BILL ANALYSIS
AJR 3
Page 1
Date of Hearing: April 13, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AJR 3 (Nava) - As Amended: April 2, 2009
SUBJECT : Offshore oil drilling.
SUMMARY : Requests Congress to reinstate the federal offshore
oil and gas leasing moratorium and communicates the
Legislature's opposition to the proposed expansion of oil and
gas drilling off the Pacific Coast and any federal energy
policies and legislation that would weaken California's
legitimate role in energy siting decisions.
EXISTING LAW : The California Coastal Sanctuary Act of 1994
imposed a moratorium on any new lease for the extraction of oil
or gas in state waters unless the President of the United States
has found a severe energy supply interruption and has ordered a
release from the Strategic Petroleum Reserve, or unless the
Governor finds that new oil and gas production will
significantly contribute to the alleviation of that
interruption.
FISCAL EFFECT : None
COMMENTS : According to the author's office, this resolution
responds to the continued threat of offshore oil and gas
drilling in federal waters and commemorates the 40th anniversary
of the 1969 oil spill offshore Santa Barbara County.
1)History of the offshore leasing moratorium
Congress first enacted the moratorium on offshore oil and gas
development in 1982 (which originally applied only to northern
California) and it had been renewed in an appropriations bill
every year until last year. The moratorium prohibited oil and
gas leasing on most of the outer continental shelf (OCS), three
miles to 200 miles offshore.
In 1990, the first President Bush issued an executive order,
pursuant to the Outer Continental Shelf Lands Act, withdrawing
certain OCS areas, including offshore California, from leasing
consideration until 2000. In 1998, President Clinton, by
executive order, expanded and extended the moratorium until
AJR 3
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2012. In July 2008, former President Bush repealed the
Executive Order imposed by his father. In September 2008,
Congress voted not to renew the moratorium, officially opening
up federal waters off the California coast to drilling for the
first time since 1982.
On the very last day of the Bush administration, the Interior
Department proposed a new five-year plan for oil and gas leasing
on the OSC. In 31 lease sales, the plan proposes to lease as
much as 300 million acres of the OCS to drilling, including
about six million acres off the coast of Humboldt, Mendocino,
San Luis Obispo, Santa Barbara, Ventura, Los Angeles, and San
Diego Counties.
On February 10, 2009, Ken Salazar, the Secretary of Interior
announced a four-part strategy "for developing a new,
comprehensive approach to energy resources of the OCS." Among
other things, it extends the public comment period for the
proposed five-year oil and gas leasing program 180 days until
September 21, 2009, hosting four public meetings nationwide this
month to solicit input on whether, where, and how the federal
government develops its conventional and renewable energy
resources of the OCS. Neither Secretary Salazar nor President
Obama have indicated whether he is opposed to additional
drilling off of the California coast.
2)Status of existing leases offshore California.
There are 79 federal oil and gas leases offshore California, 36
of which are undeveloped. According to MMS, the 43 active
leases produce approximately 70,000 barrels of oil and 130
million cubic feet of gas but roughly 1 billion barrels of
unproven recoverable oil reserves and 500 billion cubic feet of
gas reserves are estimated to underlie the undeveloped leases.
These leases have a term of five years, though MMS has granted a
series of extensions. In 1999, MMS directed lessees, if they
wish to maintain their leases, to submit a request for
extension, including any plans to develop the leases and a
timetable. Some lessees have submitted this information though
action on further extensions has been delayed pending the
resolution of litigation. Several environmental groups have
challenged the adequacy of the environmental documentation
prepared for the extension requests and have argued that MMS
should have prepared more detailed assessments.
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REGISTERED SUPPORT / OPPOSITION :
Support
American Federal of State, County and Municipal Employees,
AFL-CIO
Oceana
Ocean Conservancy
Defenders of Wildlife
Environment California
Opposition
None on file
Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092