BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AJR 3
          Author:   Nava (D)
          Amended:  4/20/09 in Assembly
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  7-3, 7/6/09
          AYES:  Pavley, Kehoe, Leno, Padilla, Simitian, Wiggins,  
            Wolk
          NOES:  Benoit, Hollingsworth, Huff
          NO VOTE RECORDED:  Cogdill

           ASSEMBLY FLOOR  :  43-25, 4/20/09 - See last page for vote


           SUBJECT  :    Offshore oil drilling

           SOURCE  :     Environmental California


           DIGEST  :    This resolution requests that the Congress of  
          the United States reinstate the federal offshore oil and  
          gas leasing moratorium for the 2009 fiscal year and beyond,  
          and memorializes the Legislatures opposition to the  
          proposed expansion of oil and gas drilling off the Pacific  
          Coast and any federal energy policies and legislation that  
          weakens California's role in energy sitting decisions by  
          those policies.

          ANALYSIS  :    

          Resolution findings:

                                                           CONTINUED





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           1.The United States Department of the Interior, acting in  
             President Bush's final days in office, on January 16,  
             2009proposed opening up six million acres off of  
             California's coast to drilling for oil and natural gas.

           2.While the Obama Administration has put a hold on the  
             Department of the Interior's January 16th plan in order  
             to consider various possible impacts of offshore oil  
             development as well as consider input from the public,  
             the expansion of oil development in areas previously  
             protected by the outer continental shelf moratorium  
             remain under consideration.

           3.Proposed drilling areas include areas off Humboldt and  
             Mendocino Counties and from San Luis Obispo south to San  
             Diego.

           4.Following the infamous January 29, 1969, oil spill that  
             resulted in the spillage of 3,200,000 gallons of crude  
             oil and that fouled Santa Barbara County's ocean  
             beaches, Californians became even more wary about  
             offshore oil drilling, continuing with the passage of  
             additional oil and gas leasing prohibitions in 1969,  
             1970, and 1971.

           5.In 1994, the California Coastal Sanctuary Act of 1994  
             (Chapter 3.4 [commencing with Section 6240] of Part 1 of  
             Division 6 of the Public Resources Code) became law,  
             creating a comprehensive statewide coastal sanctuary  
             that prohibits, in perpetuity, future oil and gas  
             leasing in state waters, form Mexico to the Oregon  
             border, and that adds leases to the sanctuary as they  
             are quitclaimed to the state.

           6.In addition, the protection of California's spectacular  
             1,100-mile coastline is of the utmost importance to a  
             number of our state's coastal and ocean-dependent  
             industries, including tourism and commercial fishing,  
             which contributed over $50 billion to California's  
             economy in 2003.

           7.California's ocean waters are also home to four  
             important sanctuaries that are, by definition, areas of  
             special conservation, recreational, ecological,  







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             historical, cultural, archaeological, scientific,  
             educational, and aesthetic qualities and are  
             particularly sensitive to the impacts of oil  
             development.

           8.Additional offshore oil leasing and production would  
             degrade the quality of our air and water and adversely  
             impact our marine resources, including seismic surveys  
             that could severely impact marine mammals, including  
             threatened and endangered species such as the blue and  
             humpback whale.

           9.Offshore oil development poses a serious risk of oil  
             spills especially with the introduction of deepwater  
             drilling technologies and floating oil storage and  
             processing vessels, thereby threatening marine  
             ecosystems, and could have devastating effects on the  
             southern sea otter, listed as a threatened species since  
             197, as well as onshore wildlife birds, and their  
             habitats in the ocean, in estuaries, and on beaches.

          10.Offshore oil development also leads to the  
             industrialization of the shoreline, creating land use  
             conflicts, visually degrading coastal areas, and posing  
             potentially life-threatening public safety risks.

          11.The further development of nonrenewable resources that  
             degrade our air, water, and land is contrary to our  
             state's goals of reducing emissions that cause global  
             warming, improving air quality, and increasing the use  
             of renewable energy.

           Background
           
          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,  







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          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 present 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 administration is opposed to, or open to,  
          additional drilling off the California coast.

           FISCAL EFFECT  :    Fiscal Com.:  No

           SUPPORT  :   (Verified  8/24/09)

          Environmental California (source)
          BayKeepers
          California League of Conservation Voters
          Defenders of Wildlife
          Heal the Bay
          Natural Resources Defense Council
          Ocean Conservancy
          Oceana
          Sierra Club California
          SurfriderFoundation

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          new offshore oil drilling off the Coast of California will  
          pose a significant risk to California's coast and the  







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          coastal-dependent tourist economy.  The author's office  
          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  
          t the federal level, the author's office 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 to  
          2005 on the Outer Continental Shelf, according to the  
          author's office.  The author's office 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.

           ASSEMBLY FLOOR  : 
          AYES: Ammiano, Beall, Blakeslee, Block, Blumenfield,  
            Brownley, Caballero, Carter, Coto, Davis, De La Torre, De  
            Leon, Eng, Evans, Feuer, Fong, Fuentes, Furutani,  
            Hayashi, Hernandez, Hill, Huffman, Jones, Krekorian,  
            Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, V.  
            Manuel Perez, Portantino, Price, Ruskin, Salas, Skinner,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Yamada, Bass
          NOES: Adams, Anderson, Arambula, Bill Berryhill, Tom  
            Berryhill, Conway, Cook, DeVore, Duvall, Emmerson,  
            Fuller, Gaines, Gilmore, Hagman, Huber, Jeffries, Knight,  
            Logue, Miller, Nestande, Niello, Nielsen, Silva, Tran,  
            Villines
          NO VOTE RECORDED: Buchanan, Charles Calderon, Chesbro,  
            Fletcher, Galgiani, Garrick, Hall, Harkey, John A. Perez,  
            Saldana, Smyth, Solorio


          CTW:do  8/26/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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