BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1480
                                                                  Page  1

          Date of Hearing:  June 21, 2004

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                             Hannah-Beth Jackson, Chair
                     SB 1480 (Sher) - As Amended:  June 14, 2004

           SENATE VOTE  :  22-12
           
          SUBJECT  :  Harbors: Oil Spill Prevention and Response.

           SUMMARY  :  This bill allows the administrator of the Office of  
          Oil Spill Prevention and Response (OSPR) to adopt regulations  
          governing tugboat escorts for other vessels carrying hazardous  
          materials that operate within California harbors.

           EXISTING LAW  :  Pursuant to the Lempert-Keene-Seastrand Oil Spill  
          Prevention and Response Act of 1990 (commencing with 8670.1 of  
          the Government Code): 

          1)Establishes a comprehensive program for oil spill response  
            activities in the marine waters of the state. 

          2)Establishes OSPR and requires the administrator to establish a  
            Harbor Safety Committee for each California harbor for  
            planning for the safe navigation and operation of tank ships,  
            tank barges and other vessels within each harbor. 

          3)Authorizes the administrator to adopt regulations governing  
            tugboat escorts for tank ships and tank barges entering,  
            leaving or navigating in the harbors of California. 

           THIS BILL  :

          1)Allows the OSPR administrator to adopt regulations governing  
            tugboat escorts for vessels that are entering, leaving or  
            navigating in the harbors of California and are carrying  
            enough hazardous material to pose a risk to public health and  
            safety or to the environment.

          2)Allows the OSPR administrator to exempt both of the following  
            from the tugboat escort regulations:

             a)   A vessel with a double hull, that has fully redundant  
               steering and propulsion systems and an integrated  
               navigation system; and,








                                                                  SB 1480
                                                                  Page  2


             b)   A vessel already subject to tugboat escort requirements  
               pursuant to existing U.S. Coast Guard regulations.

          3)Allows the OSPR administrator to charge owners or operators of  
            vessels that are subject to these tugboat escort regulations a  
            reasonable fee in an amount that does not exceed the  
            administrator's costs for implementing the regulations.

          4)Defines "double hull" and "hazardous material."
           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee analysis, potentially $125,000 annually (up to three  
          years) for regulations, offset by fee revenues; and, potentially  
          $25,000 annually for enforcement, offset by fee revenues.

           COMMENTS  :

           1)Background  

          According to the author's office, this bill is designed to close  
            a loophole in the Lempert-Keene-Seastrand Oil Spill Prevention  
            and Response Act.  Currently, tanker ships carrying hazardous  
            materials, such as poisonous gas, flammable liquids,  
            radioactive materials, explosives and other dangerous  
            chemicals, are not currently regulated by OSPR.  Assembly  
            Member Lieber's AB 2777, which had addressed this issue, was  
            dropped by the author.

           2)Examples of Dangers Posed by Chemical Vessels  

          In 1995, the Mundogas Europe, a 561-foot Liberian tanker ship  
            containing 36 million pounds of pressurized anhydrous  
            ammonia--a highly toxic chemical used to make fertilizer--lost  
            steering near the Golden Gate Bridge and nearly collided with  
            the bridge's south tower because there were no tugboats nearby  
            to stop it.  Had a collision occurred, allowing the anhydrous  
            ammonia to escape and mix with seawater, a major public health  
            and environmental disaster would have occurred in San  
            Francisco. 

          In February 2003, a Panamanian ship ran aground carrying 27,000  
            tons of ammonium nitrate fertilizer, the same chemical used by  
            terrorists to blow up the federal building in Oklahoma City in  
            1995. The ship sat in the mud near Pittsburg, California for  
            three days. 








                                                                  SB 1480
                                                                  Page  3


          Since the 1995 Mundogas Europe incident, the number of chemical  
            ships entering San Francisco Bay has nearly tripled to 171 in  
            2003 (according to the San Francisco Marine Exchange).  In the  
            past nine years, U.S. Coast Guard statistics indicate that  
            there have been at least 23 accidents involving chemical ships  
            in the San Francisco Bay.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Pacific Coast Federation of Fishermen's Associations
          Planning and Conservation League
          Sierra Club California
          The Ocean Conservancy

           Opposition 
           
          California Department of Fish and Game


           Analysis Prepared by :  Manuel Valencia / NAT. RES. / (916)  
          319-2092