BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing: June 29, 2015   


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          SB  
          414 (Jackson) - As Amended June 19, 2015


          SENATE VOTE:  35-2


          SUBJECT:  Oil spill response.


          SUMMARY:  Makes various changes to the Lempert-Keene-Seastrand  
          Oil Spill Prevention and Response Act (Act) relating to oil  
          spill response.


          EXISTING LAW:  


          1)Requires the Administrator of the Office of Spill Prevention  
            and Response (OSPR), 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 clean-up.  


          2)Authorizes the Administrator to use volunteer workers in  
            response, containment, restoration, wildlife rehabilitation,  
            and clean-up efforts for oil spills in waters of the state.










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          3)Requires the Administrator to evaluate the feasibility of  
            using commercial fishermen and other mariners for oil spill  
            containment and clean-up. Requires the study to examine the  
            following:


             a)   Equipment and technology needs.
             b)   Coordination with private response personnel.


             c)   Liability and insurance.


             d)   Compensation.



          4)Requires the Administrator to study the use and effects of  
            dispersants, incineration, bioremediation, and any other  
            methods used to respond to a spill. Requires the study to be  
            updated periodically to ensure the best achievable protection.  




          5)Requires the Administrator to periodically evaluate the  
            feasibility of requiring new technologies to aid prevention,  
            response, containment, clean-up, and wildlife rehabilitation.



          6)Requires operators of specified vessels and facilities to  
            submit to the Administrator an oil spill contingency plan.  
            Requires the Administrator to determine whether the plan meets  
            applicable requirements.

          7)Requires 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  








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            California Coastal Commission, and other state and federal  
            agencies, to adopt regulations governing the adequacy of oil  
            spill contingency plans. Requires regulations to be developed  
            in consultation with the Oil Spill Technical Advisory  
            Committee, and not in conflict with the National Contingency  
            Plan. Requires regulations to provide for the best achievable  
            protection of waters and natural resources of the state  
            including standards set for response, containment, and  
            clean-up equipment and that operations are maintained and  
            regularly improved to protect the resources of the state.





          8)Requires the responsible party to be strictly liable for  
            penalties for the spill on a per-gallon released basis.  
            Authorizes the amount of penalty to be reduced by the amount  
            of released oil that is recovered and properly disposed of.
          


          THIS BILL:
          1)Requires the Administrator to develop and implement  
            regulations for oil spill response organization to allow  
            immediate response to an oil spill by contracted fishing  
            vessels and fishing crews. Requires regularly scheduled  
            emergency drills and training in areas that include the  
            following:


             a)   Shoreline protection.
             b)   Towing boom and skimmers.


             c)   Working and minibarges.


             d)   Loading and unloading equipment from response barges.








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          2)Requires the Administrator to evaluate the effectiveness of  
            bioremediation and biological agents in oil spill response and  
            recommend appropriate uses and limitations to ensure they are  
            only used in situations where the Administrator determines  
            they are effective and safe.  


          3)Requires the Administrator, in cooperation with the United  
            States Coast Guard, to 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.


          4)Requires, on or before July 1, 2016, the Administrator to  
            submit a report to the Legislature assessing the best  
            available technology and equipment based on the estimated  
            system recovery potential for oil spill prevention and  
            response, including, but not limited to, prevention and  
            response tugs, tractor tugs, salvage and marine firefighting  
            tugs, oil spill skimmers and barges, and protective in-water  
            boom equipment.


          5)Requires, in conducting the assessment, the Administrator to  
            consult the peer-reviewed research 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.


          6)Requires, no later than July 1, 2017, the Administrator to  
            establish standards, based on the report required in the bill,  
            for best achievable technologies for oil spill prevention and  
            response.










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          7)Prohibits chemical oil spill clean-up agents from being used  
            in response to an oil spill within the waters of the state.


          8)Requires the Administrator shall, by regulation, to 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. Requires the  
            Administrator to report to the Legislature every five years on  
            the regulations adopted and methodologies for rating  
            equipment.





          9)Requires the Administrator to mandate all oil spill response  
            organizations to have in their response fleets specified  
            equipment including specific types of skimmers and a  
            prepositioned prevention and response tug.

          10)Specifies, for spills greater than 500 gallons, the penalty  
            can 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 and  
            requires any increase in the amount of a penalty assessed for  
            an inland spill be deposited in the Environmental Enhancement  
            Fund.


             
          FISCAL EFFECT:  Unknown


          COMMENTS:  










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          1)Refugio Oil Spill. On May 19, 2015, a pipeline owned by  
            Houston-based Plains All American Pipeline ruptured, spilling  
            up to 101,000 gallons of heavy crude oil along the Gaviota  
            coast in Santa Barbara County. It is estimated that as much as  
            21,000 gallons of the oil went down a storm culvert onto  
            cliffs and into the Pacific Ocean. The immediate oil spill  
            area stretched over nine miles of California coastline, and  
            tar balls have washed up as far as one hundred miles from the  
            spill site. The pipeline that ruptured, known as Line 901, is  
            a common carrier pipeline that transports oil that was  
            produced on platforms offshore in both state and federal  
            waters to be refined in Santa Maria or Kern County. On May 20,  
            2015, Governor Brown issued an emergency proclamation for  
            Santa Barbara County due to the effects of the oil spill.  
            Refugio State Beach and El Capitan State Beach have been  
            closed for over a month because of the oil spill. Fisheries  
            from Canada de Alegria to Coal Oil Point remain closed, which  
            has negatively impacted several commercial fisheries -  
            including lobster, crab, shrimp, halibut, urchin, squid,  
            whelk, and sea cucumber. The Oiled Wildlife Care Network has  
            recovered 192 dead birds and 106 dead marine mammals from the  
            spill to date. Dead marine mammals recovered included  
            dolphins, sea lions and seals. Sensitive habitat of the  
            California Least Tern and the Snowy Plover, birds protected by  
            the Endangered Species Act, has been damaged. Hotels, tour  
            outfits and other tourism businesses have experienced  
            cancelations and decreased bookings due to the spill. More  
            than 1,000 workers from local, state and federal agencies have  
            been working to clean up the beaches. Since May 20,  
            approximately 132 volunteers have participated in clean-up  
            efforts. 14,267 gallons of oily water have been recovered to  
            date.


          2)The Act. The Act requires pipeline owners to develop, submit  
            and implement an Oil Spill Contingency Plan, and these plans  
            must not conflict with a National Contingency Plan. The Act  
            also requires the party who causes oil to be discharged in or  
            on the waters of the state to immediately report the spill to  








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            the California Office of Emergency Services and immediately  
            contain, clean-up, and remove the oil in the most effective  
            manner that minimizes environmental damage, and in accordance  
            with the applicable contingency plans, unless ordered  
            otherwise by the Coast Guard or the Administrator. Plains All  
            American Pipeline does have an Oil Spill Contingency Plan and  
            will pay for the over $92 million in clean-up costs that have  
            been incurred so far.


          3)Best Achievable Protection. The Administrator is required to  
            evaluate the feasibility of requiring new technologies to aid  
            prevention, response, containment, clean-up, and wildlife  
            rehabilitation. In addition, the Administrator is required to  
            develop and update regulations to judge the adequacy of oil  
            spill response plans. These updates are designed to ensure  
            that the operator's oil spill response plans will create the  
            most robust response possible that achieves best achievable  
            protection. SB 414 has various requirements on oil spill  
            response organizations such as using fishermen and specified  
            equipment. However, while the Administrator does rate response  
            organizations, it does not place requirements on those  
            organizations. Requirements are placed on the operator who is  
            creating and implementing the oil spill response plan. In  
            addition, requirements are not technology specific, but based  
            on increased capability. The author and committee may wish to  
            consider amending the bill to require operators, rather than  
            the response organizations to have a fishing response program.  
            In addition, author and committee may wish to consider  
            amending the bill to require the Administrator to assess the  
            best achievable technology of equipment for oil spill  
            prevention and response instead of placing requirements on  
            response organizations and the Administrator. The assessment  
            should be required to do all of the following: 


             a)   Consult the most recent peer-reviewed research; 










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             b)   Evaluate equipment for estimated system recovery  
               potential; 


             c)   Update the equipment rating methodology; and,


             d)   Evaluate the most current technology for increased  
               capacity. 


            The goal of the assessment will be to verify that best  
            achievable protection is being provided in case there is  
            another oil spill. The author and committee may also wish to  
            consider amending the bill to require the Administrator to  
            update regulations that judge operator's oil spill response  
            plans based on the findings of the assessment.


          4)Dispersants.  While OSPR does have the authority to use  
            dispersants, no dispersants were used in the Refugio oil spill  
            response, and the OSPR has not allowed dispersants to be used  
            in any oil spill since the creation of OSPR in 1991. A  
            National Academy of Sciences (NAS) review in 2005 concluded  
            that little to no evidence exists for the claims that  
            dispersants "reduce the impact of oil on shorelines," or  
            "reduce the impact to birds and mammals on the water surface."  
            The 2005 NAS study also found that older tests that displayed  
            enhanced biodegradation of chemical dispersants applied to oil  
            were flawed due to unrealistic conditions. There are also  
            concerns that dispersants may include chemicals known as  
            carcinogens and other toxins that may have significant impacts  
            on marine ecosystems. SB 414 prohibits chemical oil spill  
            clean-up agents from being used in response to an oil spill  
            within the waters of the state. The Act requires the  
            Administrator to evaluate dispersants and other chemical  
            agents and develop regulations on their use. However, it  
            remains unclear what chemical oil spill clean-up agents are  
            being prohibited by this bill besides dispersants. As the bill  








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            moves forward, the author may wish to define which chemical  
            agents should be banned besides dispersants and whether any  
            limited chemical agents use should be allowed.



          5)Double Referral. This bill is double referred to the  
            Governmental Organization Committee.  



          REGISTERED SUPPORT / OPPOSITION:




          Support


          Audubon California


          Azul


          Black Surfers Collective


          California Coastal Protection Network


          California Coastkeeper Alliance


          California Environmental Justice Alliance


          California League of Conservation Voters









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          Center for Biological Diversity


          City of Goleta


          Clean Water Action


          Coastal Environmental Rights Foundation


          Defenders of Wildlife


          Environment California
          Environmental Action Committee of West Marin


          Environmental Defense Center


          Friends of the Earth


          Heal the Bay


          Humboldt Baykeeper


          National Parks Conservation Association


          Natural Resources Defense Council


          Ocean Conservancy








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          Planning & Conservation League


          Santa Barbara Channelkeeper


          Sierra Club California


          Surfrider Foundation


          Surfrider Foundation, Santa Barbara Chapter


          Surfrider Foundation, South Bay Chapter


          Trust for Public Land


          Wildlands Conservancy




          Opposition


          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916)  
          319-2092









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