senate Bill S7718

Relates to requiring petroleum bulk storage facilities to provide a surety to be used in the case of a necessary cleanup and decontamination

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 02 / Jun / 2014
    • REFERRED TO ENVIRONMENTAL CONSERVATION

Summary

Relates to requiring petroleum bulk storage facilities to provide a surety to be used in the case of a necessary cleanup and decontamination.

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Bill Details

See Assembly Version of this Bill:
A9926
Versions:
S7718
Legislative Cycle:
2013-2014
Current Committee:
Senate Environmental Conservation
Law Section:
Environmental Conservation Law
Laws Affected:
Add ยง17-1019, En Con L

Sponsor Memo

BILL NUMBER:S7718

TITLE OF BILL: An act to amend the environmental conservation law, in
relation to global financial surety

PURPOSE OR GENERAL IDEA OF BILL:

To require petroleum bulk storage facilities to provide a surety to be
used in the case of a necessary cleanup and decontamination.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: amends the environmental conservation law by adding a new
section 17-1019.

Section 2: effective date

JUSTIFICATION:

The Petroleum Storage Surety bill is in response to recent accidents
resulting in substantial financial losses to both public and private
entities due to injuries, loss of life, damages and clean up costs,
all as a result of explosions and spills from improper handling of
volatile and toxic crude oil shipments. This bill would apply to crude
oil stored at all bulk storage facilities in New York State and
require financial security to meet all responsibilities for cleanup
and decontamination costs associated with the release of such oil.

The transport of crude oil by rail has increased exponentially
nationwide over the past five years, from over 9,000 carloads of crude
oil in 2008 to over 400,000 in 2013, and the need for storage
facilities has expanded accordingly. There is a heightened awareness
of safety issues related to the transportation and storage of crude
oil and the Petroleum Surety bill is one attempt to address the
negative impacts of mishandling and improper storage of crude oil Rail
transportation of crude oil is regulated by federal law whereas bulk
storage of crude oil is governed by state law.

It is necessary that financial surety measures be put in place to
ensure that the public is not burdened with the big costs resulting
from crude oil accidents. This may include evidence of insurance, a
letter of credit, or a bond from a corporate surety licensed to do
business in New York State.

The Petroleum Storage Surety bill will ensure that any bulk petroleum
storage facility has the necessary financial security to balance the
risk of any accident occurring that is directly related to storing
crude oil.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None to the state.


EFFECTIVE DATE:

This act shall take effect on the sixtieth day after it shall have
become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7718

                            I N  S E N A T E

                              June 2, 2014
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation

AN ACT to amend the  environmental  conservation  law,  in  relation  to
  global financial surety

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The environmental conservation law is amended by  adding  a
new section 17-1019 to read as follows:
S 17-1019 FINANCIAL SECURITY.
  1.  FOR  THE  PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL BE
DEFINED AS FOLLOWS:
  A. "CLEANUP AND DECONTAMINATION" MEANS ACTIVITIES UNDERTAKEN TO PERMA-
NENTLY ELIMINATE, REMOVE, ABATE, CONTROL OR MONITOR HEALTH AND/OR  ENVI-
RONMENTAL HAZARDS OR POTENTIAL HAZARDS.
  B.  "CLEANUP AND DECONTAMINATION COSTS" MEAN ALL COSTS ASSOCIATED WITH
THE CLEANUP AND DECONTAMINATION OF  CONTAMINATION  INCLUDING  RELOCATION
COSTS  INCURRED  BY  THE  STATE  OR  ITS POLITICAL SUBDIVISIONS OR THEIR
AGENTS OR ANY PERSON WITH APPROVAL OF THE DEPARTMENT.
  C. "CONTAMINATION" MEANS ANY DAMAGE TO ANY PROPERTY  OR  THE  ENVIRON-
MENT,  INCLUDING,  BUT NOT LIMITED TO, A PUBLIC OR PRIVATE WATER SUPPLY,
ANY THREAT TO PUBLIC HEALTH, OR ANY HAZARDOUS  CONDITION  THAT  PREVENTS
THE USE OF PROPERTY OR THAT REQUIRES RELOCATION OF PEOPLE OR PROPERTY TO
PREVENT HARM RESULTING FROM THE RELEASE OF ANY SUBSTANCE.
  D.  "ENVIRONMENT"  MEANS  ANY  WATER  INCLUDING, BUT NOT LIMITED TO, A
STREAM, POND, LAKE, RIVER, WATER COURSE, AQUIFER, WETLAND, OR RESERVOIR,
ANY LAND INCLUDING, BUT NOT LIMITED TO, A LAND  SURFACE  OR  SUBSURFACE,
AIR, FISH, WILDLIFE, BIOTA AND ALL OTHER NATURAL RESOURCES.
  2.  IN  ADDITION  TO  ANY  OTHER EXISTING REQUIREMENTS, THE DEPARTMENT
SHALL REQUIRE ALL PETROLEUM BULK STORAGE FACILITIES  THAT  STORE  BAKKEN
CRUDE OIL OR BITUMEN CRUDE OIL TO PROVIDE FINANCIAL SECURITY TO MEET ALL
RESPONSIBILITIES  FOR  CLEANUP AND DECONTAMINATION COSTS ASSOCIATED WITH
THE RELEASE OF SUCH OIL.  FINANCIAL SECURITY MAY BE EVIDENCED BY ONE  OR
A COMBINATION OF THE FOLLOWING METHODS ACCEPTABLE TO THE COMMISSIONER IN
CONSULTATION  WITH THE SUPERINTENDENT OF FINANCIAL SERVICES: EVIDENCE OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15386-03-4

S. 7718                             2

INSURANCE, GUARANTEE, LETTER OF CREDIT, OR A BOND FROM A CORPORATE SURE-
TY LICENSED TO DO BUSINESS AS SUCH IN THE STATE. SUCH FINANCIAL SECURITY
SHALL REMAIN IN FULL FORCE AND EFFECT FOR THE DURATION OF THE  REGISTRA-
TION. IF THE FINANCIAL SECURITY SHALL FOR ANY REASON BE CANCELLED, WITH-
IN  SEVEN DAYS AFTER RECEIVING NOTICE THEREOF, A VALID REPLACEMENT SHALL
BE PROVIDED UNDER THE SAME CONDITIONS. FAILURE TO PROVIDE A  REPLACEMENT
WITHIN  SUCH  PERIOD  SHALL  RESULT  IN  THE IMMEDIATE SUSPENSION OF THE
FACILITY'S REGISTRATION BY THE DEPARTMENT. NO PERSON SHALL ENGAGE IN THE
STORAGE OF BAKKEN CRUDE OIL OR BITUMEN CRUDE OIL  WITH  AN  API  GRAVITY
EQUAL OR LESS THAN TEN WITHOUT COMPLYING WITH THIS REQUIREMENT.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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