BILL ANALYSIS
Appropriations Committee Fiscal Summary
471 (Simitian)
Hearing Date: 8/18/03 Amended: 8/18/03
Consultant: Miriam Barcellona Ingenito Policy Vote:
EQ 6-0
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BILL SUMMARY: AB 471 would (1) prohibit, as of January 1,
2004, a cruise ship, as defined, from conducting onboard
incineration while operating within 20 miles of the
California coast; (2) require, as of January 1, 2006, a
cruise ship to use only federal on-road diesel fuel, as
specified, while operating within 25 miles of the coast;
(3) make definitions; and (4) require the Air Resources
Board (ARB) to enforce this chapter and authorize it to
adopt standards, rules, and regulations.
Fiscal Impact (in thousands)
Major Provisions 2003-04 2004-05 2005-06
Fund
Impacts of Alternative See staff comments
Various
Fuel Requirements
Enforcement/Waiver unknown
STAFF COMMENTS: This bill may meet the criteria for
referral to the Suspense file. According to one of the
manufacturers, Wartsila, of the engines used by the cruise
ship industry, there may be a number of serious issues with
switching from one fuel quality to another, including the
following: (1) engine shutdown, which may have serious
consequences in highly frequented waters and close to the
coast; (2) substantially increase the risk of fuel leaking
on to the engine; (3) while decreasing nitrogen oxide
emissions, it would increase soot and carbon dioxide
emissions; and (4) lowering the flashpoint. In response to
questions by policy committee staff, the manufacturer
stated that due to the risks associated with switching fuel
quality, Wartsila always recommends the use of the "same
fuel quality from pier to pier, meaning that the engine is
starting, operating and stopping on the same fuel."
Wartsila also recommended a number of properties to be
studied before switching between fuel grades. In light of
the issues raised by the manufacturer, AB 471 may result in
additional costs to the State to address other public
safety issues or air emissions issues.
AB 471 would authorize ARB to temporarily waive the fuel
requirement if certain criteria are satisfied for any
person who cannot comply with the requirement to use
federal on-road diesel fuel because of technical or
operational reasons beyond the person's control, and has
applied apply in writing to the ARB for a variance. ARB
would experience unknown costs to evaluate and make
determinations on each of these waiver requests.
Related Legislation. AB 121 (Simitian) prohibits owners or
operators of large passenger vessels from releasing sewage or
oily bilgewater in certain waters under certain conditions. AB
433 (Nation) changes the Ballast Water Management for Control
of Nonindigenous Species Law to the Marine Invasive Species
Act, and revises various requirements for ballast water
management practices to minimize release of nonindigenous
species. AB 906 (Nakano) prohibits the release of graywater,
hazardous waste, and other waste from vessels into state
marine waters and marine sanctuaries.
AB 471 (Simitian), Page 2
STAFF NOTES that this bill may be premature. AB 2746 (Nakano)
Chapter 504, Statutes of 2000, enacted the Large Passenger
Vessels Law. The measure created a Cruise Ship Environmental
Task Force convened by CalEPA, with representatives of the
SWRCB, Department of Fish and Game, Department of Toxic
Substances Control, Integrated Waste Management Board, State
Lands Commission, State Air Resources Board (ARB), and the
U.S. Coast Guard. The task force was required to gather
certain information and establish a process for receiving
comments from the public and the cruise ship industry on
matters to be considered by the task force. AB 2746 also
required quarterly reports by vessel owners or operators,
required ARB to measure vessel emissions, and required CalEPA
to prepare a report by June 1, 2003, addressing various
matters (including rules, regulations, reports, and reporting
requirements for managing waste base on international,
federal, and state law) and to make recommendations for
additional requirements or reporting. AB 2746 sunset on July
1, 2003, and the draft report is currently subject to internal
review and is expected to be publicly distributed this summer.
The costs associated with implementing AB 2746 and drafting
the report were in excess of $100,000. According to CalEPA,
the report includes a number of recommendations, which have
been prioritized. Additionally, each recommendation in the
report has a cost estimate for implementation.