Word Document

STATE OF CALIFORNIA

Public Utilities Commission

San Francisco

M e m o r a n d u m

Date:

April 5, 2006

   

To:

The Commission

(Meeting of April 13, 2006)

     

From:

Delaney Hunter, Director

Office of Governmental Affairs (OGA) - Sacramento

   

Subject:

AB 3023 (Nunez) - Railroads: safety and security.

As Introduced February 24, 2006

 

LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: Support with amendments.

SUMMARY OF BILL:

The safety provisions of this bill would:

The security provisions of this bill, entitled the Local Community Rail Security Act of 2006, would require, among other things, every operator of a rail facility to:

SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:

If enacted, this bill would result in a much higher degree of security and safety on the railroads. It would provide local and state agencies with the ability to be better prepared for rail disasters involving hazardous materials, and to proactively take action to prevent acts of sabotage and terrorism from being perpetrated in the first place.

SUMMARY OF SUGGESTED AMENDMENTS (if any):

Suggested Amendment #1: Subparagraph (b) of proposed Public Utilities Code section 7662 would adopt by reference the railroads' General Code of Operating Rules. Since the railroads are the masters of their own operating rules1, they are free to modify or eliminate them at will, and, in actual practice, do so all the time. Consequently, a railroad could simply amend their rules to legally defeat the intent of the statute. It should be noted that the United Transportation Union (UTU) vigorously opposed previous attempts to move this legislation (AB 962) due to the adoption of the railroad operating rules by reference.

We recommend the author simply prescribe verbatim the same explanations and placement standards for the flags, whistle and milepost signs as currently described within the railroads' operating rules, without adopting those rules by reference in the bill.

Amend proposed PU Code section 7662(b) as follows:

(b) A railroad corporation shall utilize flagging systems and follow main line flag rules in a manner consistent with its adopted general code of operating rules and federal law. All flags shall be readily visible and easily recognizable to the crews on both passenger and freight trains.

(b) Whenever a railroad issues written or verbal instructions to employees that may restrict or stop train movements because of track conditions, structures, men, or equipment working, appropriate flags that are readily visible and easily recognizable to the crews on both passenger and freight trains shall be displayed as quickly as practicable. Yellow flags shall be used for temporary speed restrictions. Yellow-red flags shall be used when a train may be required to stop.

Display of Yellow Flag

1. Restriction Specified in Writing

Two Miles Ahead of Restricted Area. Yellow flags warn trains to restrict movement because of track conditions or structures. To make sure train movement is restricted at the right location, a yellow flag shall be displayed 2 miles before the restricted area.

Less than Two Miles Ahead of Restricted Area. When the restricted area is close to a terminal, junction, or another area, the yellow flag may be displayed less than 2 miles before the restricted area. This information shall also be included in the written instructions.

2. Restriction Is Not Specified in Writing

When a yellow flag is displayed and the restriction is not specified by a track bulletin, track warrant, or general order, once the train is 2 miles beyond the yellow flag, crew members must:

Continue moving the train but at a speed not exceeding 10 MPH.

Resume speed only after the rear of the train has:

Passed a green flag, or

Traveled 4 miles beyond the yellow flag and the train dispatcher has verified that no track bulletin or track warrant is in effect specifying a temporary speed restriction at that location.

Display of Yellow-Red Flag

1. Restriction Specified in Writing

Two Miles Ahead of Restricted Area. Yellow-red flags warn a train to be prepared to stop because of men or equipment. To make sure the train is prepared to stop at the right location, a yellow-red flag shall be displayed 2 miles before the restricted area.

Less Than Two Miles Ahead of Restricted Area. When the restricted area is close to a terminal, junction, or another area, the yellow-red flag may be displayed less than 2 miles before the restricted area. This information shall also be included in the written instructions.

2. Restriction Is Not Specified in Writing

When a yellow-red flag is displayed and the restriction is not specified by a track bulletin, track warrant, or general order, crew members must be prepared to stop short of a red flag 2 miles beyond the yellow-red flag. If a red flag is displayed, the train must stop short of the red flag or red light and not proceed unless the employee in charge gives verbal permission. If no red flag is displayed: Movement must not exceed a speed that allows stopping within half the range of vision short of: Train, Engine, Railroad car, Men or equipment fouling the track, Stop signal, Improperly lined switches or derails, Broken rail and must not exceed 20 mph. Speed may be increased only after: a crew member has received permission from the employee in charge, the rear of the train has passed a green flag, or the rear of the train has traveled 4 miles beyond the yellow-red flag, and the train dispatcher has verified that no restrictions in writing protecting men or equipment are in effect at that location.

Flag Location

Flags will be displayed only on the track affected. However, these flags must be placed to protect all possible access to the restricted area. Flags must be displayed to the right of the track as viewed from an approaching train.

Suggested Amendment #2: Subparagraph (d) of proposed Public Utilities Code section 7662 would prescribe that whistle signs "shall consist of an "X" on a square plate mounted on a post." While many railroads already utilize the "X" type whistle sign, BNSF does not. It utilizes a whistle sign featuring a "W" rather than an "X".

We recommend the author amend the bill to allow the continued use of the "W" style whistle sign or any other letter, symbol or identifiable mark that a railroad chooses, as long as the sign will effectively serve to remind train crews to take the appropriate actions in advance of the highway-rail grade crossing ahead.

Amend proposed PU Code section 7662(d) as follows:

(d) A railroad corporation shall place whistle signs to the right of the main track in the direction of approach, exactly one-quarter mile from the entrance to any grade crossing as a point of reference for locomotive engineers who blow the whistle and ring the bell for these grade crossings as a warning to the public. The signs, which shall consist of an "X" or "W" or other identifiable mark or symbol on a square plate mounted on a post, shall be readily visible to a locomotive engineer within the locomotive cab, shall be kept in good repair, and shall be replaced when necessary.

Suggested Amendment #3: Subparagraph (c) of proposed Public Utilities Code section 7665.4 would require the infrastructure protection program to include regularly scheduled inspections by personnel trained to determine the condition of the rail facilities and their vulnerability to sabotage, terrorism or other crimes. It is not clear, however, whether the trained personnel would be employees of the railroads, the Commission or a third party.

Since the Commission will be required by subparagraph (f) to review the railroads' programs annually, and may order improvements and modifications to change those programs, we recommend the author amend the bill to clarify that the Commission would be responsible for conducting inspections of railroad facilities to evaluate compliance.

Amend proposed PU Code section 7665.4(c) as follows:

(c) The infrastructure protection program shall include provisions to accommodate regularly scheduled and unannounced inspections by CPUC Rail Safety Operations Branch personnel trained to determine the condition of the rail facilities and the vulnerability of the rail facilities to acts of sabotage, terrorism, of other crimes, of all rail facilities, including rights-of-way, yards, and other facilities, that handle hazardous cargo that move within 15 miles of community facilities, including schools, hospitals, and nursing homes.

Suggested Amendment #4: We believe that the requirement in subparagraph (a) of proposed Public Utilities Code section 7665.6 should be scoped to hazardous cargo.

Amend PU Code section 7665.6(a) as follows:

(a) Every rail operator shall, for all facilities that handle cargo hazardous cargo that passes within 15 miles of a community facility, do all the following:

Suggested Amendment #5: Subparagraph (a)(2) of proposed Public Utilities Code section 7665.6 would preclude storage of hazardous materials on rights-of-ways. The use of the term "rights-of-ways" encompasses virtually all railroad property, even those designed for storage.

We recommend the author amend the bill with the suggested language below to achieve the desired result.

Amend PU Code section 7665.6(a)(2) as follows:

(2) Store hazardous materials only in secure facilities designed for storage, which shall not include rights-of-way mainline, branch, industrial or passing tracks not so designed or retrofitted.

Suggested Amendment #6: Subparagraph (a)(4) of proposed Public Utilities Code section 7665.6 seems unnecessary. It is unclear why this requirement would be needed in the context of Local Community Rail Security. We recommend the author delete this subparagraph.

Suggested Amendment #7: Subparagraph (a)(6) of proposed Public Utilities Code section 7665.6 would unnecessarily limit the use of remote control locomotives. Currently, there is not a body of evidence to support the allegation that the use of remote control locomotives under controlled conditions, like within a yard, an industrial facility, or even limited main track usage, is unsafe. However, the Commission does consider it unsafe to use remote control operations over public grade crossings utilizing a video camera for the operator to check the condition of the crossing and automatic warning devices.

We recommend the author amend the bill with the suggested language below so as not to unnecessarily limit the use of remote control locomotives.

Amend PU Code section 7665.6(a)(6) as follows:

(6) Shall not use remote control locomotives to move hazardous materials over a public crossing unless the remote control operator is able to maintain line-of-sight visibility of the crossing and visually ensure that all automatic highway-rail grade crossing warning devices are functioning as intended, and it is safe for the train movement to enter the crossing.

DIVISION ANALYSIS (CPSD Division):

· This bill, as a whole, would slightly increase the daily inspection requirements of the CPUC's railroad safety inspectors who monitor railroad compliance with all state and federal requirements.

· An anticipated slight increase of informal complaints alleging railroad non-compliance with this section would also add to CPUC staff workload.

Signage and Flagging Systems

· Wayside flags, mile boards and whistle signs provide a vital safety enhancement to train operators by providing a physical visual reminder of their precise location as they approach an area where they must undertake critical actions in the safe operation of the train, such as blow the whistle at a grade crossing, slow the train down for a area of damaged track, or stop short of men and equipment working on the track.

· The railroads themselves devised the system of flags and wayside signs for the reasons stated above, but as manpower and maintenance activities have been streamlined, they have given these systems a much lower priority since they cost time and money to install and maintain.

· The CPUC has been aware of this trend, but unable to take enforcement action since the standards are based on railroad operating rules, rather than state or federal statutory requirements. Statutory enforcement of this important safety requirement would result in much higher compliance from the railroads.

SEC. 2 of AB 3023 - The Local Community Rail Security Act of 2006

· If the author adopts the CPUC's recommendation that the required inspections in Section 7665.4(c) be conducted by the CPUC, rather than the railroads, additional staff and training would be required since the CPUC does not currently have this expertise in-house.

· Additional staff and training would also be required for the CPUC to review the Infrastructure Protection Program specified in Section 7665.4(d), and recommend modifications or improvements. The CPUC does not currently have this expertise in-house.

· If CPUC is required to conduct inspections of security vulnerability, it may be necessary for certain CPUC staff to be certified as peace officers in California.

PROGRAM BACKGROUND:

· Under California Public Utilities Code sections 1201 et seq., the Commission has exclusive jurisdiction over highway-rail crossings, both at-grade and grade-separated.

· The Federal Railroad Administration (FRA) requires that railroads report all accidents that result in damages of $7,000 or more. The FRA has entered the field and, arguably, has preempted the states from other notice requirements.

· However, the applicable authority with respect to notifying states of railroad accidents is National Asso. of Regulatory Utility Comm'rs v. Coleman, 542 F.2d 11, 13 (3d Cir.,1976). While recognizing that the FRA has preempted the field of accident notification, Coleman provides that states and local governments shall be given immediate notification of accidents to enable the states promptly to launch their own investigations and, implicitly, to permit emergency responders to respond to the accident.

LEGISLATIVE HISTORY:

This bill seems to be a variation of AB 962 (2005), which was vetoed by the Governor last year.

FISCAL IMPACT ON THE CPUC:

Total fiscal impact on the CPUC is estimated to be $213,654 annually. This bill would require the Commission to hire an additional 2 railroad safety inspectors (2 Associate Transportation Operations Supervisors). An initial training period of up to one year per inspector will be necessary before the railroad inspectors would be certified by the Federal Railroad Administration (FRA), plus an additional training period of up to 6 months in specialized law enforcement training to conduct the inspections mandated by the bill.

STATUS: This bill is set to be heard by the Assembly Utilities and Commerce Committee on Monday, April 24, 2006.

SUPPORT/OPPOSITION:

Unknown.

STAFF CONTACTS:

Delaney Hunter, Director dlh@cpuc.ca.gov

CPUC - OGA (916) 327-7788

Pamela Loomis, Deputy Director pcl@cpuc.ca.gov

CPUC - OGA (916) 327-8441

George L. Elsmore gle@cpuc.ca.gov

Program Manager - CPSD (415) 703-2665

Jason Zeller jjz@cpuc.ca.gov

Asst. Gen. Counsel - Legal Division (415) 703-4673

Date: April 6, 2006.

BILL LANGUAGE:

BILL NUMBER: AB 3023 INTRODUCED

INTRODUCED BY Assembly Member Nunez

FEBRUARY 24, 2006

An act to add Section 7662 to, and to add Article 7.3 (commencing

with Section 7665) to Chapter 1 of Division 1 of, the Public

Utilities Code, relating to railroads.

AB 3023, as introduced, Nunez Railroads: safety.

(1) The existing Federal Rail Safety Act (FRSA) authorizes the

Secretary of Transportation to prescribe regulations and issue orders

for railroad safety and requires the Secretary of Homeland Security,

when prescribing a security regulation or issuing a security order

that affects the safety of railroad operations, to consult with the

Secretary of Transportation. The FRSA provides for state

participation in the enforcement of the safety regulations and orders

issued by the Secretary of Transportation or Secretary of Homeland

Security, pursuant to an annual certification, and authorizes the

respective secretaries to make an agreement with a state to provide

investigative and surveillance activities. The FRSA provides that to

the extent practicable, laws, regulations, and orders related to

railroad safety and laws, regulations, and orders related to railroad

security are required to be nationally uniform, but authorizes a

state to adopt or continue in force a law, regulation, or order

related to railroad safety or security until the Secretary of

Transportation (with respect to railroad safety matters), or the

Secretary of Homeland Security (with respect to railroad security

matters), prescribes a regulation or issues an order covering the

subject matter of the state requirement. A state is additionally

authorized to adopt or continue in force an additional or more

stringent law, regulation, or order related to railroad safety or

security, when necessary to eliminate or reduce an essentially local

safety or security hazard, that is not incompatible with a federal

law, regulation, or order, and that does not unreasonably burden

interstate commerce.

Existing law establishes the safety division of the Public

Utilities Commission. The safety division is responsible for

inspection, surveillance, and investigation of the rights-of-way,

facilities, equipment, and operations of railroads and public mass

transit guideways, and for enforcing state and federal laws,

regulations, orders, and directives relating to transportation of

persons or commodities, or both, of any nature or description, by

rail. Existing law requires the commission to require every railroad

corporation operating in this state to develop a protocol for rapid

communications with certain entities in an endangered area if there

is a runaway train or any other uncontrolled train movement that

threatens public health and safety. Existing law requires a railroad

corporation to promptly notify those entities if there is a runaway

train or other uncontrolled train movement, in accordance with the

communications protocol developed.

This bill would impose certain requirements on a railroad

corporation regarding signage, markers, and flagging systems. The

bill would require a railroad corporation to notify the commission

and the collective bargaining representative of any affected employee

of any new utilization of remote control locomotives in the state,

on or after January 1, 2007. The bill would require a railroad

corporation to provide immediate notification to the Office of

Emergency Services of specified accidents, incidents, and other

events that are required to be reported to the Federal Railroad

Administration's National Response Center.

(2) This bill would enact the Local Community Rail Security Act of

2006. The act would require every operator of rail facilities, by

July 1, 2007, to provide to local and state law enforcement

personnel, emergency personnel, transportation officials and other

first responders, a risk assessment of all rail facilities in the

state that includes specified information. The act would require

every rail operator, by January 1, 2008, to develop and implement an

infrastructure protection program to protect rail infrastructure in

the state from acts of sabotage, terrorism, or other crimes. The act

would require the commission to review the infrastructure protection

program and would authorize the commission to order a rail operator

to improve, modify, or change its program. The act would authorize

the commission to fine a rail operator up to $50,000 per day for

failure to comply with these requirements or an order of the

commission. The act would adopt specific requirements for facilities

that handle cargo that passes within 15 miles of a community facility

and would authorize the commission to fine a rail operator up to

$50,000 per day for failure to comply with these requirements or an

order of the commission. The act would require that rail operators

provide communications capability that can accomplish certain tasks.

The act would prohibit a rail operator or other covered person from

undertaking any act to punish an employee who reports a violation of

the act and provides that an employee subjected to punishment for

reporting a violation may seek civil damages of up to $1,000,000, in

addition to any other remedies the court deems appropriate.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 7662 is added to the Public Utilities Code, to

read:

7662. (a) (1) A railroad corporation shall place appropriate

signage to notify an engineer of an approaching grade crossing,

consistent with federal law.

(2) Whistle post signs shall be deemed to satisfy this

requirement.

(b) A railroad corporation shall utilize flagging systems and

follow main line flag rules in a manner consistent with its adopted

general code of operating rules and federal law. All flags shall be

readily visible and easily recognizable to the crews on both

passenger and freight trains.

(c) A railroad corporation shall provide milepost markers to train

crews at accurate one-mile intervals. The markers shall be readily

visible to the locomotive engineer within the locomotive cab, and

shall be kept in good repair and replaced when necessary.

(d) A railroad corporation shall place whistle signs to the right

of the main track in the direction of approach, exactly one-quarter

mile from the entrance to any grade crossing as a point of reference

for locomotive engineers who blow the whistle and ring the bell for

these grade crossings as a warning to the public. The signs, which

shall consist of an "X" on a square plate mounted on a post, shall be

readily visible to a locomotive engineer within the locomotive cab,

shall be kept in good repair, and shall be replaced when necessary.

(e) A railroad corporation shall place permanent speed signs to

the right of the track in the direction of approach, two miles in

advance of the point where the speed is either increased or decreased

for both passenger and freight trains. The signs shall be readily

visible to a locomotive engineer within the locomotive cab, shall be

kept in good repair, and shall be replaced when necessary.

(f) A railroad corporation shall notify the commission and the

collective bargaining representative of any affected employee of any

new utilization of remote control locomotives in the state, on or

after January 1, 2007.

(g) A railroad corporation shall provide immediate notification to

the Office of Emergency Services of accidents, incidents, and other

events, concurrent with those provided to the Federal Railroad

Administration's National Response Center, as required by Part 225.9

of Title 49 of the Code of Federal Regulations.

SEC. 2. Article 7.3 (commencing with Section 7665) is added to

Chapter 1 of Division 4 of the Public Utilities Code, to read:

Article 7.3. Local Community Rail Security Act of 2006

7665. (a) This article shall be known, and may be cited, as the

Local Community Rail Security Act of 2006.

(b) The Legislature declares that the purpose of this act is to

provide for the security and safety of local communities and local

community facilities, to protect local communities from

transportation practices that fail to secure rail facilities and

equipment from the threat of terrorism, and to ensure proper

communication between the owners and operators of rail facilities and

equipment with local and state first responders.

(c) The requirements of this article shall apply to rail

operators, any contractors or subcontractors working on the

facilities of the rail operator, and any other individual or

corporation performing work on rail facilities in the state. All

employees of railroad contractors or subcontractors, and any other

individual or corporation performing work on rail facilities in the

state, shall receive training adequate to make them as well trained

as employees of a rail operator, and shall be required to undergo the

same background, skills, and fitness for duty checks as employees of

the rail operator.

7665.2. By July 1, 2007, every operator of rail facilities shall

provide to local and state law enforcement personnel, emergency

personnel, transportation officials and other first responders, a

risk assessment of all rail facilities in the state. The risk

assessment shall describe:

(a) All rail facilities and their functions.

(b) The types of cargo that move through the facilities.

(c) Any hazardous cargo that moves through the facilities,

including the quantities of hazardous cargo.

(d) Any storage of hazardous cargo in rail facilities.

(e) The distance from rail facilities that transport or store

hazardous cargo to community facilities, including schools,

hospitals, and nursing homes.

(f) A description of the practices of the rail operator to prevent

acts of sabotage, terrorism or other crimes on rail facilities.

(g) All training programs that the rail operator requires for its

employees.

(h) The emergency response procedures of the rail operator to deal

with acts of sabotage, terrorism, or other crimes.

(i) The procedures of the rail operator to communicate with local

and state law enforcement personnel, emergency personnel,

transportation officials, and other first responders, in the event of

acts of sabotage, terrorism, or other crimes.

7665.4. (a) By January 1, 2008, every rail operator shall develop

and implement an infrastructure protection program to protect rail

infrastructure in the state from acts of sabotage, terrorism, or

other crimes.

(b) The infrastructure protection program shall provide for the

security of all critical infrastructure, including all points of

vulnerability of the rail system that handle hazardous cargo,

bridges, tunnels, and signal systems, and shall do all of the

following:

(1) Provide notice to state and local law enforcement personnel,

emergency personnel, transportation officials, and other first

responders of the location, size, function, and importance of the

critical infrastructure.

(2) Provide and describe methods for ensuring the protection of

critical infrastructure from acts of sabotage, terrorism, or other

crimes, including, at a minimum, 24-hour surveillance, monitoring,

and protection of the facilities.

(3) Provide training to personnel of the railroad operator to

ensure that the railroad personnel are trained and equipped to

prevent acts of sabotage, terrorism, or other crimes, and to respond

in the event of acts of sabotage, terrorism, or other crimes.

(c) The infrastructure protection program shall include regularly

scheduled inspections by personnel trained to determine the condition

of the rail facilities and the vulnerability of the rail facilities

to acts of sabotage, terrorism, of other crimes, of all rail

facilities, including rights-of-way, yards, and other facilities,

that handle hazardous cargo that move within 15 miles of community

facilities, including schools, hospitals, and nursing homes.

(d) Each rail operator in the state shall provide to the

commission, local and state law enforcement personnel, emergency

personnel, transportation officials and other first responders a copy

of its infrastructure protection program.

(e) The infrastructure protection program shall be updated by the

rail operator at least once every year, and the updated plan

submitted to local and state law enforcement personnel, emergency

personnel, transportation officials and other first responders.

(f) The commission shall review the infrastructure protection

program and may order a rail operator to improve, modify, or change

its program to comply with the requirements of this article.

(g) The commission may fine a rail operator up to fifty thousand

dollars ($50,000) per day for failure to comply with the requirements

of this section or an order of the commission pursuant to this

section.

7665.6. (a) Every rail operator shall, for all facilities that

handle cargo that passes within 15 miles of a community facility, do

all the following:

(1) Secure all facilities that handle or store hazardous materials

by providing adequate security personnel.

(2) Store hazardous materials only in secure facilities designed

for storage, which shall not include rights-of-way.

(3) Shall not leave locomotive equipment running while unattended,

or leave any unattended locomotive equipment unlocked.

(4) Shall have adequate personnel qualified to operate trains

available to assist, replace, or relieve train operators needing

assistance.

(5) Shall ensure that the cabs of occupied locomotives are secured

from hijacking, sabotage, or terrorism.

(6) Shall not use remote control locomotives to move hazardous

materials.

(7) Shall secure remote control devices to prevent access to those

devices by unauthorized personnel.

(8) Shall ensure that all employees of a rail facility that

transport hazardous materials within 15 miles of a community facility

receive training relative to security, shipment of hazardous

materials, and terrorism prevention at least once every 12 calendar

months.

(b) The commission may fine a rail operator up to fifty thousand

dollars ($50,000) per day for failure to comply with the requirements

of this section or an order of the commission pursuant to this

section.

7665.8. Every rail operator shall provide communications

capability that can accomplish all of the following:

(a) Timely alerting local and state law enforcement personnel,

emergency personnel, transportation officials and other first

responders in the event of sabotage, terrorism, or other crimes.

Railroad radios do not satisfy the requirements of this section.

(b) Timely provide bridge tenders on moveable bridges the ability

to alert local and state law enforcement personnel, emergency

personnel, transportation officials and other first responders in the

event of sabotage, terrorism, or other crimes.

(c) Notify rail workers of the local or national threat level for

the rail industry.

7666. No rail operator or any other person covered by this

article may act to punish an employee who reports a violation of this

article. An employee against whom a punitive action is taken may

seek civil damages of up to one million dollars ($1,000,000) from any

employer that acts to punish an employee who reports a violation of

this article, in addition to any other remedies the court deems

appropriate.

7667. The provisions of this article are severable. If any

provision of this article or its application is held invalid, that

invalidity shall not affect other provisions or applications that can

be given effect without the invalid provision or application.


# # #

1 There are no federal or state statutes that prescribe or require the railroad to develop operating rules.

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