BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:           SB 718
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          |Author:    |Leno                                                 |
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          |Version:   |4/7/2015               |Hearing      |4/29/2015       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Rachel Machi Wagoner                                 |
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          SUBJECT:  Hazardous Materials Response and Restoration  
          Subaccount

           ANALYSIS:
          
          Existing law:  
          
          1. Under the Lempert-Keene-Seastrand Oil Spill Prevention and  
             Response Act (Act) (SB 2040), Chapter 1248, Statutes of 1990,  
             the Office of Spill Prevention and Response (OSPR) in the  
             Department of Fish and Wildlife (department) was created.  
             OSPR's mission is to provide the best achievable protection  
             of California's natural resources and the public health and  
             safety by preventing, preparing for, and responding to spills  
             of oil and other related deleterious materials; and to  
             restore and enhance affected resources.

          2. The act establishes the Oil Spill Prevention and  
             Administration Fund (OSPAF) which finances oil spill  
             prevention and planning programs and the Oil Spill Response  
             Trust Fund (OSRTF) which is used to provide the cash flow for  
             the response to and clean-up of California's oil spills and  
             for certain wildlife care and spill-related damages.

          3. OSRTF is funded by a $0.25 per barrel fee. This fee is  
             assessed on distributors, pipeline operators, refiners, and  
             marine terminal operators until the fund balance reaches its  
             statutory target of $54.8 million.  Fee collection resumes  
             only when the fund contains less than 95% of this designated  
             funding level. This automatic replenishment is designed to  







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             prevent any oil spill response from being limited by  
             available funds.

          4. The Oiled Wildlife Care Network (OWCN) rescues and  
             rehabilitates wildlife affected by coastal oil spills and has  
             more than 30 member organizations and affiliated agencies.   
             It maintains more than 12 specialized facilities in a  
             constant state of readiness, and has saved more than 14,000  
             oiled birds and mammals affected by more than 80 oil spills  
             since 1995.  It was formed pursuant to the act in  
             collaboration with the department in order to provide the  
             most proactive response in the world to oiled wildlife.  OWCN  
             response to an oil spill is funded through the OSRTF.

          This bill:  

          Allows the OSPR administrator to borrow up to $500,000 annually  
          from the OSTRF and move it to the Hazardous Materials Response  
          and Restoration Subaccount in order to reimburse wildlife rescue  
          and rehabilitation organizations for their response to spills of  
          non-petroleum materials that harm wildlife, as specified.  The  
          loan would be repaid with interest no later than 10 years after  
          it is issued either from funds recovered from the responsible  
          party or from the general fund.  The administrator would be  
          required to notify the Legislature of the loan. 

            Background  
           
          1. Mystery Contamination in the San Francisco Bay.

             In mid-January 2015, a spill of a sticky "mystery goo" in San  
             Francisco Bay coated more than 600 waterfowl and killed over  
             half of them.  OSPR responded to the spill.  However, when it  
             was determined that the mystery goo was not petroleum-based,  
             the funding for the department's response was shifted away  
             from OSPR moneys.  Additionally, OSPR funds were not  
             available through the OWCN to support wildlife rescue and  
             rehabilitation.  

             According to news reports, a local wildlife rescue and  
             rehabilitation organization, the International Bird Rescue,  
             has spent over $150,000 to respond to the spill.  This  
             organization has released over 100 waterfowl back to the wild  
             following rescue and rehabilitation.








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             Efforts continue to identify the mystery goo and determine  
             the identity of the responsible party.  According to news  
             reports several laboratories are involved in the effort to  
             determine the chemical composition of the goo.
            
          Comments
          
          1. Purpose of Bill.  

             The author states that "while California has a robust oil  
             spill response system, non-petroleum-based substances are not  
             covered by existing oil spill response laws, and without a  
             party to hold responsible, local non-profit organizations  
             have had to spend scarce resources (up to $300,000 by some  
             estimates) on wildlife cleanup and rehabilitation without  
             state assistance.  Had the substance been found to be  
             petroleum-based, OSRTF resources would have been available  
             for cleanup purposes, at minimal cost to the state.  

             "SB 718 addresses the gap that currently exists in the  
             authority and funding mechanisms necessary to respond to  
             spill events where the material spilled has yet to be  
             identified or is found to be non-petroleum based, and where  
             no responsible party has been determined. In these rare  
             instances, OSPR needs clear authority to respond and borrow  
             the necessary funding for wildlife care until such time as a  
             responsible party is found and required to reimburse the  
             state with interest.

             "This bill requires notification to the Joint Legislative  
             Budget Committee (JLBC) if such borrowing occurs in order to  
             ensure Legislative oversight.  The responsible party for the  
             spill, once identified, is required to repay any loan made  
             pursuant to this bill with interest, and all loans must be  
             repaid within ten years.

             "This bill is a modest, but needed measure that will fill a  
             gap in existing spill response laws without creating a new  
             fee, and will help protect California's treasured wildlife."

          2. Exposed Vulnerability of the State.
            
             In 2014, in the wake of several major rail accidents across  








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             the United States and Canada related to the influx of crude  
             oil transport by rail, the Senate conducted an oversight  
             hearing to discuss the state's preparedness for an incident  
             should it occur in California.  That hearing highlighted the  
             need to bolster our emergency response and cleanup resources.

             The 2014-15 Budget Act augmented OSPR with additional  
             resources and funding to better address oil incidents.   
             Additional funds and resources were also made available for  
             equipment for emergency responders.

             However, the hearing also highlighted that in addition to the  
             influx of crude oil coming into the state by rail, there is  
             also greater quantities of other hazardous substances being  
             transported by train into and across the state.  These  
             substances also pose a threat to the waters of California,  
             however, would not be addressed by the OSPR Budget  
             augmentations mentioned above.  

             The non-petroleum incident in the San Francisco Bay further  
             highlights the inconsistent governmental and funding  
             resources given to petroleum-based incidents versus some  
             other contamination into water.

             While it is not specifically related to this legislation, the  
             Senate may wish to further explore the programmatic  
             augmentations that may be needed to be better prepared for  
             any incident - petroleum or otherwise.
            
          SOURCE:                     
           Audubon California (co-sponsor)
          San Francisco Baykeeper (co-sponsor)
            
          SUPPORT: 
          Buena Vista Audubon Society
          California Coastkeeper Alliance
          California Environmental Health Initiative
          Citizens Committee to Complete the Refuge
          Clean Water Action
          Defenders of Wildlife
          Ducks Unlimited
          Environment California
          Five Creeks
          Golden Gate Audubon Society








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          International Bird Rescue
          Madrone Audubon Society
          Ohlone Audubon Society
          San Francisco Bay Joint Venture
          Santa Clara Valley Audubon Society
          Save the Bay
          Sierra Club California
          The Fund for Animals Wildlife Center
          The Humane Society of the United States
          The Nature Conservancy
          West Marin Environmental Action Committee
          Wildcare

            OPPOSITION:    
          None on file  

           ARGUMENTS IN  
          SUPPORT:    
          According to Audubon California, "It is essential that the  
          [department] and OSPR have the necessary tools and funding to  
          adequately respond to wildlife emergencies during all  
          significant spills, including those that are not  
          petroleum-based."

          They continue, "SB 718 will allow OSPR to protect wildlife that  
          come into harm by way of non-petroleum based substances, like  
          the mysterious grey goo that was spilled in San Francisco Bay.  
          The bill would close the hole in California law that hinders  
          wildlife response during non-petroleum based spills."

          The author notes that "without a party to hold responsible,  
          non-profit organizations have had to spend scarce resources (up  
          to $300,000 by some estimates) on wildlife cleanup and  
          rehabilitation without state assistance."  Senator Leno adds,  
          "had the substance been found to be petroleum-based OSRTF  
          resources would have been available for cleanup purposes."
           
           DOUBLE REFERRAL:  

          This measure was heard in Senate Natural Resources and Water  
          Committee on April 14, 2015, and passed out of committee with a  
          vote of 6-2.
           
           








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