BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 380
                                                                       

                       SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Senator Jerry Hill, Chair
                               2013-2014 Regular Session
                                            
           BILL NO:    AB 380
           AUTHOR:     Dickinson
           AMENDED:    May 28, 2014
           FISCAL:     Yes               HEARING DATE:     June 4, 2014
           URGENCY:    No                CONSULTANT:       Karen Morrison
            
           SUBJECT  :  HAZARDOUS MATERIALS: EMERGENCY RESPONSE
           
            SUMMARY  :    
                                            
            Existing federal law  :

           1) Requires that laws related to railroad safety shall be  
              nationally uniform "to the extent practicable" and allows a  
              state to adopt an additional or more stringent law under  
              certain conditions when not preempted by the federal act (49  
              U.S.C. §20101 et seq.).


           2) Requires each state to have a State Emergency Response  
              Commission (SERC) to coordinate and supervise federal programs  
              related to hazardous material emergencies and ensure public  
              availability of appropriate chemical information (42 U.S.C.  
              §§11001-11050).


           3) Regulates hazardous materials transportation and requires  
              inspection of shipments by rail under regulations developed by  
              the federal Pipeline and Hazardous Materials Safety  
              Administration (PHMSA, 49 U.S.C. §5101 et seq.).


           4) Defines certain information related to transportation security  
              in the form of rail shipments and security as Sensitive  
              Security Information (SSI) and places limits on the  
              dissemination of that information (49 C.F.R. §1520).


            Existing California law  :









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           1) Requires the Office of Emergency Services (OES) to assist  
              local governments in their emergency preparedness, response,  
              recovery, and hazard mitigation efforts.


           2) Requires that all rail operators provide a risk assessment to  
              the California Public Utilities Commission (CPUC), the  
              Director of Homeland Security, and California Emergency  
              Management Agency (CEMA) that describes the locations, types,  
              and frequency of hazardous cargo movement through rail  
              facilities, and training and emergency response procedures  
              (PUC §7665 et seq.).


            This bill  :

           1) Requires railroads to provide to OES, on a quarterly basis,  
              data for the twenty-five largest hazardous material  
              commodities and crude oil or oil cargo transported through  
              California.  This data includes the type and amount of  
              material and the carload type as broken down by county and  
              track route.  OES is required to disseminate relevant  
              information to certified unified program agencies (CUPAs) that  
              may be impacted by a hazardous spill.

           2) Requires railroads to maintain an emergency response  
              communication center that can provide information on train  
              composure in the event of a hazardous material spill.

           3) Requires railroads to provide OES a summary of the carrier's  
              Hazardous Materials Emergency Response Plan (HMERP).  OES is  
              required to provide a summary of the HMERP to impacted CUPAs.

           4) Stipulates that all information provided to OES and  
              disseminated to the CUPAs is SSI and is exempt from the Public  
              Records Act, unless as determined necessary by OES.


            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "The shipment of  
              crude oil by rail in tank cars into California is growing  









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              exponentially. [?]

           "A series of derailments around the country have raised the  
              profile of increased crude by rail shipments among local,  
              state, and federal officials.  Large crude oil spills have led  
              to devastating and deadly fires and explosions.  According to  
              data from the Pipeline and Hazardous Materials and Safety  
              Administration, the amount of crude oil spilled from rail cars  
              in 2013 exceeded the cumulative spill in the previous 40  
              years.  [?]

           "State and local emergency response agencies face new challenges  
              when dealing with this amount of hyper-flammable crude.  The  
              risk to life and property in the event of a crude by rail  
              accident has become enormous.  It is essential that emergency  
              response agencies have critical information about crude  
              cargoes that may be unavailable to them now, in order to be  
              best able to respond to crude by rail accidents, should they  
              occur."

           "AB 380 will ensure state and local emergency response agencies  
              are best prepared to respond to a rail mishap when rail cargo  
              consists of hazardous materials including crude oil."

            2) Rail transportation in California  .  California's freight rail  
              system has become increasingly important for international,  
              interstate, and intrastate trade.  According to the  
              Association of American Railroads (AAR) in 2011, freight  
              trains operated on 6,863 miles of rail in California.  Class I  
              railroads - the designation for the major rail freight  
              carriers - are represented in California by the Burlington  
              Northern Santa Fe Railway (BNSF) and the Union Pacific  
              Railroad (UP) and account for 5,432 miles of rail in the  
              state.

           Rail lines frequently pass through residential areas and regions  
              of high population density.  This is particularly true in  
              southern California, where high population density overlaps  
              with heavy rail traffic.  In addition, most towns in  
              California have a freight railroad that runs through or near  
              it.

            3) Historic rail accidents in California and legislative  









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              response  .  Two rail accidents in Dunsmuir and Seacliff,  
              California in July 1991 changed the landscape of hazardous  
              response following a train derailment in California.  Six  
              bills were introduced that year in the California Legislature  
              to improve rail safety and emergency response, and four were  
              signed into law.  However, one program established by this law  
              has since sunsetted, and several other provisions were struck  
              following legal challenges.

           The CPUC was required to annually report to the Legislature on  
              the type, quantities, and locations of hazardous materials  
              transported by railroads; however, this requirement was later  
              removed from the law following a challenge from the railroads.  
               The CPUC continues to monitor hazardous materials that enter  
              California by rail, and CPUC rail safety inspectors  
              investigate accidents involving the actual or threatened  
              release of hazardous materials as reported by CEMA. 

           The CPUC also established General Order 161 in 1991, which  
              requires railroads to notify the appropriate emergency  
              response agency following any release or threatened release of  
              a hazardous material within 60 days.  Railroads that transport  
              hazardous materials are also required to have an emergency  
              preparedness plan covering notification procedures, mitigation  
              of a release, and training procedures for railroad personnel.

           The Railroad Accident Prevention and Immediate Deployment (RAPID)  
              Force was established (SB 48, Chapter 766, Statutes of 1991)  
              in order to provide immediate onsite response capability in  
              the event of a hazardous spill by rail.  Funds were also  
              established in order to pay for hazardous spill response,  
              training, and education.  This program ended following a  
              sunset of the law on December 31, 1995. 

            4) Federal preemption  .  Most aspects of rail transportation and  
              commerce are regulated by the federal government.  State  
              governments are limited in their power to regulate rail  
              traffic, and can enact additional or more stringent laws that  
              are necessary to eliminate an essentially local hazard, are  
              not incompatible with a federal law, and do not unreasonably  
              burden interstate commerce.

           Bills relating to the Public Utilities Commission, which oversees  









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              rail transportation in California, are under the jurisdiction  
              of the Senate Energy, Utilities, and Communications Committee.  
               Should this bill be referred to that committee, they may wish  
              to comment further on any federal preemption issues.

            5) Hazardous waste manifests and labeling  .  While the United  
              States Department of Transportation (DOT) requires that  
              shippers and carriers of hazardous materials identify  
              transported goods as such, there is no requirement to make the  
              information accessible to the public.  Hazardous materials  
              shipped by vessel and rail are manifested, but the information  
              is not collected in any comprehensive way. 

           Though railroads keep records of hazardous materials they have  
              shipped, this information is considered proprietary.  As a  
              result, it is difficult to track precisely how much hazardous  
              material, including crude oil, is being transported at a given  
              time or for a specific year.

            6) Crude oil transportation by rail  .  Crude oil by rail is  
              growing quickly as pipelines become saturated and do not  
              connect new oil boom regions (such as the Bakken in North  
              Dakota and the Tar Sands in Canada) to major refining  
              locations (such as California).  According to the California  
              Energy Commission, in 2009, 45,491 barrels of crude oil were  
              imported into California by rail.  By 2013, the amount of  
              crude oil imported by rail increased to 6,169,264 barrels of  
              crude oil.

           At the March 19, 2014 oversight hearing on Emergency Preparedness  
              for Rail Accidents held by the Senate Committees on  
              Environmental Quality and Natural Resources and Water, OES  
              estimated that in the future, 25% of California's oil could  
              enter the state by rail.  In contrast, less than 1% of all oil  
              imports in 2012 entered California by rail.

            7) Crude oil rail accidents  .  Train accidents involving large  
              crude oil spills resulting in large fires and explosions have  
              made headlines in the past year.  According to data from  
              PHMSA, the amount of crude oil spilled from rail cars in 2013  
              exceeded that spilled in the preceding four decades: in 2013,  
              1.15 million gallons of crude oil were spilled, compared with  
              about 800,000 gallons spilled from rail cars between 1975 and  









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              2012.

           One of the most serious of these recent accidents was the  
              Lac-Mégantic derailment that occurred in the town of  
              Lac-Mégantic in Canada on July 6, 2013.  In this accident, a  
              74-car freight train carrying crude oil from the Bakken  
              formation derailed in the downtown area, killing 47 people and  
              destroying more than 30 buildings when multiple tank cars  
              exploded and burned.  In addition, the Chaudière River was  
              contaminated by 26,000 gallons of crude oil. 

           Since the Lac-Mégantic derailment, six other train derailments in  
              Alabama, North Dakota, New Brunswick, Pennsylvania, Virginia,  
              and Colorado have resulted in the release of crude oil.  In  
              particular, the derailment in downtown Lynchburg, Virginia on  
              April 30, 2014 caused a large fire and spilled up to 30,000  
              gallons of Bakken crude oil into the James River.

            8) Hazardous rail accidents .  In addition to the highly  
              publicized derailments involving crude oil, numerous other  
              derailments have led to the release of other hazardous  
              materials into the environment.

           Since 2009, there have been six rail spills involving ethanol, a  
              highly flammable material.  In particular, derailment on  
              February 21, 2010 in the Tehachapi Pass of California caused  
              the rupture of an ethanol-containing car, resulting in a fire.

           On May 28, 2013, a train carrying hazardous materials in  
              Baltimore County derailed and caused an explosion.  The  
              materials included terephthalic acid and flourocyclic acid.

           On August 4, 2013, a train carrying a variety of hazardous  
              materials derailed near Latwell, Louisiana.  Following the  
              derailment, two railcars were found to be leaking sodium  
              hydroxide, a caustic chemical that can cause injury through  
              touch or inhalation.  This spill resulted in the evacuation of  
              around 100 homes.

            9) Railroad response and emergency training  .  In response to the  
              various rail accidents in the last year, the AAR has met with  
              DOT to improve track inspection, safety, and training.  In  
              particular, railroads "will commit [?] to develop and provide  









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              a hazardous material transportation curriculum applicable to  
              petroleum crude oil transport for emergency responders and to  
              fund a portion of the cost of this training through the end of  
              2014."

           In California, BNSF has invited first responders to attend a  
              three-day training at the Security and Emergency Response  
              Training Center in Colorado at no cost to the trainees.

            10)California response to crude by rail  .  Since the Lac-Mégantic  
              derailment last year, California has had two committee  
              hearings on crude by rail: Safe Rail Transport of Crude Oil,  
              held by the Senate Energy, Utilities, and Communications  
              Committee on February 24, 2014, and Emergency Response to Rail  
              Accidents by the Senate Environmental Quality and Natural  
              Resources and Water Committees on March 19, 2014.

           In addition, the Brown administration has proposed a budget  
              trailer bill to extend OSPR responsibility from marine oil  
              spills to any inland oil spills that threaten state waters.   
              The bill would pay for the response through a fee imposed on  
              all refineries in California, including those that receive  
              crude oil by rail. 

            11)Federal response to crude oil rail accidents  .  In addition to  
              Federal regulations and orders concerning labeling,  
              flammability, and transport, DOT has also started to address  
              emergency response and notification.

           On May 7, 2014, DOT released an Emergency Order requiring all  
              railroads that have trains carrying 1,000,000 gallons (roughly  
              33 cars) or more of Bakken crude oil to notify the SERC of  
              each affected state of the expected train routes, the number  
              of trains, and the type of oil.  The railroads are also  
              required to provide all applicable emergency response  
              information.

            12)Other hazardous spills  .  The DOT Emergency Order only  
              identifies emergency preparedness and response to oil spills.   
              However, California's rail accidents have largely been  
              associated with non-oil spills.  The Dunsmuir metam sodium  
              spill in 1991 killed over one million fish and sickened  
              hundreds of residents and cleanup workers; the Seacliff spill  









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              of aqueous hydrazine resulted in the evacuation of nearby  
              residents for five days.

           Although an emergency response plan to accidents from oil is  
              important, it is equally critical to consider the emergency  
              response to a non-oil hazardous materials spill.

            13)Recommended amendments  .  
            
               a)    Dissemination of information  .  The bill requires OES to  
                 disseminate "relevant" information to the CUPAs regarding  
                 the movement of hazardous materials.  It is unclear what  
                 would be considered "relevant" information.

               An amendment is needed  to specify what is meant by "relevant."

               b)    Additional information to OES  .  The bill requires rail  
                 carriers to provide additional information to OES, as  
                 necessary, to assist a CUPA with its emergency response.   
                 It is unclear what this provision would entail.

               An amendment is needed  to require railroads to provide  
                 additional information to OES, related to the specified  
                 commodity flow data, to assist a CUPA with its emergency  
                 response planning.  
               
            14)Policy questions: Information to OES  . The bill requires each  
              rail carrier to provide OES with a summary of their HMERP.  Is  
              there a reason that the entirety of the plan should not be  
              provided?  Would there be a benefit for providing the entire  
              plan?  Or is the summary sufficient for the emergency response  
              planning process?  
            
            15)Related bills  .

           AB 151 (Chapter 763, Statutes of 1991) enacted a comprehensive  
              system for identifying railroad sites that were local safety  
              hazards through the Safe Rail Transportation Act of 1991.

           SB 48 (Chapter 766, Statutes of 1991) established a procedure for  
              railroad safety and emergency planning and response, and  
              increased fines for oil and chemical spills.










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           SB 1319 (Pavley) of 2014 would use a fee to pay for OSPR response  
              to inland oil spills.  It would also recommend for information  
              on the shipping of crude oil by rail, truck, boat, or pipeline  
              to be provided to affected communities.  This bill is  
              currently in the Assembly awaiting referral.

           AB 2677 (Rodriguez) of 2014 would have reinstated RAPID by  
              requiring a comprehensive and coordinated oil spill  
              contingency plan for crude oil by rail.  This bill failed in  
              Assembly Natural Resources Committee.

            16)Double Referral to Rules  .  If this measure is approved by the  
              Senate Environmental Quality Committee, the do pass motion  
              must include the action to re-refer the bill to the Senate  
              Rules Committee.

            SOURCE  :        Author
            
           SUPPORT  :       None
            
           OPPOSITION  :    None