BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SJR 27|
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THIRD READING
Bill No: SJR 27
Author: Padilla (D), et al.
Amended: As introduced
Vote: 21
SUBJECT : Railroad safety
SOURCE : Author
DIGEST : This resolution urges the United States Department of
Transportation (USDT), 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.
ANALYSIS : This resolution makes the following legislative
findings:
1.Recent years have seen a significant increase in crude oil
production from the Bakken region of North Dakota and Montana
as well as from the bituminous sands, commonly known as tar
sands, of Canada. Because crude oil currently is not
transported to California through pipelines, and because
transport by barge and truck is relatively expensive, energy
companies have turned to railroads for distribution of this
crude oil.
2.According to the Association of American Railroads, roughly
400,000 carloads of crude oil traveled by rail to refineries
located along the West Coast, Northeast, and Gulf of Mexico in
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2013. This number is up from 9,500 in 2008, a 4,000%
increase. Because of this rapid change in the energy and
transportation sectors, safety rules, regulations, and
oversight may not be aligned with current operations.
3.According to the Pipeline and Hazardous Materials Safety
Administration, the amount of crude oil spilled from tank cars
last year was more than all crude oil spilled during the four
decades since the federal government began collecting such
data (1.15 million gallons in 2013 compared to 800,000 gallons
between 1975 and 2012). While the total number of accidents
has decreased over time, the environmental impact, as measured
by gallons spilled per million ton-miles, has dramatically
increased.
4.Crude oil is the fastest-growing type of freight moving into,
out of, or through California. According to the State Energy
Resources Conservation and Development Commission, the volume
of crude oil imported into California by rail has increased
from 45,491 barrels in 2009 to 6,169,264 barrels in 2013, a
135-fold increase in only four years.
5.Two major (Class I) railroads are currently moving crude oil
into California, to receiving terminals in Richmond and
Bakersfield. Five additional terminals are planned or under
construction in Bakersfield, Benicia, Pittsburg, San Luis
Obispo, and Wilmington. In order to reach these terminals,
crude oil must travel through areas that are densely
populated, environmentally sensitive, or both.
6.Despite their hazardous contents, according to the Association
of American Railroads, 85% of tank cars carrying flammable
liquids, such as crude oil, do not meet the industry's higher
voluntary safety standards, established in October 2011.
This resolution:
1.Urges the USDT and other relevant federal entities to
safeguard communities and environmentally sensitive areas from
rail accidents involving transportation of crude oil by
expediting rail safety reforms.
2.Urges the USDT and other relevant federal entities to
prioritize safety considerations over cost-effectiveness in
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deliberations about improving the transport of crude oil by
rail.
3.Urges the USDT and other relevant federal entities to mandate,
at a minimum, the best practices explained in the safety
initiative announced on February 21, 2014, by Secretary Foxx
and railroad industry representatives.
4.Urges the USDT and other relevant federal entities to partner
with the Canadian Transportation Agency to improve safety of
the North American railroad tank car fleet by swiftly adopting
a stricter design standard for new tank cars, and by
retrofitting or phasing out tank cars that do not meet that
standard.
Comments
According to the author:
Recent years have seen a significant increase in crude oil
production largely due to fracking in North Dakota's Bakken
shale and drilling in the Canadian 'tar sands.' According
to the federal regulator, the Bakken supply is more prone
to ignite during an accident than traditional heavy crude
oil. Indeed, of the 10 oil car derailments since last
July-including 3 since April 30th-most have resulted in
fires, explosions and/or spills. More oil spilled from U.S.
trains in 2013 than in the previous 4 decades combined.
Nationally, the transport of crude oil by rail has
increased 4,000 percent since 2008. Crude oil is the
fastest-growing type of freight moving into, out of, or
through California. With 6 rail offloading terminal
applications pending, the California Energy Commission
forecasts that the percentage of all California-refined
crude oil that is imported by rail will increase from 1
percent now to 27 percent by 2016.
These rapid changes in the energy/transportation sector
mean than safety rules and regulations may not be aligned
with current operations. But we can, and should, call on
federal entities to do more to protect our communities and
environmentally sensitive areas from crude-by-rail
accidents.
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FISCAL EFFECT : Fiscal Com.: No
JA:k 6/5/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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