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A01773 Summary:

COSPNSRSteck, Ortiz, Galef, Brindisi, Mosley, Barrett, Gottfried, Skoufis, Stirpe, Rosenthal L, Otis, Dinowitz, Thiele, Hunter, Colton, Sepulveda, Skartados, Williams, Weprin
MLTSPNSRGlick, Lupardo, McDonald, Simon
Amd 181, add 181-f, Nav L
Relates to financial liability for major facilities, vessels, and railroads.
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A01773 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the navigation law, in relation to financial responsi- bility for the liability of a major facility or vessel   PURPOSE OR GENERAL IDEA OF BILL: To require the owner or operator of a major facility or a vessel to establish and maintain with the department evidence of financial respon- sibility sufficient to meet the amount of liability.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: amends paragraph (e) of subdivision 3 of section 181 of the navigation law and adds a new paragraph (f). Section 2: amends the navigation law by adding a new section 181-f to require railroad financial preparedness, and requires the department to make that information on its public website. Section 3: 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 and transferred at all bulk storage facilities, vessels and railroads in New York State, and require financial security to meet all responsibil- ities for cleanup and decontamination costs associated with the release of such oil up to existing federal and state liability limits. 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, vessel, and railroad has the necessary financial secu- rity to balance the risk of any accident occurring that is directly related to storing crude oil.   PRIOR LEGISLATIVE HISTORY: 2015/16: A7625/S5751-A - Passed Assembly   FISCAL IMPLICATIONS: None to the state   EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become a law
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