BILL ANALYSIS
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
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BILL NO: AJR 3 HEARING DATE: June 22, 2010
AUTHOR: Nava URGENCY: No
VERSION: May 26, 2010 CONSULTANT: Katharine Moore
DUAL REFERRAL: Environmental QualityFISCAL: Yes
SUBJECT: Offshore oil drilling.
BACKGROUND AND EXISTING LAW
The California Coastal Sanctuary Act of 1994 imposed a
moratorium on any new lease for the extraction of oil or gas in
state waters unless the President of the United States finds a
severe energy supply interruption has occurred and orders a
release from the Strategic Petroleum Reserve, or unless the
Governor determines that new oil and gas production will
significantly contribute to the alleviation of that
interruption. There are approximately three dozen extant leases
currently in federal waters off the California coast.
A similar moratorium, the Offshore Leasing Moratorium, existed
in federal law for 27 years, but was repealed in 2008 during a
period of high oil prices and leasing was expected to re-start
in July 2010. Congress subsequently blocked this plan in 2009.
President Obama announced his Administration's commitment to
continue the ban on offshore oil drilling along the entire
Pacific Coast in early April 2010. At the same time, President
Obama announced that other selected territorial waters of the
United States would be opened to offshore oil development to
meet the twin policy goals of developing new economic growth and
improving energy security by reducing the dependence on imported
oil. On April 20, 2010, the Deepwater Horizon drilling rig
exploded, and subsequently sank due to a well-head blowout at a
depth of approximately 5,000 feet in the Gulf of Mexico with the
loss of 11 crewmembers. Although estimates of the exact amount
of oil released already to the environment vary, the on-going
spill is considered to be the largest in American history -
easily exceeding the 250,000 barrels spilled by the Exxon Valdez
in 1989 - and among the largest ever world-wide. The oil slick
currently covers approximately 2,500 square miles of ocean
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surface and substantial sub-surface plumes of oil have been
identified. The impacts of the oil spill on the Gulf ecosystem
are severe with significant and on-going damage to and loss of
habitat and wildlife. Economic disruption to the coastal states
and their tourism and fishing industries is expected to be on
the order of billions of dollars.
PROPOSED LAW
Requests that Congress pass pending legislation to protect the
Pacific Coast from any new offshore oil drilling, and
communicates the Legislature's opposition to the proposed
expansion of oil and gas drilling off the Pacific Coast. The
resolution also expresses opposition to any federal energy
policies and legislation that would weaken California's
legitimate state role in siting energy facilities on state
lands.
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ARGUMENTS IN SUPPORT
According to the author, new offshore oil drilling off the coast
of California will pose a significant risk to California's coast
and the coastal-dependent tourist economy. The author also
contends that new off shore oil drilling will not lower gas
prices for consumers. Given the consideration of new offshore
oil drilling that at least recently existed at the federal
level, the author believes that a strong statement from the
California Legislature in opposition to lifting the moratorium
on offshore oil drilling is necessary.
According to the author, at least 187 large oil spills have
occurred between 1981-2005 on the outer continental shelf. The
author and other supporters contend that oil spills create
numerous risks to wildlife, and discharge many toxics into the
marine environment in the normal course of these activities. The
supporters contend that, on average, 180,000 gallons of
substances such as benzene, arsenic, mercury, and lead, per
well, are released from each well. A spill off the coast of
California could jeopardize the $93.8 billion tourism (2006
estimate) and over $2 billion commercial and recreational
fishing industries.
ARGUMENTS IN OPPOSITION
None received
SUPPORT
Environment California (sponsor)
Oceana
Sierra Club California
OPPOSITION
None Received
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