BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AJR 3| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 AJR 3 Page 2 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, AJR 3 Page 3 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, AJR 3 Page 4 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 AJR 3 Page 5 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 **** END ****