (S&U) environmental impacts were identified in the EIR. Two of the S&U impacts are project-specific impacts due to site location or project operations: 1. Impact Agricultural Resources: Site Conversion of Farmland to non-agricultural use. The project will convert approximately 10 acres of Farmland of Statewide Importance to non-agricultural use. 2. Impact 5.0 Growth Inducing Impacts: Development of the Helena project site may pre-dispose the adjacent Gore and O Shea parcels (totaling approximately 39 acres) for unplanned growth.

23 Significant and Unavoidable Impacts After Mitigation (Cumulative) Three S&U impacts relate to the project s contribution to cumulative impacts identified as a result of implementing the Butte County General Plan 3. Impact Agricultural Resources: Cumulative Conversion of Farmland to non-agricultural use. The project will result in the conversion of Farmland to non-agricultural use. This impact was previously addressed in the GPEIR. 4. Impact Noise: Ambient noise levels in the vicinity of the project are in excess of County standards. While not from the Nelson Terminal project, these levels will nevertheless occur and be marginally/incrementally increased by the project. 5. Impact Transportation: Cumulative traffic impacts in Butte County through 2030 were assessed in the Butte County General Plan EIR and found to be Significant and Unavoidable for some intersections which will also be utilized by the Nelson Terminal Project. This project will incrementally contribute to Significant and Unavoidable traffic impacts with build out of the General Plan through the year 2030 as envisioned in the GPEIR. This impact was previously addressed in the GPEIR.

24 Documents Comprising Final EIR Final EIR includes the following items: a) Draft EIR Helena Chemical Nelson Terminal ZCA , UP , and LLA (SCH ) dated May 2012; b) Technical appendices attached to the Draft EIR; c) Comments and responses to comments on the Draft EIR, dated September 2012 (Final EIR, Chapter 3); d) Errata to the Draft EIR containing clarifications and amplifications of information presented in the text of the Draft EIR (Final EIR, Chapter 4); and e) Mitigation Monitoring and Reporting Program (Final EIR, Chapter 5)

25 Mitigation Monitoring and Reporting Program (MMRP) and Enforcement Each of the mitigation measures identified by the EIR, including all Conservation Measures, are both subject to the MMRP and have specified plan requirements, timing for implementation, and monitoring requirements to ensure compliance. Helena will maintain deposit with County to provide monitoring funds for MMs and CMs, as a condition of maintaining the Use Permit. Butte County Code Section provides that the Use Permit may be modified or revoked by the Board of Supervisors at a noticed public hearing based upon one or more findings as specified in the Zoning Ordinance.

26 Butte County Code Section (C.) Permit Revocation or Modification 1. The applicant or property owner has altered the circumstances under which the permit was granted to a degree that one or more of the findings required to grant the original permit can no longer be made. 2. Permit issuance was based on misrepresentation by the applicant, either through the omission of a material statement in the application, or in public hearing testimony. 3. One or more conditions of approval have been violated, or have not been complied with or fulfilled. 4. The use or structure for which the permit was granted no longer exists or has been discontinued for a continuous period of at least 12 months. 5. The applicant or property owner has failed or refused to allow inspections for compliance. 6. Improvements authorized by the permit are in violation of the Zoning Ordinance or any law, ordinance, regulation, or statute. 7. The use or structure is being operated or maintained in a manner which constitutes a nuisance.

27 Overriding Considerations Economic and Social: Efficient delivery of products; Sales and property taxes; Jobs; Reduced use of fuels; and Business development.

28 Overriding Considerations Environmental: Reduced vehicle trips - 18 trucks/day; Reduced air emissions, especially NOx emissions; and Meets AB32 compliance goals for GHGs.

29 Planning Commission Action on Final EIR and Nelson Terminal Project October 11, 2012: Planning Commission held a public hearing to consider certification of the Final EIR, approval of the Mitigation and Monitoring Program, approval of Use Permit for chemical storage and distribution warehouse, and a recommendation of approval to the Board on the ZCA. November 8, 2012: Planning Commission held a continued public hearing to further consider Final EIR, Mitigation Monitoring and Reporting Program, approval of Use Permit and recommendation to Board on ZCA. The PC adopted resolutions: (1) certifying the Final EIR and making environmental findings; and (2) making findings regarding S&U impacts, adopting a mitigation monitoring and reporting program, approving UP with findings and conditions of approval.

30 Appeal to Board of Supervisors 1. November 19, 2012, Appeal by Tom Lando, on behalf of the Lundberg Family, filed an appeal of the Planning Commission's approval of UP citing the following concerns: The Nelson site is an inappropriate location; Draft EIR does not adequately characterize the nature of the roads and traffic in the area; Storm-water protection should be designed to mitigate a 200-year storm; and Fugitive dust can escape from the Project Site. 2. January 11, 2013 letter from Grant Lundberg, CEO of Lundberg Family Farms, listed the following concerns: Suitability of the Nelson Terminal project site; Storm-water drainage; Use of the rest of the subject property; Project traffic; and Enforcement of mitigation measures and conditions of approval.

31 Recommendation Staff recommends your Board conduct the public hearing and deny the appeal and approve the project: 1. Adopt the resolution certifying the Final EIR and making environmental findings (including Exhibit 1, Summary of Project Environmental Impacts); and 2. Adopt the Resolution: a. Making Findings Regarding Significant and Unavoidable Impacts, b. Adopting a Mitigation Monitoring and Reporting Program, and c. Approve Use Permit UP for the Helena Chemical Nelson Terminal Project with findings and conditions of approval.

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