BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AJR 3
          Author:   Nava (D), et al
          Amended:  5/26/10 in Senate
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE :  5-3, 6/22/10
          AYES:  Pavley, Lowenthal, Padilla, Simitian, Wolk
          NOES:  Cogdill, Hollingsworth, Huff
          NO VOTE RECORDED:  Kehoe

           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/28/10
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Strickland

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


           SUBJECT  :    Offshore oil drilling

           SOURCE  :     Environment California


           DIGEST  :    This resolution memorializes the Legislatures  
          support of legislation currently pending in the United  
          States Congress that will protect the Pacific Coast from  
          new offshore oil drilling, and memorializes the  
          Legislature's opposition to the proposed expansion of oil  
          and gas drilling off the Pacific Coast and any federal  
          energy policies and legislation that would weaken  
          California's role in energy siting decisions due to those  
          policies.

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           ANALYSIS  :    This resolution makes the following  
          legislative findings:

          1. Prior to 2009, a bipartisan consensus in the Congress of  
             the United States protected the California coastline  
             from expanded offshore drilling for over 27 years.

          2. Following the infamous January 29, 1969 oil spill that  
             resulted in the spillage of 3.2 million gallons of crude  
             oil and fouled Santa Barbara County's ocean beaches,  
             Californians became even more wary about offshore oil  
             drilling, spurring the passage of additional oil and gas  
             leasing prohibitions in 1969, 1970, and 1971.

          3. 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, from Mexico to the Oregon  
             border, and that adds leases to the sanctuary as they  
             are quitclaimed to the state.
           
          This resolution memorializes the Legislature's support of  
          legislation currently pending in the United States Congress  
          that will protect the Pacific Coast from new offshore oil  
          drilling, and memorializes the Legislature's opposition to  
          the proposed expansion of oil and gas drilling off the  
          Pacific Coast and any federal energy policies and  
          legislation that would weaken California's role in energy  
          siting decisions due to those policies.

           Background  

           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 ongoing 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 worldwide.  The oil  
          slick currently covers approximately 2,500 square miles of  

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          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.

           Pending federal legislation  .  The West Coast Ocean  
          Protection Act of 2010 (H.R. 5213) has been introduced in  
          the United States House of Representatives by Congressman  
          Garamendi.  The bill amends the Outer Continental Shelf  
          Lands Act to prohibit the Secretary of the United States  
          Department 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.

           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  
          restart in July 2010.  Congress subsequently blocked this  
          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.

           Prior 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.
            
           FISCAL EFFECT  :    Fiscal Com.:  No

           SUPPORT  :   (Verified  6/28/10)

          Environment California (source)
          Oceana

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           ARGUMENTS IN SUPPORT  :    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  
          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."


           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:mw  6/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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