SF 3352

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/05/2016 08:43am

A bill for an act
relating to transportation; amending requirements governing preparedness,
response, and information regarding transportation of oil and other hazardous
substances; establishing certain requirements for railroads; amending
appropriations; making technical changes; amending Minnesota Statutes
2014, sections 115E.042; 219.015; 299A.55; proposing coding for new law in
Minnesota Statutes, chapter 219.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 115E.042, is amended to read:

115E.042 PREPAREDNESS AND RESPONSE FOR CERTAIN RAILROADS.

Subdivision 1.

Application.

In addition to the requirements of section 115E.04,
a person who owns or operates railroad car rolling stock transporting a unit train must
comply with this section.

Subd. 2.

Training.

(a) Each railroad must offer training to each fire department new text begin ,
and each local organization for emergency management under section 12.25, new text end having
jurisdiction along the deleted text begin route of unit trains deleted text end new text begin routes over which oil and other hazardous
substances are transported new text end . deleted text begin Initial training under this subdivision must be offered to each
fire department by June 30, 2016, and deleted text end Refresher training must be offered to each fire
department new text begin and local organization for emergency management new text end at least once every three
years deleted text begin thereafter deleted text end new text begin after initial training under this subdivision new text end .

(b) The training must address the general hazards of oil and hazardous substances,
techniques to assess hazards to the environment and to the safety of responders and the
public, factors an incident commander must consider in determining whether to attempt to
suppress a fire or to evacuate the public and emergency responders from an area, and other
strategies for initial response by local emergency responders. The training must include
suggested protocol or practices for local responders to safely accomplish these tasks.

Subd. 3.

Coordination.

deleted text begin Beginning June 30, 2015, deleted text end Each railroad must communicate
at least annually with each county or city emergency manager, safety representatives of
railroad employees governed by the Railway Labor Act, and a senior fire department
officer of each fire department having jurisdiction along the deleted text begin route of a unit train deleted text end new text begin routes
over which oil and other hazardous substances are transported new text end , to new text begin :
new text end

new text begin (1) new text end ensure coordination of emergency response activities between the railroad and
local responders new text begin ; and
new text end

new text begin (2) assist emergency managers identify and assess local threats, hazards, and risks in
areas (i) having high population concentration, or (ii) in which key facilities are located new text end .

Subd. 4.

Response capabilities; time limits.

(a) Following confirmation of a
discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to
contain and recover discharged oil or hazardous substances and to protect the environment
and public safety.

(b) Within one hour of confirmation of a discharge, a railroad must provide a
qualified company employee to advise the incident commander. The employee may be
made available by telephone, and must be authorized to deploy all necessary response
resources of the railroad.

(c) Within three hours of confirmation of a discharge, a railroad must be capable of
delivering monitoring equipment and a trained operator to assist in protection of responder
and public safety. A plan to ensure delivery of monitoring equipment and an operator to a
discharge site must be provided each year to the commissioner of public safety.

(d) Within three hours of confirmation of a discharge, a railroad must provide qualified
personnel at a discharge site to assess the discharge and to advise the incident commander.

(e) A railroad must be capable of deploying containment boom from land across
sewer outfalls, creeks, ditches, and other places where oil or hazardous substances
may drain, in order to contain leaked material before it reaches those resources. The
arrangement to provide containment boom and staff may be made by:

(1) training and caching equipment with local jurisdictions;

(2) training and caching equipment with a fire mutual-aid group;

(3) means of an industry cooperative or mutual-aid group;

(4) deployment of a contractor;

(5) deployment of a response organization under state contract; or

(6) other dependable means acceptable to the Pollution Control Agency.

(f) Each arrangement under paragraph (e) must be confirmed each year. Each
arrangement must be tested by drill at least once every five years.

(g) Within eight hours of confirmation of a discharge, a railroad must be capable of
delivering and deploying containment boom, boats, oil recovery equipment, trained staff,
and all other materials needed to provide:

(1) on-site containment and recovery of a volume of oil equal to ten percent of the
calculated worst case discharge at any location along the route; and

(2) protection of listed sensitive areas and potable water intakes within one mile of
a discharge site and within eight hours of water travel time downstream in any river
or stream that the right-of-way intersects.

(h) Within 60 hours of confirmation of a discharge, a railroad must be capable of
delivering and deploying additional containment boom, boats, oil recovery equipment,
trained staff, and all other materials needed to provide containment and recovery of a
worst case discharge and to protect listed sensitive areas and potable water intakes at any
location along the route.

Subd. 5.

deleted text begin Railroad deleted text end new text begin Environmental response new text end drills.

Each railroad must conduct deleted text begin at
least one deleted text end oil containment, recovery, and sensitive area protection deleted text begin drill deleted text end new text begin exercises as follows:
(1) at least one tabletop exercise every year; and (2) at least one full-scale exercise new text end every
three years, at a location and time new text begin and in the manner new text end chosen by the Pollution Control
Agency, and attended by safety representatives of railroad employees governed by the
Railway Labor Act.

new text begin Subd. 5a. new text end

new text begin Prevention and response plans; capacity information. new text end

new text begin In addition to
other requirements, a prevention and response plan under section 115E.04 must include a
description of the capacity and methods a railroad intends to utilize in order to meet the
requirements under subdivision 4.
new text end

Subd. 6.

Prevention and response plans new text begin ; submission requirements new text end .

(a) deleted text begin By
June 30, 2015, deleted text end A railroad shall submit the prevention and response plan required under
section 115E.04, as necessary to comply with the requirements of this section, to the
commissioner of the Pollution Control Agency on a form designated by the commissioner.

(b) deleted text begin By June 30 of deleted text end new text begin In new text end every third year following a plan submission under this
subdivision new text begin , or sooner as provided under section 115E.04, subdivision 2 new text end , a railroad must
update and resubmit the prevention and response plan to the commissioner.

new text begin Subd. 7. new text end

new text begin Financial responsibility. new text end

new text begin (a) Each railroad must file with the commissioner
of transportation a financial responsibility plan that complies with the requirements of this
subdivision, in a form and manner determined by the commissioner.
new text end

new text begin (b) The financial responsibility plan must include (1) evidence demonstrating that
the railroad has the financial ability to pay for the environmental costs that may arise
while the financial responsibility plan is in effect, and (2) business information required by
the commissioner.
new text end

new text begin (c) Evidence of the railroad's financial ability to pay, in the form, at the amount,
and with such contractual terms, conditions, or defenses required by the commissioner
can be demonstrated by:
new text end

new text begin (1) insurance meeting the requirements of chapter 60A;
new text end

new text begin (2) self-insurance;
new text end

new text begin (3) surety bond; or
new text end

new text begin (4) irrevocable letter of credit, as defined in section 336.5-102.
new text end

new text begin (d) The commissioner must set the amount of financial ability to pay in consultation
with the commissioner of the Pollution Control Agency: (1) using a calculation based on
the volume of oil or other hazardous substances to be transported within or through the
state; and (2) at a level no less than the expected environmental costs from a worst-case
discharge.
new text end

new text begin (e) A financial responsibility plan must be continuous until canceled. The
commissioner must receive 90 days' written notice prior to cancellation of any evidence of
the railroad's ability to pay. A railroad shall notify the commissioner promptly following a
material change in ability to pay.
new text end

Sec. 2.

Minnesota Statutes 2014, section 219.015, is amended to read:

219.015 STATE RAIL SAFETY deleted text begin INSPECTOR deleted text end new text begin INSPECTION PROGRAM new text end .

Subdivision 1.

Positions established; duties.

(a) The commissioner of
transportation shall establish three state rail safety inspector positions deleted text begin in the Office
of Freight and Commercial Vehicle Operations of the Minnesota Department of
Transportation. On or after July 1, 2015 deleted text end , new text begin and new text end the commissioner may establish deleted text begin a fourth deleted text end new text begin up
to nine new text end state rail safety inspector deleted text begin position deleted text end new text begin positions new text end following consultation with railroad
companies. The commissioner shall apply to and enter into agreements with the Federal
Railroad Administration (FRA) of the United States Department of Transportation
to participate in the federal State Rail Safety Participation Program for training and
certification of an inspector under authority of United States Code, title 49, sections 20103,
20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.

(b) A state rail safety inspector deleted text begin shall deleted text end new text begin may new text end inspect mainline track, secondary
track, and yard and industry track; inspect railroad right-of-way, including adjacent or
intersecting drainage, culverts, bridges, overhead structures, and traffic and other public
crossings; inspect yards and physical plants; new text begin inspect train equipment; new text end review and enforce
safety requirements; review maintenance and repair records; and review railroad security
measures.

(c) A state rail safety inspector may perform, but is not limited to, the duties
described in the federal State Rail Safety Participation Program. An inspector may train,
be certified, and participate in any of the federal State Rail Safety Participation Program
disciplines, including: track, signal and train control, motive power and equipment,
operating practices compliance, hazardous materials, and highway-rail grade crossings.

(d) To the extent delegated by the Federal Railroad Administration and authorized
by the commissioner, an inspector may issue citations for violations of this chapter, or to
ensure railroad employee and public safety and welfare.

Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided
in this subdivision, the commissioner shall annually assess railroad companies that are
(1) defined as common carriers under section 218.011; (2) classified by federal law
or regulation as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II
Carriers; and (3) operating in this state.

(b) The assessment must be deleted text begin by a division of deleted text end new text begin calculated to allocate new text end state rail
safety deleted text begin inspector deleted text end new text begin inspection new text end program costs deleted text begin in equal proportion between deleted text end new text begin proportionally
among new text end carriers based on route miles operated in Minnesota deleted text begin , assessed in equal amounts
for 365 days of the calendar year deleted text end new text begin at the time of assessment new text end . The commissioner shall
deleted text begin assess deleted text end new text begin include in the assessment calculation new text end all new text begin program or additional position new text end start-up
deleted text begin or re-establishment deleted text end costs deleted text begin , deleted text end new text begin ; new text end all deleted text begin related deleted text end costs of deleted text begin initiating deleted text end the state rail safety deleted text begin inspector deleted text end new text begin
inspection new text end program, new text begin including but not limited to inspection, administration, supervision,
travel, equipment, and training; new text end and new text begin costs of new text end ongoing state rail inspector duties.

(c) The assessments new text begin collected under this subdivision new text end must be deposited in a deleted text begin special
account in the special revenue fund, to be known as the deleted text end state rail safety inspection account new text begin ,
which is established in the special revenue fund new text end . new text begin The account consists of funds as provided
by this subdivision, and any other money donated, allotted, transferred, or otherwise
provided to the account. new text end Money in the account is appropriated to the commissioner for
the establishment and ongoing responsibilities of the state rail safety deleted text begin inspector deleted text end new text begin inspection new text end
program.

Subd. 3.

Work site safety coaching program.

The commissioner may exempt a
common carrier not federally classified as Class I from violations for a period of up to
two years if the common carrier applies for participation in a work site safety coaching
program, such as the "MNSharp" program administered by the Minnesota Department of
Labor and Industry, and the commissioner determines such participation to be preferred
enforcement for safety or security violations.

Subd. 4.

Appeal.

Any person aggrieved by an assessment levied under this section
may appeal within 90 days any assessment, violation, or administrative penalty to the
Office of Administrative Hearings, with further appeal and review by the district court.

new text begin Subd. 5. new text end

new text begin Inspection program information. new text end

new text begin (a) The commissioner must maintain
on the department's public Web site information on state rail safety inspection program
activity under this section.
new text end

new text begin (b) At a minimum, the Web site information must include:
new text end

new text begin (1) summaries of defects and violations by (i) railroad company, (ii) shipper
company, (iii) State Rail Safety Participation Program discipline, (iv) type of defect or
violation, (v) level of severity, and (vi) geographic location such as city or region;
new text end

new text begin (2) to the extent permitted by federal law, inspection reports or basic details
regarding any identified critical or major defects, or critical or major violations;
new text end

new text begin (3) a summary of any enforcement activity;
new text end

new text begin (4) a review of corrective actions taken; and
new text end

new text begin (5) a review of revenue sources for and summary of expenditures from the state rail
safety inspection account.
new text end

new text begin (c) In addition, the Web site information must include railroad bridge inspection
reports provided to the commissioner under section 219.925, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [219.925] INCIDENT EMERGENCY RESPONSE; PREPAREDNESS
AND INFORMATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Emergency manager" means the director of a local organization for emergency
management under section 12.25.
new text end

new text begin (c) "Hazardous substance" has the meaning given in Code of Federal Regulations,
title 49, section 171.8.
new text end

new text begin (d) "Oil" has the meaning given in section 115E.01, subdivision 8.
new text end

new text begin (e) "Rail carrier" means a railroad company that is (1) defined as a common carrier
under section 218.011; (2) classified by federal law or regulation as Class I Railroad, Class
I Rail Carrier, Class II Railroad, Class II Carrier, Class III Railroad, or Class III Carrier;
and (3) operating in this state.
new text end

new text begin Subd. 2. new text end

new text begin Emergency response capability notification. new text end

new text begin (a) A rail carrier must
provide an emergency response capability notification to each emergency manager and fire
chief having jurisdiction along the routes over which oil and other hazardous substances
are transported and to the commissioner of public safety. At a minimum, the notification
must include geographic inventories of:
new text end

new text begin (1) life-safety emergency response equipment and related major supplies, including
details on fire-suppression equipment, equipment capacity, and supply amounts; and
new text end

new text begin (2) response staff, including information on number and expertise areas of personnel
responding from each geographic location.
new text end

new text begin (b) Each inventory under paragraph (a), clauses (1) and (2), must specify storage
or starting locations of equipment, supplies, and personnel, and must provide estimates
of travel times to a sample of reasonable locations along the routes over which oil and
other hazardous substances are transported.
new text end

new text begin (c) A rail carrier must promptly provide an updated notification following any
material change in the information under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Route planning risk assessment. new text end

new text begin A rail carrier must provide a copy of
the route planning and analysis, including risk assessment information, required under
Code of Federal Regulations, title 49, section 172.820, or successor requirements, to each
emergency manager and fire chief having jurisdiction along the routes over which oil and
other hazardous substances are transported and to the commissioner of public safety.
new text end

new text begin Subd. 4. new text end

new text begin Hazardous materials response plans. new text end

new text begin A rail carrier must provide a copy of
the carrier's hazardous materials emergency response plan to each emergency manager and
fire chief having jurisdiction along the routes over which oil and other hazardous substances
are transported for integration and coordination with local emergency operations planning.
new text end

new text begin Subd. 5. new text end

new text begin Bridge inspection reports. new text end

new text begin A rail carrier must provide a copy of bridge
inspection reports on railroad bridges along the routes over which oil and other hazardous
substances are transported to:
new text end

new text begin (1) each emergency manager, for those bridges located within the emergency
manager's jurisdiction;
new text end

new text begin (2) each city or county engineer, for those bridges over a roadway under the
engineer's jurisdiction; and
new text end

new text begin (3) the commissioner of transportation, for all applicable bridges.
new text end

new text begin Subd. 6. new text end

new text begin Software program; comprehensive oil and other hazardous materials
transportation tracking. new text end

new text begin (a) All rail carriers subject to this section shall collectively
maintain a single software program that must be accessible both by a downloadable
application and by means of the Internet. The program must provide comprehensive,
accurate, and real-time information regarding transportation of oil and other hazardous
substances.
new text end

new text begin (b) At a minimum, the software program must:
new text end

new text begin (1) contain data that is updated on a real-time basis, including, as practicable,
updates due to rail car switching, assembly and disassembly, and storage operations;
new text end

new text begin (2) contain information on all tanker railcars carrying oil and other hazardous
substances in this state, which must include:
new text end

new text begin (i) identification of the specific substance in each railcar; and
new text end

new text begin (ii) reasonable estimates of the volume of the substance in each railcar;
new text end

new text begin (3) be available to emergency first responders having jurisdiction along the routes
over which oil and other hazardous substances are transported, and to employees in the
Department of Public Safety designated by the commissioner of public safety; and
new text end

new text begin (4) provide a user interface that is accessible by authorized individuals through a
Web site.
new text end

new text begin (c) The requirement under paragraph (b), clause (3), does not prevent access through
software applications on wireless communications devices if it is made available for
each operating system commonly in use.
new text end

new text begin Subd. 7. new text end

new text begin Data-sharing requirements. new text end

new text begin (a) A rail carrier must provide all data
required under subdivisions 2 to 6 in its entirety, without abridgment.
new text end

new text begin (b) A railroad is prohibited from, as a condition of providing any data required under
this section, requiring an emergency manager or fire chief to enter into an agreement that
restricts the ability of the emergency manager or fire chief to share the data with:
new text end

new text begin (1) local emergency responders in the same jurisdiction; or
new text end

new text begin (2) other emergency managers or fire chiefs, if information sharing is for emergency
life-safety response planning and coordination purposes.
new text end

new text begin Subd. 8. new text end

new text begin Transported substances community notice. new text end

new text begin (a) As provided in this
subdivision, each rail carrier must provide a community notice concerning all oil and other
hazardous substance transportation within or through the state. The notice requirement
under this subdivision does not apply to transportation of goods that are not oil or other
hazardous substances. All rail carriers subject to this section must collectively maintain
the community notices on a public Web site.
new text end

new text begin (b) A notice under this subdivision must include:
new text end

new text begin (1) the specific routes over which the oil or other hazardous substance is transported;
new text end

new text begin (2) the transportation schedule, including the time, frequency, and volume of oil or
other hazardous substance transported on a daily or other reasonable basis as authorized
by the commissioner;
new text end

new text begin (3) the number of tanker railcars transported;
new text end

new text begin (4) a description of the material transported, including, as applicable, the gravity as
measured by industry standards and the vapor pressure;
new text end

new text begin (5) all applicable emergency response information required under Code of Federal
Regulations, title 49, part 172, subpart G, or successor requirements; and
new text end

new text begin (6) contact information, including name, title, telephone number, and address, of
at least one qualified company employee who is responsible for serving as a point of
contact for discharge response.
new text end

new text begin (c) A railroad must provide a community notice prior to transporting oil and other
hazardous substances, and must provide an updated notice prior to any material change in
the information under paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016, except that subdivision
6 is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2014, section 299A.55, is amended to read:

299A.55 RAILROAD AND PIPELINE deleted text begin SAFETY deleted text end new text begin INCIDENT
PREPAREDNESS new text end ; OIL AND OTHER HAZARDOUS deleted text begin MATERIALS deleted text end new text begin SUBSTANCES new text end .

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given them.

(b) "Applicable rail carrier" means a railroad company that is subject to an
assessment under section 219.015, subdivision 2.

(c) "Hazardous substance" has the meaning given in deleted text begin section 115B.02, subdivision 8 deleted text end new text begin
Code of Federal Regulations, title 49, section 171.8 new text end .

(d) "Oil" has the meaning given in section 115E.01, subdivision 8.

(e) "Pipeline company" means any individual, partnership, association, or public
or private corporation who owns and operates pipeline facilities and is required to show
specific preparedness under section 115E.03, subdivision 2.

Subd. 2.

Railroad and pipeline deleted text begin safety deleted text end new text begin incident new text end account.

(a) A railroad and
pipeline deleted text begin safety deleted text end new text begin incident new text end account is created in the special revenue fund. The account
consists of funds collected under subdivision 4 and funds donated, allotted, transferred, or
otherwise provided to the account.

(b) deleted text begin $104,000 deleted text end new text begin $250,000 new text end is annually appropriated from the railroad and pipeline deleted text begin safety deleted text end new text begin
incident new text end account to the commissioner of the Pollution Control Agency for environmental
protection activities related to railroad discharge preparedness under chapter 115E.

(c) Following the appropriation in paragraph (b), the remaining money in the
account is annually appropriated to the commissioner of public safety for the purposes
specified in subdivision 3.

Subd. 3.

Allocation of funds.

(a) Subject to funding appropriated for this
subdivision, the commissioner shall provide funds for training and response preparedness
related to (1) derailments, discharge incidents, or spills involving trains carrying oil or
other hazardous substances, and (2) pipeline discharge incidents or spills involving oil
or other hazardous substances.

(b) The commissioner shall allocate available funds as follows:

(1) $100,000 annually for emergency response teams; and

(2) the remaining amount to the Board of Firefighter Training and Education under
section 299N.02 and the Division of Homeland Security and Emergency Management.

(c) Prior to making allocations under paragraph (b), the commissioner shall consult
with the Fire Service Advisory Committee under section 299F.012, subdivision 2.

(d) The commissioner and the entities identified in paragraph (b), clause (2), shall
prioritize uses of funds based on:

(1) firefighter training needs;

(2) community risk from discharge incidents or spills;

(3) geographic balance; deleted text begin and
deleted text end

(4) new text begin risks to the general public; and
new text end

new text begin (5) new text end recommendations of the Fire Service Advisory Committee.

(e) The following are permissible uses of funds provided under this subdivision:

(1) training costs, which may include, but are not limited to, training curriculum,
trainers, trainee overtime salary, other personnel overtime salary, and tuition;

(2) costs of gear and equipment related to hazardous materials readiness, response,
and management, which may include, but are not limited to, original purchase,
maintenance, and replacement;

(3) supplies related to the uses under clauses (1) and (2); deleted text begin and
deleted text end

(4) emergency preparedness planning and coordination deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) life-safety emergency response exercises, including coordinated or comprehensive
exercises in conjunction with the requirements under section 115E.042, subdivision 5; and
new text end

new text begin (6) public education and outreach, including but not limited to: (i) informing and
engaging the public regarding hazards of derailments and discharge incidents; (ii) assisting
in development of evacuation readiness; (iii) undertaking public information campaigns;
and (iv) providing accurate information to the media on likelihood and consequences of
derailments and discharge incidents.
new text end

(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline
deleted text begin safety deleted text end new text begin incident new text end account provided for the purposes under this subdivision, the commissioner
may retain a balance in the account for budgeting in subsequent fiscal years.

Subd. 4.

Assessments.

(a) The commissioner of public safety shall annually assess
$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
(b). The commissioner shall deposit funds collected under this subdivision in the railroad
and pipeline deleted text begin safety deleted text end new text begin incident new text end account under subdivision 2.

(b) The assessment for each railroad is 50 percent of the total annual assessment
amount, divided in equal proportion between applicable rail carriers based on route miles
operated in Minnesota. The assessment for each pipeline company is 50 percent of the
total annual assessment amount, divided in equal proportion between companies based
on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
in Minnesota.

(c) The assessments under this subdivision expire July 1, 2017.

Sec. 5. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall recodify Minnesota Statutes, section 115E.042,
subdivision 2, as Minnesota Statutes, section 219.925, subdivision 9, and Minnesota
Statutes, section 115E.042, subdivision 3, as Minnesota Statutes, section 219.925,
subdivision 10. The revisor shall correct any cross-references made necessary by this
recodification.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Unless specified otherwise, this act is effective July 1, 2016.
new text end