An Assembly Resolution urging Congress to enact legislation imposing greater safety requirements on the shipment of crude oil by rail.

Whereas, The increase of crude oil production from the Bakken region in North Dakota has transformed the energy industry and resulted in the production of millions of barrels of crude oil per day; and

Whereas, Although crude oil production is significant to America's energy independence, it also remains a great safety concern as crude oil is a highly flammable and combustible liquid that contains extremely volatile compounds such as propane, butane, methane, and ethane; and

Whereas, The increased production of crude oil has led to an increase in the volume of crude oil being transported by rail in North America and an unprecedented number of rail accidents involving trains carrying crude oil; and

Whereas, Between 2013 and 2015, there were two dozen derailments involving trains carrying large quantities of crude oil, resulting in explosions that caused extensive property damage and loss of life; and

Whereas, In New Jersey, rail accidents involving trains carrying crude oil pose a continuing threat to public safety, as millions of residents live close to the railroad tracks used by an estimated 15 to 30 trains per week transporting crude oil through the State; and

Whereas, The National Transportation Safety Board has determined that the type of rail tank car most commonly used to transport crude oil, the DOT-111 tank car, is substandard for carrying crude oil because the DOT-111 tank car has a high incidence of rupturing during derailments; and

Whereas, Recently, the United States Department of Transportation (US DOT) promulgated rules requiring reduced speeds of 40 miles per hour for trains carrying crude oil and calling for the use of upgraded rail tank cars by the year 2023; and

Whereas, Although US DOT has taken this first step in attempting to ensure that hazardous materials are being transported safely through communities across the country, the rules do not go far enough; and

Whereas, Congress should enact legislation that (1) bans the interstate shipment of crude oil that has not been treated to remove extremely volatile compounds, (2) creates a national standard for crude oil transport that prohibits a vapor pressure volatility level of greater than 8.5 pounds per square inch, (3) expedites the phase out of substandard rail tank cars, and (4) creates a fund to compensate the victims of derailments of trains carrying crude oil and pay for accident clean up and infrastructure damage by levying a tax on crude oil shipment; and

Whereas, It is in the best interest of the citizens of this State for this House to urge Congress to enact legislation that will impose greater safety requirements on the shipment of crude oil by rail; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. This House urges Congress to enact legislation that imposes greater safety requirement on the shipment of crude oil by rail. The requirements should include:

a. a ban on the interstate shipment of crude oil that has not been treated to remove extremely volatile compounds;

b. a national standard for crude oil that prohibits a vapor pressure volatility level of greater than 8.5 pounds per square inch during transport;

c. a phase out of substandard rail tank cars within two years; and

d. a fund to compensate the victims of derailments of trains carrying crude oil and pay for accident clean up and infrastructure damage by levying a tax on crude oil shipment.

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Speaker of the United States House of Representatives, the President of the United States Senate, and each member of Congress elected from this State.

STATEMENT

This resolution urges the Congress to enact legislation that imposes greater safety requirements on the shipment of crude oil by rail.

The growth of crude oil production in North Dakota has led to the production of millions of barrels of crude oil per day. Crude oil is a highly flammable and combustible liquid that contains extremely volatile compounds and present safety concerns when shipped by rail. Between 2013 and 2015, there were two dozen derailments involving trains carrying crude oil, resulting in explosions that caused extensive property damage and loss of life.

The United States Department of Transportation (US DOT) recently promulgated rules requiring reduced speeds for trains carrying crude oil and calling for upgraded rail tank cars. Although US DOT has taken this first step, the rules do not go far enough because they do not address the volatility of the crude oil itself.

Congress is urged to enact legislation that: (1) bans the interstate shipment of crude oil that has not been treated to remove extremely volatile compounds; (2) creates a national standard for crude oil transport that prohibits a vapor pressure volatility level of greater than 8.5 pounds per square inch; (3) expedites the phase out of substandard rail tank cars; and (4) creates a fund to compensate the victims of derailments of trains carrying crude oil and pay for accident clean up and infrastructure damage by levying a tax on crude oil shipment.