Golden State Natural Resources Faces Community Opposition in South Stockton

STOCKTON, CA – A coalition of environmental and environmental justice organizations are fighting a proposed new Golden State Natural Resources (GSNR) wood pellet storage and export terminal in Stockton, California. Today, amidst a troubling relationship with dirty British multinational bioenergy company Drax and repeated missed deadlines, GSNR is holding a meeting to discuss a proposed community investment plan, but South Stockton community groups aren’t buying it. 

The storage and export terminal would be the latest environmental injustice to come to the area, sacrificing Stockton’s safety and health for GSNR’s profit in overseas energy markets. It is one part of a bigger wood pellet and export scheme which additionally includes two industrial-scale facilities for rural California. The opposing coalition includes local groups Little Manila Rising, Valley Improvement Projects, Delta-Sierra Group of the Mother Lode Chapter of the Sierra Club, Catholic Charities of Stockton, Central Valley Air Quality Coalition (CVAQ), and Tree Stockton – alongside national environmental organizations, NRDC (Natural Resources Defense Council), Center for Biological Diversity (CBD), Green America, and Biofuelwatch.

“GSNR wants to sell a half-baked community investment plan as if that’s our only choice. But it’s a false choice. Right now, our community has the opportunity to determine if we even want an industry at our port that has a proven recent track record of fires, explosions, and fugitive wood dust emissions,” says Gloria Alonso Cruz, environmental justice coordinator with Little Manila Rising. “If we’re talking about community investment, GSNR’s plan is diametrically opposed to that principle and can bring harm to our health and our safety.”

The wood pellet export market has grown dramatically over the last decade and has its sights set on California as its newest fiber basket. The industry poses significant fire and explosion risk in export communities, spews wood dust in export communities, degrades forests, and hinders sustainable economic development in the areas they operate. Earlier this month, a wood-chip conveyor belt caught fire, exploded wood pellet storage domes in the community of Savannah, Georgia, and sent three firefighters to the hospital. Furthermore, at the end of June, regulators in North Carolina forced a wood pellet storage and export terminal to install fugitive dust controls following years of frontline communities demanding pollution controls over the wood dust that would fall on their homes, cars, and even pets. 

“South Stockton is not for sale and our health is worth more than the few jobs GSNR promises,” said Mary Elizabeth, member of the Delta-Sierra Group of the Mother Lode Chapter of the California Sierra Club. “We can keep this project out altogether– the Port of Richmond said ‘no’ to GSNR and we can, too.”

GSNR wants to export out of Stockton because wood pellets are used in foreign energy to meet their renewable energy policy goals. After the EU classified forest-based biomass as a renewable energy in 2009, the U.S.’s annual wood pellet capacity increased from 300,000 tons to more than 7.3 million tons by 2017, mostly to feed foreign utilities. Scientific studies have found, though, that firing wood pellets puts more carbon immediately into the atmosphere than coal and hundreds of scientists warn against the permanent damages that using wood pellets pose. The subsidies could go away at any time.

“We are not anti-development and we are not anti-investment,” Project Director for Valley Improvement Projects, Matt Holmes said. “What we are pushing for is development at the Port that doesn’t make us sacrifice our health and safety for our livelihoods. California promised Stockton additional protections when we were designated as a disadvantaged community under AB 617 and SB 535, and GSNR’s project completely flies in the face of those guarantees.”

Drax, a United Kingdom-based company that is the world’s largest bioenergy producer and second-largest wood pellet manufacturer, joined forces with GSNR by signing an MOU together in February 2024. Drax-owned facilities in the U.S. Southeast and Canada bring dust, noise 24/7, and other negative impacts including perpetuating decades of disproportionate environmental impacts on poor communities of color. 

“South Stockton ranks in the top 5% most disadvantaged communities in California and is in the 99th percentile for pollution burdens in the state due to surrounding freeways, freight locomotives, industrial sources, emissions traveling downwind, and the Port,” says Ector Olivares, Manager of Catholic Charities Environmental Justice program. “We expect that GSNR’s plans will bring more pollution, fire and explosion risk, and only low-paying jobs with dangerous working conditions. We’re not buying GSNR’s sale pitch.”

Communities in the Southeastern United States have long suffered from the pollution, forest, and climate impacts of the wood pellet production industry. Other communities have also been promised a variety of small community benefit projects: Drax has philanthropic outlets like the Drax Foundation, the Drax Community Fund, and the Drax Communities in Crisis Fund. These entities have provided grants for education and green space enhancing purposes between $12,000-$64,000 or local projects up to $2,600 in areas near Drax plants. Despite their contributions to communities and stated commitments to sustainability and conservation, their environmental impact is decidedly disruptive. In February 2021, Drax was fined $2.5 million for breaking Mississippi’s air quality standards for volatile organic compound emissions. In September 2022, Drax was forced to pay $3.2 million for breaking Louisiana’s air quality regulations. In May 2024, Drax’s total environmental regulation breaches in Canada reached 189 transgressions.

“We aren’t swayed by showings of corporate goodwill from wood pellet developers as they don’t account for the poor air, degraded forests, or harmed climate they stand to cause,” says Rita Vaughan Frost, forest advocate with NRDC. “This dirty and dangerous project will endanger the South Stockton neighborhood, pollute the climate, and plunder forests. Wood pellet developers like GSNR and Drax are attempting to claw their way into California, but the Port of Stockton commissioners have an opportunity to listen to the concerns of their community and deny tenancy. It's crucial they slam the door shut.”

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org. 

Little Manila Rising serves the South Stockton community, developing equitable solutions to the effects of historical marginalization, institutionalized racism and harmful public policy. LMR offers a wide spectrum of programs that address education, environment, redevelopment and public health. LMR values all people’s unique and diverse experiences and wishes to see the residents of South Stockton enjoy healthy, prosperous lives. littlemanila.org/

The Delta-Sierra Group of the Mother Lode Chapter is a regional unit of the Sierra Club that organizes outdoor activities and focuses attention on environmental issues. We all agree to practice the Sierra Club motto that you should "Explore, Enjoy and Protect the Planet." sierraclub.org/mother-lode/delta-sierra/delta-sierra-group 

Valley Improvement Projects strives to reach-out to low-income and working class communities, communities of color, immigrants, Spanish-speakers, LGBTQ community, religious minorities, indigenous communities, youth, elders, people with disabilities, houseless community, and many others who carry the extra burdens of our society. valleyimprovementprojects.org/

Catholic Charities Diocese of Stockton partners with others in advocating for justice and in assisting those in need by providing help for today and hope for tomorrow. https://www.ccstockton.org/