BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 234
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 234
           AUTHOR:     Huffman
           AMENDED:    June 9, 2010
           FISCAL:     Yes               HEARING DATE:     June 14, 2010
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    OIL SPILL PREVENTION AND RESPONSE

            SUMMARY  :    
           
            Existing law  , under the Lempert-Keene-Seastrand Oil Spill and  
           Response (OSPR) Act:

           1) Requires the governor to establish a state oil spill  
              contingency plan (Government Code 8574.1  et seq.  ),  
              establishes oil spill response and contingency planning  
              requirements (8670.1  et seq.  ), and establishes oil spill  
              prevention, response, containment, and cleanup programs  
              (Public Resources Code 8750  et seq  .).

           2) Requires the OSPR administrator to adopt and implement  
              regulations governing the adequacy of oil spill contingency  
              plans to be prepared and implemented, taking into  
              consideration marine facility or vessel contingency plan  
              requirements of the national and California contingency  
              plans, the State Lands Commission, State Fire Marshal, and  
              California Coastal Commission.  The regulations must, among  
              other things:  a) ensure that standards set for response,  
              containment, and cleanup equipment are maintained and  
              regularly improved to protect state resources; and b)  
              ensure that each contingency plan demonstrates that all  
              protection measures are being taken to reduce the  
              possibility of an oil spill occurring as a result of the  
              operation of the marine facility or vessel.  (Government  
              Code 8670.28).

           3) Requires any person who causes or permits any oil to be  
              discharged in state marine waters to immediately contain,  
              cleanup, and remove the oil in the most effective manner  









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              that minimizes environmental damage in accordance with  
              applicable contingency plans, unless otherwise ordered by  
              the Coast Guard or OSPR administrator.  (8670.25).

           4) Requires the OSPR administrator and the State Lands  
              Commission (SLC) executive officer to propose, and requires  
              the SLC to adopt, rules and regulations relating to certain  
              matters for a marine terminal (a marine facility used for  
              transferring oil to or from tankers and barges).  (Public  
              Resources Code 8755).

            This bill  :

           1) Requires a transfer unit or oil transfer operation, as  
              defined, to provide appropriate equipment and supplies for  
              containment and removal of oil spills in water adjacent to  
              the transfer site, and to preboom each oil transfer for the  
              entire transfer operation.  (A "boom" refers to a flotation  
              boom or other effective barrier containment material for  
              containing oil discharged onto surfacewater).

           2) Sets requirements for the preboom transfers relating to  
              boom length, area of boom deployment, and boom adjustment.

           3) Requires transfer units in an oil transfer operation to be  
              equipped with properly functioning alarms and sets  
              requirements relating to alarm operation, audibility, and  
              other matters.

           4) Requires the transfer unit or oil transfer operation to  
              have at least one person on the bridge able to communicate  
              fluently and effectively in English and in the language of  
              the vessel master.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "On October 30,  
              2009, the Dubai Star spilled between 400 to 800 gallons of  
              bunker oil into the San Francisco Bay within six miles of  
              the Alameda coastline, devastating local wildlife and  
              aquaculture.  The results of the investigation are still  
              pending, but reports have cited investigators for [OSPR] as  










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              saying the Dubai Star oil spill occurred when one of the  
              ship's massive fuel tanks overfilled during an early  
              morning refueling stop and crew members failed to notice  
              until oil had already seeped into the bay.  The Dubai Star  
              did not pre-boom prior to the oil transfer, but did have  
              the appropriate equipment on board the vessel.  According  
              to OSPR, by the time workers realized there was a leak, it  
              was too late to contain by deploying the booms."

           The author notes that "Had the Dubai Star pre-boomed prior to  
              beginning the oil transfer, it could have prevented a vast  
              majority of the oil leaking into the bay from contaminating  
              the vast swath of bay that it did and prevented economic  
              hardships for the fisheries that had to be closed.   
              Prevention is the key to protecting the environment from  
              any harm that an oil spill may cause. Pre-booming prior to  
              an oil transfer can effectively retain a significant amount  
              of oil under oil spill conditions, providing precautions  
              for maximum possible containment."

           According to the author, "California experienced 14 oil spills  
              (including the Dubai Star spill) . . . from refueling/oil  
              transfer operations.  Of those 14, one operation  
              pre-boomed.  OSPR recently opened up a rulemaking to amend  
              their prebooming regulations.  The current draft . . . does  
              not require pre-booming. "

           The author also notes that "AB 234 is modeled after Washington  
              State, which requires pre-booming unless unsafe or  
              ineffective, in which case the vessel operator must file a  
              report explaining why they did not pre-boom.  According to  
              the [Department] of Ecology, Washington has [a] 90%  
              pre-boom rate (when they expect pre-booming to occur, per  
              weather conditions, currents, tide).  The [Department] of  
              Ecology says they   see  oil transfers and pre-booming  
              occurring in areas from 0 to around 3 knots.   Booming  in  
              current is a normal operation on the Columbia River  , which  
              experience knots that exceed 1 knot."

            2) Current OSPR booming regulatory efforts  .  OSPR distributed  
              a "Notice of Informal Written Comment period" May 19, 2010,  
              for draft regulations relating to booming.  The informal  










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              comment period ends June 14, 2010.  Current regulations  
              authorize "prebooming" or "standby booming" for transfer  
              units.

           Proposed draft regulations require prebooming, except that  
              standby booming is required if the transfer units have  
              successfully demonstrated to the OSPR administrator their  
              ability to deploy and maneuver boom in an equipment  
              deployment drill.  Proposed draft regulations also require  
              annual equipment deployment drills necessary to meet these  
              standby drill requirements, monitored by OSPR, that must be  
              conducted in an environment and under conditions similar to  
              those that would be encountered during an offshore  
              bunkering operation.

           AB 234 requires a transfer unit or oil transfer operation to  
              preboom each oil transfer for the duration of the entire  
              transfer operation, and includes additional alarm and  
              bridge staffing requirements. 

            3) Support and opposition concerns  .  According to the  
              Department of Fish and Game in opposing AB 234, "OSPR is  
              vested with very broad authority to promulgate regulations  
              governing activities that may result in oil spills in  
              marine waters.  Among this authority is the ability to add  
              requirements to enhance spill prevention and increase  
              environmental protections during fuel transfer operations.   
              OSPR recently held a public meeting to discuss the need for  
              regulatory additions in this area and was pleased with the  
              broad participation by interests from across the spectrum  
              of oil-spill response stakeholders.  OSPR is committed to  
              completing this process this year, culminating with the  
              adoption of regulatory improvements, as warranted."  The  
              Pacific Merchant Shipping Association (PMSA) asserts that  
              this bill "will make fuel transfers unfeasible in certain  
              areas of California where regular high currents render  
              containment boom unsafe and ineffective."  PMSA believes  
              that AB 234 "would effectively put an end to fueling at  
              anchorage in the [San Francisco] bay" and could threaten  
              businesses at upriver ports where there are no options for  
              taking fuel beyond the bay.











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           According to many supporters, state regulations "require  
              vessels conducting fuel transfers to either pre-boom the  
              vessel or have boom on hand to respond to a potential spill  
              within 30 minutes.  Unfortunately, in the case of the Dubai  
              Star, the shipping company did neither.  In fact, Coast  
              Guard officials have told us that they have never known a  
              vessel to preboom for a fuel transfer in San Francisco  
              Bay."  Supporters note that "Fuel spills will undoubtedly  
              occur again as ships fuel in San Francisco Bay on an  
              ongoing basis.  Californians deserve assurance that our  
              responsible state agencies will indeed do what is entirely  
              possible to prevent fuel from spreading throughout the Bay  
              and reaching marshes, wetlands and other sensitive wildlife  
              habitat."  According to the Crab Boat Owners Association,  
              Inc., "AB 234 builds on the positive experience of  
              Washington State, which has mandated pre-booming as the  
              gold standard for safe oil-transfers to protect people,  
              wildlife, and the environment . . . When oil is spilled,  
              every minute counts and pre- or immediate booming is the  
              best line of defense."

            4) Clarification needed  .  AB 234 contains definitions from  
              various regulations.  If the committee believes that boom  
              requirements should be addressed in statute, rather than  
              through the regulatory process (as currently being  
              undertaken by OSPR, for example), it would be helpful to  
              more clearly define the circumstances under which this  
              bill's boom, alarm, and bridge staffing requirements apply.

            5) Referral to Natural Resources and Water Committee  .  If this  
              measure is approved by this committee, the do pass motion  
              must include the action to re-refer the bill to the Senate  
              Natural Resources and Water Committee.

            SOURCE  :        Assembly Member Huffman  

           SUPPORT  :       Audubon California, Blue Frontier Campaign,  
                          Center for Biological Diversity, Crab Boat  
                          Owners Association, Defenders of Wildlife, East  
                          Bay Bird Advocates, Environmental Defense  
                          Center, Friends of the Earth, Institute for  
                          Fisheries Resources, Natural Resources Defense  










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                          Council, Ocean Conservancy, Pacific Coast  
                          Federation of Fishermen's Associations, Pacific  
                          Environment, Richmond Shoreline Citizen  
                          Response, Sierra Club (S.F. Bay Chapter),  
                          Surfrider Foundation, Turtle Island Restoration  
                          Network, Waterways Restoration Institute, 2  
                          individuals  

           OPPOSITION  :    Department of Fish and Game, Pacific Merchant  
                          Shipping Association