Category Archives: Federal Regulation (U.S.)

Crude by rail on the 2015 Congress’ legislative agenda

Repost from Politico
[Editor: this story ranges across all modes of transportation.  I have highlighted in red all references to crude by rail.  Note the significant roles to be played by “Rep. Bill Shuster (R-Pa.), who as chairman of the House Transportation Committee is tasked with writing each of the transportation bills and and shepherding them through the lower chamber…. and Rep. Peter DeFazio (D-Ore.), incoming ranking member of the committee.”  – RS]

Loaded transportation agenda could easily be derailed

By Adam Snider, 1/2/15

There’s a laundry list of things transportation lawmakers want to get done in 2015, but they could easily be stymied by old foes, primarily a lack of money and partisan wrangling ahead of the 2016 presidential election.

Lawmakers from both chambers face a to-do list that includes major legislation affecting just about every mode: aviation, passenger and freight rail, highways, bridges, transit and water resources.

Not all the action will be on Capitol Hill — there will be plenty to do a mile down New Jersey Avenue at the Transportation Department.

Regulators are hoping to put out rules early in the year on hot-button issues such as commercial drones and the safety of rail cars that carry volatile crude oil. Also pending is a rule that would ban cellphone conversations on planes and a slew of policy changes mandated by the last surface transportation bill two years ago.

“Every one of the subcommittees has the potential to do a pretty significant piece of legislation,” said Rep. Bill Shuster (R-Pa.), who as chairman of the House Transportation Committee is tasked with writing each of the transportation bills and and shepherding them through the lower chamber.

“We’re going to be busy,” Rep. Peter DeFazio (D-Ore.), incoming ranking member of the committee, said after ticking off a long list of major bills the panel faces.

Shuster and other top lawmakers aren’t worried about a time crunch, though, because, they say, they’ve put in a lot of work on all the major bills. But the price tag of the highway and transit measure — around $100 billion just for six years of status quo funding — could easily steer it off course. And it could also get bogged down in another round of debates over how the money is divvied up among the states as well as transit’s slice of gas tax dollars.

There’s a strong and diverse coalition of groups — including business, labor and motorists — that have pushed for a gas tax increase as a way to increase federal spending on roads, bridges and transit systems. But that idea is largely a nonstarter on Capitol Hill; instead, support is building for using portions of revenues raised from corporate tax reform as a way to pay for increased infrastructure spending.

That path, however, has its own set of roadblocks. While it enjoys bipartisan support, including from polar opposites such as President Barack Obama and Sen. Rand Paul (R-Ky.), getting it done on the Hill is no sure thing. Some lawmakers could push for a broader tax overhaul package, an ambitious goal that could further complicate issues as members bicker over the nation’s overall tax structure. Even infrastructure boosters complain that it would be onetime revenue, and not a long-term fix.

No matter what happens, though, lawmakers will have to address the Highway Trust Fund early in 2015 — the fund that pays for road, bridge and transit work will go insolvent by May. Even a simple one-year extension, which must be enacted by May 30, would cost around $15 billion because the trust fund takes in far less in gas tax revenues than it is authorized to spend each year.

Another major reauthorization, of the Federal Aviation Administration, doesn’t face the same money problem — the Airport and Airway Trust Fund that pays for over 80 percent of the bill isn’t in the same financial peril. It is increasingly under strain, however, and discussions have begun about whether and how to switch to some new system of financing, including possible privatization.

But the FAA bill brings its own set of policy disputes. West Coast lawmakers will undoubtedly again push to increase the number of long-distance flights into and out of Ronald Reagan Washington National Airport, the airport closest to the Capitol used by the vast majority of lawmakers. Republicans will scrutinize the multibillion-dollar cost of NextGen, a new air traffic control system that is taking years to implement. The airport and airline lobbies will scrap over whether to raise the current cap on fees passengers pay to use certain airports. And members of both parties will prod the FAA to chart a clear path forward on drones, which to date have been addressed through a series of one-off rulings.

Lawmakers also want to address Amtrak, which saw its congressional authorization expire in 2013. The House Transportation Committee unanimously approved a bipartisan measure in 2014, but things could get more complicated when the full House takes it up. Some hard-line lawmakers want to end Amtrak’s $1.4 billion-per-year federal subsidy, while some Democrats would like to boost the railroad’s funding to help it address a backlog of deteriorating infrastructure.

The Amtrak bill could also ignite a regional battle — the House measure ensures that money made by the profitable Northeast Corridor, the area between D.C. and Boston, gets plowed back into that region’s operations. For the rest of the country, where nearly all Amtrak routes lose money, keeping service levels intact would mean states — facing their own budget shortfalls — would need to offer more money.

Hill politicians also face work on another water resources bill in 2016, though the overwhelming bipartisan support for the 2014 version makes that less of a concern. There’s also a rail safety bill on the horizon that could offer a chance to deal with the rising number of trains carrying crude oil, several of which have had headline-grabbing accidents and spills.

The DOT will also be grappling with how to stem the tide of oil train accidents. Officials hope to put out a rule in early 2015 that would set a new standard for the tank cars that carry crude and other volatile materials. The so-called cromnibus, which was recently enacted, moved the deadline for that rule up by about two months, to Jan. 15. However, most regard that as a statement from Congress more than a hard and fast deadline considering the timing.

That’s not the only regulation expected in early 2015 — regulators also aim to issue a broad rule on drones use and licensing to address the rising number of remote-controlled aircraft that can pose a major safety hazard if they get near large passenger planes. That rule was supposed to come out in 2014, but the complicated nature of the issue led the FAA’s assistant chief counsel to recently say the goal of putting it out by then was “slipping away.”

2015 could also see regulatory action to ban cellphone conversations on planes. The FCC kicked off the issue by ruling that there was no reason to continue its technical ban on in-flight calls, which set off a firestorm of worry and headlines about loud, obnoxious yakkers on flights. That led the DOT to begin its own proceeding, evaluating whether calls should remain banned under DOT’s consumer protection authority.

A string of high-profile disputes over reclining airline seats only added to the worry that phone-based brawls would be breaking out every week. And with the support of a number of lawmakers on the Hill, DOT shouldn’t run into much resistance when it formalizes the ban on in-flight cell conversations.

DOT is also facing a long list of rules implementing various parts of MAP-21, the highway and transit bill enacted in 2012, including setting performance measures to gauge how effective certain projects are at meeting each state’s transportation goals — a topic bicycle and pedestrian advocates have used to push for better safety measures.

CBS News: Kansas derailment raises vital rail safety questions

Repost from CBS News
[Editor: Apologies for the commercial ad in the otherwise excellent video.  – RS]

Kansas derailment raises vital rail safety questions

January 3, 2015

Rail safety is back in the spotlight after a new warning from federal regulators.

The National Transportation Safety Board is urging railroads to take immediate action following its investigation of a derailment in Kansas. No one was hurt in the derailment, but it raised new questions about whether America’s rail network — carrying cargo and passengers — is as safe as it could be, CBS News’ Mark Albert reports.

The collision in September between two Union Pacific freight trains in Galva, Kansas, may have come down, in part, to a light bulb.

In a news release Friday, the NTSB said a green LED light was so bright it out-shined the old-fashioned, incandescent red stoplight nearby. The engineer accelerated, plowing into an oncoming train.

The NTSB now wants all railroads to eliminate any lighting hazards nationwide. It’s the latest in a string of safety issues in the past 18 months on America’s 140,000 miles of rails.

“What we know is the regulators are behind the curve,” said former NTSB chair Deborah Hersman, who sounded the alarm about crude oil shipments in April. “We’re losing cars. We’re losing millions of gallons of petroleum, and we aren’t prepared.”

Eight days later, train cars carrying crude oil derailed and caught fire along the James River in Virginia.

In December 2013, a derailment in North Dakota caused a huge fireball. And in July 2013, 47 people died after a derailment in Quebec, Canada. The train was carrying oil from North Dakota’s booming Bakken oil region.

McClatchy correspondent Curtis Tate acknowledges that the government and the railroads are making strides to make rail travel safer.

“Absolutely, they are,” he said. “The problem is it was too late for 47 people in Quebec.”

Tate published an investigation this week that found gaps in rail oversight, including:

The government lets railroads do their own bridge inspections.
There is no federal database on those bridge conditions, like there is with roads.

New rules that make railroads tell states when large oil shipments pass through only apply to higher-risk Bakken crude — not other types of oil.

“I’d like to think that they’re doing the best they can,” Tate said. “But the question is, will that be enough?”

In a statement to CBS News, the Association of American Railroads said the industry spends half a billion dollars per week on safety.

The Department of Transportation is expected to issue new federal rules by spring that may include stronger tank cars, tighter speed restrictions and tougher braking requirements.

Senate appropriations bill takes on safety of shipping oil by rail

Repost from TribLIVE, Pittsburgh, PA

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.

National Round-up: Calls to Ban Bomb Trains Ramp Up While Communities Await New Regulations

Repost from DeSmogBlog

Calls to Ban Bomb Trains Ramp Up While Communities Await New Regulations

By Justin Mikulka, 2014-12-15
ban bomb trains

Earthjustice has challenged the Department of Transportation’s denial of a petition by Sierra Club and Forest Ethics to ban the transportation of Bakken crude oil in DOT-111 tank cars.

Most of the explosive crude oil on U.S. rails is moving in tanker cars that are almost guaranteed to fail in an accident,” explained Patti Goldman of Earthjustice.

The risks are too great to keep shipping explosive Bakken crude in defective DOT-111s. The National Transportation Safety Board called them unsafe two decades ago, and by the Department of Transportation’s own estimates, the U.S. could see 15 rail accidents every year involving these cars until we get them off the tracks.”

At the same time Earthjustice was bringing this challenge, the Canadian government was announcing that it will ban 3,000 of the riskiest DOT-111s from carrying materials like Bakken crude.

And in California, where last week a train carrying grain derailed into the Feather River, democratic state senator Jerry Hill called on Governor Jerry Brown to impose a moratorium on oil trains in the state. The Feather River rail line is also used for Bakken crude oil trains.

In Toronto, the new mayor called for an end to these dangerous trains passing through the city.

I said during the campaign and I’ll repeat it now, that I think we should be moving in the direction, in negotiation with the railways and the federal government, to stop movement of toxic and dangerous substances through the city at all,” reported The Star.

Perhaps the fact that the new mayor isn’t smoking crack like his predecessor has something to do with this rather clear-headed assessment. You would, after all, have to be on crack to think running DOT-111s filled with Bakken crude through highly populated areas was an acceptable practice.

Meanwhile in Baltimore, residents are fighting a new proposal for an oil-by-rail facility that would bring these trains right through their neighborhoods.

In addition to calls for outright bans of the DOT-111s, two states recently released new studies about the oil train issue.

In New York, Governor Andrew Cuomo is looking for ways to fund the oil spill clean up fund for the state. The fund is projected to be in the red financially by 2016 and currently collects no fees from the oil companies transporting the Bakken and tar sands oil through the state. As many as 44 oil trains carrying at least 1,000,000 gallons of oil, and often more than 3,000,000 gallons, cross New York each week.

Cuomo criticized the federal government’s lack of movement on new oil-by-rail regulations referring to their progress as “unacceptably slow” according to The Record Online.

Over the past six months, our administration has taken swift and decisive action to increase the state’s preparedness and better protect New Yorkers from the possibility of a crude oil disaster,” Cuomo said. “Now it is time for our federal partners to do the same.”

Cuomo’s self-assessment of New York’s actions didn’t impress oil train activists. Sandy Steubing of Albany, NY, based group PAUSE isn’t pleased with the state’s progress.

“The Governor’s response is lame; he’s either urging other entities like the railroad and the Federal government to protect New Yorkers or he’s trying to appear like the measures he’s taking will protect us,” Steubing said. “There’s not enough foam in the entire state to protect us from an explosive derailment the likes of which we’ve seen five times since July of 2013.”

Meanwhile in Washington State, the draft of the 500-page 2014 Marine and Rail Oil Transportation Study was released. The report contains some staggering growth projections for oil-by-rail transportation in the state, as reported by The News Tribune.

The Department of Ecology’s report estimates that 12.7 billion gallons of oil were moved through the state by rail in 2013 alone and says 19 trains of roughly 100 tank cars each are passing through the state each week today. It predicts that traffic could mushroom to 137 weekly trains by 2020 if all proposed oil terminals and refinery expansion projects are permitted and utilized.

Facing this onslaught of oil-by-rail traffic for the state, Washington’s Governor Jay Inslee is proposing a new tax on oil transported through the state by rail.

In North Dakota, the birthplace of the modern oil-by-rail industry, meaningless new rail regulations will keep the bomb trains rolling. There is also a legal battle going on between the town of Enderlin and the rail operator Canadian Pacific. Canadian Pacific moves as many as 28 trains through Enderlin every day. Many stop and block roads and traffic in Enderlin causing traffic delays one would expect in Los Angeles but not in a town of 900 people in North Dakota.

In response, the town council made it illegal for trains to stop for more than 10 minutes in town. Now the town is being sued by Canadian Pacific. Unfortunately for the residents of Enderlin, Canadian Pacific has a strong argument that many municipalities are learning about now that they have become the home to oil train operations.

Kansas interstate commerce attorney Bob Pottroff explained the reality to Reuters, “Right now cities don’t have the right to tell a railroad it can’t park in the middle of their town.” If Enderlin were to win, Pottroff predicted the result could have far reaching effects as other municipalities opted to take some level of control over rail traffic within their borders.

In the face of this widespread opposition to the dangers posed by the oil-by-rail industry, there just happens to be a new industry-funded study showing that no new regulations are warranted.

The Railway Supply Institute funded a report prepared by The Brattle Group that concludes that all of the proposed regulations may have benefits but in every case they have found that the costs outweigh these benefits. In addition to this conclusion, Natural Gas Intelligence reports that The Brattle Group proposes one of the other favorite industry tactics for delaying new regulations. More research.

As communities across the country await new oil-by-rail regulations and continue to hear about close calls regarding oil train accidents the level of opposition to the dangers of transporting explosive oil in DOT-111s continues to grow. Unfortunately for them, the lobbyists for Big Oil and Big Rail are still hard at work protecting their profits above all else.