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