BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 730|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 730
          Author:   Wolk (D)
          Introduced:2/27/15  
          Vote:     21  

           SENATE LABOR & IND. REL. COMMITTEE:  4-1, 4/22/15
           AYES:  Mendoza, Jackson, Leno, Mitchell
           NOES:  Stone

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Railroads: movement of freight: trains or light  
                     engines: crew size


           SOURCE:    Brotherhood of Locomotive Engineers & Trainmen,  
                     International Brotherhood of Teamsters 


          DIGEST:  This bill 1) prohibits a train or light engine used in  
          connection with the movement of freight, as specified, from  
          being operated in California unless it has a crew consisting of  
          at least two individuals, and 2) authorizes the California  
          Public Utilities Commission (CPUC) to assess civil penalties for  
          willful violations of this provision.


          ANALYSIS:   


          Existing federal law:










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          1)Authorizes, under the Federal Railroad Safety Act (FRSA), the  
            Secretary of Transportation to prescribe regulations and issue  
            orders for all areas of railroad safety (supplementing  
            existing rail safety statues and regulations) and to conduct  
            necessary research, development, testing, evaluation, and  
            training. 


          2)Provides that, under the FRSA, to the extent practicable,  
            laws, regulations, and orders related to railroad safety and  
            security are required to be nationally uniform, but authorizes  
            a state to adopt or continue to enforce a law, regulation, or  
            order related to railroad safety or security until the  
            Secretary of Transportation (with respect to railroad safety  
            matters), or the Secretary of Homeland Security (with respect  
            to railroad security matters), prescribes a regulation or  
            issues an order covering the subject matter of the state  
            requirement.


          Existing state law: 


          1)Provides that the Division of Occupational Safety and Health  
            (also known as Cal/OSHA) has jurisdiction over, among other  
            things, the occupational safety and health of employees of  
            rail rapid transit systems, electric interurban railroads, or  
            street railroads and the safety and health of railroad  
            employees employed in offices and in shops devoted to the  
            construction, maintenance or repair of railroad equipment. 

          2)Provides that the CPUC is the agency charged with ensuring the  
            safety of freight railroads, inter-city and commuter  
            railroads, and highway-railroad crossings in the State of  
            California. The CPUC performs these railroad safety  
            responsibilities through the Railroad Operations and Safety  
            Branch (ROSB) of the Safety & Enforcement Division.  

          This bill:

          1)Prohibits, on and after February 1, 2016, a train or light  
            engine used in connection with the movement of freight, as  
            specified, from being operated unless it has a crew consisting  
            of at least two individuals. 







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          2)Authorizes the CPUC to assess civil penalties against any  
            person who willfully violates this provision according to the  
            following schedule:

                 $250 to $1,000 dollars for the first violation;
                 $1,000 to $5,000 dollars for the second violation within  
               a three-year period; and 
                 $5,000 to $10,000 for the third violation and each  
               subsequent violation within a three-year period. 

          Background 

          Railroad operations and safety.  The CPUC performs railroad  
          safety responsibilities through the ROSB of the Safety &  
          Enforcement Division. ROSB's mission is to ensure that  
          California communities and railroad employees are protected from  
          unsafe practices on freight and passenger railroads by enforcing  
          state and federal rail safety rules, regulations, and inspection  
          efforts; and by carrying out proactive assessments of potential  
          risks before they create dangerous conditions. 

          ROSB personnel investigate rail accidents and safety related  
          complaints, and recommend safety improvements to the CPUC,  
          railroads, and the federal government as appropriate. In  
          addition to enforcing the California Public Utilities Code and  
          CPUC General Orders, ROSB inspectors enforce Federal Railroad  
          Administration (FRA) regulations in a state/federal enforcement  
          partnership. According to the CPUC Web site, ROSB currently has  
          45 certified inspector positions that are FRA-certified and are  
          divided into the FRA's five railroad subject areas described  
          below:

          1)Operating Practices - enforcing regulations for main, branch  
            and yard train operations, including hours of service, carrier  
            operating rules, employee qualification guidelines, and  
            carrier training and testing programs to enforce compliance  
            with railroad occupational safety and health standards,  
            accident and personal injury reporting requirements, and other  
            requirements.











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          2)Track - enforcing regulations for track construction,  
            maintenance and inspections. 



          3)Signal & Train Control - enforce safety rules on signal system  
            construction, maintenance and inspection activities.



          4)Motive Power & Equipment - enforce safety rules on  
            locomotives, freight and passenger rail cars, air brakes, and  
            other safety appliances maintenance and inspection activities.



          5)Hazardous Materials - enforcing regulations for rail movements  
            of hazardous materials, such as petroleum and chemical  
            products; and inspection of hazardous materials shippers.


          Railroad safety statistics.  According to the U.S. Department of  
          Transportation -FRA, the nation has had two straight years of  
          record-breaking safety performance, along with significant  
          reductions in all types of accidents since Fiscal Year 2008.  
          (Safety Fact Sheet, February 2014.)  Overall, the FRA found that  
          human factor caused accidents were down by 38%, track defects  
          down by 37% ,and equipment defects down by 41%. 

          In California, the CPUC reported the following activities in its  
          2013-14 Annual Railroad Safety Activity Report: 

           Performed 3,692 inspections and follow-up inspections to  
            monitor the railroads' compliance and remedial actions;

           Identified 11,445 federal regulation non-compliance defects  
            (which are notices to railroads of an existing issue -  
            railroads are directed to replace, repair or remove the  
            defects. Violations exist when the defects are not remediated  
            or conditions are so that they warrant a civil penalty and  
            immediate remedial action);

           Completed 349 CPUC General Orders (GO) that identified 938  







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            defects;

           Recommended 259 violations of FRA regulations;

           Cited 11 violations of state regulations; and,

           Responded to and resolved 28 informal safety complaints.

          The CPUC Office of Rail Safety can assess penalties depending on  
            the violation.
          For violations of federal railroad safety regulations, ROSB  
            railroad safety 
          inspectors make recommendations to the FRA for the assessment of  
            penalties. A 
          railroad issued such a citation may accept the fine imposed or  
            contest it through a 
          process of appeal. 

          The Lac-Mégantic Canada Incident.  On July 6, 2013, there was a  
          derailment of an unattended Montreal, Maine and Atlantic Railway  
          freight train containing crude oil in Lac-Mégantic, Quebec,  
          Canada.  In this accident, the train had been operated by one  
          person who failed to secure the hand brakes properly before  
          retiring for the night.  The train rolled down the grade  
          uncontrollably and crashed and exploded killing 47 people.  

          In response to this tragic incident, the U.S. Department of  
          Transportation created three Railroad Safety Advisory Committee  
          (RSAC) Working Groups - Appropriate Train Crew Size, Securement,  
          and Hazardous Materials Issues. The RSAC held emergency meetings  
          to evaluate and consider wide-ranging proposals to enhance  
          railroad safety including the safe shipment of crude oil by  
          rail. On April 9, 2014, following deliberations of the working  
          groups, the U.S. Department of Transportation's FRA announced  
          its intention to issue a proposed rule requiring two-person  
          train crews on crude oil trains and establishing minimum crew  
          size standards for most main line freight and passenger rail  
          operations.  According to the FRA Administrator Joseph C. Szabo,  
          "We believe that safety is enhanced with the use of a multiple  
          person crew-safety dictates that you never allow a single point  
          of failure. Ensuring that trains are adequately staffed for the  
          type of service operated is a critically important to ensure  
          safety redundancy."  The FRA has not yet adopted regulations for  
          implementation of this minimum crew size rule. 







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          Existing California law has no minimum size of railroad crew  
          requirements. Similar to the federal efforts on the issue, this  
          bill prohibits, on and after February 1, 2016, a train or light  
          engine used in connection with the movement of freight, as  
          specified, from being operated unless it has a crew consisting  
          of at least two individuals.  According to the FRSA, it is the  
          policy of Congress that rail safety regulations be nationally  
          uniform to whatever extent practicable. However, a state is  
          permitted to continue to regulate with respect to any rail  
          safety matter until such time as the Secretary of the U.S.  
          Department of Transportation issues a rule covering the same  
          subject matter. Also, a state is permitted to adopt additional  
          or more stringent standards than the federal standards if the  
          state rule does not create an undue burden on interstate  
          commerce, is not incompatible with federal standards, and is  
          necessary to eliminate or reduce local safety hazards (FRSA of  
          1970).

          Similar efforts at the state and national level.  In addition to  
          the pending two-person train crew rule at the federal level,  
          there are several states that have either implemented or are  
          considering similar requirements.  In the State of Wisconsin no  
          person operating or controlling any railroad, as defined, may  
          allow the operation of any railroad train or locomotive unless  
          it has a crew of at least two individuals. It goes even further  
          by requiring that one of the individuals be a certified railroad  
          locomotive engineer and imposing penalties for violations  
          ($25-100 for a first offense, $100-500 for a 2nd offense within  
          three years, and $500-1000 for a 3rd offence within three  
          years).  Two-person railroad crew legislation is also pending in  
          other states including Washington, Nebraska, Minnesota, Wyoming,  
          Iowa, Utah and North Dakota. 

          Wisconsin - case seeking invalidation of "two-person crew."  On  
          July 23, 1999, the U.S. Court of Appeals, Seventh Circuit made a  
          decision in the case of Burlington Northern and Santa Fe Railway  
          Company, Soo Line Railroad Company, Union Pacific Railroad  
          Company, and Wisconsin Central Ltd. vs. Attorney General, et al  
          of Wisconsin and the United Transportation Union.  The railroads  
          brought action against Wisconsin Attorney General and district  
          attorneys seeking invalidation of Wisconsin's "two-person crew"  
          statute because FRA regulations allegedly preempted same safety  
          concerns.  The court held that crew qualification requirements  







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          were preempted by federal law but held that two-person crews  
          were not. 

          Prior Legislation
          
          SB 200 (O'Connell, 1999) would have provided that a common  
          carrier may run freight or work trains only if it employs on  
          that train at least two persons, one of whom is a railroad  
          trainman, as defined.  The bill would have also made violations  
          of this requirement a misdemeanor.  SB 200 died in the Assembly.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified4/22/15)


          Brotherhood of Locomotive Engineers & Trainmen, International  
            Brotherhood of Teamsters 
          California Labor Federation, AFL-CIO
          California Public Utilities Commission   
          California Teamsters Public Affairs Council
          United Transportation Union


          OPPOSITION:   (Verified4/22/15)


          BNSF Railway Company
          California Railroad Industry
          California Short Line Railroad Association
          Union Pacific Railroad Company


          ARGUMENTS IN SUPPORT:      According to the author, SB 730  
          protects communities by requiring trains and light engines  
          carrying freight within California to be operated with an  
          adequate crew size for both public safety reasons and the  
          protection of railroad workers.  According to proponents, this  
          bill is designed to maintain the status quo in freight  
          operations in this state, as the overwhelming majority of trains  
          operated in the U.S. run with a two person crew.  Despite that  
          fact, however, they argue that it is clear that the intention of  







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          the railroad industry is to move to a one person crew. The shift  
          to one-person crews raises safety concerns, especially in light  
          of accidents involving the transport of hazardous materials  
          through urban areas such as the derailment of a fuel train, run  
          by a one-man crew, in Quebec in 2013 which killed 47 people,  
          along with several other destructive derailments of fuel trains  
          in the U.S.  

          Proponents argue that if this were just about staffing, that  
          would be one thing, but this is about public safety. Freight  
          trains are longer, heavier and have more hazardous, toxic,  
          dangerous and explosive materials being hauled than ever before.  
          As such, an accident can be devastating and deadly. Proponents  
          argue that every effort should be made to minimize the exposure  
          and impact of this danger to the general public. 

          Advanced technology has made the railroads safer; however,  
          proponents argue that nothing can replace an extra set of eyes  
          and ears when trains drive through populated areas.  A single  
          operator in an emergency situation cannot properly assess the  
          situation, secure the train, and notify police, fire and other  
          necessary officials in a timely manner. Lastly, proponents state  
          that the federal government and other states are grappling with  
          how to increase railroad safety and 14 states have introduced  
          minimum crew legislation this year. 

          Additionally, the CPUC has voted unanimously to support SB 730  
          stating that requiring two-person crews is a straightforward way  
          of ensuring two qualified crew members continue to operate  
          freight trains in California until such time as the rules and  
          practices of safe operation may be updated for safer operation  
          with smaller crews.  According to the CPUC, of all the  
          industries subject to CPUC oversight (energy, water,  
          telecommunications, and transportation) rail accidents result in  
          the greatest number of fatalities each year.  


          ARGUMENTS IN OPPOSITION:      The California Railroad Industry  
          opposes this bill because it will unnecessarily and unreasonably  
          interfere with the ability of railroad management and union  
          leaders to fully bargain over the best and safest crew size for  
          each assignment in California.  They argue that state  
          legislation that attempts to alter terms of collective  
          bargaining agreements would harm the process and would  







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          permanently undermine the principle of labor and management  
          cooperation that underpins the Railway Labor Act. 

          Opponents argue that, historically, safety and technology  
          improvements have been a primary catalyst for negotiations  
          related to crew size.  As a result of these improvements, rail  
          labor and rail management have agreed to reductions in crew size  
          from as many as five persons in the 1980s to two persons on most  
          territories operating today.  They argue that these reductions  
          in crew size were achieved without compromise to safety as  
          witnessed by a decline in rail employee injuries, train accident  
          and grade crossing collision rates by 79 percent or more.   
          Hazardous material accidents rates are down 91 percent. 

          Additionally, opponents argue that the collectively bargained  
          crew size also provides the parties with flexibility to address  
          needs that arise from advancements in technology, design, and  
          planning.  The railroads are not asking for one-person crews at  
          this time, however, they are opposing this legislation so that  
          if safe operating practices and technology make single person  
          crews viable in the future, then that option is not foreclosed  
          in California.  Opponents point to Positive Train Control, which  
          is designed to automatically stop a train before certain  
          accidents caused by human error can occur, as a contemporary  
          example of pursuing such technological advancements. 


          Prepared by:Alma Perez / L. & I.R. / (916) 651-1556
          5/6/15 17:02:31


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