BILL ANALYSIS Ó SB 414 Page 1 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. SB 414 Page 2 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 SB 414 Page 3 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. SB 414 Page 4 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. SB 414 Page 5 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: SB 414 Page 6 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 SB 414 Page 7 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; SB 414 Page 8 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 SB 414 Page 9 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 SB 414 Page 10 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 SB 414 Page 11 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 SB 414 Page 12