BILL ANALYSIS �
SJR 27
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SENATE THIRD READING
SJR 27 (Padilla)
As Introduced May 28, 2014
Majority vote
SENATE VOTE :36-0
TRANSPORTATION 14-0
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|Ayes:|Lowenthal, Linder, | | |
| |Achadjian, Bloom, Bonta, | | |
| |Buchanan, Daly, Frazier, | | |
| |Gatto, Holden, Nazarian, | | |
| |Patterson, Quirk-Silva, | | |
| |Waldron | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Urges the federal government to take specified steps
to safeguard communities and environmentally sensitive areas
from rail accidents. Specifically, this bill :
1)Urges the United States Department of Transportation (USDOT)
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 USDOT and other relevant federal entities to prioritize
safety considerations over cost-effectiveness in deliberations
about improving the transport of crude oil by rail.
3)Urges USDOT 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 USDOT 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.
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EXISTING LAW :
1) Requires, pursuant to federal law, that railroad safety laws
be nationally uniform "to the extent practicable" and allows
states to adopt additional or more stringent laws when not
preempted by federal law.
2) Requires, pursuant to federal law, that each state have a
commission to coordinate and supervise federal programs
related to hazardous material emergencies.
3) 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 (PHMSA).
4) Requires the Office of Emergency Services (OES) to assist
local governments in their emergency preparedness, response,
recovery, and hazard mitigation efforts.
5) Requires that all rail operators provide a risk assessment to
the California Public Utilities Commission, the Director of
Homeland Security, and California Emergency Management Agency
that describes the locations, types, and frequency of
hazardous cargo movement through rail facilities, and
training and emergency response procedures.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : In recent years there has been a significant increase
in crude oil production largely due to fracking in North
Dakota's Bakken shale and drilling in the Canadian tar sands.
Because of this increased production, the transport of crude oil
by rail has increased by 4,000% nationally since 2008. 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 causing the volume of
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crude oil imported into California by rail to increase from
45,491 barrels in 2009 to over six million barrels in 2013, a
135-fold increase in only four years.
This increased volume of crude transport by rail raises
significant safety and environmental concerns, particularly
given that the Bakken crude supply is more prone to ignite
during an accident than traditional heavy crude oil. According
to the PHMSA, 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.
A recent series of derailments has also served to raise the
profile of crude oil transportation by rail among local, state,
and federal officials. On July 6, 2013, a runaway train
carrying crude oil exploded upon derailment in downtown
Lac-Megantic, Quebec, causing the death of 47 people, the
subsequent evacuation of an entire community, the burning or
spilling of 1.5 million gallons of crude oil, and over $1
billion in damage. Since this tragedy, eight more high-profile
rail accidents involving transportation of crude by rail have
occurred in four states and three Canadian provinces including,
most recently, an accident in Lynchburg, Virginia in April 2014
where train cars carrying crude derailed, caught fire, and
spilled their contents into the James River.
The author has expressed concerns that the rapid changes in the
energy and transportation sector have outpaced safety rules and
regulations that govern current operations. To address these
concerns, the author has introduced this bill which makes a
number of findings related to the significant recent increase in
crude oil production, the increase in volume of crude oil
transport by rail, and the corresponding increase in rail
accidents involving the movement of crude. This bill points out
current safety rules, regulations, and oversight may not be
aligned with current operations and therefore urges the USDOT
and other relevant federal entities to mandate, at a minimum,
the best practices explained in the safety initiative announced
on February 21, 2014, by USDOT and railroad industry
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representatives which calls for, among other things, increased
track inspections, improved braking systems, and increased
emergency response training. The bill also encourages
partnership 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.
Writing in support of this bill, the California Association of
Professional Scientists concur that there is a need to safeguard
communities and environmentally sensitive areas from rail
accidents and that safety should come before cost-effectiveness
when in improved tank car design and standards.
There is no opposition on file.
Related legislation: SB 506 (Hill) of the current legislative
session, would impose a fee on every owner of hazardous material
at the time that hazardous material is transported on rail by a
tank car in California to help fund state and local emergency
response efforts. SB 506 was held by the author in the Assembly
Transportation Committee.
AB 380 (Dickinson) of the current legislative session would,
among other things, require railroads to provide to OES with
information regarding the type and amount of hazardous materials
and crude oil cargo transported through California on a
quarterly basis. AB 380 is pending in the Senate Appropriations
Committee.
SB 1319 (Pavley) of the current legislative session, would use a
fee to pay for Office of Spill Prevention and Response to inland
oil spills. It would also recommend for information on the
shipping of crude oil by rail, truck, boat, or pipeline to be
provided to affected communities. SB 1319 is currently pending
in the Assembly Appropriations Committee.
AB 2677 (Rodriguez) of 2014, would have reinstated Railroad
Accident Prevention and Immediate Deployment by requiring a
comprehensive and coordinated oil spill contingency plan for
crude oil by rail. AB 2677 failed in the Assembly Natural
Resources Committee.
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Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093
FN: 0004130