BILL ANALYSIS �
SB 1319
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SENATE THIRD READING
SB 1319 (Hill)
As Amended August 22, 2014
Majority vote
SENATE VOTE : Vote not relevant
NATURAL RESOURCES (June 16, 2014) UTILITIES &
COMMERCE (June 23, 2014)
(vote not relevant) (vote not relevant)
APPROPRIATIONS (August 14, 2014)
(vote not relevant)
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SUMMARY : Creates the Regional Railroad Accident Preparedness
and Immediate Response Force (RRAPIR Force) in the Office of
Emergency Services (OES). Requires RRAPIR Force to be
responsible for providing regional and onsite response
capabilities in the event of a release of hazardous materials
from a railroad tank car or a railroad accident involving a tank
car. Establishes a fee (Fee) paid by each person owning
hazardous materials that are transported by rail in California
to fund activities related to the RRAPIR Force program.
Specifically, this bill :
1)Creates RRAPIR Force in OES. Requires RRAPIR Force to be
responsible for providing regional and onsite response
capabilities in the event of a release of hazardous materials
from a railroad tank car or a railroad accident involving a
tank car and for implementing the state regional railroad
accident preparedness and immediate response plan for releases
of hazardous materials from a railroad tank car or a railroad
accident involving a tank car (Railroad Accident Plan).
Requires RRAPIR Force to act cooperatively and in concert with
existing local emergency response units pursuant to the
Standardized Emergency Management System.
2)Requires RRAPIR Force to consist of representatives of all of
the following: Department of Fish and Wildlife; California
Environmental Protection Agency; State Air Resources Board;
Department of Resources Recycling and Recovery; California
regional water quality control boards; Department of Toxic
Substances Control; Department of Pesticide Regulation; Office
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of Environmental Health Hazard Assessment; State Department of
Public Health; Department of the California Highway Patrol;
Department of Food and Agriculture; Department of Forestry and
Fire Protection; Department of Parks and Recreation; Public
Utilities Commission; State Fire Marshal; Emergency Medical
Services Authority; California National Guard; and any other
potentially affected state, local, or federal agency, as
determined by OES.
3)Requires OES to develop a Railroad Accident Plan in
cooperation with the RRAPIR Force members and requires the
plan to become an annex to the state emergency plan.
4)Finds and declares that the state has a comprehensive program
through the Office of Spill Prevention and Response (OSPR) to
prevent and prepare for the risk of a significant discharge of
petroleum into state waters, including a discharge caused by
the transportation of petroleum by rail. Further finds and
declares that RRAPIR Force is focused on the emergency
response for railroad accidents and tank car discharges
involving all designated hazardous materials regardless of
where the accident or discharge takes place. Requires RRAPIR
Force and OSPR to coordinate in their respective authorities
and responsibilities to avoid any duplication of effort,
ensure cooperation, and promote the sharing of information
regarding the risk of discharge of petroleum by rail into
state waters.
5)Creates the Regional Railroad Accident Preparedness and
Immediate Response Fund (Fund). Requires moneys in the Fund,
upon appropriation by the Legislature, to be used by OES to
pay for the following purposes related to the transportation
of hazardous materials:
a) Planning, developing, and maintaining a capability for
emergency response to railroad accidents involving tank
cars carrying hazardous materials, including the risks of
explosions and fires;
b) Planning, developing, and maintaining a capability for
emergency response to releases of hazardous materials from
tank cars, including reducing the harmful effects of
exposure of those materials to humans and the environment;
c) Creation, support, maintenance, and implementation of
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RRAPIR Force;
d) Acquisition and maintenance of specialized equipment and
supplies used to respond to a hazardous materials release
from a railroad tank car or a railroad accident involving a
tank car;
e) Support of specialized training facilities to prepare
for and respond to a hazardous materials release from a
railroad tank car or a railroad accident involving a tank
car;
f) Creation and support of a regional, state level, and
local emergency response team to provide immediate onsite
response capabilities in the event of large scale releases
of hazardous materials from a railroad tank car or a
railroad accident involving a tank car; and,
g) Support for specialized training for state and local
emergency response officials in techniques for prevention
of, and response to, release of hazardous materials from a
railroad tank car or a railroad accident involving a tank
car.
6)Requires that the amount available for appropriation from the
Fund does not exceed $10 million in any calendar year.
7)Requires, in addition to the purposes listed above, the Fund
to be used to reimburse any moneys loaned from the California
High-Cost Fund-B Administrative Committee Fund (CHCFBAC Fund)
to the Fund to pay OES for the administrative costs associated
with implementation of the Fee.
8)Requires OES to establish a schedule of fees to determine the
amount of the Fee that shall be paid by each person owning
hazardous materials that are transported by rail in California
in an amount sufficient to fund the appropriation from the
Fund, to reimburse the CHCFBAC Fund for any moneys loaned, and
to maintain a prudent reserve of two months' operating costs.
Requires the Fee to be based on each loaded tank car and
collected in a manner specified. Requires the Fee to be fair,
as specified by federal law, and reflect the proportionate
risks to the public safety and environment resulting from a
release of different hazardous materials and the expense of
preparing to respond to those varying risks. Prohibits the
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Fee to exceed the reasonable regulatory costs to the state.
Requires OES to set the Fee consistent with Proposition 26 of
2010.
9)Allows OES to authorize payment of the Fee through
contributions in kind of equipment, materials, or services.
10)Defines "hazardous materials" a material that the United
States Department of Transportation has designated as a
hazardous material for purposes of transportation in Part 172
of Title 49 of the Code of Federal Regulations.
EXISTING LAW :
1)Created the Railroad Accident Prevention and Immediate
Deployment Force (RAPID) to provide immediate onsite response
capability in the case of large-scale releases of toxic
materials resulting from surface transportation accidents,
such as train accidents. (RAPID has been inoperative since
its statutory fee authority was eliminated in 1995.)
2)Gives the Office of Spill Prevention and Response (OSPR)
primary authority to direct prevention, removal, abatement,
response, containment, and cleanup efforts with regard to all
aspects of any oil spill in waters of the state, in accordance
with any applicable facility or vessel contingency plan and
the California oil spill contingency plan.
FISCAL EFFECT : Unknown
COMMENTS : The rapid expansion of crude oil transportation by
rail, coupled with a series of derailments and explosions over
the past year, has raised concerns about the safety of rail
transport of hazardous materials.
United States (U.S.) freight railroads carried more than 400,000
carloads (or 280 million barrels) of crude oil in 2013, compared
to just 9,500 carloads (or 6.65 million barrels) in 2011. The
hydraulic fracturing boom in other areas of the country,
particularly North Dakota with its Bakken oil shale formation,
has been a major reason for the increase. Furthermore, the
flexibility and economics of rail transport as compared to new
pipeline construction (including Keystone XL) have made
crude-by-rail an attractive option: as much as 90% of North
Dakota's crude is expected to move by freight rail in 2014.
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Linked to this rise in crude-by-rail, has been an increase in
oil spills. In 2013, the country experienced more oil spilled
from trains than in the previous 37 years combined. Moreover,
since July of last year, there have been several major
crude-by-rail accidents in Canada and the U.S. that illustrate
how vulnerable the environment and public are to these types of
events. One of the most serious accidents was the Lac-M�gantic
derailment that occurred in the town of Lac-M�gantic, Quebec on
July 6, 2013. In this accident, a 74-car freight train carrying
crude oil from the Bakken formation derailed in the downtown
area, killing 47 people and destroying more than 30 buildings
when multiple tank cars exploded and burned. In addition, the
Chaudi�re River was contaminated by 26,000 gallons of crude oil.
Most recently, on April 30, 2014, in downtown Lynchburg,
Virginal, a train carrying crude oil derailed and burst into
flames, with several tank cars spilling into the James River and
releasing 30,000 gallons of oil. The resulting fire and spill
prompted the city manager to declare an emergency and
temporarily evacuate part of downtown. There have been seven
other major crude-by-rail accidents since the Lac-M�gantic
derailment, including the December 30, 2013 derailment in North
Dakota (which spilled 400,000 gallons, ignited a fire, caused
the evacuation of 1,400 people, and led to $8 million in
damages) and the November 8, 2013 derailment in Alabama (which
spilled oil into wetlands, caused a large fire, and led to $3.9
million in damages).
California is already experiencing the effects of increased
crude-by-rail transportation due to the North American hydraulic
fracturing boom. In 2011, California moved less than 2 million
barrels of oil by rail; in 2013, that number rose to more than 6
million, with a significant amount coming from North Dakota.
For the first quarter of 2014, crude-by-rail numbers were up
104% compared to the first quarter of 2013 (1,414,418 barrels
versus 693,457 barrels).
There are currently at least five crude-by-rail refinery
projects being pursued in California: one in Pittsburg, one in
Benicia, two in Bakersfield, and one in Wilmington. According
to the California Energy Commission, if all are constructed and
operated at full capacity, the amount of crude oil being
imported via rail cars could rise to 150 million barrels, or 25%
of total imports, by 2016.
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Many of California's rail lines pass over or near bodies of
water and through high density population centers.
Crude-by-rail also presents risks that may be particularly
relevant to environmental justice communities situated near oil
refineries and offloading terminals. Communities in more remote
areas may have fewer skilled emergency response personnel.
Since much of the oil transported by rail into California comes
from North Dakota's Bakken region, it should be noted that the
federal Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued a safety alert in January of this year indicating
that the type of crude oil being transported from the Bakken
region "may be more flammable than traditional heavy crude oil."
In January 2014, the Governor's Office convened a Rail Safety
Working Group (RSWG) to examine safety concerns and recommend
actions the state and others should take in response to this
emerging risk related to rail. On June 10, 2014, the RSWG
released a report with preliminary findings and recommendations.
One of the major recommendations is to improve emergency
preparedness and response programs, which includes the
following: 1) expand the oil spill prevention and response
program to cover inland oil spills; 2) provide additional
funding for local emergency responders; 3) review and update
emergency response plans; and 4) increase emergency response
training.
Through SB 861 (Budget and Fiscal Review Committee), Chapter 35,
Statutes of 2014, the state implemented RSWG's recommendation to
expand the oil spill prevention and response program to cover
inland oil spills.
This bill will implement the RSWG's recommendations to provide
additional funding for local emergency responders; review and
update emergency response plans; and increase emergency response
training.
This bill is a revamp of RAPID, which was designed to provide
immediate onsite response capability in the case of large-scale
releases of toxic materials resulting from surface
transportation accidents, such as train accidents. RAPID has
been inoperative since its statutory fee authority was
eliminated in 1995.
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Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN: 0005365