BILL ANALYSIS                                                                                                                                                                                                    



                                                                 AJR 3
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AJR 3
           AUTHOR:     Nava
           AMENDED:    May 26, 2010
           FISCAL:     No                HEARING DATE:     June 28, 2010
           URGENCY:    No                CONSULTANT:       Amber Hartman
            
           SUBJECT  :    OFFSHORE OIL DRILLING
           
            SUMMARY  :    
           
            Existing law  , under the California Coastal Sanctuary Act of  
           1994, sets 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.

            This bill  :

           1) Requests that Congress pass pending legislation to protect  
              the Pacific Coast from any new offshore oil drilling, and  
              communicates the Legislature's opposition to the proposed  
              expansion of oil and gas drilling off the Pacific Coast.

           2) Expresses opposition to any federal energy policies and  
              legislation that would weaken California's legitimate state  
              role in siting energy facilities on state lands.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "In 1982  
              Congress instituted an offshore drilling moratorium for  
              California and beyond.  Congress had voted to reauthorize  
              this moratorium as part of the Interior Appropriations Bill  
              every year since then.  However during the summer of 2008,  
              oil companies used the high cost of oil to pressure  
              Congress into repealing the 27-year old moratorium.  The  









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              ongoing spill in the Gulf of Mexico had demonstrated that,  
              notwithstanding industry claims to the contrary, there are  
              substantial risks inherent in offshore oil drilling that  
              cannot be fully mitigated.  Allowing new offshore oil  
              development and exploration would pose a significant risk  
              to our state's coastal environments and will not lower gas  
              prices for consumers.  It is extremely important that the  
              State of California express our strong support for efforts  
              to protect the California Coast from expanded offshore  
              drilling."

            2) Deepwater Horizon  .  On April 20, 2010, the Deepwater  
              Horizon drilling rig exploded, and subsequently sank due to  
              a well-head blowout at a depth of approximately 5,000 feet  
              in the Gulf of Mexico with the loss of 11 crewmembers.   
              Although estimates of the exact amount of oil released  
              already to the environment vary, the on-going spill is  
              considered to be the largest in American history - easily  
              exceeding the 250,000 barrels spilled by the Exxon Valdez  
              in 1989 - and among the largest ever world-wide.  The oil  
              slick currently covers approximately 2,500 square miles of  
              ocean surface and substantial sub-surface plumes of oil  
              have been identified.  The impacts of the oil spill on the  
              Gulf ecosystem are severe, with significant and on-going  
              damage to and loss of habitat and wildlife.  Economic  
              disruption to the coastal states and their tourism and  
              fishing industries is expected to be on the order of  
              billions of dollars.

            3) Pending federal legislation  .  The West Coast Ocean  
              Protection Act of 2010 (HR-5213) has been introduced in the  
              U.S. House of Representatives by Congressman Garamendi.   
              This bill would amend the Outer Continental Shelf Lands Act  
              to prohibit the Secretary of the Interior from issuing a  
              lease for the exploration, development, or production of  
              oil or natural gas in any area of the outer Continental  
              Shelf off the coast of California, Oregon, or Washington.

            4) Federal back-and-forth  .  The Offshore Leasing Moratorium  
              existed in federal law for 27 years, but was repealed in  
              2008, under the President G.W. Bush administration, during  
              a period of high oil prices and leasing was expected to  
              re-start in July 2010.  Congress subsequently blocked this  









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              plan in 2009.  President Obama announced his  
              Administration's commitment to continue the ban on offshore  
              oil drilling along the entire Pacific Coast in early April  
              2010.  At the same time, President Obama announced that  
              other selected territorial waters of the United States  
              would be opened to offshore oil development to meet the  
              twin policy goals of developing new economic growth and  
              improving energy security by reducing the dependence on  
              imported oil.

            5) Related legislation  .  Similar resolutions have been  
              introduced in previous sessions:  AJR 51 (Nava) Chapter  
              146, Statutes of 2008, and AJR 55 (Nava) Chapter 137,  
              Statutes of 2006.

            SOURCE  :        Environment California  

           SUPPORT  :       Oceana  

           OPPOSITION  :    None on file