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 SB 578 Page 2 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. SB 578 Page 3 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 SB 578 Page 4 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 SB 578 Page 5 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