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 : AB 380 Page 2 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 AB 380 Page 3 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 AB 380 Page 4 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 AB 380 Page 5 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 AB 380 Page 6 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 AB 380 Page 7 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 AB 380 Page 8 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. AB 380 Page 9 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