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), 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. CONTINUED AJR 3 Page 2 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 CONTINUED AJR 3 Page 3 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 CONTINUED AJR 3 Page 4 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 CONTINUED AJR 3 Page 5 **** END **** CONTINUED