The states go it alone
In 2015, the Attorney General for the State of New York petitioned the Pipeline and Hazardous Materials Safety Administration (PHMSA) to establish a nationwide vapor pressure standard of less than 9 psi for the transportation of crude oil by rail. Every oil train derailment with Bakken oil that involved an explosion and/or fire came from loads with Reid Vapor Pressure of 9.0, or greater. The deadly Lac-Megantic crash that killed 47 people came from crude oil with vapor pressures of just over 9.
In 2017, the PHMSA held hearings and took comments on the proposed rule-making. The state of North Dakota, along with the rail and crude oil lobbies opposed any regulation of crude oil vapor pressure. Following the fact-finding on the proposed rule, the rule has languished in the government’s Significant Rule-Making Report Archive with a status of “Undetermined” since 2017.
It’s little wonder that the Attorneys General of several states have given up on any federal help and have decided to try to regulate the dangers of crude oil trains and protect their citizens on their own. Recently, Washington State passed a law prohibiting the loading and off-loading of crude oil in the state unless the vapor pressure is less than 9.0 psi. Of course, the usual suspects (this time including the Montana AG) object to any law that might protect taxpayers and the environment at their expense. The PHMSA will now make an “administrative determination as to whether Federal hazardous material transportation law preempts the State of Washington’s rules relating to the volatility of crude oil received in the state.”
Also recently, the Oregon Legislature passed and the Governor signed a law that forces railroads operating in the state to pay a $20/tank car fee for transporting crude oil on designated High Hazard Train Routes. The fee will be used to establish an “Oil Spill Preparedness Fund” to train first responders. The new law would require any railroad carrying crude to have an oil spill prevention and emergency response plan approved by the state. Undoubtedly, oil and rail interests will challenge the legality of the Oregon law as well.
