BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2005
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2005 (Garrick)
          As Amended  August 6, 2012
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |70-0 |(May 25, 2012)  |SENATE: |36-0 |(August 13,    |
          |           |     |                |        |     |2012)          |
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          Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Requires, until January 1, 2014, the owner or operator 
          of a nontank vessel within a specific range of gross tonnage 
          that is not used for commercial purposes to submit evidence of 
          financial responsibility, payment of the nontank vessel fee, 
          graywater information, sewage information, and other vessel 
          information at least 96 hours prior to the vessel's arrival in 
          the marine waters of the state, and to submit other required 
          documents within 14 days after the arrival of the vessel.  
           
          The Senate amendments:

           1)Add the requirement that the owner or operator of a nontank 
            vessel provide any other information required by the Office of 
            Spill Prevention and Response (OSPR) at least 96 hours prior 
            to the vessel's arrival in the marine waters of the state.  

           2)Add the requirement that the owner or operator of a nontank 
            vessel provide both OSPR and the State Water Resources Control 
            Board the following information at least 96 hours prior to the 
            vessel's arrival in the marine waters of the state:
           
              a)   Graywater information, including the vessel's ability to 
               store graywater while in marine waters of the state, and 
               size and capacity of any graywater holding tanks, as 
               measured in metric tons.  

              b)   Sewage information, including the vessel's ability to 
               store sewage while in marine waters of the state, and size 
               and capacity of any sewage holding tanks, as measured in 
               metric tons.
              
           3)Prohibit the following vessels from utilizing the provision in 
            the bill:








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             a)   A vessel with insufficient graywater and sewage holding 
               capacity to store graywater and sewage while the vessel is 
               in marine waters of the state.

             b)   A vessel for which a contingency plan has previously 
               been denied or revoked.

          4)Shorten the January 1, 2015, sunset date for the bill to 
            January 1, 2014.

           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.

          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 








                                                                  AB 2005
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            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 million 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.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Required an operator of a nontank vessel that is not used for 
            commercial purposes and that weighs 300 gross tons or greater, 
            but less than 400 gross tons, to submit to OSPR at least 96 
            hours 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; and,

             c)   The vessel's particulars, such as the size and 
               dimensions of the vessel.

          2)Required the operator of a nontank vessel that is not used for 
            commercial purposes to submit other documents required by the 
            Oil Spill Act within 14 days after the arrival of the vessel.

          3)Sunsetted on January 1, 2015.









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           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  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 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 required documents 
          at a time that is more accommodating to vessel owners and 
          operators and that theoretically allows for adequate regulatory 
          review.  Since the America's Cup ends in 2013, this bill sunsets 
          on January 1, 2014.  


          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092 


                                                                FN: 0004758