Relates to financial liability for major facilities, vessels, and railroads

• Democratic2

◆ The sponsor's argument

Why Michelle Hinchey says this is needed

This legislation 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. Over the past decade, the rate of railroad accidents and derailments has worsened nationally, when factoring in the distance freight travels. Railroad accidents involving crude oil or other hazardous material have devastating impacts on the soil, water, and air of surrounding communi- ties. After the tragic 2023 derailment in East Palestine, Ohio, for example, the clean-up cost surpassed $1,1 billion. There is a heightened awareness of safety issues related to the transportation and storage of crude oil, and this legislation is one attempt to address the negative impacts of mishandling and improper transport or 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. This bill would require vessels that transport petroleum in New York State to maintain financial security to meet all responsibilities for clean-up and decontamination costs associated with the release of such oil up to existing federal and state liability limits. For major facili- ties for bulk petroleum storage, this legislation establishes that the maximum amount of financial security required shall be annually adjusted for inflation, as defined by the consumer price index, to ensure that they continue to maintain financial responsibility sufficient to cover the costs of potential accidents. 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 credit, or a bond from a corporate surety licensed to do business in New York State. This bill will ensure that any bulk petroleum storage facility or vessel has the necessary financial security to balance the risk of any accident occurring that is directly related to storing crude oil.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.