BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 578
                                                                  Page  1

          Date of Hearing:   June 27, 2005

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                Jenny Oropeza, Chair
                     SB 578 (Escutia) - As Amended:  May 4, 2005

           SENATE VOTE  :  34-4
           
          SUBJECT  :  Railroads: safety

           SUMMARY :  Requires 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  
          requires the California Public Utilities Commission (PUC) 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 PUC'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 PUC for inclusion in the report to the  
            Legislature.  

          3)Replaces the references to the PUC'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  








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               cars; 

             b)   The contents of each car; 

             c)   The identification of the cars and contents in the train  
               involved in the incident; and, 

             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 the United  
            States Department of Transportation (USDOT) 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 PUC to produce two annual reports to the Legislature:  
             

             a)   Section 316 of the Public Utilities Code requires that a  
               report be submitted on the first day of December of each  
               year and contain a complete account of PUC's 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; and,

             b)   Section 7711 of the Public Utilities Code requires that  
               a report be submitted on or before July 1 of each year and  
               that it cover sites on railroad lines in the state that PUC  
               finds to be hazardous.  

           FISCAL EFFECT  :  This bill was removed from the Senate  
          Appropriations Committee and sent to the Senate Third Reading  
          File pursuant to Senate Rule 28.8.  









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           COMMENTS  :  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.  
           
           The author also draws focus to another Southern California  
          incident 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.  

           Prior legislation  : In 2004, the Legislature enacted AB 1618  
          (Firebaugh), Chapter 125, which required railroads operating in  
          California to develop a protocol for rapid communications with  
          the OES, the California Highway Patrol (CHP), and designated  
          county public safety agencies in an endangered area in the event  
          of a runaway train or any other uncontrolled train movement.  

          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.  This bill also requires PUC to investigate and  
          report on these incidents to the Legislature as part of its  
          annual Public Utilities Code Section 316 responsibilities.  

           Federal Regulations  :  

           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.  HSec has  
          therefore proposed eliminating the placard requirement, making  
          it much more difficult for terrorists to identify targets but  








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          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  :

          This bill requires the information gathered by the PUC 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.  

          Another report, under Section 7711 contains information  
          regarding sites along railroad lines in the state that PUC finds  
          to be hazardous.  The 7711 report shall include, but not be  
          limited to:

             1)   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 PUC felt were hazardous.  

             2)   A list of all railroad sites in the state that PUC feels  
               pose a local safety hazard.  Factors that PUC 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  :  The following amendment was discussed in  
          the staff analysis for the Assembly Committee on Environmental  
          Safety and Toxic Materials:
           
              1)   The author and the Committee may wish to consider  
               whether PUC reporting requirement in this bill should be  
               moved to the Section 7711 report as the subject matter of  








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               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 PUC 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.  

             2)   Suggested amendment:  On page 5, line 15 change Section  
               316 to Section 7711. 

           Related Legislation  :  SB 419 (Simitian) requires OES to create  
          and maintain 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.  
           That bill was also heard in the Assembly Committee on  
          Environmental Safety and Toxic Materials and is scheduled to be  
          heard in the Assembly Committee on Transportation today.  

           Double referral  :  This bill was also heard in the Assembly  
          Committee on Environmental Safety and Toxic Materials.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Public Utilities Commission
          California Teamsters Public Affairs Council
          County of Los Angeles
          Sierra Club California

           Opposition 
           
          None received

           Analysis Prepared by  :  Andrew Antwih / TRANS. / (916) 319-2093