BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          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          in federal law for 27 years, but was repealed in 2008 during a  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  
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          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 
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          Ocean Conservancy
          Oceana
          Sierra Club California
          Surfrider Foundation 

          OPPOSITION
          None Received








































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