BILL ANALYSIS ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2009-2010 Regular Session | | | ----------------------------------------------------------------- BILL NO: AJR 3 HEARING DATE: June 9, 2009 AUTHOR: Nava URGENCY: No VERSION: April 20, 2009 CONSULTANT: Bill Craven DUAL REFERRAL: No FISCAL: No SUBJECT: Offshore oil drilling. BACKGROUND AND 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. A similar moratorium, the Offshore Leasing Moratorium, existed in federal law for 27 years, but was repealed in 2008 during a period of high oil prices. 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 Outer Continental Shelf (OCS). 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 to solicit input on whether, where, and how the federal government develops its conventional and renewable energy resources of the OCS. These meetings occurred in May, 2009. Neither Secretary Salazar nor President Obama have indicated whether the current 1 administration is opposed to additional drilling off of the California coast or whether it is considering authorizing off shore oil drilling off the coast. PROPOSED LAW This resolution would request that Congress 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. It also expresses opposition to any federal energy policies and legislation that would weaken California's legitimate state role in siting energy facilities on state lands. ARGUMENTS IN SUPPORT According to the author, new offshore oil drilling off the coast of California will pose a significant risk to California's coast and the coastal-dependent tourist economy. The author also contends that new off shore oil drilling will not lower gas prices for consumers. Given the apparent consideration to new off shore oil drilling that now exists at the federal level, the author believes that a strong statement from the California Legislature in opposition to lifting the moratorium on offshore oil drilling is necessary. At least 187 large oil spills have occurred between 1981-2005 on the Outer Continental Shelf, according to the author. The author and other supporters contend that oil spills create numerous risks to wildlife, and discharge many toxics into the marine environment in the normal course of these activities. The supporters contend that, on average, 180,000 gallons of substances such as benzene, arsenic, mercury, and lead, per well, are released from each well. ARGUMENTS IN OPPOSITION None received. Assembly analysis notes opposition of California Independent Petroleum Association. SUPPORT Environmental California (sponsor) Bay Keepers California League of Conservation Voters Defenders of Wildlife Heal the Bay Natural Resources Defense Council 2 Ocean Conservancy Oceana Sierra Club California Surfrider Foundation OPPOSITION None Received 3