BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SB 718 ----------------------------------------------------------------- |Author: |Leno | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |4/7/2015 |Hearing |4/29/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Rachel Machi Wagoner | | | | ----------------------------------------------------------------- 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 SB 718 (Leno) Page 2 of ? 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. SB 718 (Leno) Page 3 of ? 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 SB 718 (Leno) Page 4 of ? 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 SB 718 (Leno) Page 5 of ? 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. SB 718 (Leno) Page 6 of ? -- END --