BILL ANALYSIS                                                                                                                                                                                                    Ó


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          Date of Hearing:  June 20, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AJR 42  
          (Dodd) - As Introduced June 1, 2016


          SUBJECT:  Transport by rail of flammable and combustible liquids


          SUMMARY:  Urges the President of the United States, Congress,  
          and certain federal agencies to expedite rulemaking and to enact  
          federal laws related to safe rail transport of flammable and  
          combustible liquids.  Specifically, this resolution:  





          1)Makes declarations regarding the increase in oil production  
            and the associated risks of its transport in North America.



          2)Urges the President of the United States, United States  
            Department of Transportation (USDOT), United States Department  
            of Energy, and the Office of Management and the Budget to  
            expedite rulemaking and to implement a process to establish  
            federal safety regulations governing the transport of  
            flammable and combustible liquids by rail.



             3)   Urges the President and Congress to pass federal  







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               legislation mandating critical public safety improvements  
               included in the Crude-By-Rail Safety Act [House Resolution  
               (HR) 1804 Rep. McDermott (WA-7)].



          4)Urges the President and Congress to pass federal legislation  
            mandating critical public safety improvements included in HR  
            1679 [Rep. Garamendi (CA-3)] that would authorize Bakken crude  
            oil to be transported by rail only if it has a specified vapor  
            pressure.



          EXISTING LAW:  





          1) Requires, pursuant to federal law, that each state establish  
             a commission to coordinate and supervise federal programs  
             related to hazardous material emergencies.  

          2) Regulates, pursuant to federal law, hazardous materials  
             transportation and requires inspection of shipments by rail  
             under regulations developed by the federal Pipeline and  
             Hazardous Materials Safety Administration.  

          3) Requires the Office of Emergency Services to assist local  
             governments in their emergency preparedness, response,  
             recovery, and hazard mitigation efforts.  

          4) Requires all rail operators to provide a risk assessment to  
             the California Public Utilities Commission, the Director of  
             Homeland Security, and the California Emergency Management  
             Agency that describes the locations, types, and frequency of  
             hazardous cargo movement across rail facilities as well as to  
             develop training and emergency response procedures.  








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          FISCAL EFFECT:  This resolution has been keyed non-fiscal by the  
          Legislative Counsel.
          


          COMMENTS:  According to the author, it is imperative that  
          federal agencies expedite rulemaking and implementation of  
          federal safety regulations governing transport of volatile  
          liquids by rail, including crude oil.  The author points out  
          that because federal preemptions prevent states and local  
          jurisdictions from taking action to require specific rail safety  
          protocols, states are relying on swift action by the federal  
          government to ensure that these materials are transported  
          safely.  He notes that rail safety provisions have been passed  
          at the federal level specifically require the retrofitting of  
          certain types of rail cars; however, the timeline set in federal  
          statute to complete the retrofit has been protracted and  
          meanwhile, communities along rail corridors are left vulnerable.  
            





          To address this concern, the author has introduced this  
          resolution that petitions Congress to expedite the  
          implementation of various safety regulations and to pass and  
          ultimately enact 
          HR 1804, the Crude-By-Rail Safety Act, authored by  
          Representative Jim McDermott and co-sponsored by Congressman  
          Mike Thompson (CA-5), and HR 1679, the Bakken Crude  
          Stabilization Act of 2015, introduced by Representative John  
          Garamendi.

          HR 1804 would establish a maximum volatility standard for crude  
          oil, prohibit the use certain outdated rail tank cars, require  
          comprehensive oil spill response planning and studies, increase  
          fines for violating volatility and hazmat transport standards,  
          require disclosure of train move-ments through communities and  
          corresponding emergency response plans, and require railroads to  







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          implement a confidential close-call reporting system.  HR 1679  
          would reduce the volatility of oil transported by rail thereby  
          improving safe transport and reducing risk of explosion. 

          Previous legislation:  SB 730 (Wolk), Chapter 283, Statutes of  
          2015, prohibits a freight train from being operated in  
          California unless it has a crew consisting of at least two  
          individuals.

          SJR 27 (Padilla), Chapter 114, Statutes of 2014, urged USDOT,  
          and other relevant federal agencies, as it relates to the rail  
          transport of crude oil, to safeguard communities and  
          environmentally sensitive areas from rail accidents, prioritize  
          safety over cost-effectiveness, mandate best practices, and  
          improve tank car design and standards.

          SB 506 (Hill) of 2014, would have, among other things, imposed a  
          fee on owners of hazardous materials at the time the hazardous  
          material is transported on rail by a tank car in the state and  
          that the monies are used to pay for planning, development, and  
          maintenance of emergency response to railroad accidents  
          involving tank cars carrying hazardous materials.  SB 506 was  
          pulled by the author and was not heard by this committee.  

          SB 380 (Dickenson), Chapter 533, Statutes of 2014, required rail  
          carriers to submit specified information regarding the transport  
          of hazardous materials and Bakken oil to the Office of Emergency  
          Services for the purposes of emergency response planning.

          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file









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          Opposition


          None on file




          Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093