BILL ANALYSIS Ó
AB 2005
Page 1
Date of Hearing: April 23, 2012
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2005 (Garrick) - As Amended: April 10, 2012
SUBJECT : Oil spills: nontank vessels: contingency plans and
financial responsibility
SUMMARY : Allows a nontank vessel that is not used for
commercial purposes to (1) submit evidence of financial
responsibility, payment of the nontank vessel fee, and vessel
particulars to the Office of Spill Prevention and Response
(OSPR) just prior to entering the marine waters of the state and
(2) to submit other required documents to OSPR within 14 days
after the arrival of the vessel.
EXISTING LAW : Pursuant to the Lempert-Keene-Seastrand Oil Spill
Prevention and
Response Act (Oil Spill Act):
1)Establishes OSPR within the Department of Fish and Game and
requires it 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)Establishes the Oil Spill Prevention and Administration Fund
(OSPAF), which finances the state's oil spill prevention and
planning programs. The OSPAF is supported in part by a fee on
nontank vessels in the amount that is based on OSPR's costs in
implementing the Oil Spill Act relating to nontank vessels.
3)Defines "nontank vessel" as a vessel of 300 gross tons or
greater that carries oil, but does not carry that oil as
cargo.
4)Requires an owner or operator of a nontank vessel, before
operating in the marine waters of the state, to prepare and
implement an oil spill contingency plan that has been
submitted to, and approved by, OSPR. An oil spill contingency
plan shall (a) ensure the undertaking of prompt and adequate
response and removal action in case of an oil spill, (b) be
consistent with the California oil spill contingency plan, and
(c) not conflict with the National Oil and Hazardous
Substances Pollution Contingency Plan.
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5)Requires each oil spill contingency plan to be submitted to
OSPR at least seven days prior to a nontank vessel entering
the marine waters of the state. OSPR shall review each
submitted contingency plan to determine whether it complies
with OSPR's rules, policies, and regulations. Each
contingency plan submitted shall be approved or disapproved
within 180 days after receipt by the OSPR.
6)Prohibits a nontank vessel required to have a contingency plan
to enter marine waters of the state unless the nontank vessel
owner or operator has provided evidence to OSPR of financial
responsibility that demonstrates the ability to pay at least
$300,000,000 to cover damages caused by a spill, and the owner
or operator has obtained a certificate of financial
responsibility from OSPR. An application for certificate of
financial responsibility is reviewed by OSPR within 21
calendar days of receipt.
7)Authorizes OSPR to establish a lower standard of financial
responsibility for a nontank vessel that has a carrying
capacity of 6,500 barrels of oil or less, or for a nontank
vessel that is owned and operated by California or a federal
agency and has a carrying capacity of 7,500 barrels of oil or
less. The standard shall be based upon the quantity of oil
that can be carried by the nontank vessel and the risk of an
oil spill into marine waters. OSPR shall not set a standard
that is less than the expected cleanup costs and damages from
an oil spill into marine waters.
THIS BILL :
1)Requires, notwithstanding other law, an operator of a nontank
vessel that is not used for commercial purposes to submit to
OSPR, prior to the arrival in the waters of the state, all of
the following:
a) Evidence of the required financial responsibility.
b) Payment of the required nontank vessel fee.
c) The vessel's particulars, such as the size and
dimensions of the vessel.
2)Requires the operator of a nontank vessel that is not used for
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commercial purposes to submit other documents required by the
Oil Spill Act within 14 days after the arrival of the vessel.
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of the Bill. The author asserts that the laws and
regulations requiring a non-tank vessel to submit an oil spill
contingency plan and certificate of financial responsibility
to OSPR several days prior to entering California have
deterred large non-commercial yachts from visiting the state.
OSPR requires these documents to be submitted in advance to
allow time for processing. The author anticipates that these
laws will create major problems for the fleet of recreational
yachts that are expected to come to California for the
America's Cup, which is an international sailing competition
and the world's third-largest sporting competition after the
Olympics and soccer's World Cup. San Francisco, as the host
of the America's Cup, will hold various race events from 2012
to 2013.
In an attempt to address these anticipated problems while
trying to comply with the intent of the Oil Spill Act, this
bill will allow large non-commercial yachts to submit (a)
evidence of the required financial responsibility, (b) payment
of the required nontank vessel fee, and (c) the vessel's
particulars, such as the size and dimensions of the vessel,
prior to the arrival in the waters of the state. The bill,
however, does not specify when this information and payment is
required, so theoretically a yacht operator could submit
documents just before arrival, which would not give OSPR the
chance to process and verify the information.
2)Suggested Amendments. The author and committee may wish to
consider amendments that require a non-commercial nontank
vessel to submit evidence of the required financial
responsibility, payment of the required nontank vessel fee,
and the vessel's particulars at least 96 hours prior to
entering state waters. According to discussions with OSPR
staff, this will likely give the agency enough time to process
and verify information before the vessel enters state waters.
The author and committee may wish to consider amendments that
restrict this bill to nontank vessels that are less than 400
gross tons, which is the threshold weight for vessels that
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must comply with similar US Coast Guard laws and regulations.
Lastly, the author and committee may wish to consider
amendments that sunset this statute in 2015. This sunset will
accommodate the activities surrounding the America's Cup and
give the Legislature the opportunity to reevaluate the bill's
success and/or failures in a few years.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Harbor Masters and Port Captains
California Marine Parks and Harbors Association
California Yacht Brokers Association
Marina Recreation Association
Northern California Marine Association
Western Boaters Safety Group
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092