News Release from Center For Biological Diversity [Editor: see this story also in INFORUM (Fargo ND), which shows an interesting photo of a cross section from a damaged oil tanker car. – RS]
Department of Transportation Ignores Congressional Deadline for Upgrading Safety Rules to Prevent Oil Train Disasters
PORTLAND, Ore.— Ignoring a congressional stipulation in the 2015 budget bill calling for new safety rules for oil trains by Jan. 15, federal transportation officials now say they won’t update the rules until May. Amid mounting concerns over the unchecked rise in shipments of highly volatile crude oil by train that has resulted in several explosive derailments and dozens of fatalities in the past two years, the federal Department of Transportation has yet to enact any on-the-ground safety improvements.
“Every day of delay is another day of putting people and the environment at risk of great harm,” said Jared Margolis, an attorney at the Center who focuses on the impacts of energy development on endangered species. “Continuing to allow these bomb trains to operate under current regulations is simply rolling the dice as to where and when the next disaster will occur.”
While several explosive oil-train accidents have occurred since the rulemaking process began in September 2013, the agency has failed to take any immediate action to resolve well-established concerns, such as the use of unsafe, puncture-prone DOT-111 tank cars.
“DOT-111 tank cars were never intended to transport these hazardous products,” said Margolis. “Failing to ban them immediately is a failure of the government’s duty to protect us from harm.”
Congress, understanding that rapid action is essential to protect the public, put a requirement in the 2015 budget bill for federal transportation officials to issue new safety rules by Jan. 15; but the industry has been fighting to delay and chip away at any efforts that would make moving oil by rail more expensive, regardless of safety concerns.
“Bomb trains are just one of many dangers posed by our continued dependence on fossil fuels,” Margolis said. “Ultimately, if we’re going to avoid dangerous oil-train derailments, as well as avoid the climate catastrophe that is currently being caused by our emissions, we must move away from these dangerous fossil fuels.”
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The Center for Biological Diversity is a national, nonprofit conservation organization with more than 800,000 members and online activists dedicated to the protection of endangered species and wild places.
Safety of shipping oil by rail addressed in appropriations bill
By Jodi Weigand, Dec. 17, 2014
Provisions pushed by U.S. Sen. Bob Casey to improve the safety of crude oil shipments are included in the final version of the appropriations bill that will fund the federal government for the next nine months.
Casey began pushing for more money for rail safety after three train derailments in the state this year, including one in Vandergrift in February.
“This program was not included in the original House bill, so it needed a strong push from the Senate (and) Casey to make it in the final package,” said Casey’s spokesman John Rizzo.
The $54 billion in appropriations for transportation, housing and urban development includes funding for 15 new rail and hazardous material inspectors. It also calls for $3 million to expand the use of automated track inspections for 14,000 miles of track and $1 million to pay for online training for first responders on how to handle train derailments.
The Senate on Saturday approved the 2015 Omnibus Appropriations Bill that the House narrowly passed Thursday.
Casey’s bill requires the Pipeline and Hazardous Materials Safety Administration to finalize regulatory action to change tank car design standards by Jan. 15. The PHMSA began the changes in September 2013.
Among the new requirements is that newly manufactured and existing tank cars that are used to haul crude oil have puncture resistance systems and protection for hatches and valves that exceed the existing design requirements for the DOT-111 tankers, an old-style variety that critics say are too flimsy.
In the event that there is a trail derailment that involves a crude oil spill, new funding will ensure that first responders have better training on how to handle it.
The money in the bill for a web-based hazardous materials emergency response training curriculum will help ensure that communities that lack the resources to send their first responders to training sites can still access education to contain oil spills and prevent danger to people and communities.
“Funding will also be used to expedite implementation of a remote automated track inspection capability to increase inspection mileage at a reduced cost,” Rizzo said. “There is too much track for manual inspections to cover it all.”
U.S. Sen. Patty Murray, D-Wash., chairwoman of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, said she’s pleased the bill would mandate comprehensive oil spill response plans for railroads and provide funding focusing on providing safety training.
“I worked to set a deadline for the Department of Transportation to issue new safety standards for tank cars next month and worked to protect smaller communities without sufficient resources to respond to oil trains,” Murray said.
A federal investigation into the Feb. 13 derailment and oil spill in Vandergrift determined that “widening,” or spreading of the rails on that section track, was the probable cause.
The report said that speed did not cause the derailment. However, two railroad experts said it was a contributing factor because speed could have caused track problems on the curve.
Repost from Reuters [Editor: Significant quote: “‘Look at the towns. All they’re getting are more trains in their backyard and all the risk with no financial benefits,’ said Dan McCoy, the County Executive in Albany, New York, where taxpayer funds have contributed to growing oil-train shipments.” – RS]
U.S. taxpayers help fund oil-train boom amid safety concerns
By Jarrett Renshaw, Dec 14, 2014
A crude oil train moves past the loading rack at the Eighty-Eight Oil LLC’s transloading facility in Ft. Laramie, Wyoming July 15, 2014. REUTERS/Rick Wilking
(Reuters) – For the past 18 months, Americans from Albany to Oregon have voiced growing alarm over the rising number of oil-laden freight trains coursing through their cities, a trend they fear is endangering public safety.
In at least a handful of places, the public is also helping fund it.
States and the federal government have handed out tens of millions in public dollars to rail companies and government agencies to expand crude oil rail transportation across the country, a Reuters analysis has found.
The public assistance in states like New York, Pennsylvania, Ohio, Oklahoma and Oregon comes as railroads are posting record profits, and as state and federal authorities press for safety overhauls that the oil and rail industries have opposed, following several explosive derailments.
The Reuters analysis identified 10 federal and state grants either approved or pending approval, totaling $84.2 million, that helped boost the number of rail cars carrying crude oil across the nation.
The funds are a fraction of total public funding for railroads each year, and look small compared to the $24 billion railroads themselves are spending annually on infrastructure.
But with oil-train safety under heavy scrutiny, the public grants could be controversial and add to growing strains between the industry and some local communities who say they are ill-prepared to deal with oil spills or derailments.
“Look at the towns. All they’re getting are more trains in their backyard and all the risk with no financial benefits,” said Dan McCoy, the County Executive in Albany, New York, where taxpayer funds have contributed to growing oil-train shipments.
In May, Albany’s sheriff, Craig Apple, warned that regional emergency crews weren’t equipped to respond to any major derailment.
“I am not seeing any increases in tax revenue, but I am seeing an increase in the cost of emergency services,” McCoy said.
Since 2008, there have been at least 10 major oil-train derailments across the U.S. and Canada, including a disaster that killed 47 in a Quebec town last July.
Officials and rail executives offer a counter-argument: the funds help improve safety for an industry that is helping revive the economy in some places.
Last year, New York Governor Andrew Cuomo awarded CSX Railroad a $2 million grant to add a second 3.6-mile rail line just south of the state capital in a county that now handles about a fourth of the Bakken’s oil, a light, volatile crude whose vapors have exploded in several past derailments.
CSX spokesman Rob Doolitle said the new line allows the railroad to idle fewer trains in the region, block fewer crossings, and serve at least 200 different businesses more efficiently.
“Local communities benefit from increased capacity,” Doolittle said. CSX posted record revenues of $3.2 billion in the third quarter.
AN INDUSTRY TRANSFORMED
The taxpayer dollars are going to a rail industry that has transformed the U.S. energy market: Amid a shale-drilling boom that has overwhelmed the nation’s pipeline network, oil-train traffic has surged at least 42-fold since 2009, and 415,000 railcar loads of oil plied the nation’s tracks last year.
As oil-trains increasingly make up for a lack of pipelines, they share the tracks with passenger and other freight trains on some of the busiest U.S. rail corridors. Emergency responders in several regions have complained that they lack information to track them and quickly respond to accidents.
While federal law now requires rail operators carrying Bakken crude to report routes and the number of trains that transit through each state, railroads have been reluctant to share specifics publicly, citing security risks.
Philadelphia is one of the unlikely locales that has been both alarmed and enriched by the oil-by-rail industry.
In 2012, The Carlyle Group led a rescue of the East Coast’s biggest refinery, which had been slated for closure, aided in part by a state-backed aid package that included $10 million to build a new rail terminal.
The 335,000-barrel-a-day plant is making money once again thanks in large part to the rail terminal, which receives six miles of oil-laden railcars daily from North Dakota’s Bakken.
In September, Philadelphia Energy Solutions (PES), an oil refining complex controlled by hedge fund Carlyle Group, announced plans to sell shares in its crude-by-rail terminal, a move that may fetch hundreds of millions of dollars and reduce its corporate tax burden.
Carlyle declined comment, but the company has previously said that government assistance helped to save at least 850 jobs at PES and boost Pennsylvania’s economy.
Earlier this year, six railcars transporting Bakken oil to the PES rail terminal derailed on a bridge over the Schuylkill River in Philadelphia’s Center City. No oil spilled from the CSX-operated train, but images of railcars teetering above the city’s vital waterway shocked locals and prompted protests.
“It spooked a lot of people in Philadelphia, and really raised the profile of the issue of crude by rail, an issue most people don’t think about,” said Matt Walker, a director with the local Clean Air Council.
CONGESTION RELIEF
Citing high costs, oil and rail industry groups have resisted some of the U.S. Department of Transportation’s recent proposals to enhance crude-by-rail safety, which include quick retirement or retrofitting of older, accident-prone railcars, lower speed limits, and mandatory electronic railcar braking systems.
Railroads and local transport authorities say public grants are a public good.
Since 2011, Oklahoma has received two federal grants worth $8.6 million that were used to fund privately-held FarmRail System, a regional rail operator, to move more crude by rail out of the state’s Anadarko Basin.
“We see these grants as improving public safety, much like you spend money on improving a highway,” said Gary Ridley, the head of the Oklahoma’s transportation agency. Trains are better than oil trucks, which clog up roads, he said. Oklahoma Governor Mary Fallin recently announced a $100 million spending package to upgrade rail crossings in the state.
In Oregon, oil terminal giant Global Partners successfully lobbied state and county officials to fund $8.9 million in upgrades to the Portland and Western Railroad, which runs next to the Columbia River. As a result, Global was able to increase the number of oil-trains to its private rail hub in the state by more than a third, to 38 per month. Global declined comment.
“It really doesn’t matter whether the train is carrying crude oil or cotton puffs, they have the right to pass through,” Jerry Cole, the mayor of Rainier, Oregon, where oil-trains pass through daily. “All I can do is to make it as safe as possible.”
(Reporting by Jarrett Renshaw, editing by Jonathan Leff and John Pickering)
Federal budget bill sets January deadline on safety rules for oil tanker cars
December 10, 2014 | By Joel Connelly
Tanker cars from a derailed CSX oil train burn after derailing in downtown Lynchburg, Virginia, last April. Increasing numbers of oil trains pass through Seattle and other Puget Sound cities en route to four refineries on northern Puget Sound. (AP Photo/City of Lynchburg, LuAnn Hunt)
Hidden away in Congress’ big spending bill, designed to fund the federal government through FY 2015, are stern marching orders to the U.S. Department of Transportation:
Deliver a final rule for new, safer oil tank car design standards by Jan. 15, 2015, and require that all rail carriers put in place comprehensive oil spill response plans.
The budget provisions, inserted by Sens. Patty Murray, D-Wash., and Susan Collins, R-Maine, are prompted by an oil train disaster in Quebec, and the rapid increase in trains carrying volatile Bakken crude oil from North Dakota to four refineries on northern Puget Sound.
“In Washington state, we’ve seen a startling increase in oil train traffic through communities of all sizes, from downtown Seattle to smaller, rural communities across the state,” said Murray, who has chaired the Senate Appropriations subcommittee on transportation.
“That’s why I worked to set a deadline for the Department of Transportation to issue new safety standards for tank cars next month and worked to fund a Shirt Line Railroad Safety Institute that will help protect smaller communities without sufficient resources to respond to oil trains.”
An old adage applies to the oil train issue: There’s nothing like a hanging in the morning to focus the mind.
In July of 2013, brakes failed and an unmanned runaway train sped into the small town of Lac-Megantic, Quebec, just over the border from Maine. It blew up, killing 47 people and leveling downtown.
The train was using 1960′s-designed DOT-111 tank cars. Another train, using DOT-111 cars, exploded into mushroom-cloud flames last December outside Casselton, N.D.. It forced evacuation of more than 2,000 people from the small town.
While promising new safety measures, the Department of Transportation has been criticized for giving railroads too much wiggle room.
The DOT said last summer it is setting a two-year deadline for getting DOT-111 tank cars off the rails. In reading the fine print, however, the clock would begin ticking in September of 2015 — giving rail carriers more than three years to stop use of the explosion-prone tank cars.
The federal budget bill would make available $10 million in grants to improve safety at railroad grade crossings that handle crude oil or other hazardous flammable liquids.
The DOT gets resources to hire 15 new hazardous-materials and rail-safety inspectors and $3 million to expand the use of automated track inspections to make sure rail tracks are maintained on crude oil transportation routes.
Refiners and shippers have responded.
Tesoro has stopped use of DOT-111 tank cars to supply its Anacortes refinery. The Burlington Northern-Santa Fe Railroad has announced a purchase of new, safer tank cars.
But the railroads have continued to resist making full, up-to-date information on oil shipments available to state and local emergency responders. They are fearful the information will be made public.
While Murray is touting its oil train provisions, the $1.1 trillion spending bill has drawn some fire from the political left.
Republicans have secured concessions, loosening Wall Street regulation and letting wealthy donors give more to political campaigns. The bill has slightly weakened school lunch nutrition standards championed by first lady Michelle Obama.
Liberal Rep. Jim McDermott, D-Wash., is voting against the bill.
“It is inconceivable that Congress would cut crucial regulations in the Dodd-Frank Act, when risky derivatives trading was at the center of the 2008 financial crisis,” said McDermott.
“Why is Congress giving Wall Street a massive Christmas present, when so many hard-working Americans are struggling to make ends meet?”
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