BILL ANALYSIS Ó
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: AB 864 Hearing Date: July 14,
2015
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|Author: |Williams | | |
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|Version: |July 2, 2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Katharine Moore |
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Subject: Oil spill response: environmentally and ecologically
sensitive areas.
BACKGROUND AND EXISTING LAW
On May 19, 2015 a pipeline owned by Houston-based Plains All
American Pipeline ruptured spilling (according to the operator)
up to 101,000 gallons of heavy crude oil along the Gaviota coast
at Refugio Beach in Santa Barbara County. The release was from
a 10.6 mile long, 24-inch diameter pipeline and (according to
the operator) as much as 21,000 gallons of oil ended up in
coastal waters. News reports indicate the pipeline was
potentially severely corroded where it ruptured.
The main oil spill stretched over 9 miles of California
coastline and tar balls associated with the spill were found,
according to news reports, as far south as Los Angeles County.
(The investigation of the source of tar balls collected in San
Diego County is still underway.) Shoreline and beaches were
affected by the spill and nesting areas for protected species
were also affected. Approximately 250 birds and 170 mammals in
addition to a large number of marine invertebrates were known to
be impacted by the spill. Although some of the birds and
mammals have been released following treatment, most are dead.
A 23 mile by 6 mile area was closed to fishing for over one
month and beaches were closed, including over the Memorial Day
weekend, resulting in economic losses.
The pipeline responsible for the spill transports oil that was
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produced on offshore platforms in state and federal waters
onshore for refining. The pipeline was not equipped with
automatic shut off technology that is installed on other
pipelines of this size in Santa Barbara County. Regulation of
this pipeline, as the result of an earlier lawsuit, was limited
to the federal level.
The most recent update from the spill site indicates it has been
"96%" cleaned up. The spill and the events leading up the spill
remain under investigation.
In response to concern following significant oil spills, the
Legislature passed the Lempert-Keene-Seastrand Oil Spill
Prevention and Response Act (SB 2040, c. 1248, Statutes of 1990)
(Government Code (GOV) §§8670.1 et seq., and others). This act
created the Office of Spill Prevention and Response (OSPR) in
the Department of Fish and Wildlife.
OSPR's mission is to provide the best achievable protection (GOV
§8670.3) of California's natural resources and the public health
and safety by preventing, preparing for, and responding to
spills of oil and other deleterious materials; and to restore
and enhance affected resources. Best achievable protection
incorporates the use of best achievable technology. Oil spill
prevention and response to pipelines is under OSPR's
jurisdiction and existing law requires that pipeline operators
prepare oil spill contingency plans, as specified.
Environmentally sensitive areas are identified during the oil
spill contingency planning process.
Depending upon the size, service and location of pipelines in
the state, different regulators may have primary responsibility
for the pipeline.
Pipelines internal to operations of onshore oil and gas fields
are under the jurisdiction of the Division of Oil, Gas and
Geothermal Resources. These pipelines, such as gathering lines,
are required to be identified and are subject to regulation
which includes the development of pipeline management plans,
inspections, mechanical integrity testing protocols,
identification of sensitive areas and other requirements (see
Title 14 of the California Code of Regulations, §§1774 et seq.).
Pipelines used to transport oil (i.e. in hazardous liquid
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service) outside of oil and gas fields to, for example,
refineries, in intrastate service are under the jurisdiction of
the Office of the State Fire Marshal (see the Elder California
Pipeline Safety Act of 1981, GOV §§51010 et seq.). The Elder
California Pipeline Safety Act authorizes the Office of the
State Fire Marshal to exercise safety regulatory jurisdiction
over portions of interstate pipelines located within the state
and subject to an agreement between the United States Secretary
of Transportation and the Office of the State Fire Marshal.
The State Lands Commission has jurisdiction over pipelines used
for handling at marine oil terminals, and would have a role in
permitting pipelines on state tidal and submerged lands.
Pipelines in interstate service are under the jurisdiction of
the Pipeline and Hazardous Materials Safety Administration
(PHMSA) (see Title 49 of the Code of Federal Regulations, §195).
Following the Refugio Beach spill, PHMSA issued a Corrective
Action Order to Plains regarding the pipeline responsible for
the spill. Almost five years ago, PHMSA published advance
notice of a proposed rulemaking to address pipeline safety for
hazardous liquid operations in "high consequence areas" which
includes leak detection standards and valve spacing
requirements. This rulemaking is still pending.
Appropriate leak detection and automatic shut off valve
technology was addressed during a June 26, 2015 joint hearing
held by the Assembly Natural Resources Committee and the Senate
Select Committee on the Refugio Oil Spill in Santa Barbara. At
the hearing, a representative from Santa Barbara County
testified that the County encourages pipeline operators to use
automatic shut off systems through the planning and
environmental review process. Two recent pipeline projects
there that include automatic shutoff systems are the ERG Foxen
Petroleum and the Venoco Line 96 pipelines. Automatic shut off
systems are not installed as stand-alone components, but are
part of a comprehensive automated system to protect against the
failure of any one element in the system. The benefit of an
automated system is that it functions quickly and independently
and, in an emergency, can limit the size and scope of a spill.
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PROPOSED LAW
This bill would expand the requirements for pipelines under the
Lempert-Keene-Seastrand Oil Spill Prevention and Response Act
and OSPR in order to protect state waters and wildlife.
Specifically, this bill would:
1)Require the operator on a pipeline in environmentally and
ecologically sensitive areas of state waters and along the
coasts of those areas to use best achievable technology -
specified to include the installation of leak detection
technology, automatic shut off valves or remote controlled
sectionalized block valves or a combination thereof - to
reduce the amount of oil spilled in the event of a spill, and
2)Require that the oil spill contingency plan for said pipeline
includes a description of how this best achievable technology
shall reduce the amount of oil spilled.
ARGUMENTS IN SUPPORT
According to the author, "[a] recent oil spill at Refugio Beach,
in Santa Barbara County, has devastated the local environment
due to lack of detection and slow response times. [?]
Unfortunately, it appears the pipeline was not properly equipped
with automatic shut off technology, and there were delays in
communication with first responders."
"Had the oil pipeline been equipped with automatic shut off
valves or remote controlled sectionalized block valves, the
impact of the oil spill would have been controlled and limited.
Instead, we're left cataloguing the negative effects to our
environment and economy."
"California coast and ocean are among our most treasured
resources. The productivity, wildness and beatify found here is
central to California's identity, heritage and economy.
California leads the nation and the world in coastal and
wildlife protection. Early oil spill detection technology and
automatic shut off controls are critical tools in preserving
California's ocean waters, coast line, and wildlife."
"AB 864 will require an operator of an oil pipeline along
environmentally and ecologically sensitive areas near the coast
to use the best achievable technology to reduce the amount of
oil released in an oil spill in order to protect state waters
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and wildlife. This includes automatic shut off technology, and
requires a pipeline operator to document the best achievable
technology user in their oil spill contingency plan."
ARGUMENTS IN OPPOSITION
The Western States Petroleum Association (WSPA) writing in
opposition notes, "[t]he bill enhances OSPR's existing
regulatory authority over pipelines. But it is not clear whether
OSPR is the right agency to regulate oil pipelines for design
and safety issues. That role has been largely occupied by the
[Office of the] State Fire Marshal." WSPA recommends that the
Office of the State Fire Marshal continue to retain jurisdiction
over the pipelines for these issues.
Additionally WSPA requests clarification on the size and
location of the pipelines subject to this bill. They note that,
depending on the size and location, the Division of Oil, Gas and
Geothermal Resources, the State Lands Commission and/or the
Office of the State Fire Marshal may have primary regulatory
jurisdiction over the pipeline.
WSPA further suggests that the Office of the State Fire Marshal
perform a risk analysis in order to determine the advisability
and feasibility of automatic shut off systems.
COMMENTS
Late-breaking negotiations . The author and opponents are
working together to address differences over the scope and
content of the bill while ensuring that the regulatory
weaknesses exposed by the Refugio spill are fully addressed.
This includes the effective targeting of regulatory efforts and
compliance timelines for new and existing pipelines. The
committee may wish to direct staff to continue working with the
author's office to facilitate this discussion.
Protecting "all waters of the state." An issue raised in the
extension of OSPR's programs to include rail last year is the
extent to which the Clean Water Act may override federal
preemption of state regulation of certain activities. This is
not yet resolved in the context of rail and the eventual outcome
may have relevance for pipelines.
Recent related legislation
SB 295 (Jackson, 2015). This bill would require annual
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inspections of pipelines, among other provisions. (this bill is
before the Assembly Environmental Safety and Toxic Materials
Committee.)
SB 414 (Jackson, 2015). This bill would ban the use of chemical
dispersant in oil spill response in waters of the state, provide
for the use of fishing vessels in oil spill response and amends
oil spill penalties, as specified. (this bill is before the
Assembly Governmental Organization Committee.)
SB 718 (Leno and Hancock, 2015). This bill would have allowed
OSPR to make loans against the Oil Spill Response Trust Fund in
non-oil spills for wildlife care, as specified. (this bill was
held on the Senate Appropriations Suspense File.)
SB 861(Committee on Budget and Fiscal Review, c. 35, Statutes of
2014). This Public Resources Budget trailer bill revamped OSPR
to address the risks of crude oil transport by rail.
SUPPORT
Audobon California
Azul
California Coastal Commission
California Coastal Protection Network
California League of Conservation Voters
Carpinteria Valley Association Center for Biological Diversity
Citizens Planning Association of Santa Barbara County
Community Environmental Council
Defenders of Wildlife
Environmental Action Committee of West Marin
Environment California
Environmental Defense Center
Friends of the Earth
Heal the Ocean
Los Angeles Waterkeeper
Natural Resources Defense Council
Ocean Conservancy
Orange County Coastkeeper
Pacific Environment
San Francisco Baykeeper
Santa Barbara Audobon
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Sierra Club California
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Surfrider Foundation, Santa Barbara Chapter
Surfrider Foundation, West LA/Malibu Chapter
Surfrider Foundation, South Bay Chapter
Ventura Audobon
Ventura Coastkeeper
Wildcoast
The Wildlands Conservancy
Wishtoyo Foundation
OPPOSITION
California Independent Petroleum Association
Western States Petroleum Association (unless amended)
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