Environment and Energy

Petroleum Storage Insurance Bill Needed

July 9, 2014
By Assemblymember Patricia A. Fahy

Senator Grisanti and I have introduced legislation to require appropriate financial insurance for crude oil facilities. This legislation (A.9926) would ensure that crude oil storage facilities must meet increased financial criteria and requirements to prevent taxpayers to be on the hook in the case of any accidents.

This Petroleum Storage Surety 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 nationwide 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 any mishandling 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.

The exponential rise of crude oil transportation, especially with the growth of storage facilities right here at the Port of Albany, can come with devastating consequences as we’ve seen in communities across North America. This bill ensures that crude oil operators and storage facilities are responsible for their actions, not taxpayers or the public at large.

June 7, 2014

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.