BILL ANALYSIS SB 578 Page 1 Date of Hearing: June 22, 2005 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Ira Ruskin, Chair SB 578 (Escutia) - As Amended: May 4, 2005 SENATE VOTE : 34-4 SUBJECT : Railroads: safety SUMMARY : Requires a) railroads to report information about uncontrolled train movement incidents to the Office of Emergency Services (OES), whether or not a spill or release occurs, if the incident could have affected public health and safety, and b) requires the California Public Utilities Commission (CPUC) to investigate the incident. Specifically, this bill : 1)Requires a railroad corporation, if there is a runaway train or any other uncontrolled train movement, involving a load of hazardous materials, that threatens public health and safety, to include in their OES notification the same information that would be required if the uncontrolled train movement had resulted in the release of hazardous material. 2)Directs the CPUC's division of consumer protection and safety to investigate any uncontrolled train movement that involves any railcar containing hazardous material and to report its findings to CPUC for inclusion in the report to the Legislature. 3)Replaces the references to the CPUC's division of "safety" to the division of "consumer protection and safety" to match the current name of the division. EXISTING LAW: 1)Requires railroads to annually submit to OES handling guidelines for the transportation of hazardous materials. 2)Requires railroads, if there is a train incident resulting in a release of hazardous materials, or an overturned car or an impact that threatens a release of hazardous materials, to provide the emergency response agency with the following: a) a list of each car in the train and the order of the cars; b) the contents of each car; c) the identification of the cars SB 578 Page 2 and contents in the train involved in the incident; d) emergency procedures for the release of a hazardous material. 3)Requires railroads to promptly notify OES if there is a runaway train or any other uncontrolled train movement that threatens health and safety. 4)Defines, under federal regulations, hazardous material to mean "a substance or material that the Secretary of Transportation has determined is capable of posing an unreasonable risk to health, safety, and property when transported in commerce, and has been designated as hazardous pursuant to" federal hazardous materials transportation law (49 U.S.C. 5103). The term includes poisonous or explosive substances, hazardous wastes, marine pollutants, and radionuclides. The term generally does not include petroleum, crude oil natural gas, liquefied natural gas, or synthetic gas usable for fuel. 5)Requires CPUC to produce two annual reports to the Legislature. a) The Public Utilities Code Section 316 report is due on the first day of December of each year and contains a complete account of its transactions and proceedings for the preceding fiscal year, together with such other facts, suggestions, and recommendations as it deems of value to the people of the State. b) The Public Utilities Code Section 7711 report is due on or before July 1 of each year and it covers sites on railroad lines in the state that CPUC finds to be hazardous. FISCAL EFFECT : Minor or absorbable according to Senate Appropriations Committee (Rule 28.8). COMMENTS : 1)According to the author, this has been a bad year for train accidents. In January 2005, a train accident in South Carolina resulted in a chlorine gas spill. That accident killed nine, injured hundreds and led to the evacuation of 5,400 people. Also in January, a train accident in Glendale killed 11 and hospitalized over 200 people. SB 578 Page 3 2)The author also draws focus to an incident closer to home that occurred on June 20, 2003 in which 31 cars of a Union Pacific freight train escaped from a rail yard in Montclair, rolling uncontrolled through Pomona and reaching speeds of up to 86 mph. Twenty-five minutes after breaking free, and 28 miles down the tracks, the cars were intentionally derailed in the City of Commerce destroying two homes, damaging several more, but causing no loss of life. This accident was the catalyst for a state law requiring railroads to notify OES of any uncontrolled train movement that threatens public health and safety. 3)This bill expands this requirement to those instances where there is any uncontrolled train movement involving railcars carrying hazardous materials . Such notification shall include the list of railcars and order of the cars, their contents, and emergency handling procedures for the hazardous materials in those railcars. The bill also requires CPUC to investigate and report on these incidents to the Legislature as part of its annual Public Utilities Code Section 316 responsibilities. Federal Regulations: 4)Federal regulations require railcars carrying specified hazardous materials to carry external warning placards. These placards, required on both ends of the railcar, identify the class of hazard (e.g. explosives, toxic materials, radioactive). The federal Department of Homeland Security (HSec) is concerned that the placards will help terrorists find targets. DHS has therefore proposed eliminating the placard requirement, making it much more difficult for terrorists to identify targets but also making it harder for public safety agencies to identify and properly respond to hazardous material spills. Recently however, HSec announced that it will continue the placarding program for rail transport of hazardous materials. Reports to the Legislature : 5)This bill requires the information gathered by the CPUC to be included in its Section 316 report. That report shall contain a complete account of its transactions and proceedings for the preceding fiscal year, together with such other facts, suggestions, and recommendations as it deems of value to the people of the State. SB 578 Page 4 6)Another report, under Section 7711 contains information regarding sites along railroad lines in the state that CPUC finds to be hazardous. The 7711 report shall include, but not be limited to: a) Information on all of the following: i) a list of all railroad derailment accident sites in the state on which accidents have occurred within at least the previous five years; ii) the nature and probable causes of the accidents; and iii) whether the accidents occurred at or near sites that CPUC felt were hazardous. b) A list of all railroad sites in the state that CPUC feels pose a local safety hazard. Factors that CPUC shall consider in determining a local safety hazard may include: i) special skills of train operators in negotiating particular segments of railroad line; ii) special railroad equipment used in negotiating particular segments of railroad line; iii) types of commodities transported on or near particular segments of railroad line; iv) hazards posed by the release of the commodity into the environment; and v) proximity of railroad activity to human activity or sensitive environmental areas. Potential Amendment 7)The author and the Committee may wish to consider whether CPUC reporting requirement in this bill should be moved to the Section 7711 report as the subject matter of this bill's reporting requirements seems to be more closely related to the 7711 concerns. If the author were to change this bill's reporting requirements to the 7711 report, nothing would preclude the CPUC from also including information gathered pursuant to this measure in its Section 316 report as part of its recommendations to the Legislature there as well. 8)Suggested amendment: On page 5, line 15 change Section 316 to Section 7711. Double Referral : This measure has been double referred to the Assembly Committee on Transportation. Related Legislation SB 419 (Simitian) This bill requires OES to create and maintain SB 578 Page 5 a hazardous rail tank car database, which contains specified information, including a current certificate of compliance provided by the legal owner or lessee of the rail tank car stating that the rail tank car meets certain standards. This bill will also be heard on June 22, 2005 by ES&TM. It has been double referred to the Assembly Committee on Transportation. REGISTERED SUPPORT / OPPOSITION : Support California Public Utilities Commission California Teamsters Public Affairs Council Sierra Club California Opposition None on File. Analysis Prepared by : Michael Endicott/ E.S. & T.M. / (916) 319-3965