BILL ANALYSIS Ó AB 2005 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2005 (Garrick) As Amended August 6, 2012 2/3 vote. Urgency ----------------------------------------------------------------- |ASSEMBLY: |70-0 |(May 25, 2012) |SENATE: |36-0 |(August 13, | | | | | | |2012) | ----------------------------------------------------------------- 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: AB 2005 Page 2 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 Page 3 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. AB 2005 Page 4 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