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  








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            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
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           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
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          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