Amended in Assembly July 2, 2015

Amended in Assembly June 19, 2015

Amended in Assembly June 3, 2015

Amended in Senate April 14, 2015

Senate Bill No. 414

Introduced by Senator Jackson

(Principal coauthor: Assembly Member Williams)

February 25, 2015

An act to amend Sections begin delete 8670.8.5, end delete 8670.12, 8670.13, begin insert 8670.28, end insert and 8670.67.5 of, and to add Sections 8670.11, 8670.12.1, begin delete 8670.13.3, 8670.31.5, and 8670.43 end delete begin insert and 8670.13.3 end insert to, the Government Code, relating to oil spill response.

LEGISLATIVE COUNSEL’S DIGEST

SB 414, as amended, Jackson. Oil spill response.

(1) The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup. The act authorizes the administrator to use volunteer workers in response, containment, restoration, wildlife rehabilitation, and cleanup efforts for oil spills in waters of the state. Existing law requires the administrator to evaluate the feasibility of using commercial fishermen and other mariners for oil spill containment and cleanup. begin delete Existing law authorizes oil spill response organizations to apply to the administrator for a rating for that organization’s response capabilities. end delete

This bill would require the administrator, in cooperation with the United States Coast Guard, to conduct an independent vessel traffic assessment for all deepwater ports that may inform an area rescue towing plan for the approaches to the ports and to establish a schedule of drills and exercises that are required under the federal Salvage and Marine Firefighting regulations. The bill would require the administrator to develop and implement regulations begin delete for oil spill response organizations end delete begin insert and guidelines requiring operators end insert to allow immediate response to an oil spill by contracted fishing vessels and fishing begin delete crews. The bill would require the administrator, by regulation, to require oil spill response organizations to have specified oil spill response equipment. end delete begin insert crews and providing for emergency drills and training. end insert The bill would require the administrator, on or before July 1, 2016, to submit to the Legislature a report assessing the best begin delete available end delete begin insert achievable end insert technology begin delete and end delete begin insert for end insert equipment begin delete based on the estimated system recovery potential end delete for oil spill prevention and begin delete response. end delete begin insert response, as provided, and to update regulations based on the report before July 1, 2017. end insert

begin delete

(2) The act requires operators of specified vessels and facilities to submit to the administrator an oil spill contingency plan to determine whether the plan meets applicable requirements. The act requires an operator to resubmit the plan to the administrator every 5 years.

end delete begin delete

This bill would require the administrator to adopt, by regulation, methodology to rate the oil spill prevention and response equipment listed in the plan to maintain the best achievable protection standards through the use of equipment that is the best available technology. The bill would require the administrator, every 5 years, to provide to the Legislature a report that justifies the regulations and methodology.

end delete begin delete

(3)

end delete

begin insert (2) end insert  The act requires the administrator to license oil spill cleanup agents for use in response to oil spills. The federal Coastal Zone Management Act of 1972 (federal act) requires federal agency activities to be carried out in a manner that is consistent, to the maximum extent practicable, with an approved state management plan. Existing federal law authorizes the California Coastal Commission, the designated state agency, to conduct federal consistency review to ensure federal agency activities are consistent with the California Coastal Management Program.

This bill would prohibit the use of chemical oil spill cleanup agents in the waters of the state.

begin delete

(4)

end delete

begin insert (3) end insert  The act makes a person who causes or permits a spill or inland spill strictly liable for specified penalties for the spill on a per-gallon-released basis. The act provides that the amount of penalty is reduced by the amount of released oil that is recovered and properly disposed of.

This bill would provide that the above reduction in the penalty for spills, including inland spills, of greater than 500 gallons, is only applicable to the amount of oil recovered and properly disposed of within 2 weeks of the start of the spill.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete

SECTION 1.  

Section 8670.8.5 of the Government Code is
amended to read:

8670.8.5.  

(a) The administrator may use volunteer workers in
response, containment, restoration, wildlife rehabilitation, and
cleanup efforts for oil spills in waters of the state. The volunteers
shall be deemed employees of the state for the purpose of workers’
compensation under Article 2 (commencing with Section 3350)
of Chapter 2 of Part 1 of Division 4 of the Labor Code. Any
payments for workers’ compensation pursuant to this section shall
be made from the Oil Spill Response Trust Fund created pursuant
to Section 8670.46.

(b) (1) The administrator shall develop and implement
regulations for oil spill response organizations to allow immediate
response to an oil spill by contracted fishing vessels and fishing
crews and that shall provide for regularly scheduled emergency
drills and training in areas that include the following:

(A) Shoreline protection.

(B) Towing boom and skimmers.

(C) Working with minibarges.

(D) Loading and unloading equipment from response barges.

(2) In developing the regulations, the administrator shall
consider the fishing vessel training program funded and maintained
by Alyeska’s Ship Escort/Response Vessel System, with regard
to training, liability, insurance, compensation, and post response
vessel cleanup.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

Section 8670.11 is added to the Government Code,
to read:

8670.11.  

In addition to Section 8670.10, the administrator, in
cooperation with the United States Coast Guard, shall establish a
schedule of drills and exercises required pursuant to Section
155.4052 of Title 33 of the Code of Federal Regulations. The
administrator shall make publicly available the established
schedule.

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

Section 8670.12 of the Government Code is amended
to read:

8670.12.  

(a) The administrator shall conduct studies and
evaluations necessary for improving oil spill response, containment,
and cleanup and oil spill wildlife rehabilitation in waters of the
state and oil transportation systems. The administrator may expend
moneys from the Oil Spill Prevention and Administration Fund
created pursuant to Section 8670.38, enter into consultation
agreements, and acquire necessary equipment and services for the
purpose of carrying out these studies and evaluations.

(b) The administrator shall study the use and effects of
dispersants, incineration, bioremediation, and any other methods
used to respond to a spill. The study shall periodically be updated
to ensure the best achievable protection from the use of those
methods. Based upon substantial evidence in the record, the
administrator may determine in individual cases that best
achievable protection is provided by establishing requirements
that provide the greatest degree of protection achievable without
imposing costs that significantly outweigh the incremental
protection that would otherwise be provided. The studies shall do
all of the following:

(1) Evaluate the effectiveness of dispersants and other chemical,
bioremediation, and biological agents in oil spill response under
varying environmental conditions.

(2) Evaluate potential adverse impacts on the environment and
public health including, but not limited to, adverse toxic impacts
on water quality, fisheries, and wildlife with consideration to
bioaccumulation and synergistic impacts, and the potential for
human exposure, including skin contact and consumption of
contaminated seafood.

(3) Recommend appropriate uses and limitations on the use of
dispersants and other chemical, bioremediation, and biological
agents to ensure they are used only in situations where the
administrator determines they are effective and safe.

(c) The studies shall be performed in conjunction with any
studies performed by federal, state, and international entities. The
administrator may enter into contracts for the studies.

begin delete SEC. 4. end delete
begin insert SEC. 3. end insert   

Section 8670.12.1 is added to the Government Code,
to read:

8670.12.1.  

The administrator, in cooperation with the United
States Coast Guard, shall conduct an independent vessel traffic
risk assessment for all deepwater ports that may inform an area
rescue towing plan for the approaches to the ports.

begin delete SEC. 5. end delete
begin insert SEC. 4. end insert   

Section 8670.13 of the Government Code is amended
to read:

8670.13.  

(a) The administrator shall periodically evaluate the
feasibility of requiring new technologies to aid prevention,
response, containment, cleanup, and wildlife rehabilitation.

(b) (1) On or before July 1, 2016, the administrator shall submit
a report to the Legislature, pursuant to Section 9795, assessing the
best begin delete available end delete begin insert achievable end insert technology begin delete and end delete begin insert of end insert equipment begin delete based on
the estimated system recovery potential end delete for oil spill prevention
and response, including, but not limited to, prevention and response
tugs, tractor tugs, begin delete salve end delete begin insert salvage end insert and marine firefighting tugs, oil
spill skimmers and barges, and protective in-water boom
equipment. begin insert The assessment shall include all of the following: end insert

begin insert

(A) Evaluation of equipment based on its estimated system
recovery potential.

end insert begin insert

(B) Updating the methodology for rating equipment, such as
oil containment, skimming, storage and oil and water separation
technologies, and an explanation of why the new methodology
provides the best achievable protection.

end insert begin insert

(C) Evaluation of the most current oil spill and response
equipment for increase capability, including, but not limited to,
new generation, high-efficiency disc skimmers, including
high-efficiency skimming NOFI Current Busters, or their
equivalent, and Elastec grooved disc skimmers, or their equivalent.

end insert begin insert

(D) Consideration of whether a purpose-built, prepositioned
prevention and response tug with appropriate size, bollard pull,
horsepower, propulsion, seakeeping, and maneuverability to meet
Det Norske Veritas criteria for emergency towing would lead to
increased capability to provide best achievable protection.

end insert

(2) In conducting the assessment, the administrator shall consult
the begin insert most recent end insert peer-reviewed research begin insert on oil spill prevention and
response, including, but not limited to, research end insert performed by the
Prince William Sound Regional Citizens’ Advisory Council as
well as estimated system recovery potential research done at
Genwest Systems, Inc., and Spiltec.

(3) Pursuant to Section 10231.5, this subdivision is inoperative
on July 1, 2020.

(c)  begin insert (1) end insert begin insert   end insert Based on the report prepared pursuant to subdivision
(b), the administrator shall begin delete establish standards end delete begin insert update regulations
governing the adequacy of oil spill contingency plans end insert for best
achievable technologies for oil spill prevention and response no
later than July 1, 2017.

begin insert

(2) The updated regulations shall enhance the capabilities for
prevention, response, containment, cleanup, and wildlife
rehabilitation.

end insert

begin delete SEC. 6. end delete
begin insert SEC. 5. end insert   

Section 8670.13.3 is added to the Government Code,
to read:

8670.13.3.  

(a) Notwithstanding any law, chemical oil spill
cleanup agents shall not be used in response to an oil spill within
the waters of the state.

(b) For purposes of this section, “waters of the state” means any
surface water, including saline water, within the boundary of the
state.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 8670.28 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

8670.28.  

(a) The administrator, taking into consideration the
facility or vessel contingency plan requirements of the State Lands
Commission, the Office of the State Fire Marshal, the California
Coastal Commission, and other state and federal agencies, shall
adopt and implement regulations governing the adequacy of oil
spill contingency plans to be prepared and implemented under this
article. All regulations shall be developed in consultation with the
Oil Spill Technical Advisory Committee, and shall be consistent
with the California oil spill contingency plan and not in conflict
with the National Contingency Plan. The regulations shall provide
for the best achievable protection of waters and natural resources
of the state. The regulations shall permit the development,
application, and use of an oil spill contingency plan for similar
vessels, pipelines, terminals, and facilities within a single company
or organization, and across companies and organizations. The
regulations shall, at a minimum, ensure all of the following:

(1) All areas of state waters are at all times protected by
prevention, response, containment, and cleanup equipment and
operations.

(2) Standards set for response, containment, and cleanup
equipment and operations are maintained and regularly improved
to protect the resources of the state.

(3) All appropriate personnel employed by operators required
to have a contingency plan receive training in oil spill response
and cleanup equipment usage and operations.

(4) Each oil spill contingency plan provides for appropriate
financial or contractual arrangements for all necessary equipment
and services for the response, containment, and cleanup of a
reasonable worst case oil spill scenario for each area the plan
addresses.

(5) Each oil spill contingency plan demonstrates that all
protection measures are being taken to reduce the possibility of
an oil spill occurring as a result of the operation of the facility or
vessel. The protection measures shall include, but not be limited
to, response to disabled vessels and an identification of those
measures taken to comply with requirements of Division 7.8
(commencing with Section 8750) of the Public Resources Code.

(6) Each oil spill contingency plan identifies the types of
equipment that can be used, the location of the equipment, and the
time taken to deliver the equipment.

(7) Each facility, as determined by the administrator, conducts
a hazard and operability study to identify the hazards associated
with the operation of the facility, including the use of the facility
by vessels, due to operating error, equipment failure, and external
events. For the hazards identified in the hazard and operability
studies, the facility shall conduct an offsite consequence analysis
that, for the most likely hazards, assumes pessimistic water and
air dispersion and other adverse environmental conditions.

(8) Each oil spill contingency plan contains a list of contacts to
call in the event of a drill, threatened discharge of oil, or discharge
of oil.

(9) Each oil spill contingency plan identifies the measures to
be taken to protect the recreational and environmentally sensitive
areas that would be threatened by a reasonable worst case oil spill
scenario.

(10) Standards for determining a reasonable worst case oil spill.
However, for a nontank vessel, the reasonable worst case is a spill
of the total volume of the largest fuel tank on the nontank vessel.

(11) Each oil spill contingency plan specifies an agent for service
of process. The agent shall be located in this state.

(b) The regulations and guidelines adopted pursuant to this
section shall also include provisions to provide public review and
comment on submitted oil spill contingency plans.

(c) The regulations adopted pursuant to this section shall
specifically address the types of equipment that will be necessary,
the maximum time that will be allowed for deployment, the
maximum distance to cooperating response entities, the amounts
of dispersant, and the maximum time required for application,
should the use of dispersants be approved. Upon a determination
by the administrator that booming is appropriate at the site and
necessary to provide best achievable protection, the regulations
shall require that vessels engaged in lightering operations be
boomed prior to the commencement of operations.

(d) The administrator shall adopt regulations and guidelines for
oil spill contingency plans with regard to mobile transfer units,
small marine fueling facilities, and vessels carrying oil as secondary
cargo that acknowledge the reduced risk of damage from oil spills
from those units, facilities, and vessels while maintaining the best
achievable protection for the public health and safety and the
environment.

(e) The regulations adopted pursuant to subdivision (d) shall be
exempt from review by the Office of Administrative Law.
Subsequent amendments and changes to the regulations shall not
be exempt from review by the Office of Administrative Law.

begin insert

(f) (1) The administrator shall develop and implement
regulations and guidelines requiring operators to allow immediate
response to an oil spill by contracted fishing vessels and fishing
crews and providing for regularly scheduled emergency drills and
training in areas that include all of the following:

end insert begin insert

(A) Shoreline protection.

end insert begin insert

(B) Towing boom and skimmers.

end insert begin insert

(C) Working with minibarges.

end insert begin insert

(D) Loading and unloading equipment from response barges.

end insert begin insert

(2) In developing the regulations, the administrator shall
consider the fishing vessel training program funded and maintained
by Alyeska’s Ship Escort/Response Vessel System, with regard to
training, liability, insurance, compensation, and post response
vessel cleanup.

end insert

begin delete

SEC. 7.  

Section 8670.31.5 is added to the Government Code,
to read:

8670.31.5.  

(a) For offshore oil spill response, the administrator
shall, by regulation, establish a methodology for rating equipment,
such as oil containment, skimming, storage, and oil/water
separation technologies, listed in an oil spill contingency plan to
maintain the best achievable protection standards through the use
of equipment that is the best available technology.

(b) The administrator shall provide a report to the Legislature
every five years that justifies the regulations adopted and
methodologies established pursuant to subdivision (a). The report
to the Legislature shall be delivered as provided in Section 9795
of the Government Code.

SEC. 8.  

Section 8670.43 is added to the Government Code, to
read:

8670.43.  

Pursuant to paragraph (4) of subdivision (e) of Section
8670.40, the administrator shall require, by regulation, all oil spill
response organizations to have in their response fleets both of the
following:

(a) At least two new-generation, high-efficiency disc skimmers.
This equipment shall include high-efficiency skimming NOFI
Current Busters, or their equivalent, and Elastec grooved disc
skimmers, or their equivalent.

(b) A purpose-built, prepositioned prevention and response tug
with appropriate size, bollard pull, horsepower, propulsion,
seakeeping, and maneuverability to meet Det Norske Veritas
criteria for emergency towing.

end delete

begin delete SEC. 9. end delete
begin insert SEC. 7. end insert   

Section 8670.67.5 of the Government Code is amended
to read:

8670.67.5.  

(a) Regardless of intent or negligence, any person
who causes or permits a spill shall be strictly liable civilly in
accordance with subdivision (b) or (c).

(b) A penalty may be administratively imposed by the
administrator in accordance with Section 8670.68 in an amount
not to exceed twenty dollars ($20) per gallon for a spill. Except as
provided in subdivision (d), the amount of the penalty shall be
reduced for every gallon of released oil that is recovered and
properly disposed of in accordance with applicable law.

(c) Whenever the release of oil resulted from gross negligence
or reckless conduct, the administrator shall, in accordance with
Section 8670.68, impose a penalty in an amount not to exceed
sixty dollars ($60) per gallon for a spill. Except as provided in
subdivision (d), the amount of the penalty shall be reduced for
every gallon of released oil that is recovered and properly disposed
of in accordance with applicable law.

(d) (1) For a spill of greater than 500 gallons, the penalty
assessed pursuant to subdivision (b) or (c) shall only be reduced
for every gallon of released oil that is recovered and properly
disposed of in accordance with applicable law within two weeks
of the start of the spill.

(2) Notwithstanding Section 8670.69.7, any increase in the
amount of a penalty assessed for an inland spill resulting from the
operation of paragraph (1) shall be deposited in the Environmental
Enhancement Fund pursuant to Section 8670.70.

(e) The administrator shall adopt regulations governing the
method for determining the amount of oil that is cleaned up.