BILL ANALYSIS Ó
SB 1319
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Date of Hearing: August 13, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1319 (Pavley) - As Amended: August 4, 2014
Policy Committee: Natural
ResourcesVote:6-3
Utilities and Commerce 9-5
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill expands the state's and oil spill and railroad
inspection programs. Specifically, this bill:
1)Requires the Office of Oil Spill Prevention and Response
(OSPR) Administrator to amend the Oil Spill Contingency Plan
requirements to include the identification and mitigation of
health and safety matters from oil spills into waters of the
state.
2)Requires the California Environmental Protection Agency and
the Office of Emergency Services to review the contingency
plans for local governments located outside the coastal zone.
3)Authorizes the OSPR Administrator to obtain confidential and
other information from the Office of Emergency Services (OES),
the California Energy Commission CEC), and other regulators in
order to carry out his or her duties, and requires the
Administrator to develop procedures for handling the
information.
4)Requires the OSPR Administrator to provide training and
certification programs for local emergency responders, and
offer grants for local response equipment for local
governments with jurisdictions over or directly adjacent to
waters of the state.
5)Requires the OSPR Administrator to conduct a comprehensive
risk assessment for inland oil spills and a study evaluating
the response requirements in different areas of the state.
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6)Requires the OSPR, to the extent allowed by federal law, to
provide the public with information regarding the rail
transport of crude oil.
7)Increases the membership of Oil Spill Technical Advisory
Committee from 14 to 15 and requires the Governor to appoint a
member with knowledge of the truck transportation industry.
8)Requires the California Public Utilities Commission (PUC) to
expand inspections on bridges and grade crossing used to
transport oil and at oil unloading facilities and requires the
PUC to regulate essential local safety hazards for oil
transport more stringently than federal law.
9)Expands the PUC's annual reporting requirement to the
Legislature to include information on the timing, nature, and
status of the remediation of defects or violations of federal
and state law related to oil transport and unloading.
FISCAL EFFECT
1)Increased costs for equipment grants to non-marine counties of
at least $1.2 million (36 non-marine counties each receiving a
$35,000 grant). There may also be cities and other local
government agencies in need of grants which would result in
additional costs.
2)Increased ongoing costs to OSPR for new duties including local
training, certification and grant program management of at
least $300,000 per year.
3)Increased ongoing costs of approximately $100,000 for OSPR to
conduct and oversee the studies, risk analyses and data
collection.
4)Increased annual costs of $130,000 for CalEPA to review
non-marine contingency plans.
5)Increased annual costs of $65,000 for the PUC for increased
reporting requirements.
6)Minor and absorbable costs for OES and CEC.
COMMENTS
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1)Rationale. A recently enacted budget trailer bill, SB 861,
Chapter 35, Statutes of 2014, expanded OSPR's marine oil spill
program to inland oil spills that affect waters of the state.
This bill requires railroads to have oil spill contingency
plans and demonstrate the financial ability to pay for any
damages resulting from a spill. Additionally, SB 861
established a 6.5 cent per barrel fee on oil transported by
pipeline or railroads to refineries to fund OSPR regulations
and oversight programs.
This bill expands OSPR's duties to require training and
equipment grants for local first responders and ensures OSPR
has access to confidential information collected by OES and
the Energy Commission. Additionally, this bill requires
comprehensive rail inspections and inland oil risk
assessments.
2)Background. California is experiencing the effects of
increased crude-by-rail transportation due to the North
American hydraulic fracturing boom. In 2011, California moved
less than two million barrels of oil by rail; in 2013, that
number rose to more than 6 million, with a significant amount
coming from North Dakota. For the first quarter of 2014,
crude-by-rail numbers were up 104% compared to the first
quarter of 2013 (1,414,418 barrels versus 693,457 barrels).
There are currently at least five crude-by-rail refinery
projects being pursued in California: one in Pittsburg, one in
Benicia, two in Bakersfield, and one in Wilmington.
Many of California's rail lines pass over or near bodies of
water and through high density population centers.
Crude-by-rail also presents risks that may be particularly
relevant to environmental justice communities situated near
oil refineries and offloading terminals. Communities in more
remote areas may have fewer skilled emergency response
personnel.
3)Office of Oil Spill Prevention and Response. The
Lempert-Keene Seastrand Oil Prevention and Response Act
established OSPR as the primary authority to direct
prevention, removal, abatement, response, containment, and
cleanup efforts with regard to any oil spill in the marine
waters of the state. SB 861 expanded this authority to inland
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oil spills that affect any waters of the state. OSPR is
located in the Department of Fish and Wildlife.
4)Other Federal and State Regulations. The safety and operation
of railroads is governed by the Department of Transportation
(DOT) and specifically the Federal Rail Administration (FRA),
which implements the Federal Railroad Safety Act (FRSA) and
the Rail Safety Improvement Act of 2008. Pursuant to this
authority, the FRA has promulgated hundreds of rules
regulating railroad operations and safety. The Pipeline and
Hazardous Materials Safety Administration also regulates the
safe transportation of crude oil, ethanol, and other hazardous
materials by rail, coordinating with the FRA on enforcement
and implementation.
In California, the PUC is responsible for regulating railroad
safety where federal regulations do not preempt state
authority. The FRSA preempts state regulations that have the
purpose or effect of regulating aspects of rail transportation
and safety that are covered by federal laws and regulations.
The federal Commerce Clause, Interstate Commerce Commission
Termination Act (ICCTA), Locomotive Inspection Act, and Signal
Inspection Act also preempt conflicting state laws and
regulations.
5)Related Legislation. AB 380 (Dickinson) requires rail
carriers to submit specified information regarding the
transport of hazardous materials and Bakken oil to the Office
of Emergency Services (OES) for the purposes of emergency
response planning. This bill pending in the Senate.
6)Another Approach. The Railroad Accident Prevention and
Immediate Deployment (RAPID) Force in CalEPA is responsible
for providing immediate onsite response in the event of a
large-scale release of toxic materials resulting from a
surface transportation accident. This program is currently
unfunded. SB 506 (Hill) revamps RAPID and imposes a fee on
all hazardous materials entering the state to fund emergency
planning and response at the Department of Toxic Substance
Control. SB 506 is currently in the Assembly Transportation
Committee but was not heard prior to the policy committee
deadline. The author may attempt to put the contents of SB
506 into a different vehicle later this month.
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Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081