ENTERED Office of Proceedings July 27, 2016 Part of Public Record

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1400 K Street, Suite 400 Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org 241198 July l l, 2016 Cynthia Brown Chief, Section of Administration Office of Proceedings Surface Transportation Board 395 E Street SW Washington, DC 20423 ENTERED Office of Proceedings July 27, 2016 Part of Public Record ' I... \ RE: Surface Transportation Board Finance Docket No. 36036 Valero's Petition for Declaratory Order Dear Ms. Brown: The League of California Cities (League) submits the following comments regarding Finance Docket No. 36036 of the Smface Transportation Board. We urge you to deny Valero's Petition for Declaratory Order because it is an overbroad interpretation of the Interstate Commerce Commission Termination Act and would have significant and detrimental impacts on local land use authority over non-rail carriers. Cities are responsible for making land use decisions to protect the public health and environment of their communities. By preempting local land use authority, the Surface Transportation Board (Board) would be el iminating opportunities for public input and mitigation of these major development projects. Courts have ruled in favor of ICCT A preemption over local land use authority when a rail carrier operates transloading, material transfer, and processing facilities. However, those rulings do not apply in this case as Valero does not meet the five-factor test developed by case law for determining if these activities are those of a rail carrier or direct agent. Thank you for the opportunity to comment on this important matter. If you have any questions regarding the League's position on this bill, please contact me at (916) 658-8200. Sincerely, L~, (hris.mckenzie ~ Executive Director

DECLARATION OF SERYICE I am a citizen of the United States, over the age of 18 years, and not a party to-ortrrrere~~d in this action. I am employed by the League of California Cities and my business address is 1400 K Street, 4th Floor,. On this day I caused to be served the following document(s): THE LEAGUE OF CALIFORNIA CITIES' REPLY TO VALER O'S PETITION FOR DECLARATORY ORDER By United States Mail. I enclosed the documents in a sealed envelope or package addressed to the persons at the addresses set forth bel<yw1md placed the envelope for collection and mailing, following our ordinary business practices. I am readily familiar with this business's practice for collecting and processing correspondence for mailing. On the same day that correspondence is placed for collection and mailing, it is deposited in the ordinary course of business with the United States Postal Service, in a sealed envelope with postage fully prepared. I Raymond Atkins 1501 K Street NW Washington, DC 20005 Tel: 202-736-8417 Steven G. Churchill Churchwell White LLP 1414 K Street, 3rd Fl Zach Cowan Berkeley City Attorney 2180 Milvia Street, 4th Floor Berkeley, CA 94704 Tel: 510-981-6998 Fax: 510-981-6960 Jay P. Derr Van Ness Feldman 719 Second A venue, Ste 1150 Seattle, WA 98104 Tel: 202.623.9372 On behalf of Union Pacific Railroad Company On behalf of the City of Benicia On behalf of the City of Berkeley, California On behalf of Tesoro-Savage Petroleum Terminal LLC, D/B/ A Vancouver Energy

Elizabeth Forsyth 800 Wilshire Blvd, Ste 1000 Los Angeles, CA 90017 Tel: 415.217.2126 Theodore K. Kalick Canadian National Railway Company 601 Pennsylvania Ave., NW Ste. 500 North Bldg. Washington, DC 20004 Tel: (202) 34 7-7840 Rachel Koss Adams Broadwell Joseph & Cardozo 601 Gateway Blvd. Suite 1000 South San Francisco, CA 94080 Tel: 6505891660 Fax:6505895062 Scott J. Lichtig California Department Of Justice Office Of The Attorney General P.O. Box 944255. Sacramento, CA 94244-2550 Tel: (916) 445-5077 James Brian Macdonald 274 Pebble Beach Loop Pittsburg, CA 94565 Tel: 9252227814 On behalf of the Association Of Irritated Residents, Climate Solutions, Co!umbia Riverkeeper, Evergreen Islands, Friends Or The Columbia Gorge, Frienqs Of The Earth, Resources For Sustainable Commq.nities," Friends Of The San Juans, Spokane Riverkeeper, And Washington Environmental Council On behalf of Canadian Natiomd Railway Company On behalf of Safe Fuel And Energy Resources California On behalf of People of The State of California On behalf of James Brian Macdonald ' l Justin Marks 1666 K Street, NW Washington, DC 20006 Tel: 202-887-1400 Barbara Parker Oakland City Attorney's Office One Frank H. Ogawa Plaza, 6th Floor Oakland, CA 94612 Tel: 510-238-3540 On behalf of City of Oakla!1d, California

Philip Pogledich County Counsel For'Cotinty Of Yolo 625 Court Street, Room 201 Woodland, CA 95695 Tel: 530-666-8275 On behalf of County of Yolo ' ' Jaclyn H. Prange Natural Resources Defense Council 111 Sutter Street, 21 St Floor San Francisco, CA 94104 Tel: 415-795-6100 Fax:415-795-4790 John Ruskauff Qep Energy 1050 1 ih Street, Suite 800 Denver, CO 80265 Tel: (303) 672-6900 Fax: (303) 294-9632 Kevin M. Sheys Nossaman LLP 1666 K Street, N.W., Suite 500 Washington, DC 20006 Tel: 202-887-1400 Peter J. Shudtz Csx Corporation 1331 Pennsylvania Avenue, NW, Suite 560 Washington, DC 20004 Tel: 202-783-8124 Harriett Steiner City Attorney Of City Of Davis Best Best & Krieger, LLP 500 Capitol Mall, Suite 1700 Tel: 916-551-2821 Timothy J. Strafford Association Of American Railroads 425 3rd Street, SW, Suite 1000 Washington, DC 20024 Tel: 202-639-2506 Fax: 202-639-2868 On behalf of Benicians For A Safe And Health Community, Center For Biological Diversity, Communities For A Better Environment, Natural Resources Defense Council, San Francisco Baykeeper, Sierra Club, And Stand On behalf of Qep Energy On behalf of Valero Refining Company California On behalf of Csx Transportation Inc. On behalf of City of Davis, CA On behalf of Association Of American Railroads

Jocelyn Thompson Alston & Bird South Hope, l 6Th Floor Los Angeles, CA 90071-1410 Kirk Trost General Counsel For Sacramento Area Council Of Governments 1415 L Street, Suite 300 Tel: 916-340-6210 On behalf of Phillips 66 Company On behalf of Sacramento Area Council Of Governments I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on July 20, 2016 at Sacramento. California. J~iting

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