Safety of Sea 3 Providence propane terminal expansion questioned at EFSB hearing

An expert witness warned of potential dangers — including fire and explosions — if a plan by Sea 3 Providence LLC to expand its propane facility on the city's working waterfront goes through as planned.

Edmund "Fred" Millar, a Washington-based environmental safety consultant, told the state Energy Facility Siting Board that the expansion plan constitutes an "alteration to a major energy facility" and requires comprehensive environmental and safety review under state law.

Millar testified this morning at an evidentiary hearing as a witness for the Office of the Rhode Island Attorney General.

Sea 3 proposes to add freight rail imports — up to 16 tanker cars per day — and build more storage capacity for liquefied propane gas, or LPG, at its ProvPort fuel terminal. The company asserts that the plan is a mere "minor and ancillary modification" that shouldn't require a lengthy public review process.

The three-member Energy Facility Siting Board, or EFSB, has been considering the question for nearly a year now. The board must rule on the standard of review before possibly evaluating the actual project.

In his testimony, Millar called for a full review by the board. He warned of serious safety concerns — including possible fire, explosion, and off-site vapor cloud dispersal — if the project goes through as proposed. He argued that existing federal regulations governing the transport of hazardous materials by rail are "pitiful," and said that a fire safety analysis conducted by Sea 3 was inadequate to protect public safety.

Providence lawyer Nicholas Hemond, representing Sea 3, countered that his client is fully compliant with state and federal laws and defended Sea 3's commitment to running a safe and responsible operation.

"So, your position is that that the law … is not enough," Hemond asked Millar during a cross-examination. Hemond cited the Federal Railroad Administration, the Environmental Protection Agency, and the National Fire Protection Association Liquefied Petroleum Gas Code.

"Accidents keep happening," Millar responded. "What you’ve got on paper is minimal standards."

Hemond said that Sea 3 has invested $20 million to upgrade its facility, which has been operating as a fuel terminal under various owners since 1975. Millar countered it's not clear how much of that money went to safety upgrades.

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Sea 3 proposes spending $15-20 million to connect its portside propane and distribution facility to an existing rail line. The facility would accept up to 16 rail cars per day filled with LPG. Currently, Sea 3 imports its propane via marine tanker vessels.

The plan would also add six new LPG tanks for an additional 450,000 gallons of storage capacity. Currently, Sea 3 stores its LPG fuel in a 19-million-gallon cold-storage tank.

Sea 3 in 2020 imported 23 million gallons of LPG fuel on marine vessels. By diversifying its sourcing, the company aims to increase its import capacity to around 100 million gallons per year, according to filings.

Sea 3 is a wholly owned subsidiary of the Texas-based Blackline Midstream LLC in a joint venture with Sixth Street Partners, a global investment firm.

Also scheduled to testify were Julian Drix of the Health Equity Institute at the Rhode Island Department of Health and Monica Huertas, an organizer in the Washington Park neighborhood and director of The People's Port Authority, a group that seeks a cleaner future at the port.

"The communities most impacted by the health and safety concerns related to Sea 3 Providence LLC are Environmental Justice Communities made up of working-class people of color," Huertas wrote in pre-filed testimony. She cited past accidents in the Allens Avenue neighborhood and called for robust safety review of the Sea 3 plan.

Local advocates have said said the Sea 3 expansion would go against the city's Climate Justice Plan. The Conservation Law Foundation maintains that the EFSB must consider Rhode Island's 2021 Act on Climate — a statute that mandates steep emissions reductions — in its decision-making.

Amy Austin, an expert witness for Sea 3, has argued that the air pollution impacts of the expansion would be minimal, and that proposed modifications to the facility would actually reduce carbon dioxide emissions.

Cheerleaders for the expansion plan include the Propane Gas Association of New England, which wrote that the fuel \"is the perfect partner for resiliency needs" and "the unsung hero of extreme weather events."

Several other witnesses in the matter have yet to testify. The EFSB will continue hearings on Tuesday if necessary and has scheduled a final hearing date for March 31.

The City of Providence has not taken a stand on the project's merits but has called for full review by the board.