BILL ANALYSIS Ó AB 2005 Page 1 Date of Hearing: May 16, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2005 (Garrick) - As Amended: May 1, 2012 Policy Committee: Natural ResourcesVote:8-0 Urgency: Yes State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires a nontank, noncommercial vessel weighing between 300 gross tons and 400 gross tons to submit the following to the Office of Oil Spill Prevention and Response (OSPR), at least 96 hours before arriving in California waters: Evidence of financial responsibility to respond to an oil spill. Payment of the nontank vessel oil spill prevention fee. The vessel's particulars, such as the size and dimensions of the vessel. The bill also requires the operator of such a nontank vessel to submit other required documents to OSPR within 14 days after the arrival of the vessel. The bill sunsets its provisions as of January 1, 2015. FISCAL EFFECT Minor, absorbable costs to OSRP. COMMENTS 1)Rationale . The author contends existing nontank vessel regulatory requirements will interfere with the arrival of yachts in California waters in anticipation of the America's Cup event in the San Francisco Bay in 2012 and 2013. The author argues that many of these vessels will seek servicing at California facilities if they can enter state waters more AB 2005 Page 2 easily. 2)Background. Statute charges OSPR, which operates in DFG, with providing the best achievable protection of the state's natural resources by preventing, preparing for and responding to spills of "oil and other deleterious materials." OSPR is funded by revenue generated by two fees: one fee on each barrel of crude oil or petroleum delivered to a marine terminal in the state and another fee on each nontank vessel collected when the vessel owner or operator submits an application for a certificate of responsibility to OSPR every other year. Statute defines a nontank vessel as one weighing 300 gross tons or more that carries oil, but not as cargo. OSPAF monies are eligible for oil spill prevention activities and are not available for response to an oil spill. Nontank vessel operators must meet several regulatory requirements before operating in state waters. An owner or operator of a nontank vessel, before operating in the marine waters of the state, must prepare and implement an oil spill contingency plan that has been submitted to, and approved by, OSPR. A nontank vessel must 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. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081