Rail Transport of Petroleum, Natural Gas and Ethanol By: Bob Fronczak ASSOCIATION OF AMERICAN RAILROADS

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1 Rail Transport of Petroleum, Natural Gas and Ethanol By: Bob Fronczak ASSOCIATION OF AMERICAN RAILROADS Association of American Railroads

2 Outline 1. Prevention a) Rail Safety 2. Mitigation a) DOT and Transport Canada s final tank car rules 3. Preparedness & Emergency Response a) Crude Oil by Rail Training b) Information sharing - AskRail c) Oil Spill Response Plans ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 1

3 Prevention ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 2

4 U.S. Railroad Safety Statistics: In 2014, U.S. railroads achieved their safest year ever by the following train accident yardsticks: Train Accidents and Accident Rates, down 2% and 4% respectively from 2013 Track-Caused, Equipment-Caused, and Human Factor Caused Train Accident Rates, all down between 2% and 10% from Employee Fatalities, down from previous record low of 14 in 2013 ASSOCIATION OF AMERICAN RAILROADS 5/1/2016 Page 3

5 Since 2004, Trending Analysis Helped Reduce Main Track Accident Rates From Broken Rail by 65%, Bearing Defects by 42%, and Truck Hunting to Zero Main Track Accidents per Million Freight Train Miles 0.25 Before Period After Period 0.20 Broken Rail Accident Rates Bearing Accident Rates Truck Hunting Accident Rates Source: AAR Analysis of FRA Train Accident and Train-Mile Data, , U.S. Class I Freight Railroads. Note: Years are Oct. 1 to Oct. 1 ASSOCIATION OF AMERICAN RAILROADS Page 4

6 Since 1980 Hazmat Traffic has Tripled While Hazmat Release Rates have Declined 84% Train Accidents with a Hazmat Release Thousand Hazmat Carloads Delivered Source: AAR Analysis of FRA Train Accident Database as of July ASSOCIATION OF OF AMERICAN RAILROADS Page 5

7 From Carloads of Crude Oil and Ethanol Increased by 131% 900, , ,000 Total All 710, ,784 Carloads 600, , , , , , , , ,023 Ethanol 533, , , , , , , , ,103 33,990 Crude Oil Up 1,352% Crude Oil Ethanol Total Year Source: AAR ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 6

8 Crude Oil and Ethanol as a % of Total Originated Class I Carloads Percent Percent of Total Percent of Total ASSOCIATION OF AMERICAN RAILROADS Page 7

9 In the Last 10 Years, U.S. Class I Railroads Spent More Than $200 Billion on Track & Equipment Capital Expenditures and Maintenance Expenses, Minus Depreciation, $ in Billions 16.0 Track & Structures Equipment Sources: AAR, Analysis of Class I Railroads, , based on R-1 Reports submitted by each Class I railroad to the ICC/STB. Equipment: Lines Track: Lines Note: Current year dollars. ASSOCIATION OF AMERICAN RAILROADS Page 8

10 Wayside Detector / Reader Technology ASSOCIATION OF AMERICAN RAILROADS Page 9

11 Phased Array on Rail Defect Test Facility Hy Rail Truck and Carriage Phased Array Roller Search Unit ASSOCIATION OF AMERICAN RAILROADS Page 10

12 Mitigation ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 11

13 HM-251 Final Rule May 8, 2015 ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 12

14 ASSOCIATION OF AMERICAN RAILROADS

15 Improvement in Conditional Probability of Release 19.55% Conditional Probability of Release (CPR) 47.3% Improvement 76.6% Improvement 10.3% 4.57% 85.2% Improvement 2.9% DOT-111 Non-Jacketed CPC-1232 Non-Jacketed CPC-1232 Jacketed w 7/16 shell DOT-117 Jacketed w 9/16 shell *This graph displays CPR>100 which represents the conditional probability of release (CRP) for large releases, defined as those greater than 100 gallons. Note: The conditional probability of release for each tank car was calculated by the RSI-AAR Railroad Tank Car Safety Research ASSOCIATION and Test OF Project, AMERICAN a cooperative RAILROADS program by the Railway Supply Institute (RSI) and the Association of American Railroads (AAR) Page 14 ASSOCIATION OF AMERICAN RAILROADS

16 Improvement in multi-car release performance is dramatic ASSOCIATION OF AMERICAN RAILROADS Page 15

17 North American Tank Car Fleet Crude Oil Ethanol FL 4 Total Total number of tank cars in North America 402,370 1 Total number of DOT-111 s 322,694 1 Non Jacketed DOT-111 s 7, , ,042 2 Jacketed DOT-111 s ,645 2 Non Jacketed CPC-1232 s 18, , ,415 2 Jacketed CPC-1232 s 22, ,915 2 Total 48,793 2,3 31,904 2,3 108,017 2,3 Notes: 1. Total number of tank cars and DOT-111 s are from UMLER 2. Including cars making at least one loaded shipment 1 st - 3 rd quarter Some cars transported more than one type of commodity in the study period so column totals are not additive 4. FL = Flammable Liquids ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 16

18 DOT-117 or 117-R Tank Cars In Service Car Specification Number of Cars in Service DOT-117 A/J 5,509 DOT-117-R 160 DOT Total 6,630 Cars in service as of December 17, 2015 ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 17

19 Other Mitigating Measures HM-251 Requirements Reduced operating speeds 40/50 MPH Route risk analysis Notification for crude oil trains February 20, 2014 Voluntary Agreement Wayside defect detectors 40 M max Internal rail inspections Distributed power or 2-way EOT s Emergency response inventory ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 18

20 Preparedness & Emergency Response ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS 5/1/2016 Page 19

21 Training ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 20

22 Hazmat / Crude Oil by Rail Training Three part training: Awareness level to be given during routine railroad and TRANSCAER training at the local level (~20,000 per year) Web-based training introduced in October 2014 ( 4,445 students have registered 3-Day operations level training at SERTC in Pueblo starting 7/1/14 ( 40% classroom and 60% field 1,504 emergency responders trained in 2014 Class 1 railroads have trained an additional 953 in 2015, another 819 under the National Domestic Preparedness Consortium grant and 23 self payees for a total of 1,796 in 2015 More planned for 2016 ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 21

23 Information sharing ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 22

24 OT-55-O CPC-1312 Published January 27,2015 Upon written request, AAR members will provide bona fide emergency response agencies or planning groups with specific commodity flow information covering all at a minimum the top 25 hazardous commodities transported through the community for a 12 month period in rank order. Also added list of TIH/PIH back ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 23

25 Commodity Flow Request Form [Company LOGO] Request for Hazardous Materials COMMODITY FLOW INFORMATION Organization Requesting Information: Contact Person: Phone Number: Address: Mailing Address: (Street Address) (City, State, Zip) Geographical Description of Area for study: Preferred method to receive report: U.S. Mail (Mark One) By signing below I acknowledge and agree to the terms set forth by [RAILROAD NAME] for use and dissemination of the [RAILROAD S] Hazardous Materials Commodity Flow Information. [RAILROAD S NAME] considers this information to be restricted information of a security sensitive nature. I thus affirm and agree that the information provided by [RAILROAD NAME] in this report will be used solely for and by bona fide emergency planning and response organizations for the expressed purpose of emergency and contingency planning. This information will not be distributed publicly in whole or in part without the expressed written permission of [RAILROAD NAME]. (Signature of person requesting commodity flow information) Return Completed Form to: [INSERT RAILROAD NAME AND ADDRESS] For [RAILROAD] Use Only [PERSON RESPONSIBLE FOR APPROVAL]: Yes NO Date: Hazardous Materials Service Support: Date Request Received: Time Period Covered: Date Report Sent: Report sent via: U.S. Mail ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 24

26 Shipment Visibility - AskRail Identify what is in a single car, by car number Identify all the cars in a train by car or locomotive number Position in train Car # Proper Shipping Name Hazard Class UN ID # Load/ Empty ASSOCIATION OF OF AMERICAN AMERICAN RAILROADS RAILROADS Page 25

27 AskRail (Cont.) Phase 1 Single car lookup app released October 15, 2014 Train consist app released March 31, 2015 Apps for IOS and Android (invitation only not available on app sites) Intended users first responders Over 5,700 registers users ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 26

28 Search ASSOCIATION OF OF AMERICAN AMERICAN RAILROADS RAILROADS Page 27

29 From Equipment ID to Train Consist ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 28

30 Top 125 Hazmats ASSOCIATION OF OF AMERICAN AMERICAN RAILROADS RAILROADS Page 29

31 AskRail Location of Registered Users ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 30

32 Oil Spill Response Plans ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 31

33 AAR s Comments on ANPRM HM-251B Key Points: 1. The Rail Industry has engaged in substantial voluntary action in emergency response planning 2. The Threshold for an oil spill response should be a train carrying 1,000,000 gallons of crude oil a month 3. The oil spill response plan requirements should reflect the railroads proposed regulatory text 4. PHMSA needs to provide more guidance to facilitate cost estimates 5. Oil spill response plans should not be released to the general public 6. Railroads should submit the plans to FRA only NRRM expected in April 2016 ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 32

34 Thank You Questions? Robert E. Fronczak Assistant Vice President Environment & Hazardous Materials Association of American Railroads 425 Third Street S.W.; Suite 1000 Washington, DC Phone: (202) Fax: (202) Safety First! ASSOCIATION OF AMERICAN ASSOCIATION RAILROADS OF AMERICAN RAILROADS Page 33

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