BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 864|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 864
Author: Williams (D) and Burke (D), et al.
Amended: 9/1/15 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 8-1, 7/14/15
AYES: Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,
Monning, Wolk
NOES: Vidak
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 62-14, 5/18/15 - See last page for vote
SUBJECT: Oil spill response: environmentally and ecologically
sensitive areas
SOURCE: Author
DIGEST: This bill requires pipelines to have the best
achievable technology to reduce the amount of oil released in an
oil spill to protect state waters and wildlife.
ANALYSIS:
Existing federal law:
1)Provides that pipelines in interstate service are under the
jurisdiction of the Pipeline and Hazardous Materials Safety
Administration.
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2)Provides for the protection of the waters of the United States
from contamination through the Clean Water Act, among others.
3)Addresses oil spills in the navigable waters of the United
States through the creation of a comprehensive prevention,
response, liability and compensation program through the Oil
Pollution Act of 1990, as amended.
Existing state law:
1)Establishes 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 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.
2)Establishes OSPR's jurisdiction to include oil spill
prevention and response to pipeline spills.
3)Requires that pipeline operators prepare oil spill contingency
plans, as specified. Environmentally sensitive areas are
identified during the oil spill contingency planning process.
4)Provides that pipelines used to transport oil (i.e. in
hazardous liquid service) outside of oil and gas fields in
intrastate service are under the jurisdiction of the Office of
the State Fire Marshal. The Elder California Pipeline Safety
Act (Elder Act) also 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.
This bill:
1)Requires pipelines in intrastate and interstate service to use
best achievable technology to limit the amount of oil spilled
in order to protect the state's waters and wildlife.
2)Requires by January 1, 2019, that an operator of an interstate
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pipeline near environmentally and ecologically sensitive areas
in the coastal zone use best achievable technology to reduce
the amount of oil released to the environment in the event of
a spill.
a) Best achievable technology includes leak detection
technology, automatic shutoff systems, or remote controlled
sectionalized block valves or any combination thereof based
on a risk assessment conducted by the operator. The Office
of the State Marshal shall determine what is best
achievable technology, as specified.
b) Requires that OSPR consult with the Office of the State
Fire Marshal for its technological expertise, as specified.
c) Requires that OSPR develop guidelines for the operator's
risk analysis, as specified.
1)Requires that an interstate pipeline's oil spill contingency
plan for pipelines near environmentally and ecologically
sensitive areas in the coastal zone include a description of
how best achievable technology, as determined by the State
Fire Marshal, is being used, as specified.
2)Amends the Elder Act to require that intrastate pipelines
under the Office of the State Fire Marshal's jurisdiction to:
a) Require by January 1, 2018 that any new or replacement
pipeline near environmentally and ecologically sensitive
areas in the coastal zone shall use best achievable
technology in order to reduce the amount of oil released in
a spill to the environment.
b) Define best achievable technology based upon a risk
analysis performed by the operator to include leak
detection technology, automatic shutoff systems or remote
controlled sectionalized block values or any combination
thereof.
i) Require best achievable protection to include
technology that provides the greatest degree of
protection taking into consideration processes that are
currently in use anywhere in the world and processes
being developed or that could feasibly be developed, as
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specified, anywhere in the world.
c) Require by July 1, 2018, that any operator of an
existing pipeline near environmentally and ecologically
sensitive areas in the coastal zone submit a plan to
retrofit these pipelines with best achievable technology,
as defined, by January 1, 2020.
d) Allow the operator to request confidential treatment by
the Office of the State Fire Marshal of certain information
provided in the risk analysis, as specified.
e) Require the State Fire Marshal to adopt regulations to
implement the changes to the Elder Act by July 1, 2017, as
specified.
f) Require the State Fire Marshal to consult with OSPR
about potential impacts to state water and wildlife.
g) Require an operator to notify the Office of the State
Fire Marshal of any new construction of retrofit of a
pipeline in waters near environmentally and ecologically
sensitive areas in the coastal zone.
1)Provides that the provisions of the bill are severable.
Background
May 2015 Refugio Beach spill. On May 19, 2015 a pipeline owned
by Houston-based Plains All American Pipeline ruptured spilling
approximately 130,000 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 spill
and events leading up to the spill remain under investigation.
The pipeline responsible for this spill transports oil that was
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
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to the federal level.
The main oil spill stretched over nine miles of California
coastline and tar balls associated with the spill were found,
according to news reports, as far south as Los Angeles County.
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 six mile area
was closed to fishing for over one month and beaches were
closed, including over the Memorial Day weekend, resulting in
economic losses.
Related Legislation
SB 295 (Jackson, 2015) requires annual inspections of pipelines,
among other provisions. The bill has returned to the Senate for
concurrence.
SB 414 (Jackson, 2015) updates OSPR to respond to the Refugio
Beach spill. The bill is on the Assembly Floor.
NOTE: For additional information, please see the Senate
Natural Resources and Water Committee bill analysis.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
Initial costs of $1.69 million followed by $1.37 million
annually ongoing to the California Hazardous Liquid Pipeline
Safety Fund (special) for the Office of the State Fire Marshal
to develop and implement regulations on best achievable
technology.
Unknown ongoing costs, likely in the mid-hundreds of thousands
to the Oil Spill Prevention and Administration Fund (special)
for OSPR to advise operators on best achievable technology,
evaluate contingency plans, and develop required regulations.
Unknown costs to the California Hazardous Liquid Pipeline
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Safety Fund (special) and the Oil Spill Prevention and
Administration Fund (special) for the Office of the State Fire
Marshal and OSPR to coordinate, potentially under a memorandum
of understanding.
SUPPORT: (Verified8/27/15)
Audobon California
Azul
California Coastal Commission
California Coastal Protection Network
California Coastkeeper Alliance
California League of Conservation Voters
Carpinteria Valley Association
Center for Biological Diversity
Citizens Planning Association of Santa Barbara County
Clean Water Action
Coastal Environmental Rights Foundation
Community Environmental Council
Defenders of Wildlife
Environment California
Environmental Action Committee of West Marin
Environmental Defense Center
Environmental Defense Fund
Friends of the Earth
Gaviota Coast Conservancy
Get Oil Out!
Heal the Bay
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
Santa Barbara County Board of Supervisors
Sierra Club California
Surfrider Foundation
Surfrider Foundation, Santa Barbara Chapter
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Surfrider Foundation, South Bay Chapter
Surfrider Foundation, West LA/Malibu Chapter
the Fund for Santa Barbara
The Wildlands Conservancy
Ventura Audobon
Ventura Coastkeeper
Wholly H2O
Wildcoast
Wishtoyo Foundation
OPPOSITION: (Verified8/27/15)
California Independent Petroleum Association
Western States Petroleum Association
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
and wildlife. This includes automatic shut off technology, and
requires a pipeline operator to document the best achievable
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technology user in their oil spill contingency plan."
ARGUMENTS IN OPPOSITION: Both the Western States Petroleum
Association (WSPA) and the California Independent Petroleum
Association (CIPA) raise objections to elements in AB 864 that
have, at least in part, been amended out since the letters were
written.
In addition, CIPA objects to "ambiguity" in what constitutes
"environmentally and ecologically sensitive areas," raises
concerns about the potential operational risks associated with
the use of automatic shutdown systems, and recommends limiting
the applicability of this bill to pipelines six inches and
larger carrying liquids with certain properties. WSPA also
recommends limiting this bill with respect to pipeline size and
location.
ASSEMBLY FLOOR: 62-14, 5/18/15
AYES: Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown,
Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin,
Jones-Sawyer, Levine, Linder, Lopez, Low, Maienschein,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Waldron, Weber,
Williams, Wood, Atkins
NOES: Travis Allen, Bigelow, Brough, Chang, Beth Gaines,
Gallagher, Grove, Harper, Jones, Lackey, Obernolte, Patterson,
Wagner, Wilk
NO VOTE RECORDED: Kim, Mathis, Mayes, Melendez
Prepared by:Katharine Moore / N.R. & W. / (916) 651-4116
9/1/15 21:19:47
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