NY State Senate Bill 2015-S5751A

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to environmental conservation
Jun 03, 2015	print number 5751a
Jun 03, 2015	amend (t) and recommit to environmental conservation
Jun 02, 2015	referred to environmental conservation

Bill Amendments

Original

A (Active)

2015-S5751 - Details

See Assembly Version of this Bill:: A7625
Current Committee:: Senate Environmental Conservation
Law Section:: Navigation Law
Laws Affected:: Amd §181, add §181-f, Nav L
Versions Introduced in 2017-2018 Legislative Session:: S1515, A1773

2015-S5751 - Summary

Relates to financial liability for major facilities, vessels, and railroads.

2015-S5751 - Sponsor Memo

                                BILL NUMBER:S5751

TITLE OF BILL:  An act to amend the navigation law, in relation to
notice of crude oil shipments to major facilities

PURPOSE OR GENERAL IDEA OF BILL:  To require the owner or operator of
a major facility or a vessel to establish and maintain with the
department evidence of financial responsibility sufficient to meet the
amount of liability.

SUMMARY OF PROVISIONS:

Section 1: amends paragraph (e) of subdivision 3 of section 181 of the
navigation law and adds a new paragraph (f).

Section 2: amends the navigation law by adding a new section 181-f to
require railroad financial preparedness, and requires the department
to make that information on its public website.

Section 3: effective date

JUSTIFICATION:  The Petroleum Storage Surety bill is in response to
recent accidents resulting in substantial financial losses to both
public and private entities due to injuries, loss of life, damages and
clean up costs, all as a result of explosions and spills from improper
handling of volatile and toxic crude oil shipments  This bill would

apply to crude oil stored and transferred at all bulk storage
facilities, vessels and railroads in New York State, and require
financial security to meet all responsibilities for cleanup and
decontamination costs associated with the release of such oil.

The transport of crude oil by rail has increased exponentially
nationwide over the past five years, from over 9,000 carloads of crude
oil in 2008 to over 400,000 in 2013, and the need for storage
facilities has expanded accordingly. There is a heightened awareness
of safety issues related to the transportation and storage of crude
oil and the Petroleum Surety bill is one attempt to address the
negative impacts of mishandling and improper storage of crude oil.
Rail transportation of crude oil is regulated by federal law whereas
bulk storage of crude oil is governed by state law.

It is necessary that financial surety measures be put in place to
ensure that the public is not burdened with the high costs resulting
from crude oil accidents. This may include evidence of insurance, a
letter of credit, or a bond from a corporate surety licensed to do
business in New York State.

The Petroleum Storage Surety bill will ensure that any bulk petroleum
storage facility, vessel , and railroad has the necessary financial
security to balance the risk of any accident occurring that is
directly related to storing crude oil,

PRIOR LEGISLATIVE HISTORY:  2015: A7625(Fahey) 2014: A9926(Fahey)/S
7718(Grisanti) - Passed Assembly

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None to the
State.


EFFECTIVE DATE:  This act shall take effect on the sixtieth day after
it shall have become a law.

2015-S5751 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5751

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 2, 2015
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation

AN ACT to amend the navigation law, in relation to notice of  crude  oil
  shipments to major facilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The navigation law is amended by adding a new section 174-c
to read as follows:
  S 174-C. NOTICE OF CRUDE OIL SHIPMENTS TO MAJOR FACILITIES. 1. A MAJOR
FACILITY THAT RECEIVES CRUDE  OIL  FROM  A  RAILROAD  CAR  MUST  PROVIDE
ADVANCE  NOTICE  TO  THE  COMMISSIONER  AS PROVIDED IN THIS SECTION. THE
ADVANCE NOTICE MUST, AT A MINIMUM, INCLUDE THE ROUTE TO BE TAKEN TO  THE
FACILITY  WITHIN  THE STATE, IF KNOWN, AND THE SCHEDULED TIME, LOCATION,
VOLUME, REGION PER BILL OF LADING, AND GRAVITY AS MEASURED BY  STANDARDS
DEVELOPED  BY  THE  AMERICAN PETROLEUM INSTITUTE, OF CRUDE OIL RECEIVED.
EACH WEEK, A FACILITY THAT PROVIDES ADVANCE NOTICE  UNDER  THIS  SECTION
MUST PROVIDE THE REQUIRED INFORMATION REGARDING THE SCHEDULED ARRIVAL OF
RAILROAD  CARS  CARRYING CRUDE OIL TO BE RECEIVED BY THE FACILITY IN THE
SUCCEEDING SEVEN-DAY PERIOD IN A MANNER SPECIFIED BY THE DEPARTMENT.   A
MAJOR  FACILITY  IS NOT REQUIRED TO PROVIDE ADVANCE NOTICE WHEN THERE IS
NO RECEIPT OF CRUDE OIL FROM A RAILROAD CAR SCHEDULED  FOR  A  SEVEN-DAY
PERIOD.
  2. THE COMMISSIONER SHALL SHARE INFORMATION PROVIDED BY A MAJOR FACIL-
ITY  WITH THE STATE EMERGENCY MANAGEMENT OFFICE AND SHALL PROVIDE INFOR-
MATION TO ANY MUNICIPAL EMERGENCY RESPONSE AGENCY UPON REQUEST.
  3. THE COMMISSIONER MUST POST INFORMATION COLLECTED UNDER THIS SECTION
ON A QUARTERLY BASIS ON THE DEPARTMENT'S INTERNET WEB SITE PROVIDED THAT
THE INFORMATION PUBLISHED BY THE COMMISSIONER MAY  BE  AGGREGATED  ON  A
STATEWIDE  BASIS  BY  ROUTE  THROUGH  THE STATE, BY WEEK, AND BY TYPE OF
CRUDE OIL. THE REPORT MAY ALSO INCLUDE OTHER  INFORMATION  AVAILABLE  TO
THE  DEPARTMENT INCLUDING, BUT NOT LIMITED TO, PLACE OF ORIGIN, MODES OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11295-03-5

S. 5751                             2

TRANSPORT, NUMBER OF RAILROAD CARS DELIVERING CRUDE OIL, AND NUMBER  AND
VOLUME OF SPILLS DURING TRANSPORT AND DELIVERY.
  4.  A  FACILITY  PROVIDING  ADVANCE  NOTICE  UNDER THIS SECTION IS NOT
RESPONSIBLE FOR MEETING  ADVANCE  NOTICE  TIMEFRAME  REQUIREMENTS  UNDER
SUBDIVISION  ONE  OF  THIS  SECTION  IN  THE  EVENT THAT THE SCHEDULE OF
ARRIVALS OF RAILROAD CARS CARRYING CRUDE OIL CHANGES DURING A  SEVEN-DAY
PERIOD; PROVIDED, HOWEVER THAT ANY SUCH ARRIVALS MUST BE INCLUDED IN THE
FOLLOWING WEEK'S NOTICE.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

co-Sponsors

View additional co-sponsors

2015-S5751A (ACTIVE) - Details

See Assembly Version of this Bill:: A7625
Current Committee:: Senate Environmental Conservation
Law Section:: Navigation Law
Laws Affected:: Amd §181, add §181-f, Nav L
Versions Introduced in 2017-2018 Legislative Session:: S1515, A1773

2015-S5751A (ACTIVE) - Summary

Relates to financial liability for major facilities, vessels, and railroads.

2015-S5751A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5751A

TITLE OF BILL:  An act to amend the navigation law, in relation to
financial responsibility for the liability of a major facility or
vessel

PURPOSE OR GENERAL IDEA OF BILL:  To require the owner or operator of
a major facility or a vessel to establish and maintain with the
department evidence of financial responsibility sufficient to meet the
amount of liability.

SUMMARY OF PROVISIONS:

Section 1: amends paragraph (e) of subdivision 3 of section 181 of the
navigation law and adds a new paragraph (f).

Section 2: amends the navigation law by adding a new section 181-f to
require railroad financial preparedness, and requires the department
to make that information on its public website.

Section 3: sets forth an effective date of one hundred and twenty days
after it shall have become a law.

JUSTIFICATION:  The Petroleum Storage Surety bill is in response to
recent accidents resulting in substantial financial losses to both
public and private entities due to injuries, loss of life, damages and

clean up costs, all as a result of explosions and spills from improper
handling of volatile and toxic crude oil shipments. This bill would
apply to crude oil stored and transferred at all bulk storage
facilities, vessels and railroads in New York State, and require
financial security to meet all responsibilities for cleanup and
decontamination costs associated with the release of such oil.

The transport of crude oil by rail has increased exponentially
nationwide over the past five years, from over 9,000 carloads of crude
oil in 2008 to over 400,000 in 2013, and the need for storage
facilities has expanded accordingly. There is a heightened awareness
of safety issues related to the transportation and storage of crude
oil and the Petroleum Surety bill is one attempt to address the
negative impacts of mishandling and improper storage of crude oil.
Rail transportation of crude oil is regulated by federal law whereas
bulk storage of crude oil is governed by state law.

It is necessary that financial surety measures be put in place to
ensure that the public is not burdened with the high costs resulting
from crude oil accidents. This may include evidence of insurance, a
letter of credit, or a bond from a corporate surety licensed to do
business in New York State,

The Petroleum Storage Surety bill will ensure that any bulk petroleum
storage facility, vessel , and railroad has the necessary financial
security to balance the risk of any accident occurring that is
directly related to storing crude oil.

PRIOR LEGISLATIVE HISTORY:  2015: A7625(Fahey)


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None to the
State

EFFECTIVE DATE:  This act shall take effect one hundred and twenty
days after it shall have become a law.

2015-S5751A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5751--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 2, 2015
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  to amend the navigation law, in relation to financial responsi-
  bility for the liability of a major facility or vessel

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraph (e) of subdivision 3 of section 181 of the navi-
gation law, as amended by chapter 584 of the laws of 1992  and  subpara-
graphs  (ii) and (iii) as amended by chapter 585 of the laws of 1992 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended and a new paragraph (f) is added to read as follows:
  (e) (i) The owner or operator of a MAJOR FACILITY OR  A  vessel  shall
establish and maintain with the department evidence of financial respon-
sibility sufficient to meet the amount of liability established pursuant
to  paragraph  (a) of this subdivision. A PERSON MAY NOT CAUSE OR PERMIT
THE OPERATION OF A MAJOR FACILITY OR  VESSEL  IN  THE  STATE  UNTIL  THE
PERSON  HAS FURNISHED TO THE DEPARTMENT, AND THE DEPARTMENT HAS APPROVED
SUCH EVIDENCE. The owner or operator of any  vessel  which  demonstrates
financial responsibility pursuant to the requirements of the Federal Oil
Pollution  Act of 1990 (33 U.S.C. 2701 et seq.), shall be deemed to have
demonstrated financial responsibility in accordance with this paragraph.
  (ii) [The commissioner in  consultation  with  the  superintendent  of
financial  services  may  promulgate  regulations requiring the owner or
operator of a major facility other than a vessel to establish and  main-
tain  evidence  of  financial  responsibility in an amount not to exceed
twenty-five dollars, per incident, for each barrel  of  total  petroleum
storage  capacity  at  the facility, subject to a maximum of one million
dollars per incident per facility in an  aggregate  not  to  exceed  two
million  dollars  per  facility per year; provided, however, that if the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11295-04-5

S. 5751--A                          2

owner or operator establishes to the satisfaction  of  the  commissioner
that  a  lesser amount will be sufficient to protect the environment and
public  health,  safety  and  welfare,  the  commissioner  shall  accept
evidence of financial responsibility in such lesser amount. In determin-
ing  the  sufficiency of the amount of financial responsibility required
under this section, the commissioner and the superintendent of financial
services shall take into consideration facility size, storage  capacity,
throughput, proximity to environmentally sensitive areas, type of petro-
leum handled, and other factors relevant to the risks posed by the class
or  category  of facility, as well as the availability and affordability
of pollution liability insurance. Any regulations  promulgated  pursuant
to  this  subparagraph  shall  not  take effect until forty-eight months
after the effective date of this section.
  (iii)] Financial responsibility under this  paragraph  may  be  estab-
lished  by  any one or a combination of the following methods acceptable
to the commissioner in consultation with the superintendent of financial
services: evidence of insurance,  surety  bonds,  guarantee,  letter  of
credit,  qualification as a self-insurer, or other evidence of financial
responsibility, including certifications which qualify under the Federal
Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.).
  [(iv)] (III) The liability of a third-party insurer providing proof of
financial responsibility on behalf of a person required to establish and
maintain evidence of financial  responsibility  under  this  section  is
limited to the type of risk assumed and the amount of coverage specified
in  the  proof  of financial responsibility furnished to and approved by
the department. For the purposes of this section, the term  "third-party
insurer" means a third-party insurer, surety, guarantor, person furnish-
ing  a  letter  of  credit,  or other group or person providing proof of
financial responsibility on  behalf  of  another  person;  it  does  not
include  the  person required to establish and maintain evidence of such
financial responsibility.
  (F) (I) ACCEPTANCE OF PROOF OF FINANCIAL RESPONSIBILITY SHALL EXPIRE:
  (1) ONE YEAR FROM ITS ISSUANCE FOR SELF-INSURANCE;
  (2) ON THE EFFECTIVE DATE OF A CHANGE IN THE SURETY  BOND,  GUARANTEE,
INSURANCE  AGREEMENT,  LETTER  OF  CREDIT,  OR  OTHER PROOF OF FINANCIAL
RESPONSIBILITY; OR
  (3) ON THE EXPIRATION OR CANCELLATION OF THE SURETY  BOND,  GUARANTEE,
INSURANCE  AGREEMENT,  LETTER  OF  CREDIT,  OR  OTHER PROOF OF FINANCIAL
RESPONSIBILITY.
  (II) THE PERSON WHOSE PROOF OF FINANCIAL RESPONSIBILITY IS ACCEPTED BY
THE DEPARTMENT UNDER THIS SECTION SHALL NOTIFY THE DEPARTMENT  AT  LEAST
THIRTY DAYS BEFORE THE EFFECTIVE DATE OF A CHANGE, EXPIRATION OR CANCEL-
LATION  IN  THE  SURETY  BOND, GUARANTEE, INSURANCE AGREEMENT, LETTER OF
CREDIT, OR OTHER PROOF  OF  FINANCIAL  RESPONSIBILITY.  APPLICATION  FOR
RENEWAL  OF  ACCEPTANCE  OF PROOF OF FINANCIAL RESPONSIBILITY UNDER THIS
SECTION MUST BE FILED AT LEAST THIRTY DAYS BEFORE THE  DATE  OF  EXPIRA-
TION.
  (III)  THE DEPARTMENT, AFTER NOTICE AND HEARING, MAY REVOKE ACCEPTANCE
OF PROOF OF FINANCIAL RESPONSIBILITY IF IT DETERMINES THAT:
  (1) ACCEPTANCE WAS PROCURED BY FRAUD OR MISREPRESENTATION; OR
  (2) A CHANGE OF CIRCUMSTANCE HAS OCCURRED OTHER THAN A  CHANGE  SPECI-
FIED IN CLAUSES ONE THROUGH THREE OF SUBPARAGRAPH (I) OF THIS PARAGRAPH,
WHICH WOULD HAVE WARRANTED DENIAL OF THE APPLICATION.
  (IV) UPON ACCEPTANCE AND APPROVAL OF PROOF OF FINANCIAL RESPONSIBILITY
UNDER  THIS  SECTION,  THE  DEPARTMENT  SHALL  ISSUE  TO THE APPLICANT A
CERTIFICATE STATING THAT THE STATE'S FINANCIAL  RESPONSIBILITY  REQUIRE-

S. 5751--A                          3

MENTS  HAVE BEEN SATISFIED. THE CERTIFICATE MUST INCLUDE THE NAME OF THE
MAJOR FACILITY, VESSEL, OR PIPELINE FOR WHICH IT IS ISSUED AND THE EXPI-
RATION DATE OF THE CERTIFICATE.
  S  2.  The  navigation law is amended by adding a new section 181-f to
read as follows:
  S 181-F. RAILROAD FINANCIAL  PREPAREDNESS.  1.  THE  DEPARTMENT  SHALL
ANNUALLY  REQUIRE  A  RAILROAD  COMPANY THAT TRANSPORTS CRUDE OIL IN THE
STATE TO SUBMIT INFORMATION RELATING TO THE RAILROAD  COMPANY'S  ABILITY
TO PAY IN THE EVENT OF A DISCHARGE INVOLVING THE TRANSPORT OF CRUDE OIL.
THE  INFORMATION SUBMITTED TO THE DEPARTMENT MUST INCLUDE A STATEMENT OF
WHETHER THE RAILROAD HAS THE ABILITY TO  PAY  FOR  DISCHARGES  RESULTING
FROM  A  REASONABLE WORST CASE DISCHARGE AS DETERMINED BY THE DEPARTMENT
PURSUANT TO RULES AND REGULATIONS. FOR THE PURPOSES OF THIS SECTION:
  A. "CRUDE OIL" SHALL MEAN ANY NATURALLY OCCURRING HYDROCARBONS  COMING
FROM  THE  EARTH  THAT ARE LIQUID AT TWENTY-FIVE DEGREES CELSIUS AND ONE
ATMOSPHERE OF PRESSURE INCLUDING, BUT NOT LIMITED TO, CRUDE OIL, BITUMEN
AND DILUTED BITUMEN, SYNTHETIC CRUDE OIL, AND NATURAL GAS  WELL  CONDEN-
SATE.
  B.  "RAILROAD"  SHALL HAVE THE SAME MEANING AS PROVIDED IN SUBDIVISION
TWENTY-FOUR OF SECTION TWO OF THE TRANSPORTATION LAW.
  C. "RAILROAD COMPANY" SHALL HAVE  THE  SAME  MEANING  AS  PROVIDED  IN
SUBDIVISION TWENTY-FIVE OF SECTION TWO OF THE TRANSPORTATION LAW.
  D. "STREET RAILROAD" SHALL HAVE THE SAME MEANING AS PROVIDED IN SUBDI-
VISION TWENTY-NINE OF SECTION TWO OF THE TRANSPORTATION LAW.
  2.  THE DEPARTMENT SHALL MAKE SUCH INFORMATION AVAILABLE ON ITS PUBLIC
WEBSITE NOT LATER THAN FEBRUARY FIRST OF EACH  YEAR.  IN  ADDITION,  THE
DEPARTMENT  SHALL ALSO PROVIDE RECOMMENDATIONS TO THE LEGISLATURE ON HOW
TO ADDRESS ANY FINANCIAL DEFICIENCIES IDENTIFIED BY RAILROAD COMPANIES.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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Senate Bill S5751A

Sponsored By

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

Bill Amendments

2015-S5751 - Details

2015-S5751 - Summary

2015-S5751 - Sponsor Memo

2015-S5751 - Bill Text download pdf

co-Sponsors

2015-S5751A (ACTIVE) - Details

2015-S5751A (ACTIVE) - Summary

2015-S5751A (ACTIVE) - Sponsor Memo

2015-S5751A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5751A

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

Bill Amendments

2015-S5751 - Details

2015-S5751 - Summary

2015-S5751 - Sponsor Memo

2015-S5751 - Bill Text download pdf

co-Sponsors

2015-S5751A (ACTIVE) - Details

2015-S5751A (ACTIVE) - Summary

2015-S5751A (ACTIVE) - Sponsor Memo

2015-S5751A (ACTIVE) - Bill Text download pdf

Comments