BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 578
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          SENATE THIRD READING
          SB 578 (Escutia)
          As Amended June 29, 2005
          Majority vote 

           SENATE VOTE  :34-4  
           
           ENVIRONMENTAL SAFETY          7-0                    
          TRANSPORTATION      10-3        
           
           ----------------------------------------------------------------- 
          |Ayes:|Ruskin, Tran, Chu, De La  |Ayes:|Oropeza, Bogh, Chan,      |
          |     |Torre, Goldberg, Lieber,  |     |Shirley Horton, Karnette, |
          |     |Strickland                |     |Hancock, Pavley,          |
          |     |                          |     |Ridley-Thomas             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Huff, Mountjoy, Niello    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      14-3                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chu, Bass, Berg,          |     |                          |
          |     |Calderon, Emmerson,       |     |                          |
          |     |Laird, Klehs, Leno,       |     |                          |
          |     |Nakanishi, Nation,        |     |                          |
          |     |Levine, Saldana, Yee,     |     |                          |
          |     |Mullin                    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Sharon Runner, Haynes,    |     |                          |
          |     |Walters                   |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  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  








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            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 include its  
            findings in an annual report to the Legislature on sites along  
            railroad lines found by the state to be hazardous.

          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 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 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.  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.








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          5)Requires PUC to file an annual report to the Legislature on  
            railroad sites in California that the state finds to be  
            hazardous.

           FISCAL EFFECT  :  According to Assembly Appropriations Committee  
          analysis:

          1)Minor costs, if any, to OES and the California Highway Patrol  
            to process a larger number of incident notifications from  
            railroad corporations.  (General Fund and Motor Vehicle  
            Account.)

          2)Minor costs, in the range of $120,000 annually starting in FY  
            2005-06, to the PUC's consumer protections and safety division  
            to investigate a larger number of incidents and to report its   
            findings to the full commission.  (PUC Transportation  
            Reimbursement Account.)

           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.
           
           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,  








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            and emergency handling procedures for the hazardous materials  
            in those railcars.  

          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.

          5)This bill requires the information gathered by the PUC to be  
            included in its annual report regarding sites along railroad  
            lines in the state that PUC finds to be hazardous.  This  
            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; and,

             b)   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.

          Related legislation:  SB 419 (Simitian)  This bill requires OES  
          to create and maintain a hazardous rail tank car database, which  
          contains specified information, including a current certificate  








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          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 has been held in the Assembly Committee on  
          Transportation.


           Analysis Prepared by  :    Michael Endicott/ E.S. & T.M. / (916)  
          319-3965 

                                                                FN: 0012103