S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6831
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 25, 2025
                                ___________
 
 Introduced  by  Sen. HINCHEY -- 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  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 vessel shall establish and maintain
 with  the  department evidence of financial responsibility 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
 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 PLUS AN ANNUAL INFLATION ADJUSTMENT,  DETERMINED  BY
 THE  COMMISSIONER  FROM  THE INCREASE IN THE CONSUMER PRICE INDEX IN THE
 ONE-YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO SUCH INFLATION
 ADJUSTMENT EFFECTIVE ON THE ENSUING SEPTEMBER FIRST, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11301-01-5
              

 S. 6831                             2
 
 aggregate not to exceed two million dollars  PLUS  AN  ANNUAL  INFLATION
 ADJUSTMENT,  DETERMINED  BY  THE  COMMISSIONER  FROM THE INCREASE IN THE
 CONSUMER PRICE INDEX IN THE ONE-YEAR PERIOD ENDING ON THE MARCH  THIRTY-
 FIRST  PRIOR  TO  SUCH  INFLATION  ADJUSTMENT  EFFECTIVE  ON THE ENSUING
 SEPTEMBER FIRST, per facility per year; provided, however, that  if  the
 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 established
 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)  The liability of a third-party insurer providing proof of finan-
 cial 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
 S. 6831                             3
 
   (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-
 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.
   § 2. The navigation law is amended by adding a new  section  181-f  to
 read as follows:
   §  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.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.