BILL ANALYSIS Ó SB 414 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 414 (Jackson) - As Amended August 19, 2015 ----------------------------------------------------------------- |Policy |Rules |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Natural Resources | |8 - 1 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Governmental Organization | |12 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill makes various changes to the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (Act) relating to oil spill response. Specifically, this bill: SB 414 Page 2 1) Requires the Administrator for Oil Spill Response, in cooperation with the Coast Guard, to establish a schedule of drills and exercises required by Federal law. 2) Requires the Administrator to develop and implement regulations and guidelines to require operators to allow rapid response to an oil spill by vessels of opportunity, including contracted fishing vessels and fishing crews. Requires vessels of opportunity to participate in regularly scheduled emergency drills and training in areas as specified. 3) Requires the Administrator, when studying the effects of dispersants, incineration, bioremediation and any other response methods, to consult the peer-reviewed published scientific literature. Requires the Administrator to update the California Dispersant Plan by January 1, 2017, and periodically update the study and plan as specified. 4) Requires the Administrator to submit a report to the Legislature by July 1, 2016, assessing the best achievable technology for oil spill prevention and response equipment as specified. Requires the Administrator to update regulations based on the report to enhance prevention response, containment, cleanup, and wildlife rehabilitation. 5) Requires the Administrator to provide written justification and a follow-up report to the Legislature if dispersants are used in response to an oil spill as specified. 6) Specifies, for spills greater than 500 gallons, the SB 414 Page 3 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. 7) Requires the administrator to adopt regulations governing the method for determining the amount of oil that is clean-up. FISCAL EFFECT: Increased one-time and ongoing costs in the range of several million dollars (GF and/or special fund) for the Department of Fish and Wildlife to implement the requirements of the bill. COMMENTS: 1)Purpose. The purpose of this bill is to improve oil spill prevention and response. 2)Background. The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (Act) requires the Governor to establish a state oil spill contingency plan and establishes oil spill prevention, response, containment, and cleanup programs. SB 414 Page 4 Under the Act, the Oil Spill Administrator promulgates regulations that provide for the best achievable protection of waters and natural resources of the state. 3)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. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081