NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9926
SPONSOR: Rules (Fahy) 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 nation-
wide 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 mishandl-
ing 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 high costs resulting from crude
oil accidents. This may include evidence of insurance, a letter of cred-
it, 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.
