BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 414


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          SENATE THIRD READING


          SB  
          414 (Jackson)


          As Amended  August 19, 2015


          Majority vote


          SENATE VOTE:  35-2


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |8-1  |Williams, Dahle,      |Harper              |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Hadley, McCarty,      |                    |
          |                |     |Rendon, Mark Stone,   |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Governmental    |12-0 |Gray, Alejo, Campos,  |Harper              |
          |Organization    |     |Cooley, Cooper, Daly, |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Gipson,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |








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          |                |     |Levine, Wilk          |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Nazarian, Eggman,     |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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:


          1)Requires the Administrator of the Office of Spill Prevention  
            and Response (Administrator), 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  








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            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 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.


          EXISTING LAW:  


          1)Requires the Administrator, 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.  










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          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.


          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.








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          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  
            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.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, increased one-time and ongoing costs in the range of  
          several million dollars (General Fund and/or special fund) for  
          the Department of Fish and Wildlife to implement the  
          requirements of this bill.


          1)Refugio Oil Spill.  On May 19, 2015, a pipeline owned by  
            Houston-based Plains All American Pipeline ruptured, spilling  
            approximately 101,000 gallons to 140,000 gallons of heavy  
            crude oil along the Gaviota coast in Santa Barbara County.  It  
            is estimated that 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  








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            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 were closed for  
            over a month because of the oil spill.  Fisheries from Canada  
            de Alegria to Coal Oil Point were closed for over a month,  
            which negatively impacted several commercial fisheries -  
            including lobster, crab, shrimp, halibut, urchin, squid,  
            whelk, and sea cucumber. The Oiled Wildlife Care Network  
            recovered 195 dead birds and 106 dead marine mammals from the  
            spill.  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 worked to clean up the  
            beaches. 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  
            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. 


          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  








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            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.  This bill requires the Administrator to assess,  
            using specified criteria, the best achievable technology of  
            equipment for oil spill prevention and response. The goal of  
            the assessment will be to verify that best achievable  
            protection is being provided in case there is another oil  
            spill.  The bill also requires Administrator to update  
            regulations that judge the operator's oil spill response plans  
            based on the findings of the assessment.




          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0001693