BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1112|
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THIRD READING
Bill No: AB 1112
Author: Huffman (D), et al.
Amended: 9/2/11 in Senate
Vote: 21
SENATE NATURAL RES. AND WATER COMMITTEE : 6-3, 6/28/11
AYES: Pavley, Evans, Kehoe, Padilla, Simitian, Wolk
NOES: La Malfa, Cannella, Fuller
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 5-1, 7/6/11
AYES: Simitian, Hancock, Kehoe, Lowenthal, Pavley
NOES: Strickland
NO VOTE RECORDED: Blakeslee
SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/15/11
AYES: Kehoe, Alquist, Lieu, Pavley, Steinberg
NOES: Walters, Emmerson
NO VOTE RECORDED: Price, Runner
SENATE FLOOR : 17-14, 8/30/11 (FAIL)
AYES: Alquist, Calderon, Corbett, De León, DeSaulnier,
Evans, Hancock, Hernandez, Kehoe, Leno, Lieu, Liu,
Lowenthal, Pavley, Simitian, Steinberg, Wolk
NOES: Anderson, Berryhill, Cannella, Correa, Dutton,
Emmerson, Fuller, Gaines, Huff, La Malfa, Strickland,
Walters, Wright, Wyland
NO VOTE RECORDED: Blakeslee, Harman, Negrete McLeod,
Padilla, Price, Rubio, Runner, Vargas, Yee
ASSEMBLY FLOOR : 42-26, 6/3/11 - See last page for vote
CONTINUED
AB 1112
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SUBJECT : Oil spill prevention and administration fee:
State Lands Commission
SOURCE : Pacific Environment
San Francisco BayKeeper
DIGEST : This bill authorizes the Office of Spill
Prevention and Response to raise the maximum per barrel
assessment fee from $0.05 to $0.065 beginning Jan 2012,
then reduce the fee back to $0.05 effective Jan 1, 2015.
Senate Floor Amendments of 9/2/11 (1) sunset the bunkering
and lightering inspection at anchorage and alongside docks
in 2014, (2) raise the maximum per barrel fee to $0.065 in
2012, (3) sunset the increase in the maximum per barrel fee
increase in 2015, and (4) remove the ability of the Oil
Spill Response and Prevention Administrator (Administrator)
to adjust the maximum fee annually for inflation.
Senate Floor Amendments of 9/1/11 raise the maximum per
barrel fee temporarily for three years, and remove
authorization for adjustment of the maximum fee annually
for inflation.
ANALYSIS :
Existing law:
1. Requires Office of Spill Prevention and Response (OSPR)
to direct prevention, removal, abatement, response,
containment, and cleanup efforts with regard to all
aspects of an oil spill in the marine waters of the
state.
2. Requires OSPR to adopt and implement regulations that
govern the adequacy of oil spill contingency plans and
provide for the best achievable protection of coastal
and marine resources. These regulations are required to
include, among other things, rules regarding the
transfer of oil between vessels (i.e. bunkering and
lightering). OSPR is allowed to conduct vessel
inspections for the purposes of determining compliance
with oil spill prevention and response laws.
AB 1112
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3. Requires the State Lands Commission (Commission) to
adopt rules, regulations, guidelines, and leasing
policies related to all existing and proposed marine
terminals in the state to minimize the possibilities of
a discharge of oil. These rules, regulations,
guidelines, and leasing policies must provide the best
achievable protection of public health and safety and
the environment.
4. Requires the Commission to inspect, on a regular basis,
all marine facilities along with associated equipment.
The Commission is also required to monitor marine
facility operations and the effect they have on public
health and safety and the environment.
5. Establishes the Oil Spill Prevention and Administration
Fund (OSPAF), which finances OSPR and the Commission's
oil spill prevention programs. OSPAF is supported by a
fee not to exceed $0.05 imposed on each barrel of crude
oil or petroleum products received at a marine terminal
and a $2,500 fee imposed on nontank vessels every two
years.
6. Requires offshore oil drilling facilities under the
Commission's jurisdiction to conform to various
pollution prevention regulations.
This bill:
1. Requires OSPR to develop a risk-based monitoring program
for fuel transfers to ships docked or at anchor in state
waters.
2. Requires OSPR to screen vessels for potential risks
during fueling operations and then to monitor high-risk
fueling operations.
3. Authorizes (but does not require) OSPR to raise the
maximum per-barrel fee to $0.0650 in 2012 and reduces
the fee back to $0.05 in 2015.
4. Authorizes OSPR to increase the maximum fee in the
future by the rate of inflation.
AB 1112
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5. Prohibits the loan of monies in the OSPAF to any other
fund.
6. Requires OSPR and the Commission to contract with the
Department of Finance for audits of the program by 2013
and at least every four years thereafter.
7. Requires the Commission to prepare a report on safety
issues surrounding offshore oil drilling by March 1,
2012.
8. Requires the Commission to address several topics in the
report, including preventative measures, response plans,
and other issues.
9. Sunsets the entire section on bunkering and lightering
inspection on December 31, 2014.
10.Raises, temporarily, the maximum per barrel assessment
fee from $0.05 to $0.065 beginning Jan 2012 until
January 1, 2015.
11.Removes the ability of the Administrator to adjust the
maximum per barrel fee for inflation annually.
Background
The Department of Fish and Game's (DFG) OSPR was created in
1990 by the Lempert-Keene-Seastrand Oil Spill Prevention
and Response Act (Act) (commencing with Section 8670.1 of
the Government Code ÝGOV]). The Act establishes the
position of the Administrator to direct activities relating
to oil spill prevention and response including drills and
preparedness and oil spill containment and clean up (GOV
Section 8670.5).
GOV Section 8670.38 creates the OSPAF which funds the
OSPR's prevention and response activities as well as oil
spill prevention programs at the State Lands Commission,
Coastal Commission, and the San Francisco Bay Conservation
and Development Commission. It also funds the Oiled
Wildlife Care Network's training and field collection, and
search and rescue activities. OSPAF is financed through
AB 1112
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(1) a $0.05 maximum assessment on each barrel of crude oil
or petroleum products brought into the state (GOV Section
8670.40), and (2) a $2500 maximum fee imposed on nontank
vessels biennially (GOV Section 8670.41).
The Administrator is required, among other things, to
conduct regular inspections of the vessels engaged in
bunkering (an operation where one vessel loads another
vessel with fuel and lubricants) and lightering (transfer
of the oil as cargo from one vessel to another) to evaluate
their compliance with existing OSPR laws.
Section 8670.42 of GOV requires DFG to contract with the
Department of Finance to prepare and submit a report on the
financial basis and programmatic effectiveness of OSPR in
oil spill prevention and response to the Governor and the
Legislature, on or before January 1, 2005.
The Commission is responsible for oil and gas and mineral
leases (commencing with Section 6801 of the Public
Resources Code). This includes jurisdiction over the
offshore oil drilling facilities. The Division of Oil,
Gas, and Geothermal Resources within Department of
Conservation also has extensive and broad authority to
regulate activities associated with the production and
removal oil and gas (Public Resources Code Section 3106).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Monitoring fuel transfers $3,000
$2,000Special *
Auditing Up to $100 every four yearsSpecial *
Potential additional fee ($3,700) ($7,400)
($7,400) Special *
revenues
AB 1112
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* Oil Spill Prevention and Administration Fund.
SUPPORT : (Verified 9/6/11)
Pacific Environment (co-source)
San Francisco BayKeeper (co-source)
Blue Frontier Campaign
California Association of Professional Scientists
California Coast Keeper Alliance
California Coastal Commission
California State Lands Commission
California Statewide Law Enforcement Association
Center for Biological Diversity
Center for Oceanic Awareness, Research, and Education
City of Monterey
Clean Water Action
Crab Boat Owners Association
Defenders of Wildlife
East Bay Bird Advocates
Environment California
Environmental Action Committee
Environmental Defense Center
Friends of the Earth
Greenpeace
Natural Resources Defense Council
Ocean Champions
Ocean Conservancy
Ocean Conservation Research
Ocean Defenders Alliance
Ocean Revolution
Oceana
Pacific Coast Federation of Fisherman's Associations
Professional Engineers in California Government
Save Our Shores
Save The Bay
Sierra Club California
Surfrider Foundation, Marin County Chapter
Turtle Island Restoration Network
United Anglers
Waterways Restoration Institute
ARGUMENTS IN SUPPORT : According to the author's office,
this bill will ensure adequate funding for the OSPAF and
AB 1112
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increase oversight of vessels conducting oil transfers.
Regarding the fee portion of this bill the author states,
"A June 3, 2011 fund condition statement of the OSPAF from
the Department of Fish & Game shows the fund being
deficient $9 million in 2011-12 and $17 million in 2012-13.
This statement is based on an assumption that FY 11-12 and
beyond funding is at previous levels (i.e., no furloughs
and no other program reductions). Without an increase in
the fees or a new funding source, the projected deficits in
OSPAF will force both SLC and OSPR to cut positions
essential to their respective programs. For fiscal year
2011-12, the estimated deficit is approximately 17% of the
cost to operate the programs funded by OSPAF. As such, the
author is concerned that OSPR and SLC will likely have to
cut 17% of their payroll, which could mean the loss of oil
spill prevention specialists, environmental scientists,
enforcement agents, engineers, field inspectors, and
support staff. Since the deficit is estimated to continue
after 2011-12, additional cuts will be required. These
cuts will seriously jeopardize the protection SLC and
OSPR's programs provide to the public and the environment
from oil spills."
Regarding the oil transfer provisions of this bill the
author states, "AB 1112 will better ensure Californians
that oil transfer units have the equipment and trained
personnel on site and ready to respond in the event of a
spill during an oil-transfer operation by requiring OSPR to
develop and implement a screening mechanism and
comprehensive risk based monitoring program for the
inspection of bunkering and lightering operations at
anchorage and alongside that pose the highest risk of a
pollution incident."
ASSEMBLY FLOOR : 42-26, 6/3/11
AYES: Allen, Ammiano, Atkins, Beall, Block, Blumenfield,
Bradford, Brownley, Buchanan, Butler, Campos, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes,
Furutani, Galgiani, Gatto, Gordon, Hayashi, Hill, Huber,
Hueso, Huffman, Bonnie Lowenthal, Ma, Mendoza, Mitchell,
Monning, Pan, Portantino, Skinner, Solorio, Swanson,
Wieckowski, Williams, Yamada, John A. Pérez
AB 1112
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NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nielsen, Norby, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Alejo, Bonilla, Charles Calderon,
Carter, Gorell, Hall, Roger Hernández, Lara, Nestande,
Perea, V. Manuel Pérez, Torres
CTW:kc 9/6/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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